9 Tips to Consider When Selecting an Appropriate Motor Insurance Policy

When shopping for auto insurance, the main goal is to find an insurance policy at an affordable cost that provides you enough coverage. Even though you might get an insurance policy by paying cheap premium, it will not help you at the time of need. Most people do not research on the policy and jump to the premium directly when buying a motor insurance policy. They finalise the policy on the basis of the premium alone. This is not recommended as the insurance policy will not have important features that are required. It is also important to know what motor insurance is and why it is significant before starting to shop around for insurance policies.  As per the Motor Vehicles Act, 1988, for driving vehicles on Indian roads, it is mandatory to have at least a third-party cover on your vehicle. There are various insurance providers that offer insurance policies at very affordable prices. However, before purchasing a motor insurance policy, it is important to find one with the right features.

A few things to keep in mind when buying a motor insurance policy are:

1. The Premium Should be Compared Online

It is very important to compare various motor insurance plans before buying one. There are many third-party websites available where insurance policies can be compared.  Taking some time to go through the various policy details can help in getting a good deal when buying an insurance policy. Entering your vehicle details on third-party sites will show a list of all available policies which can be compared. It is vital to choose a policy that not only provides wide coverage benefits, but it should also be at an affordable cost. Some of the points to consider when comparing insurance policies online are:

  • Ensuring that the premium is computed on the fixed Insured Declared Value (IDV).
  • Comparing insurance plans of different insurance companies.
  • Comparing the insurance plans on at least two to three third-party comparison sites.
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2. Check for Reviews of the Insurance Provider

It is important to look for reviews of the insurance provider when buying an insurance policy. Choosing an insurance company that has a proven track record of quick claim settlements and good customer service is important, as you will be dealing with the insurance company during very stressful circumstances.

3. Choosing Coverage that is Required

By paying an additional premium, you can opt for various add-ons. Choosing the right add-on is important; even though it increases the premium, your motor insurance coverage will be enhanced to suit your needs. No Claim Bonus (NCB) protect, Return-to-invoice, and Zero Depreciation are some of the more popular add-ons. It is vital to choose a company that offers the best add-ons. It is important to get an engine cover in case you live in a place that is prone to flooding. Checking through the terms and conditions is also crucial, as you can upgrade the policy if need be.

4. Cover for Roadside Assistance

Choosing a cover that provides roadside assistance is vital. If you are stranded due to an accident, tyre puncture, or an engine failure, having a roadside assistance cover will help. You can request the insurer to send a mechanic to fix your vehicle under such circumstances.

5. Key Features Offered by the Insurance Provider Must be Compared

You should check that the most vital motor insurance features are provided by the insurance companies you have shortlisted. Important inclusions such as personal accident cover, injuries due to a third-party, and own damage cover must be ideally included in the insurance plans.

6. Personal Accidental Cover

Financial protection to the owner of the vehicle is ensured in the event of unfortunate and unexpected events (physical trauma, permanently disability, or accidental death) if the vehicle has personal accidental cover.

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7. Cashless Garages

Cashless services are provided for your vehicle in case cashless garages are tied up with your insurance company. It is important to choose an insurance provider with a good network of cashless garages in your area, so that you can get your vehicle repaired easily.

8.Deductibles

Deductibles can be either voluntary or compulsory. Different insurance providers offer different discounts against deductibles. It is important to choose the right amount of deductibles for a lowered premium. At the time of claim you will not want to pay a significant amount of your own money. Looking for a company that offers best discounts against the deductibles is important.

9. Keeping Track of Renewals

Insurance providers usually give a grace period when your vehicle insurance policy lapses. Timely renewals of your insurance policy helps in getting various benefits such as lowered premium as well as discounts.

In conclusion, it is important to know the various covers offered by the insurance provider before choosing the insurance policy. Some of the other factors that are worth considering when buying an insurance policy are engine cover and zero depreciation cover. There are also several factors such as risk related to the car, risk related to the location, and safeguarding your No Claim Bonus that must be considered.

Therefore, it is advisable not to consider only the insurance premium when buying a policy for your vehicle. Keep the aforementioned points in mind to ensure that your vehicle insurance purchase process is a smooth one.

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