Lesser Known Insights on Car Insurance for New Buyers

It is common knowledge about car insurance policies that a robust plan can help you avoid financial losses in the long run. But selecting a car insurance plan requires some tact and planning, especially for first time buyers. You need to exactly know what your requirements are and based on which you can decide the purchase of such policy. However, this article aims to shed some light on the lesser known secrets about car insurance policies.

The model and make of your car impact the premium

The manufacturer of your car as well as its model impacts the car insurance prices. It is because the more expensive your car is, the repairs for it will also be higher. Consequently, any damages for which an insurance claim is made will require the insurance company to pay for such repairs. Thus, higher the repair costs, higher will be its premium.

Concession in premium is available if you pay for repairs

Many new buyers aren’t aware that a car insurance policy shouldn’t be resorted for every minor repair. If you do not make any claim during a policy tenure, the insurance company offers a concession in your renewal premium in the form of no-claim bonus. Thus, if you pay for nominal repairs from your own pocket, you can avail the benefit of no-claim bonus thereby lowering the car insurance prices.

No claim is completely cashless, not even cashless ones

All claims are classified in two types – cashless claims and reimbursement claims. A cashless claim is where the insurance company pays the cost of repairs. However, cashless claims aren’t completely cashless; all of them are require you to pay for deductibles. These deductibles are determined at the beginning of your policy contract. Further based on your policy terms, deductibles can be a compulsory one or a voluntary one. Thus, be it a cashless claim or reimbursement one, no claim is entirely paid by the insurance company.

Modifying your car impacts its car insurance prices

This is one secret that not many know. Since modification increases the value of your car, either aesthetically or by way of performance, it involves a higher risk for the insurance company. For this reason, tuning or modifying your car impacts the car insurance prices

Car insurance premiums can be saved

Another lesser known tip is how car insurance premiums can be saved. While buying the cheapest policy isn’t the way to save on premiums, but instead installing a certified anti-theft device helps to lower the premium. Further, for comprehensive policies, its IDV or Insured Declared Value can be altered to save on premium. However, there are downsides to doing so. Lastly, timely car insurance renewal can help you claim the available no-claim benefits along with safe driving and staying away from modifications. Keep in mind these nifty tips to that can come handy especially for new buyers when comparing the various types of car insurance.  Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.