Top Secrets About Car Insurance That You Should Know!

Published On Mar 23, 2021 11:00 AM By InsuranceDekho

Know top secrets about car insurance which your insurer may not tell you during the time of buying or renewing your car insurance policy. Here are top secrets which you should know as they can hit your insurance premium and claim.

To avail the most out of a car insurance policy, you need to secure every information about it. Due to lack of knowledge, many people fail to make right decisions related to their insurance plans which deprive them to enjoy their policies to the fullest. In this article we will reveal some secrets which every car insurance policyholder should know but very few insurance companies tell.  

Secrets About Car Insurance That You Should Know

Here are the significant points about car insurance which you may not know but are quite beneficial while availing the car insurance:

1. Safety Devices Lower Your Premium

If you install an Automotive Research Association of India (ARAI) certified anti-theft device in your car to protect it, then, in addition to providing security to your car, the device can also lessen the amount of your car insurance policy premium. It is because such devices reduce the chances of theft or damage caused to your car which ultimately lower the risk on the insurance company.

2. Irresponsible Behaviour Can Lead to Claim Rejection

An insurance company can compensate your car damages incurred due to an accident or a mishap, but may not get your back if you are careless about handling the car and loss has been caused due to your irresponsible behaviour. For instance, if you park your car somewhere without locking the car  due to which your car gets stolen. In such a situation, your car insurance claim will be rejected by your insurer as it will be considered your fault. 

3. Cashless Claims Are Not Completely Cashless

A cashless claim means that the policyholder does not have to bear the repair cost and the insurance company pays off their bill on their behalf. But it is half truth, every policyholder needs to pay for deductibles which could be compulsory deductible or voluntary deductible. A compulsory deductible is the cost that you have to pay to get your car repaired, while voluntary deductible is the amount set by you to be paid during the time of repair. These are imposed to encourage you to drive safely and make you avoid making small claims. In short, a cashless claim is not completely cashless.

4. Invoice Value Can Be Given for an Old Car

The invoice value of your car could be provided with the Return to Invoice Add-on cover, in case it gets stolen or sustained damage beyond repair, even if you have used the car for a couple of years. You are also entitled to get the amount spent by you to register your car plus the road tax under this cover. 

5. CSR Is Not the Ultimate Factor to Choose an Insurer

A low Claim Settlement Ratio (CSR) of an insurance company can not make it a bad company as it can also get affected by factors such as fraudulent claims or inadequate details about the incident, policyholder stopped responding to insurer’s queries, etc., which can result in unsettled claims. Hence, CSR cannot be considered the ultimate factor for selecting or rejecting an insurer. 

Disclaimer: This article is issued in the 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.

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