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Secrets That Your Motor Insurance Companies Won't Tell You

Janhavi Shinde Janhavi Shinde 05 January 2019

You may not know but the greatest of secrets are usually hidden in the most unlikely places. Unfolding here the top 10 secrets that your Motor insurer may use to jeopardise your insurance premium and claim too!

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We all have secrets and here's another secret, motor insurance companies do too.

If you're wondering why your premiums are so expensive or if you're dabbling online to uncover the mechanics of motor insurance policies, you've come to the right place.

Here are 10 secrets your motor insurance company won't tell you:

Secret 1 Revealed

The Model and Make of Your Vehicle Affects Your Premium

Yes, you read that right.

The type of vehicle you buy affects your premium. Motor insurance companies have a vehicle rating system in-house which they calculate and determine the insurance premium. Of course, this is something they don't tell you, which is why you feel that the motor insurance premium charges is nothing exorbitant yet normal. Therefore, keep this tactic in mind and DO ASK your motor insurer before deciding on the type of vehicle you want to buy.

Secret 2 Revealed

More Gadgets Equals More Premium

Installing expensive or fancy gadgets in your vehicle for the sole purpose of luxury or entertainment will heighten your motor insurance premium.

That's because your car's value goes up, which means you have to pay more for the repairs involved. The result? A higher premium.

No motor insurance company will tell you about the reason for the increased insurance premium.

Secret 3 Revealed

Installing Safety Devices Lowers Your Premium

If you're installing airbags, security cameras, and accident prevention sensors, your motor insurance will be working in your favour. That's because these devices try to protect your vehicle and prevent theft, factors which are known to normally increase your premium. Your motor insurance company would be happy to tell you about this, once you bring up the subject on your own accord.

Secret 4 Revealed

You Don't Get a No Claims Bonus for an Inactive Insurance Policy

Again, don't just take our word for it.

It's true though. You have to renew your motor insurance policy and make sure that it stays active so that you get your No Claims Bonus.

Secret 5 Revealed

Bad Drivers Get Bad Premiums

This is the reality. If you are a reckless driver and haven’t inculcated good driving habits, you are likely to pay up to 40% more on your motor insurance premium than a regular motor insurance customer.

Make sure to improve your driving skills, practice road safety, and don't get a speeding ticket. These little things make a big difference down the run.

Secret 6 Revealed

A Road Safety Organisational Membership Will Lower Your Premium

Having a Road Safety Organisational Membership like the one from the Automobile Association of India will lower your premium. You also get to enjoy other benefits with your membership such as exclusive discounts on your motor insurance policy and more.

Secret 7 Revealed

When You Skip Filing Claims for Minor Repairs, You Are Entitled to a No Claims Bonus

Every year when you skip filing a motor insurance claim for minor repairs, you get a No Claims Bonus which may go up to a whopping 20% of the insurance policy amount.

This is a good news for you and it gets even better when you compare the cost of the repairs versus the amount you'd get from your NCB. Ultimately, you find yourself saving money through it. If you find that the repair costs are higher than the NCB, then we'd recommend that you go ahead and file your motor insurance claim.

Your motor insurer won’t tell you this secret, because this will definitely jeopardize your insurance premium.

Secret 8 Revealed

Think about Your Voluntary Deductions

Voluntary Deductions are what you pay out of your own pocket in the event of a road accident if any accompanying repairs needed. Think carefully about your lifestyle, driving habits, the routes you take, and the places you travel to before deciding on your voluntary deductions.

The insurance company is obliged to pay the remaining amount after what's left beyond your voluntary deductions and your premium is calculated based on that number.

In a nutshell, the higher your voluntary deductions are, the lower your premium will be and vice versa.

Secret 9 Revealed

Your CIBIL Score Affects Your Insurance Policy

This is probably a big secret, but this is definitely something most car owners aren't aware of. Motor insurance companies assess the risk profile of insurance buyers by taking a look at their CIBIL score.

A high CIBIL score tells the company how often the buyer pays his/her bills on time and if they leave them overdue. It also lets them know how often they might expect such insurance buyers to a file a claim since a high CIBIL score indicates that the person is responsible and reliable when it comes to their finance management.

Your insurance risk score is calculated based on your CIBIL Score and although you won't be able to view it, you will at least know how you can improve it by increasing your CIBIL score and working towards it.

When you improve your CIBIL score, you also get other benefits like getting exclusive discounts or special offers on motor insurance policies, being able to avail for a loan to buy a new vehicle, getting lower interest rates on loans, and paying lower premiums in the long run for your motor insurance policy, etc. And, what's the best way to improve that? Pay your bills on time and never default on repayments.

Secret 10 Revealed

Instalment Fees

If you pay your yearly premium in instalments, there could be administrative fees involved. You should ask your motor insurance company about it. Any hidden charges involved with your premium like involuntary deductions should also be discussed when bringing up the subject of premium costs. In general, paying the premium on an annual basis is a lot cheaper than paying it in the form of instalments despite the fact that they are convenient.


Getting a good deal on your motor insurance policy is no rocket science. Yes, it does take some legwork and research on your part, but it pays off in the long run.

Before you decide to buy a motor insurance policy, make sure to compare the various plans available in the market.

Generally, you save a lot of money when availing a motor insurance plan online instead of directly buying one from the dealer.

See if your motor insurance company is a member of the Insurance Regulatory and Development Authority of India and that they have a valid registration number.

As a rule of thumb, go for motor insurance policies that give you maximum coverage with lower premiums. And, it's an added bonus if they have their own network or tie-ups with authorised service centres and cashless garages.

Janhavi Shinde
Written by Janhavi Shinde
Right from being a Flight Attendant to a Banker and now to a Content Writer, she has tasted success in all the fields. The kinda girl who loves pets and knows how to manage difficult people and events.