A few years ago, buying car insurance meant accepting the default insurance plan offered by your motor dealer. But since the digital revolution in the country, buying a dealer-suggested policy is no longer the only way to avail insurance cover for your car. You can also buy car insurance online that opens a host of different options to choose from. Moreover, you are not limited to one insurer but can select a plan from all available insurance companies.
Buying car insurance online has reduced the friction to simplify the entire process. You can decide which policy to choose, the different add-ons to opt for and many more facets about the policy—all at the convenience of your home. This article aims to explain some lesser-known car insurance secrets helping you understand car insurance plans in detail.
- Your claim history has an impact on car insurance premiums.
Car insurance is a financial safety net for any repairs that may be required to your car other than legal compliance. But it isn’t advisable you make frequent insurance claims. Doing so makes you a high-risk policyholder and impacts the overall premium.
Contrary to that, safe driving is rewarded by the insurance companies by offering a no-claim bonus (NCB). This amount of no-claim bonus is a concession in your renewal premium for not making any claims during a policy tenure. The amount of such a concession is offered as a percentage of the own-damage premiums and starts at 20% and goes all the way up to 50% with each consecutive claim-free policy tenures. Car insurance renewal online without a break in the coverage is the only thing to remember to be eligible to claim the no-claim bonus. *
- No cashless claim is entirely cashless
This might disappoint you at first, but every car insurance plan has a certain amount of deductible. The deductible is an amount that you, the policyholder, must pay before the insurance company compensates for the repairs. Thus, you need to bear the compulsory deductible along with any voluntary deductible even in a cashless car insurance plan. *
- Changing car insurance companies is possible without losing on no-claim benefits
As discussed above, the no-claim bonus is a markdown in car insurance prices at renewal for not making claims in a policy period. The NCB benefits are specified by the Insurance Regulatory and Development Authority of India (IRDAI) and thus, are available for comprehensive insurance policies. When changing your insurance company, you need to submit an NCB transfer certificate to the new insurer by informing them about the accumulated NCB benefits. Hence, transferring the NCB is possible without missing the NCB feature. You can visit the official website of IRDAI for further details. *
* Standard T&C Apply
These secrets of car insurance plans help to select robust insurance coverage at a wallet-friendly price tag. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.