10 Things You Never Knew Car Insurance Covered
Very often, car owners just get a car insurance because it’s mandatory*, and don't actually go through the details, even when it's time for renewal.
But, without checking your policy document, you'll never know if you’re missing out on any of the key features and benefits of its coverage.
We’re sure you love your car as your pride and joy, and you went through months of deliberation, research and saving before picking it out. So why would you skip doing the same research when it comes to protecting your car? Car insurance is like the umbrella that protects your car from a storm of unexpected risk and losses.
Don't worry though! We’re here to guide you on all the things you may have missed (or don't know) in your car insurance policy so that you can maximize its benefits. Here are some things you might have missed out about your car insurance policy:
*Having at least a third-party liability insurance is required by law in India.
1. Your coverage goes beyond just accidents cover
Many people think that car insurance is just for when your car gets damaged or incurs losses caused by accidents. But a car insurance covers a whole lot more than that!
While a third-party liability policy only covers damages you may cause to any third-party or their property, a comprehensive car insurance also covers your own car from losses and damages due to thefts, natural calamities, fires and more.
2. You can get free-of-cost towing
When your car gets into an accident or breaks down, especially on highways or remote areas, mechanics can sometimes charge exorbitant amounts to tow it to a garage.
However, did you know that with a comprehensive plan, most car insurance providers usually provide free towing assistance up to a certain amount, or distance?
So, the next time your car breaks down, contact your car insurance provider and make the most of this benefit.
3. You will have the benefit of paperless and instant renewals
You might think that anything involving documents is going to be a lengthy and time-consuming process. But when it comes to renewing your car insurance policy, many insurance providers these days offer you an easy and instant online renewal that involves zero or minimal paperwork and no filling out of any complicated forms. All of it can be done in just a few clicks! 😊
4. You can opt for cashless repairs in case of damages
If you have a comprehensive car insurance policy, you can get the benefits of a cashless car insurance.
This hassle-free process allows you to get your car repaired at any authorized garage – also called a network garage – after any damages due to an accident without paying anything out of your own pocket. Instead, the bills for these repairs would be sent directly to your insurer and they will settle it with the garage.
5. You can cover for your car accessories and modifications too
In case your car is damaged or lost in an accident, most car insurance policies will just cover that car itself and not any accessories or modifications you have made to it (for example fitting a CNG fuel kit).
However, you can get these covered as well by notifying your insurer about these new accessories. This may increase you premium, but it will prove to be more cost-effective than buying whole new set of accessories! 😄
6. You might be eligible for a No Claim Bonus
A No Claim Bonus (or NCB) is a sort of discount that insurance companies offer to those who have not made any claims during the previous year.
So, if you have been driving safely during the policy year, the insurance company rewards you with a discount on your premium at the time of renewal.
This no claim bonus discount ranges from 20%-50% and increases with each claim-free year. Considering how much of a difference this reduction can make on your premium, remember to drive safely.
You can even purchase a no-claim bonus protection cover from some insurers as an add-on to ensure your NCB is valid even if you make a few small claims.
7. You can transfer your No Claim Bonus
If you’re planning to upgrade your car, and you have accumulated a No Claims Bonus (NCB) with your current vehicle, you don’t have to lose that NCB.
You can transfer this to your new car. Even if you’re planning to transfer your car insurance policy, you can still keep your current NCB to the car insurance policy under your new policy.
8. You can save more with a zero-depreciation cover
The actual value of your vehicle and its parts depreciates over time, mostly due to wear and tear. In fact, the second a brand-new car is driven out of a showroom, it is considered to have depreciated in value by 5%! 😲
With a Zero Depreciation add-on, you can ensure that your insurance company will not consider this depreciation of your vehicle and its parts’ values when computing the claim settlement amount for repairs or replacement.
9. Apart from normal repairs, you can protect your engine too
Unless it was caused by an accident, getting your engine repaired or even replacing your engine for any reason can turn out to be very expensive, and they are not covered under a standard policy.
However, if you get an Engine Protection add-on, you’ll be protected even if your car engine gets stalled due to oil leakage or water ingression.
10. You can even get your lost keys replaced!
Losing your car keys can be a really stressful experience. But if you’ve got a Breakdown Assistance add-on cover, you won’t just get assistance towing your vehicle, you can also get help getting your spare set of keys delivered to you.
Or, if you have accidentally locked the keys inside your car, you can even get help in unlocking the car and getting them out!
So, while it is mandatory for you to purchase a car insurance policy (at the very least, a third-party liability-only plan), this shouldn’t mean that you never check up on all the benefits of your policy.
If you know exactly what your policy offers, you can even compare the many options that are available and choose the right insurance policy, the one that best matches all your requirements, so that you can make the most of your car insurance policy.