There are many times when people do the Car Insurance Policy Renewal without knowing about the benefits that the insurance policy covered. Whether we are in hurry or do not want to indulge us in the task of reading the document, we miss out the most important aspects of the policy. These important point could have resulted in providing numerous benefits and savings for you.
There are hardly few people who knew that being the member of Automobile Research Association of India earns discount in car insurance premium. But due to ignorance, you never knew your Car Insurance Covered things that could have saved your money.
10 Secret things you never knew your car insurance covered
1. Car Insurance is Beyond an Accident Cover
Car insurance not only covers the damage or loss to the vehicle due to an accident but also provides protection in case of the event which is beyond anyone’s control. These events are floods, earthquakes, lightning, landslides, etc. At the same time it also provide protection against man made events such as theft, robbery, etc.
2. Car Towing Cover
There are many occasions when we just got stuck in the middle of the road where you cannot find any mechanic for help. Even if you find some help, they take huge charges to tow your vehicle. But are you aware that this towing cover is also included at the time when you do the renewal of car insurance policy.
Under basic cover, the policy holder can claim for towing charges. However it is limited to a certain limit. Whenever you renew your policy annually, this charge also gets renewed. You can take it whenever and how many times you want it. But the condition is either you can use the towing cover at once or use it in installments by paying remaining money from your pocket.
3. Discount on Third Party Premium
It is a type of comprehensive cover that fulfills the financial liability towards third party damages or injury because of an accident. In such case also, your car insurance plan can pay you for the losses or damage to the third party. Every car insurance policy covers both third party cover as well as own damage cover.
However, if you are a good driver and believe in your driving skills, then you can either skip the third party claim or lower the amount. This will reduce your premium amount.
4. Documents Free renewal
In India the documentation is very lengthy, hectic and time consuming. But now Car insurance online facility is also available. All you need to do is select the insurer and type of insurance you want. Then there are various payment modes available. Choose the payment mode and then pay and it’s done. Car Insurance Policy renewal online is easier, cheaper, simpler and quicker way of doing renewal.
5. Insurance of Car Accessories
Well, you definitely knew that the basic policy covers only applies to the car not the accessories in the car. However, there is add – ons available that enables the protection cover of accessories as well.
However, your premium amount will increase if you tick this add – on. But it is better than spending money on accessories if they get damaged in accident.
6. Spot Assistance
There is an add-on by the name of 24/7 spot assistance which provides facilities such as towing, transportation, fuel arrangement, etc if your car stops and you get stuck in a remote place. I am sure this is another things you never knew your car insurance covered, if I haven’t mentioned it.
7. Engine Cover
This coverage provides the protection against the financial liability that arises due to oil leakage or damage of engine. The repair expense is borne by the insurer.
8. Zero Depreciation Cover
When you file for the claim, the insurance company subtracts the depreciation from the actual price of the vehicle and then calculate IDV. This difference is borne by the insured. However, if you go for zero depreciation cover, then you get the comprehensive car cover.
9. Tax Savings
There is also tax saving if you take car insurance policy. However tax rebate is not available for people who use car for personal use. But if the car is used for business purpose then there is tax rebate under Section 88 of the Income Tax Act.
10. Accident Shield
Car insurance plan also provides you with accident shield which enables you to get the compensation for all car occupants in case of total disability or even death arising due to an accident.