Buying a new vehicle is an exciting experience. One tends to invest countless hours in reading and researching for a desirable model. Only after finalising the favourite variant, it comes to making that purchase decision. After all, it is your hard-earned money, and you want to enjoy your new car or bike.
Then why are the same people ignorant when it comes to buying a suitable motor insurance plan? Now that it is mandatory by law to have an insurance plan, it is essential to select the right plan with appropriate benefits. Buying motor insurance online has made it easy to compare and choose a suitable insurance cover as per your needs.
Let us look at the different things to be considered while buying a vehicle insurance plan –
Type of cover
There are two types of vehicle insurance that you can opt for – comprehensive or third-party. The Motor Vehicle Act makes it mandatory to have at least third-party insurance cover for your vehicle. A third-party insurance policy only covers the liability with respect to the third party and not the policyholder. At the same time, a comprehensive plan offers full-fledged coverage. It includes protection against injuries to the policyholder, its vehicle along with any injury sustained by third-party and their property in case of a mishap. So for broader coverage, one must go for a comprehensive plan.
One aspect that you need to consider while buying vehicle insurance is insurer’s reputation. A reputed motor insurance company will have a good track record of claim settlement. You can check for the claim settlement ratio that provides details about the percentage of claims settled against the claims received by the insurer. This data will help you gauge an insight into how many applications on an average are settled by your insurer.
When you buy comprehensive motor insurance, you have the option to select the add-on protection covers in your insurance plan. These may range from a zero depreciation add-on to an engine protector add-on. Different add-ons are made available by each insurance company. You must opt for a suitable add-on that is required for your vehicle to ensure adequate protection.
Reading the fine print
Before buying any vehicle insurance, make sure you have thoroughly checked the policy document. It is essential to be aware of the exclusions and other terms and conditions that your motor policy may specify. This will help you avoid any rejection in case you file for claims with your insurer.
Premiums are the last factor that will decide whether you opt for a particular policy or not. When you buy vehicle insurance, you look for the cost and the benefits that you will receive from the policy. Nowadays, with insurance companies offering premium calculators when you shop online for a policy, it makes it easier to adjust any add-on that influences the cost of your insurance premium.
So the next time when you search for a new insurance plan or opt for a two wheeler / car insurance renewal, remember the points mentioned above to get the best deals. These points will help in deciding the right insurance policy that is suitable for your needs and budget.