When it comes to automotive insurance in India, there’s more than meets the eye. While most vehicle owners understand the basics, several lesser-known aspects can significantly impact your coverage and costs. Here are ten surprising facts about automotive insurance that you might not be aware of.
1. The Color of Your Car Doesn’t Affect Your Premium
Contrary to popular belief, the color of your vehicle has no bearing on your insurance premium1. Insurers don’t consider your car’s hue when calculating rates. Instead, they focus on factors like the model, make, engine category, and your driving history.
2. Unusual Claim Scenarios Are More Common Than You Think
While typical claims involve accidents and theft, insurers have dealt with some bizarre incidents. Claims have been filed for damage caused by falling coconuts, overzealous peacocks, and even rampaging elephants4. These unusual scenarios highlight the importance of comprehensive coverage.
3. You Can Transfer Your No-Claim Bonus (NCB)
If you switch insurance providers, you don’t lose your hard-earned No-Claim Bonus. This reward for claim-free years is transferable, allowing you to carry over your discount to your new policy7. Just ensure you transfer it within 90 days of your old policy’s expiry.
4. Cashless Repairs Aren’t Limited to Your Car Manufacturer’s Service Center
Many believe that cashless repairs are only available at authorized service centers. However, most insurers have tie-ups with numerous garages across India. You can often get cashless repairs at any network garage, potentially saving you time and money.
5. Add-ons Can Cover More Than Just Your Vehicle
While standard policies focus on vehicle damage and third-party liability, some add-ons offer unique protections. For instance, you can get coverage for personal belongings lost or damaged in your car, including laptops and phones10. This extra layer of protection can be invaluable in case of theft or accidents.
6. You Can Insure Your Car Keys
Losing car keys can be surprisingly expensive, especially for modern vehicles with advanced security systems. Some insurers offer key and lock protection cover, which pays for replacing lost or stolen keys and locks10. This add-on can save you from an unexpected and costly situation.
7. Pay-As-You-Drive Policies Exist
For infrequent drivers, there’s a relatively new option in the Indian market: pay-as-you-drive coverage. This type of policy allows you to pay lower premiums based on how much you actually drive your vehicle. It’s an economical choice for those who don’t use their cars regularly.
8. Engine Protection Isn’t Standard
Many car owners assume that their comprehensive policy covers all types of engine damage. However, standard policies often exclude engine and gearbox damage unless it’s caused by an accident. Specific engine protection add-ons are available to cover issues like water ingress or oil leaks.
9. You Can Get Compensated for Alternative Transport
If your car is in the garage for repairs, some policies offer a daily conveyance benefit. This can include an allowance or cab service coupons to cover your commuting expenses while your vehicle is being fixed. It ensures that your daily routine isn’t disrupted due to car repairs.
10. Tyre Damage Isn’t Always Covered
Standard policies typically don’t cover tyre damage due to regular wear and tear. However, specific tyre protection add-ons are available that can cover the cost of repairing or replacing damaged tyres10. This can be particularly useful for those who frequently drive on rough roads.
11. Policy Terms and Named Drivers
Comprehensive Insurance: Most comprehensive car insurance policies allow claims for accidents involving any licensed driver operating the insured car with the owner’s permission. However, this is subject to the terms and conditions of the policy.
12. Named Driver Policies
Some insurance policies specify named drivers who are authorized to drive the vehicle. If your friend isn’t listed as an authorized driver, the claim may be rejected.
13. License and Driving Legality
If your friend has a valid driving license and was driving the car legally, the claim is more likely to be approved.
If your friend was driving without a valid license, underage, or under the influence of alcohol or drugs, the claim will likely be rejected.
14. Type of Cover
Third-Party Liability Insurance: This mandatory insurance covers damage to third-party property or injury but does not cover damages to your car. If the accident results in third-party liability, the claim can be made regardless of who was driving, provided they were legally allowed to drive.
Comprehensive Insurance: This covers damages to your car as well as third-party liabilities. Claims may be approved for your car’s damage if your friend was legally driving with your consent.
15. Add-Ons and Exclusions
Some policies may have exclusions or conditions for specific situations. For instance, if you have a “Personal Accident Cover for Owner-Driver,” it might not cover injuries to your friend.
If you’ve opted for an add-on like “Engine Protect” or “Zero Depreciation,” those could help cover additional costs, provided the claim isn’t rejected due to other policy violations.
16. Immediate Reporting and Cooperation
To improve your chances of claim approval, ensure the accident is reported to the insurer and, if necessary, to the police. Failing to follow the required procedure might lead to rejection.
16. Family member drives your car, has an accident
If a family member drives your car and has an accident in India, the same factors apply as when a friend is driving, but there’s often more leniency depending on the terms of your insurance policy. Here’s how it generally works:
17. Policy Terms and Family Members
Most comprehensive car insurance policies in India cover accidents caused by any licensed driver who has the owner’s permission to drive the car, including family members.
Some insurers offer additional flexibility for immediate family members, as they are often presumed to have implicit permission to use the car.
18. Named Driver Policies
f your policy specifies named drivers, ensure the family member is listed to avoid claim rejection.
19. Unrestricted Driver Policies
If your policy does not restrict drivers, any family member with a valid license is typically covered.
Understanding these lesser-known aspects of automotive insurance can help you make more informed decisions when choosing or renewing your policy. By considering these factors, you can ensure that your coverage aligns with your specific needs and potentially save money in the long run. Remember, the right insurance isn’t just about meeting legal requirements; it’s about comprehensive protection tailored to your unique circumstances.
