A car insurance policy offers several benefits and flexibility which could do wonders for you. But for availing such benefits of car insurance, you should be totally aware of, otherwise, you might be left with a policy that would prove to be inept when you would need it the most. Whether tough terrain or long trips, be assured of assistance when you require it the most.
Chaotic careers, regularly busy lives, looking after children and several other demands could easily make us bit rusty with respect to awareness of the basics of car insurance. Most of the car owners aren’t much aware of the car insurance policies and end up going for the one suggested by their relatives or friends who would have bought it through an insurance agent.
Typically, the insurance agents endorse the car insurance policy which pays them high commission. You should not to fall prey to their tall claims and use your own brain while buying a car insurance policy. Here are few things which you might not know about the car insurance policy, but are important to know –
- Renewal of Car Insurance policy
You don’t have to worry if you forgot regarding car insurance renewal within the due date as you would receive a 90-day window from the expiry of your car policy. During this 90-day period, you can renew your car insurance policy without losing the benefits of your car insurance.
- Changes in laws
Some of us are not aware that car insurance is a legal requirement and mandatory in India. As per the recent statistics, nearly 70 percent vehicles including cars don’t have a motor insurance policy. The Indian Government imposes a fine of INR 1000 to those who drive without a proper motor insurance policy.
- Transferring insurance
Generally, while buying a used car one has to transfer the ownership of the car. Here in this case it is also equally compulsory to transfer the motor insurance in the name of the buyer.
- Effect of multiple drivers
The premium amount is decided by the insurance companies as per the risk being covered. Several drivers for a single car escalate the chances of accident and ultimately claim. Hence, car insurance providers charge higher premium in case of multiple drivers of a single car. So, it is good to have only limited number of drivers for a single car.
- Add-on policy for accessories
Basic car insurance shields you only for the damage of your car, not for its accessories which is fitted in your car. However, you have the option for covering your accessories which is fitted in your car by choosing for a separate add on that is particularly intended for accessories. These additions to the car insurance policy increase your insurance premium, but it would prove to be more cost effective than getting a new accessory in case of damage or theft. Also, you could choose an add on cover for the engine of your car under the car insurance policy that will take care of all engine related repairs that are not instigated by an accident. Such add-ons help you to save from expending a hefty sum of money on engine repairs. It is very useful in case of any damage to your car engine because of flooding which would make a deep hole into your pockets.
- Comprehensive isn’t comprehensive enough
Getting a comprehensive car insurance policy broadens the area of insurance coverage, however, it does not mean such plan would cover everything. There are some limitation and exclusions of such comprehensive car insurance policy which are mentioned clearly in the policy documents. So, it is essential for you to go through the policy documents before buying any car insurance.
Hence, it is advisable to go through the car insurance policy details so that you could get maximum benefit from your car insurance policy. A car insurance policy offers several benefits, it totally depends on you, how well you understand your policy.
