Auto Insurance Secrets Your Insurer Won’t Tell You
It is an open secret that the right car insurance policy can provide financial protection against damage to your vehicle. There are other insurance secrets that the policyholder may not be aware of. Discovering some of these industry secrets can help you lower the cost of your insurance.
Let’s get to the point. Here are some car insurance secrets that most people don’t know.
Secret 1: The make and model of your car can affect the cost of your insurance policy.
The type of car you drive (and the cost of it) is a major factor in determining how much your insurance will cost. It is more expensive to insure a luxury car than it is to insure an average one.
It costs more to repair a high-end car than to fix damages on an inexpensive one. The year in which a car was manufactured impacts the current market value of its parts & how much it has depreciated since then.
Secret 2: You can get a discount by paying for smaller damages from your pocket
It is not always advisable to make a claim against auto insurance. Your no-claims bonus (NCB) can be affected by filing a claim. NCB is a discount that insurers offer for not raising any claims during your policy term. In other words, the discount is in effect when your policy comes up for renewal. If you raise a claim for minor damages, your no-claims bonus will be nullified, and the insurer may demand higher premiums.
Secret 3: There are two general types of car insurance claims.
If something unfortunate happens, you can file two types of claims – reimbursement and cashless claims. These types vary based on where you get the damaged car fixed.
You can get your car repaired at a network garage and then file for a cashless claim. If you get your car repaired at a garage that’s not in the network, the first step is to pay for the repairs yourself and then submit an insurance claim.
Secret 4: If you don’t renew your policy before it expires, you will lose all of the NCB.
NCB is like a reward for well-behaved drivers. Drive appropriately, don’t file for minor claims, renew your policy in time, and get a discount. You will lose the benefits if you don’t renew your policy within 90 days of its expiration date. During this time, you will not be covered by insurance and will lose the NCB. It is unwise to neglect a policy renewal.
