Many-a-times, vehicle owners purchase a car insurance policy simply because it is mandatory, without actually going through the policy document. Due to this, most policy buyers remain unaware of several key features of their policy and the coverage and benefits it provides. Thus, to help you gain a deeper understanding of your policy document and enable you to maximise on the policy benefits, we have listed out 7 things that you probably didn’t know about your car insurance policy.
1. Paperless documentation and instant renewal: Most motor insurance policy providers, these days, offer policyholders the option to instantly renew their policy with zero or minimal documentation through online channels. Thus, gone are the days when you had to go through a lengthy procedure at the insurance provider’s office just to renew your car insurance policy. In most cases, all you will have to do is visit the insurer’s website or a trusted third-party insurance website, enter your policy details on the online renewal form, and make the necessary payments to renew the policy.
2. Coverage for losses beyond accidents: A car insurance policy covers more than just vehicular damages caused due to accidents. While third-party liability policies only cover damage caused to a third-party and/or their property or assets, comprehensive car insurance plans offer a wider coverage to policyholders. In addition to covering damages caused by accidents, most comprehensive car insurance plans cover, also cover damages caused to the vehicle due to burglary, theft, housebreaking, fire, self-ignition, explosion, terrorism, strikes, malicious acts, riots, natural calamities, etc. In addition, if any damage is caused to your vehicle during transit by waterway, rail, lift, or road, the damage will be covered by your car insurance policy, in most cases.
3. Free-of-cost on-road towing service: If you frequently drive on highways or drive your car during odd hours of the day, you would know how inconvenient it is to have your car breakdown all of a sudden. Thus, most car insurance providers usually provide free towing assistance up to a certain distance. So, the next time your car breaks down, make sure to contact your car insurance provider and check if you are eligible to avail this free service.
4. ARAI membership discount: Most car insurance providers offer additional discounts to individuals who are members of the ARAI (Automotive Research Association of India). Thus, in most cases, you can avail a discount of 5% if you are a recognised member of the ARAI. Further, regardless of whether you are an ARAI-recognised member or not, you are also eligible to receive further discounts if you install anti-theft devices that have been approved by the ARAI, in your vehicle. Thus, if you are a member of any recognised automotive association or have installed approved anti-theft devices in your car, make sure to inform your insurer about the same when you purchase your car insurance policy.
5. No-claim bonus protection cover: In order to encourage safe driving, motor insurance providers offer a no-claim bonus to policyholders for every claim-free year. Thus, if you don’t make any claims during a policy year, you will be eligible to avail a no-claim bonus from the insurer. Further, for every consecutive claim-free year that you have, the percentage of no-claim bonus that you are entitled to receive will also increase. Thus, this no-claim bonus can give you a significant reduction in the premium payable. Considering how much of a difference the no-claim bonus can make to your premium rates, both car and two-wheeler insurance providers offer a no-claim bonus protection cover as an add-on to policy buyers. Thus, with this add-on, you can ensure that your no-claim bonus is protected, irrespective of whether you make any small claims during the policy tenure or not. So, the next time you renew your policy, make sure to purchase the no-claim bonus protection cover from your insurer.
6. Cashless facility at network garages: Just like how health insurance companies in India offer cashless hospitalisation facility at network hospitals, motor insurance providers also allow policyholders to get their vehicles serviced or repaired at cashless garages that are a part of their network. Thus, before you purchase a car insurance policy, make sure to check exactly how many cashless garages are a part of the insurer’s network and make a note of the ones closest to you. This will ensure that you don’t face any hassles in finding a cashless garage nearby when you are in need.
7. Tax savings on your car insurance policy: When you buy life insurance or health insurance policies, you are entitled to claim tax benefits for premiums paid every fiscal year. While you can’t claim the same benefit if you have purchased a car insurance policy for your private vehicle, you can claim tax benefits for vehicles that are used for business or official purposes, under Section 88 of the Income Tax Act, 1961. However, in order to be able to claim this benefit, you will need to ensure that the vehicle is in the name of the business owner or in the name of the company.
While it is mandatory to purchase, at the very least, a third-party liability-only car insurance plan, vehicle owners are both encourage and advised to purchase a comprehensive car insurance plan that will cover both vehicular damages and injuries/accidents to oneself and other drivers. Also, before you purchase any insurance plan, make sure to compare various car insurance policies that are available in the market, either on the insurer’s website or a third-party online comparison website like bankbazaar, request for premium quotes, and opt for one that best matches your requirements.
This article has been produced by TNM Marquee in association with BankBazaar.