A Number of Things to Consider Before Buying Motor Insurance

People living in India still regard the renewal of a car or two wheeler insurance as unimportant. They don’t give it just as much significance as they would give about purchasing a pair of shoes. This is the reason why most people end up choosing the wrong plan for their bikes or cars and later on regret for paying exorbitant premium. Our lifestyle and requirements changes every year and similarly the importance to reconsider your vehicle insurance coverage has an equal necessity. Most people don’t consider various factors while getting their vehicle insured, which in fact could turn out to be a great trouble later on.

What to Consider Before Buying or Renewing Car Insurance Policy?

Let’s consider going to the market for your weekly grocery purchase, do you just go straight without any planning or pondering anything? Of course, you take in a number of factors such as the shop you are going to purchase from, the budget, the vegetables or other food items you would buy etc.  Similarly, car or bike insurance should be taken the same way; you must ponder over a few factors before purchasing or renewing one. Find out below the things you must consider before buying a car or bike insurance.

Choose Comprehensive Cover over Third-party

There are two types of bike and car insurance policies in India: Third Party Liability Insurance and Comprehensive Insurance. As per the Motor Vehicle Act 1988, buying third party insurance policy is mandatory for all motor vehicle in our country. The third party insurance for car and bike owners provides protection against damages caused to other people or their property in the event of an accident. Conversely, a Comprehensive Policy is designed to offer protection to the insured car or bike along with the benefits of a third party liability cover and add-ons.

Monitor Your Driving Behaviors

Your driving habits or behavior certainly play a major part in determining the premium of your motor insurance policy. So if you are a rash driver, you might have an active claim history resulting in an elevated insurance premium. But if you are a passive driver, you might not file a claim often in general. As a result, the cost of buying car or bike insurance would be lower for you when you are a sensitive and careful driver.

Only Buy What You Need

It is advisable to estimate your requirements prior to buying or renewing your car or bike insurance policy. Here are some basic questions that you should ask yourself to confine your policy within a specific limit:

  • How much do I drive on an average?
  • Did I recently add any new accessories to my vehicle?
  • Do I normally travel with co-passengers?
  • Do I often carry expensive personal stuffs while driving?
  • Is my vicinity prone to natural calamities?

Asking yourself these types of questions can help you unearth the right type of car or bike insurance policy.

Consider the Reputation of the Insurer

It’s very much important to run a little research on the company you are buying or renewing vehicle insurance from. The payment on claims is chiefly dependant on the reputation of the insurance company. Only go for an insurer if they have a good ranking in the country in terms of higher claims settlement ratio, user reviews, good coverage under a reasonable price, providing necessary customer support, prompt action when claims are registered etc.

Consider Add-ons for Extra Coverage

Add-on covers stand for additional coverage that are not generally included within your comprehensive car or bike insurance policy. Buying add-on covers are totally optional and it completely depends on you. You will be charged some extra money along with your premium to enjoy the benefits of an add-on cover. Find out some of the popular add-on covers that you can choose to include under your vehicle insurance plan:

  • Zero Depreciation or Bumper to Bumper Add-on Cover
  • Accessories Cover
  • Engine Protection Cover
  • Roadside Assistance
  • Key Protection Add-on
  • NCB Protector Cover

Consider the Premium Amount

The right car or bike insurance policy is the one that provide adequate coverage at a fair price. It will be beneficial at the time of claims if you prioritize on sufficient coverage instead of the price that you are paying. Nowadays it’s not hard since most of the insurers are offering policy comparison tools online. You can effectively make use of these tools in terms of adjusting the factors impacting your car insurance premium and thereafter buy the policy that goes along with your budget and requirements.

Buying or renewing an insurance policy for your car or bike is no longer as hard and tiresome as it was a few years back. The rapid progress in the technological advancement has made it possible to insure your vehicle in just a click of your mouse. People did not have access to these things in the past. They had to count on the insurance agents to buy or renew an insurance policy. But now, by using the above points, you can effortlessly buy the best vehicle insurance policy which would be affluent in coverage at a reasonably fair price.

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