3 Things to Consider Before Buying a Motor Insurance Policy

Since it is mandatory in India to buy a motor vehicle insurance policy that covers third party liability, most of the people buy just any motor insurance policy that their friend suggests or the one they see on a TV advertisement. However, it is important for a person to choose a motor vehicle insurance policy only after considering a few important points since it provides protection to the vehicle and to the vehicle owner. 

Let’s first take a look at why buying a motor insurance policy is important:

·         The policy pays for damages occurred by the motor vehicle.

• ·         It reduces the motor vehicle owner’s liability.
• ·         It pays for the hospitalization charges of the motor vehicle owner.
• ·         It compensates the motor vehicle owner’s family after their demise.
•      Now, that you know the need of buying a motor vehicle insurance police, let’s take a look at 3 things that you must consider before buying the policy.

Know your requirements

You must know your requirements before you start looking for an insurance policy. Broadly, there are three types of motor vehicle insurance policies available, namely, car insurance, two-wheeler insurance, and commercial vehicle insurance policy. When assessing your requirement, you can consider the type of motor vehicle insurance policy you want and the list of coverage you require.

Compare the insurance quotes online

You must compare insurance quotes online when buying a motor vehicle insurance policy. You can get the policy quotes online by entering all your requirements in the request form. The comparison of insurance quotes and its coverage will help you in buying the best insurance policy at the best price as well with the best protection, as per your need.

Check the claim settlement ratio

The incurred claim ratio and the claim settlement ratio tell about the efficiency about the claim process and the reliability of the policy provider. Therefore, before buying the insurance policy, you must know about the efficiency of claims process to help your arrive at a better decision.

Well, choosing an appropriate motor insurance isn’t that difficult, it just requires a few considerations on the part of the buyer before purchasing the policy.

Understanding Motor Insurance Better

When it comes to choosing a motor insurance policy your requirements are what makes the buying process easy or turn it into a cumbersome process. Going by the law, for getting the mandatory Third Party Liability (TPL), you can simply pick any specific TPL policy. But on the other hand, if you are looking out for a policy which covers most of the financial losses, then you must indulge into substantial amount of research before finalizing one. 

And for that, knowing and understanding the motor insurance policy in a better way is a pre-requisite.

Car insurance and two wheeler insurance are two classifications of Motor insurance. Be it a personal vehicle, commercial or even a vehicle used for recreational purpose, according to the law it must be insured.

Third Party Liability (TPL) is compulsory and those who do not have this are liable for penalties. On the other hand, comprehensive motor insurance covers TPL along with other financial losses which might be caused due to accidents etc.

Types of Motor Insurance

Third Party Liability (TPL)

As per Section 146 of Motor Vehicles Act 1988, third party insurance is a mandatory policy which is compulsory to have for any individual owning a vehicle. It covers the loss pertaining to the third party and not to you or for your own vehicle. In this policy the person who buys the policy who is insured, is the first party; the insurance company is the second party whereas the person who is affected during an accident by your car is the third party.

Own Damage Cover

It protects the insured against any financial losses pertaining to his/her vehicle. It can be claimed against the accidents as well as theft. Other damages which are covered under this policy include damages caused due to vandalism, burglary, terrorist attack, riots, and many more.

Personal Accident Cover

This simply safeguards the insured against the financial security when an accident is caused unfortunately which leads to permanent disability. And in the worst case if the policy holder dies the family of the person receives the monetary compensation.

Add-Ons

There are some other specified additional features which can also be added to the policies which include Zero Depreciation Cover, Garage Cash, Roadside Assistance and many others.

An Insight into Motor Insurance

If you possess a motor vehicle or plan to buy one then you need to think about motor insurance. Your car insurance policy will protect you against the liabilities arising out of any unintended damage to your car. The charge that you pay for your motor insurance differs; it usually depends on the kind of coverage you buy. There are some features that you will need to consider before you make your concluding decision.

1. Comprehensive auto coverage: Based on the company you are dealing with, you will find that there are a range of vehicle insurance products in the market. Comprehensive auto coverage is one that provides full cover for your car. It will compensate for third property damage, own car damage, third party injuries and any form of injury that may occur to your driver.

2. Third party coverage: This is a type of policy will offer coverage when you damage other people's property or when you hurt people with your vehicle. This policy has definite limits and it will also provide medical and legal coverage.

3. Full third party coverage and theft: Apart from covering third party property damage and physical injury, this type of policy also offers theft coverage. The fee you pay for this type of cover is not much.

After determining the type of motor insurance cover you require to get financial liability protection in the occasion of an accident; you should shop around for the best quote. You can get a quote from an online motor insurance portal. You can also compare quotes and ensure that you get a policy with a satisfactory cover that suits your requirements. 

Motor Insurance- Why You Need it and How to Buy it ?

It is essential for a car owner to purchase a car insurance policy. It serves the very important purpose of protecting the car owner from any financial problems in case of a car accident. Similarly, for two-wheeler owners, it is important to get an insurance policy. While most people understand the importance of motor insurance, they often find it difficult to choose the right policy.

When it comes to choosing the right motor insurance policy, there are many important factors that have to be kept in mind. However, the first thing that you need to understand is that the motor insurance can be classified into 2 categories-

Third-Party Insurance- This type of insurance policy covers only the damages caused to the third party.

Comprehensive Car Insurance- It provides third party cover and also provides coverage against any damages to policyholder’s vehicle.

Buying Motor Insurance

These days, the process of buying motor insurance has become simpler. Most insurance companies offer motor insurance online and the entire process can be completed easily. The companies ensure that the entire process remains smooth and hassle-free. You can easily apply for quotes and make payment online. This can go a long way when it comes to saving time. Moreover, the companies ensure that the entire process of buying online motor insurance remains transparent.

All the information related to the motor insurance policy can be found on the insurer’s website. The customers can download the entire policy documents. Moreover, the insurance companies ensure that everything is communicated in clear and unambiguous terms. All these benefits make vehicle owners buy a motor insurance policy online.

Choosing a Motor Insurance Company

Although the motor insurance policy can easily be purchased online, the importance of choosing the right insurance company shouldn’t be overlooked. Selecting a renowned and reliable brand will save you from a number of hassles. A well-established insurance company will not just offer the best policies to the motor owners but will also make the process simpler for them. Moreover, they will make the claim settlement process fast and efficient and offer full assistance to their customers.

Things you should know

While most people understand the need and importance of motor insurance, they often lack the knowledge and understanding of motor insurance policies. It is very important for a car or a two-wheeler owner to understand the basic terms associated with motor insurance. These include deductible, depreciation, exclusions, zero depreciation cover etc. For example, many new car owners are unaware of the fact that they will have to pay a certain amount of money, known as deductibles, for repairs.

A motor insurance policy is a legal necessity. If you own a car, two-wheeler or any other vehicle, it is mandatory for you to purchase the insurance policy. This will not just provide you financial protection but will also keep you on the right side of the law. You can easily choose the right insurance company that offers motor insurance online.