Buying a vehicle is one thing, but maintaining it is another. From keeping it a well-oiled machine to checking tires, one has to do a bunch to keep their automobile in the pink of its health. While it is unthinkable, not to mention illegal, to drive a car without vehicle insurance, we could make the most out of it. Insurance can be expensive, but it can also be a pocket-saver if put to good use. So what are the hacks to make the best of vehicle insurance? Let’s find out.
1. Claim the no-claim bonus
NCB or a No-Claim Bonus is a reward the insurance companies give you when you don’t make a single claim during the term. Yes, that’s true; you get rewarded for being a caregiver to your own vehicle. The reward is a premium discount ranging from 20%-50% depending upon the number of claims made. However, you’ll retain your No-Claim Bonus only if you renew your policy on time.
2. Don’t flinch from add-on covers
Consider this; You left your backpack containing belongings worth over a lakh in your car, which unfortunately gets stolen. You candidly approach your insurance agency to claim your money for your treasured belongings. But to your surprise, the company doesn’t pay a dime since you did not buy the add-on for the loss of personal belongings. The catch here is that basic motor insurance policies do not come with add-ons, and one must look out for add-ons to avoid paying out of pocket.
3. Pay as you drive vehicle insurance
Have you always felt scandalized when you couldn’t wholly utilize your 1.5 GB/day data package and yet, ended up paying for the entire plan? Well, in that case, you’d be delighted at the idea of a Pay-as-you-drive Insurance plan. In the PAYD policy, you only pay insurance for the road length you cover. How do insurance companies do that? Well, they plant a telematics device at the bottom of your car to compute your km-based premium.
4. Remember to transfer the second-hand vehicle insurance
Buying a second-hand car is a pretty-economical choice. However, it doesn’t remain economical anymore, if one forgets to transfer the car insurance in their name along with the car. The negligence of transferring the insurance can quickly render your claims worthless. You will unavoidably have to pay for the costly damage out of your pocket.
5. Do not drive your personal car for commercial use
The premiums for private car insurance and commercial vehicle insurance highly deviate from each other. Hence, one cannot get a claim if damage occurs when the personal car is being used for commercial purposes.
Vehicle Insurance is a life-saving investment; yet, we tend to fall into the trap of high charges, left with nothing but wreckage and an empty pocket. Knowing the nuts and bolts of vehicle insurance might be as good as dodging a bullet.