5 Car Insurance Facts You Must Know!
Published On 14 Oct 2019 By InsuranceDekho
Here are the most important car insurance facts which must be known to every car owner!
Like any other commodity, a car insurance should also be bought after doing a proper research. However, we do understand that in this fast-paced world, if often becomes difficult to do extensive research, specially when one possesses limited knowledge about it. Hence, we bring to you the 5 most important facts which you must know before buying a car insurance policy. These facts do not only equip you a higher degree of knowledge but also help you smartly buy a car insurance policy.
5 Car Insurance Facts You Must Know
Fact 1: Different Car Insurance Companies Charge Different Premiums for the Same Car
Except for the third party liability car insurance policy, the premiums of other car insurance covers varies across car insurance companies even for the same car. This is because of the difference in facilities offered by them such as the number of their cashless garages, their claim settlement ratio, etc. Hence, it is wise to compare car insurance policy premiums across insurance companies before buying a car insurance policy. You can easily compare car insurance policies offered by different insurance companies instantly and easily at our platform InsuranceDekho.
Fact 2: Car Insurance Premium Depends on Car’s Make and Model
Besides other things, the premium of a car insurance premium also depends on a car’s make and model. There is a rating system of insurance premiums for different models and make of a car, which insurance companies insurance companies generally do not reveal. However, you must get this information from your insurance company before purchasing a car insurance policy.
Fact 3: Install Security Devices and Pay Less
You can avail discounts on your car insurance premiums by installing Automobile Regulatory Authority of India (ARAI) approved anti-theft devices in your car. By installing these security devices you can fetch a discount of up to 2.5% on your premium.
Fact 4: Filing Minor Claims is Not Wise
Although there is no restriction on the number of car insurance claims which you can file, however, you must refrain from filing claims for minor damages. This practice helps you experience claim-free years which help you get a No Claim Bonus (NCB) discount on Own Damage (OD) premiums. The NCB discount rate starts from 20% and can go up to 50%.
Fact 5: Voluntary Deductibles Are Optional
A car insurance deductible refers to the amount which a policyholder agrees to pay at the time of a claim settlement in return for a discount on the premium. There are two types of deductibles - compulsory and voluntary. It is not advised to opt for a voluntary deductible as it reduces the claim amount.
Disclaimer: This article is issued in general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.