Car insurance acts like a safety net, but we are always not sure of the risks that can come up without a valid one. From overlooked policy exclusions to underinsured scenarios, many car owners discover the gaps only when it is too late. This is why it is important to understand the less obvious risks hidden in your car insurance plan.
Many car owners rely on information from insurers or online platforms, but not all risks are openly discussed upfront. So, this guide will walk you through some risky situations that can trouble you, whether you have or do not have car insurance.
6 Risky Situations You Can Face That Not Every Insurer Will Inform You About
Knowledge about car insurance is, anyway, not very widespread. On top of this, there are a few facts that might not come up while purchasing car insurance. This happens because certain occurrences are rare.
Therefore, there might be a few hidden car insurance aspects that you need to know, which can help you avoid risks in the future. These are as follows:
1. NCB is Lost For Not Renewing the Car Insurance on Time
If you do not raise a claim during the policy period, your insurer rewards you with a No Claim Bonus (NCB) at renewal. However, you can lose this benefit if you fail to renew your car insurance within 90 days of its expiry.
With this, you risk paying a significantly higher premium and added expenses. This can be a fact that is not widely known, and if you had 50% NCB, losing it can feel terrible.
2. Underinsured Cars Will Have Limited Coverage
There are several car insurance, such as third-party, comprehensive, and comprehensive + add-on. Now, in case you only have third-party insurance for your vehicle, it will not cover your damages during an accident. Or, if you only have a comprehensive insurance plan, it will exclude coverage for electrical accessories repairs, specific engine repairs, and so on.
This can put you at huge risk in times of great need and increase your out-of-pocket expenses. So, always analyse the requirements of your car and buy your plan accordingly.
3. Accidents Will Impact Your Chances of Buying Insurance in Future
You might know that your driving habits impact your car insurance premiums. However, if you have had accidents in the past, it can prevent you from getting insurance without any hassle. This is because getting into accidents increases the risk factor for insurers.
If they offer you insurance, it might have a very high premium. This is a risk factor that can put you in a fix at the time of getting new insurance. So, try and maintain a healthy driving habit and follow traffic rules.
4. Car Insurance Is Not an Option; It Is a Mandate
Very few people know this, but according to the Motor Vehicles Act of 1988, everyone owning a vehicle that they operate in a public space needs to have mandatory car insurance. The minimum that people need to have is third-party liability insurance.
So, when you buy a car, remember to get your insurance simultaneously from www.acko.com or any of your preferred insurers. This will also provide you with good options for premium, as new cars have a lower premium in comparison to older cars.
5. Transferring NCB Is Possible With the Right Documents
You do not need to lose your NCB every time you change your insurer. NCB is a transferable bonus that you can enjoy regardless of any condition if you have a no-claim history.
You only need to get the NCB certificate or the NCB transfer letter and present it to your new insurer. If you do not get these documents, you might risk losing your NCB while transferring.
6. Never Get Your Car Repaired Without Informing the Insurer
Always inform your insurer before having your car repaired. Lack of such a notice can compromise any future claim approval, given that insurers keep a record of the condition of your car as well as its repairs.
Such information assists them in verifying damage timelines, once a claim is raised. If they are not properly updated, they may not determine whether the damage happened before or after your repairs. This will consequently create big issues during the claim assessment process.
Bottom Line
Having insurance does not necessarily imply full protection for your car. While hidden risks in your policy are discovered, such as the lack of add-ons, a clause for depreciation, or vague claim processes, you might want to turn the tables back upon them. Remember to check every clause in your insurance policy and plan to make sure your car insurance is there for you when it counts.
