Looking at the roads filled with cars of various makes and models fills the hearts of many people with a desire to own a car. They can feel a sense of pride, excitement, and utility, which comes with it. If having a car you can call your ‘own’ is a necessity in life, then buying car insurance is no less than a responsibility.
Paying for vehicle damage repair services is not an affordable affair. Plus, the number of road accidents are on the rise. Therefore, buying the most suitable car insurance policy can make your driving experience hassle-free and ensures that you do not face a financial burden.
If you are planning to buy a car, you must have done the required research about ways to select a car insurance policy. There are so many things to consider before purchasing four-wheeler insurance. The probability that you are still not clear about certain aspects is high.
Here are four things you may not know about a car insurance policy:
1. Laws related to Car Insurance Changed Recently
Timely renewal of car insurance is essential for you to continue getting insurance benefits. However, you may lose these benefits on failing to renew the policy on time. Considering these aspects in mind, IRDA changed certain laws related to car insurance in India. With effect from September 2018, all new car buyers need to buy third party insurance for at least three years upfront.
Similarly, traffic rules related to not carrying a valid car insurance policy have also been changed. You will need to pay a fine of up to INR 1,000 and imprisonment up to three months or both.
2. Zero Depreciation Cover Can Help You Save Money
The market value of your car will depreciate with time, which is what the insurance companies consider while insuring your car. When you renew your car next time, it gets insured as per its depreciated value under the standard car insurance policy.
However, you can choose zero depreciation add-on wherein the depreciation is not counted while getting the claims reimbursed. You will get the maximum amount of claim equal to the IDV of your car as per the policy rules.
Take the case of TATA AIG’s Depreciation Reimbursement add-on, which offers full claim without deducting the depreciated amount from your car’s IDV during claim settlement.
3. Transfer of Insurance is Required with Used Cars
Depending on your budget, you might be considering the option to buy a used car instead of a new one. Along with transferring the chosen car’s ownership to you, you also need to get the car insurance policy transferred to your name.
Many people forget this aspect of buying a used car and end up facing troubles later in time. To avoid such problems, make insurance transfer a significant part of your used car buying checklist.
4. You Get NCB as a Reward for Every Claim-Free Year
No Claim Bonus or NCB is the reward you get from your insurer for not filing any claim in a specific year. So, you need not think that the premium you pay to buy a car insurance policy gets wasted if you do not file a claim during its tenure.
You can encash NCB in the form of a discount on your next payment for four wheeler car insurance renewal. Also, NCB gets accumulated when not used every year. So,it is a wise decision to pay for small car damage repair services out from your pocket and avoid filing a claim for the same.
After knowing these important things about car insurance, you will be able to make a prudent decision about choosing the right policy.