Do You Ponder These Things When Buying A Motor Insurance Policy?

As much attention one gives to buying a new car or bike, the same isn’t given when buying a motor insurance cover. Vehicle insurance is no option but a mandatory requirement by the Motor Vehicles Act. So, before you get your next insurance cover, the following are a few things to decide upon:

Motor Insurance

Comprehensive or third-party covers:

Motor insurance is available in either of the two types- third-party and comprehensive. The former type is the minimum requirement stipulated by law but is limited in coverage. To compensate for its limitations, you can purchase a comprehensive policy that encapsulates the features of a third-party cover along with some more features. These features are in the form of add-ons that can significantly enhance policy coverage.

Your driving habits:

Driving habits are instrumental in determining the price of your motor insurance. A rash driver can have an active claim history that results in a higher premium. On the other hand, a safe driver will not require to raise frequent claims and thus can benefit from a no-claim bonus at each renewal date. This no-claim bonus facility helps to significantly reduce the premium amount by offering a concession in the own-damage premium of your comprehensive policy. The concession amount starts at 20% and goes all the way up to 50% for the event consequent year without claims.

Evaluate your requirements:

Evaluating requirements is essential whether you are buying personal or commercial vehicle insurance. The following questions will help you have a better evaluation of your needs:

  • How much do I travel each day?
  • Do I drive with co-passengers?
  • Does my vehicle have accessories that require insurance?
  • Is the area where I reside prone to natural calamities?
  • Do I generally have expensive personal belongings while traveling?

Once these questions are addressed, you can decide based on them about the policy and its type that you need to buy.

Buying suitable add-ons:

Many add-on covers can help to significantly enhance the coverage of your bike or car insurance policy. Since these add-ons provide specific coverage, their choice purely depends on your requirements. Not all add-ons can be useful for everyone. Their need should be assessed based on what coverage you seek for the vehicle.

Consider the impact of deductibles too:

A deductible is an amount that you need to pay as your share when a claim is made. Deductibles are of two types- voluntary and compulsory/standard. All motor insurance plans are mandatorily required to pay the compulsory deductible, whereas voluntary, as the name suggests, is optional. You can select the voluntary deductible based on your ability to bear the cost of repairs when a claim is made. However, note that a higher amount of voluntary deductible can result in lower claim amounts.

Do not ignore the price:

While you select the right coverage and its suitable add-ons, do not ignore the price. Prioritizing price sufficiently will help you achieve a balance of the benefits vis-à-vis its cost. a right balance will help to achieve suitable coverage within your budget.

These are some nifty tips to remember when you are looking for a vehicle insurance cover. Not only do they help to get suitable coverage to insure your vehicle, but they also make sure it is within your budget.