10 Secret Things You Didn’t Know About Car Insurance

Since car insurance in India is a mandatory requirement as per law for all the car owners, most people simply buy and renew their insurance policy for the sake of law, without going through the policy documents. However, this is where you miss all the benefits and perks which a car insurance company offers in these policies. Below is the list of 10 such secrets in your car insurance policy that you might have not known before:

Different Insurance coverage for cars in personal use vs commercial use:

Car insurance in India offers different coverage for cars in personal use vs commercial use. The difference could be in premiums, IDVs or the scope of coverage depending on the policy documents. We recommend buying commercial vehicle insurance if your car is being used for commercial purposes. For the cars in personal use, you may buy Comprehensive car insurance when it’s a new car or you use your car frequently for traveling, if not, buy third-party car insurance.

Key Replacement:

If you lose a car key and want a replacement from Authorized Car Centres it could cost you between Rs. 8000 to lakh depending on your car which can be reimbursed with car insurance in India.

Engine repairs:

A car engine repair cost in India starts from Rs. 40000 to lakhs depending on your car. You can get an add-on engine repair cover from the car insurance company which covers these costs. With this cover, you can get your engine repair even if there was no damage caused due to an accident.

Engine repairs:

Zero Depreciation on car parts:

Car parts get depreciated over a period of time which reduces the IDV of your car. Since IDV keeps reducing your cost of replacement for new parts get more expensive. To solve this problem, you can get a Zero Depreciation cover from the car insurance company.

Complete car insurance:

Car Insurance in India usually covers the basic car parts and not the additional accessories you add to your car. You can get the accessories covered at slightly higher premiums from the car insurance company, which is a cost-effective option to get your accessories protected too.

Towing charges are covered:

You can claim the cost of towing charges paid from the car insurance company up to a limit specified on your policy document.

Grace period for expired policy to renew:

Car insurance companies in India offer a grace period of 90 days to renew your expired car insurance policy without losing the NCB benefits.

Transfer NCB from old to new car:

You can transfer your accumulated NCB on your old car to your new car to get your new car insurance at discounted rates. Most people selling their old cars do not get their old car’s NCB certificate from the Insurance company and hence lose this benefit. It will be interesting to know that you do not need to buy a new car immediately to get the NCB benefit transferred. You can get the NCB certificate and keep it as long as you want and use it whenever you purchase a new car.

Not all damages are covered in Comprehensive car insurance:

Comprehensive car insurance is an extensive cover to offer both third party and own damage cover. However, these insurances have certain inclusion and exclusion conditions mentioned in your policy documents which can vary between different car insurance company.