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A quick guide to buying Motor Insurance

A quick guide to buying Motor Insurance
April 4, 2021 camsrep

Buying a car or a bike is an exciting event in one’s life! It’s something that most of you might have wished to own for a long time. With successful career paths and fast financing choices, purchasing a vehicle has become very simple and cost effective in today’s world.

You choose the best car based on your preferred brand, colour, and configuration of its parts. However, the time spent on looking for a suitable motor insurance is very less. You miss out on cheaper policies and great benefits without researching properly.

Here is a quick guide to give you a deeper understanding about Motor Insurance.

What is Motor Insurance?

  • Motor insurance is a policy that protects you and your vehicle from financial damages incurred as a result of physical damage to your vehicle.
  • To purchase an insurance cover, you simply need to pay a certain amount as a premium to the insurance provider. In India, regardless of whether the vehicle is for personal or commercial use, the IRDA (Insurance Regulatory and Development Authority) mandates that any vehicle operating in the country be insured.

Types of vehicle insurance in India

  • Bike Insurance
  • Car Insurance
  • Commercial Vehicle Insurance
There are two types of insurance which you can avail for your car or bike.

Third Party Insurance:
This insurance is mandatory by the Indian Government for all the vehicles in India. However, it only covers damages to others in case you, the policy holder, meets with an accident.

Comprehensive Insurance:
This is the insurance that you have to purchase on your own, depending upon your requirement and other factors. The cost of insurance is determined by the amount of coverage, the types of caver, and the car’s brand. Essentially, auto insurance protects you from fraud, physical harm caused by collisions, and certain damage caused by natural disasters.You should pay a certain premium amount every year for the same.

There are a few things to keep in mind before you purchase motor insurance.

  • Research thoroughly. Using the information available on the internet, compare and contrast various insurance plans available. You can also get inputs and feedback from the existing policy holders which will give you a deeper understanding of how the insurance scheme works. It is also advisable to look at the insurance company’s cashless garage network.
  • A good deal does not always imply the cheapest premium alternative. When comparing the costs of different policies, it is important not to confuse affordability with a good deal. Likewise, if your car’s spare parts are costly, or if you live in a flood-prone area, it is a good idea to tailor your offering to minimise risk. A small increase in premium will save you thousands, if not lakhs, of rupees when the time comes to file a claim.
  • Coverage for additional accessories.  You should provide insurance cover for additional accessories separately to get the maximum amount from the insurance company at the time of claim. The main insurance contract signed by the insurer and you, does not cover such add-on products.
  • Depreciation coverage. In the event of a claim, you will earn a depreciation-adjusted sum. But, this amount will be lesser than the actual costs needed for the repair. With depreciation coverage, you will get the depreciation sum deducted from the value of the parts replaced, for up to two admissible requests.
  • Outstanding loan coverage. Cars are often financed these days by banks and other non-bank financial companies (NBFCs). In the event of your death, the insurer will pay to the extent of the loan balance on the financer’s books.
  • No-Claim Bonus. A No-Claim Bonus is a reward that you will receive for not making any claims during a year, usually in the form of a discount on the annual premium payable. When you purchase a car insurance policy, it is necessary to understand the NCB in order to make the best decision possible, if you require a claim within the year
  • For example, a damage that would cost less than the no-claim bonus can be paid by yourself instead of filing a claim thus making the most of this feature.

Once you have purchased a motor insurance, e-Insure immediately. It is a digital vault that allows you to view all of your policies in one convenient location.

Incase of an accident or any random checking on the road by traffic police, all you need to tell them is your e-account number. You don’t have to carry your insurance documents with you at all, thus making your travel hassle free.

Follow us here and on our social media platforms to stay updated about e-Insurance.

Creating an e-Insurance account takes just a few minutes but comes with life long benefits.

e-Insure today with PolicyGenie. Click the link below.

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