You have spent a good amount of time to decide whether or not you want to buy a car and then finally choose a car that best suits your needs. But the story doesn’t end there, does it? To ensure that you can drive your car peacefully for a longer period of time, you must buy a car insurance.
While the first car insurance comes by default with the car from the dealer, there are a few things that you must clarify. If you have already bought your new car, there are a lot of small secrets that can help you during the renewal cycle. Here is a list of the top secrets that your insurer/dealer will never tell you.
- Skip Claims
Hear us out. If your car needs some major repair or fix, it makes absolute sense to go ahead and claim your policy. For smaller issues, it is better to you pay it out from your pockets. And there is a good reason for the same. If your repair bill is small enough, if you pay it from your pockets, you avoid claiming your insurance. This makes way for healthy savings during the next renewal cycle.
You most certainly would have heard of NCB or no claims bonus. It is a discount that insurers offer to a policyholder if they do not claim their policy for a certain duration. The discount starts at 20% for the first year and goes all the way up to 50% for five consecutive years. Thus, if your bill is less than the discount that you can avail, it makes sense to pay them from your pockets.
While some car owners love their stock car as it is, others feel the need to customize their cars. This results in the addition of alloy wheels, spoilers, exhaust modifications, etc. While there is no harm in doing so, do keep in mind that your insurance premium will most likely go up due to these. Also, if you have installed any expensive gadgets in your car, it will not do any good to your premium.
- Security Devices
While we do not speak about it out loud, theft is one of the major reasons one must buy or consider buying a car insurance. A comprehensive car insurance usually offers coverage against theft of the vehicle. Though it comes at a price, it is a cover worth investing your money in. However, if you are worried about theft, installing a security device might be the smart way out.
Firstly, you get complete peace of mind regarding the whereabouts of your vehicle. Secondly, insurers acknowledge the importance of security device installations. As a result, you will be able to reduce your car insurance premium by a decent margin.
- Comprehensive Cover
Buying a comprehensive cover almost seems like a no-brainer. By paying some additional premium, you can avail a lot of additional benefits and features. However, not everything is covered as a part of a comprehensive cover. Sure, it offers the mandatory third-party liability cover, it covers your own damages, natural calamities, personal accident cover, theft, vandalism and so on. However, a standard comprehensive plan might not cover other aspects. Take depreciation as an example. As your car gets old, it depreciates at a faster rate. This results in you ending up paying a higher amount from your pocket during the claims. A comprehensive plan by no means is inefficient. But one needs to read through the policy documents and find out the smaller details before actually buying one. Or else, you will end up buying more and more add-ons.
Of the several jargons related to a car insurance policy, a deductible is one of the most heard ones. Some of us are aware that opting for a higher deductible can help you reduce your insurance premium. While it is true on the onset of things, there is more than what meets the eye. For those who are not aware, a deductible is an amount that you need to pay mandatorily during each claim.
For an example, if you opt for INR 1000 as deductible and the claim is of INR 5000, the insurer will cover INR 4000 and the rest INR 1000 is paid by you. However, if the claim amount is less than the deductible, insurers reject the claim. Thus, you need to choose the deductible wisely.
These are some of the lesser known facts or secrets as far as a car insurance is concerned. Keeping these in mind will help you buy a better policy.