Motor insurance is the protection you avail for your car in case it gets damaged in specific circumstance or gets stolen. It provides coverage against unforeseen circumstances that can make you pay a huge amount out of your pocket.
Reasons to Buy Best Motor Car Insurance Policy
• As per government laws, it is mandatory to have motor insurance policy.
• It assists you to pay for damages caused to you or your car due to accidents.
When you are looking to buy motor car insurance policy you are required to determine the Insured declared Value (IDV) of your car, on the basis of which the insurance company determines your premium amount. The other factors that determine your motor insurance premium is make and model of your car, registration city and the kind of coverage you want to avail. To understand the possibilities of claim, the insurer takes into account gender, age and driving history of the driver. Besides, there are other factors as well like no-claim bonus (NCB), features (whether safety features or high-end luxury ones) added to your car that help to determine the premium amount payable in your specific case.
Types of Motor Insurance in India
• Third party cover: The policy guarantees to pay for the damages caused to the third party only, in case of an accident.
• Comprehensive coverage: The policy provides coverage against damages in a comprehensive way. It covers loss and injury to you and your car as well as loss and injury to the third party and its car, if any.
• Collision coverage: The policy covers financial losses caused only to your vehicle only in case of a collision.
Kinds of Motor Insurance Riders
Riders are add-on benefits that you can get along with the basic coverage of your motor insurance policy. You get this extended coverage for your car by paying a considerable cost for it which is added to your basic premium amount.
Kinds of riders you can avail are:
This rider helps you to get full value of the damaged part as reimbursement in case of an accident. Generally, according to standard motor insurance policy, depreciation is applicable on parts of your car. When you raise a claim, the insurance company deducts the depreciation value from the claim before paying it which is applicable on cars 2 to 5 years old. When you buy zero depreciation add-on, no depreciation is deducted and you get full value to replace the damaged part.
Motor insurance is supposed to provide coverage when damage is caused due to accident and not in other circumstances. When you buy engine protect rider, it ensures that the engine of your car gets coverage even when there is no accident. Paying for the damage to the engine can burn a hole in your pocket. If you have a new car or you reside in a city where there are possibilities to incur losses on engine on account of bad weather or some other factor, choosing the rider can go a long way to save you financially.
Return to Invoice:
The rider ensures you get the value of your car you paid to get it on road in case you suffer total loss because of theft or other reason. That is, you get the reimbursement that includes registration charges and road tax as well besides the basic IDV of your car. In case similar model of car is available at comparatively lower price, the insurance company considers that amount.
You get NCB or no-claim bonus in case you have not made any claim in the previous financial year. But once you make a claim, you are not eligible to get NCB. In case no claim is made, bonus of 20 per cent is applicable on the premium amount. This bonus keeps adding in case no claim is made in subsequent years as well but the higher limit is 50 per cent. This rider ensures your NCB is protected even if you have made a claim.
There are other riders as well like the above-mentioned ones such as roadside assistance, accident coverage for passengers, key replacement compensation etc. You need to gauge which rider can be helpful to you in your specific case.
Benefits of Best Motor Insurance
• Legal protection
• Insurance against unforeseen financial losses to your car due to accidents
• Coverage against the loss caused to the third party by injury or property loss
• Coverage against theft, self ignition, explosion, fire, strikes, riots, terrorism and natural calamities
• Personal accident cover
• Ability to preserve the value of vehicle
• Optional additional benefits that you get by having riders