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All you need to know about Motor Insurance

Most people who want to buy a new car spend a lot of time researching the latest model, on-trend colours, upgraded safety features! Some  even talk to experts and get various opinions to finally make a compiled decision!

Unfortunately, the research ends there and most of us know way too little about car insurance and all that it entails.

The concept of Motor Insurance

In the current context, a car is considered more of a necessity rather than a luxury. The ease of commuting offered by one’s own car is unmatched by anything else. That being said, when your car protects and aids you in your journey, shouldn’t you also protect your car?

In short  Car/Motor insurance, which is mandatory under the Motor Vehicles Act, 1988, is the best way to protect your car from losses incurred as a result of an accident, and against liability that you could incur during any such instances

The important things you need to know about your Motor Insurance

?       Select a policy that suits your needs

There are two types of car insurance policies –

1)      Basic/Third-party car insurance

2)      Comprehensive car insurance policy.

There are two types of car insurance policies –

1)      Basic/Third-party car insurance

2)      Comprehensive car insurance policy.

 The former is mandatory by Indian law, however, more coverage and benefits are offered by the latter kind. If you wish to avail minimum coverage i.e. only against third party perils, opt for third-party car insurance. However, if you want to protect your car as well, go for a comprehensive policy.

?       Premium vs insured value

Insured value, also known as insured declared value (IDV), is the amount that the subscriber has to pay to purchase or renew an insurance policy. One should do a firm assessment of your car insurance needs - consider various riders and types of covers included in the policy - along with the premium payable and the insured value to find the best fit, before buying a policy,

?   Know about depreciation cover

 A zero depreciation cover is the safest bet. This type of cover offers full settlement without factoring the depreciation. This means that if one gets into an accident, this cover ensures that you won’t have to pay anything out of your pocket. But, the premium of zero depreciation cover is higher than the regular premium. 

?    No Claim Bonus - yes, it’s transferable

Upgraded your car? You can transfer your accumulated NCB to your new car. Moved to a new insurer? Again, you can transfer your current NCB to the car insurance policy under the new service provider. As simple as that!

?       Get your car accessories covered too    

This is a specific add-on that can be customised for your specific accessories fitted in your car, for you. These additions will definitely increase your premium but at the end of the day it is the safest bet!     

?    Letting your policy lapse is not a wise move

Allowing your car insurance policy to lapse is considered irresponsible and risky. This is not a wise move. Keeping tabs and making sure that these payments are made on time is something a car owner should take responsibility for and making sure he isn’t a risk on the road to others or himself. 

?    Bundling up  Insurance 

 Live in a large family?  Does the household have more than two cars that are being shared? What could help is asking your insurer for a bundled car insurance plan. This will help lower the premiums across all cars and save you a neat packet.

It’s a smart move - but one needs to be aware of such policies that will suit your needs and convenience. 

?  Insurance prices vary from one company to another

Unlike popular yet faulty perception, all insurance companies have different rates that are offered at different times. Each insurer will have a custom formula for risk assessment and that helps them decide what to pay for coverage. Therefore, no two insurers will have identical prices. Hence, if you buy a policy without comparing rates, you may end up overpaying, and grossly at that too!

 A good motor insurance policy ensures you have peace of mind and financial security while driving. These policies also cover all liabilities due to injury, death or damage to third-party property. Additional benefits come in the form of roadside assistance in case of a breakdown, duplicate keys in case of loss of the original set, etc.

Take your time, compare rates, and choose well. We are here to give you a better, safer and more enjoyable LIFE OF WHEELS.

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