In this short piece, readers will get to know about 4 important pointers when it comes to car insurance.
Transferring your policy to another insurer does not affect your NCB
Your No Claim Bonus (NCB) benefits stay even when you shift your policy from one insurance company to another. An NCB is a discount you get for every year you do not make a claim against your motor insurance. NCBs tend to be rather substantial, and it gets accumulated year after year, provided that you do not make a claim.
Although the NCB stays even when you transfer your policy from one provider to another, see to it that you file for it within ninety days of the expiration of your old cover, or else the accrued benefits are no longer applicable.
Comprehensive car insurance covers a lot more than just accidents
That’s right, comprehensive car insurance policies cover non-collision damages, theft of vehicle, and more, in addition to covering your losses in case your car is involved in an accident. With a comprehensive car insurance policy, you will be protected against losses or damage caused to your car from natural as well as man-made disasters. Damages caused by fire, earthquakes, flood, riot and incidents like theft of vehicle tend to be covered by the insurance company, so make sure you read the policy documents carefully.
Car insurance rates vary quite a bit between insurance providers
When you’re in the market for a car insurance policy, you will find that insurance companies charge different premium rates for insuring the same vehicle. This is because every insurer will have their own method of calculating risk. Say, if an insurance company receives a large number of claims from owners of a particular car brand, then the insurer may charge higher rates for extending coverage to people with vehicles of that brand. So, before buying an insurance policy for your vehicle, make sure to compare the rates offered by each insurance provider to cover your vehicle.
Whatever the age of your vehicle, insurance is mandatory!
The Motor Vehicle Act of 1988 makes it mandatory for every car plying on Indian roads to be insured. There are no exceptions, whether your car is old or new. You will be charged a fine or even face some jail time if you are caught driving without vehicle insurance.
Before buying any car insurance policy, you must research about its features, benefits, costs, and so on. This helps when a product is presented to you, because you will be able to easily tell if what is communicated to you is honest.
We hope this article has helped you understand car insurance better and cleared any misconceptions you may have had about insuring your vehicle. If you have any queries, do write to us at firstname.lastname@example.org.