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9 things you probably may not know about car insurance

Team AckoJan 17, 2024

There is much more to car insurance than just buying and making a claim. There are different discounts, some services that help during a breakdown, smart ways that can reduce the premium, and ways to continue getting the best financial coverage for car damage. These are things you will learn only with time and experience. However, through this article, even those who are first-time buyers can shop for the best car insurance like a pro.

Let's jump into the list of things related to car insurance that you might not know.




9 car insurance things you should be aware of

The following list of things will help you buy a better policy upon your next car insurance purchase. Take a look.

1. Car insurance premium can reduce if you don’t claim

Most car insurance claims are for accidental damages. When you don’t raise a claim, it is implied that you are a responsible driver and that you drive in a safe manner. This behaviour is worth a reward. Thus, comes into the picture No Claim Bonus (NCB). This is a discount applied on the Own Damage component of your car insurance policy. It can go up to 50% discount if you refrain from raising a claim for five consecutive years. 

Here is a quick look at the NCB table for your reference

Number of renewals without a claim NCB discount on Own Damage
1st 20%
2nd 25%
3rd 35%
4th 45%
5th and beyond until claim 50%

2. You can buy car insurance in a contactless manner

Contactless services have become a necessity due to the recent COVID-19 pandemic. People are practicing social distancing to avoid an infection. However, car insurance being mandatory, you must have an active policy at all times. 

A digital insurer like ACKO is helpful. You can buy or renew your policy even when you are completely isolated. All you need is an active internet connection and an internet-enabled device. You can even raise claims (via app or website) using contactless car insurance services in a similar manner.

3. The age of your car decreases the claim amount

You must be aware that the value of your car reduces with time. The age, and in turn, the value of your car can also decrease the claim amount. This is called depreciation. Depreciation plays an important role to calculate the claim settlement amount as it reduces the Insured Declared Value (IDV) of the car. 

IDV is of less importance in the case of minor claims. However, it plays a significant role during a major claim like total loss or theft. This is how the IDV of your car reduces with time.

Car’s age IDV in percentage of ex-showroom price
Under 6 months 95%
6 months to 1 year 85%
1 year to 2 years 80%
2 years to 3 years 70%
3 years to 4 years 60%
4 years to 5 years 50%
Beyond 5 years The mutual decision between the car owner and the insurer.

Depreciation can affect the claim amount if you are not covered with a Zero Depreciation add-on. You can opt for this additional coverage while buying a Comprehensive Car Insurance Policy. 

Note: The insurance company will not consider the depreciation on your car and you will get more claim amount as compared to when you don’t have the Zero Dep add-on.

4. You can get a free towing service with your car insurance policy

One of the biggest hassles of facing car damage is arranging a towing service from the accident spot. The cost of towing a car is also on the higher side. But if you make a smart move of buying the Roadside Assistance cover while buying a Comprehensive Car Insurance Online Policy, then you just need to call the insurer, and you will be saved from this hassle altogether. 

Apart from free towing services, you can get numerous other services like

  • Fuel refill

  • Flat tire repair

  • On-call assistance

  • On-spot minor repairs

  • Taxi service

  • Temporary accommodation

5. The insurer can bear the cost of lost keys

Losing the keys of a high-end car can burn a hole in your pocket. These smart keys are expensive due to the technology they carry. But you can insure the key and key-set while buying your car insurance policy by opting for the Key Replacement Cover. You can raise a car insurance claim to change the keys and key-set not only when you lost the key but also in case of a theft attempt. 

6. Installing an anti-theft device may reduce car insurance premium

Installing an anti-theft device in an insured car is an assurance that you have taken enough measures to avoid a car theft claim. Thus, your insurer may decide to decrease the car insurance premium. 

Remember that the anti-theft device must be certified by the Automotive Research Association of India (ARAI). 

7. Car insurance premiums can reduce if you promise to bear the claim amount

The car insurance premium is calculated by considering various factors like the age of the car, make/model, its Insured Declared Value (IDV), etc. It also depends on things like NCB and deductibles. 

If you are a safe driver with a high NCB, you can choose to opt for something called Voluntary Deductible. By adding a Voluntary Deductible to your policy, you are promising the insurer to bear a certain part of the claim amount. In turn, the premium decreases.

The other type of deductibles is called Mandatory Deductibles. As the name suggests, the car owner must bear this amount during claim settlement. The amount You need to pay under Mandatory Deductibles is fixed by the regulator. More on this in the FAQ section. 

8. You can claim the ex-showroom price of the car

As mentioned earlier in the article, the value of a car reduces with time. So normally, you cannot claim the ex-showroom amount. But, the Return to Invoice add-on will help you do so. This add-on is usually offered for new cars, i.e. cars that are under five years. You will get the invoice value of the car (including road tax and other charges) that you paid while buying it. 

Note that, you can only claim the Return to Invoice add-on in case of total loss or car theft.

9. You don’t need physical documents to raise a claim

You can raise a claim online, without any physical documents if your car is insured from ACKO. Apart from claims, we have designed a paperless process for buying and renewing car insurance as well. This reduces the hassle of arranging documents and sending them to us via post or other means of transport. The process becomes much faster when physical paperwork is not involved.

FYI: At ACKO, you can submit pictures and videos of the damaged car to raise a claim. 

Frequently asked questions

The following is a list of questions related to car insurance. Get in touch with us via email on [email protected] if you have more queries.



Will the amount of insurance premium increase if I buy add-ons?

Yes, the premium will slightly increase when you opt-in for car insurance add-ons. However, this is a small amount as compared to the loss you might bear in case of a claim.

Can I call the insurer if my car's battery dies in the middle of the road?

Your car insurance company will help you with a battery jumpstart if you have a Roadside Assistance add-on.

How is compulsory deductible calculated?

The Insurance Regulatory and Development of India (IRDAI) has fixed the amount of compulsory deductible at Rs. 1000 for cars with engine cc of 1500 and below and Rs. 2000 for cars with engine cc of more than 1500.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet; and is subject to changes. Please go through the applicable policy wordings for updated ACKO-centric content and before making any insurance-related decisions.

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