Things to know before buying motor private car insurance policy

One should be very careful about selecting the correct insurance cover for the dream car you are purchasing. With crowded and damaged roads there is always a fear of accidental damages to the vehicles. Motor insurance policy plays its role for you to enjoy the drive & be secured about the unfortunate expenses.

Comprehensive cover provides better protection

While buying a vehicle one should opt for a comprehensive motor insurance policy. Comprehensive coverage provide cover for own damage along with mandatory third party insurance. Own damage cover compensates the buyer for any small damages and even total loss arising out of accident or theft of the vehicle.

Mandatory third party cover

Third party insurance provides coverage for any losses arising out of damage or injury to third party or third party’s property. It’s an offense to ply any vehicle without a valid third party cover as per Motor vehicle act.

Personal accidents cover for owner driver

Accidents are sometimes life threatening and may cause death or disability. A comprehensive motor insurance policy also provides personal accident cover for the Owner Driver. One needs to pay minimum premium to get this cover along with comprehensive motor insurance coverage.

Depreciation

With Comprehensive motor insurance cover, customers can claim a maximum amount for the damage caused to the vehicle. There are some repair components which attract depreciation charges for replacing the damaged parts. Also, items like body painting and rubber parts attract depreciation unless you have opted for suitable add-on motor cover like called Zero/Nil Depreciation cover.

Deductibles

Under Own Damage (OD) cover, there is an understanding between the insurance company and the customer, to compulsory deducts a minimal amount towards repairs. It is explicitly mentioned in the policy as “Compulsory Deductibles”.

Selecting right Insurance Company

Make sure you choose an insurance company that has a wide network of garages that allow for cashless claims. Always, go with the company with best claim settlement ratio and an easy claims process. Choose right advisor to help you in understanding confusing terms and conditions, claim settlement and make renewals hassle-free.

Premium for motor insurance

Own damage premium is determined by Insured Declared Value, which the maximum Sum Assured fixed by the insurance company. IDV is calculated as manufacturer’s listed selling price minus depreciation. This maximum IDV is provided on theft or total loss of vehicle. Further, age of the vehicle, model, cubic capacity of the vehicle, claim experience & geographical location are the factor used to determine the own damage premium. Premium for third party insurance is decided by the regulator.

Add Ons in Motor Insurance

One can also think of suitable add on covers like, nil depreciation/depreciation waiver, return to invoice, daily cash allowance, cost of consumables, secure towing, hydrostatic lock cover, NCB protector, engine protector etc. By opting add on cover, one can ensure proper protection for the vehicle.

Benefits of timely renewals

Renewing insurance policy is equally important as it is important to choose the best insurance available in market for your vehicle. Customers benefits from the no-claim bonus, offered to the vehicle owners from the insurance company. Vehicle owners, who do not make a single claim during the term of insurance, qualify for the discount on the renewal of the policy termed as, no claim discount.

Portability in Motor Insurance

Customers if unhappy with present insurance company services can switch to other company by insuring their vehicle with the desired company with car insurance portability. This can be done at the time of renewal; the best way to do so is by comparing the best car insurance quotes & services of the company.

Future of Motor Insurance

In coming days, the insurance market will see the shift with telematics based pricing in motor segment coming in a picture, which considers many pricing factors like driving habits, locations and terrain, usage time etc. This will further help in getting apt and precise pricing and best available premiums to the customer.

Well planned motor car insurance, will not only help to protect the unfortunate financial losses but also provides with peace of mind when we drive with your family for joyful moments.

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