A motor insurance policy is a legal requirement other than registration and PUC for a vehicle. It is a commonly known piece of information that not just auto dealers, but your friends and family might tell you. But among the plethora of insurance plans that are available, how do you arrive at a decision?
This article aims to address this question by helping you understand the do’s and don’ts of buying a motor insurance plan. But before that, you need to understand the benefits of a motor insurance policy.
A motor insurance policy is available in two types—a third-party plan and a comprehensive policy. The Motor Vehicles Act is what makes it mandatory and stipulates that third-party insurance cover is at least what all vehicle owners must have.
Third party insurance plans provide coverage for liabilities that may become payable due to an injury to a third person or damage to their property and, hence, are also known as liability-only plans.
Contrary to third-party plans, comprehensive policies provide insurance coverage for the damage to your vehicle too. This coverage is in addition to the third-party coverage that comprehensive plans include. Not just damages due to accidents are covered by a comprehensive plan, but also damages due to natural disasters and man-made perils like theft are also covered.
The dos of motor insurance policies
The starting point in buying a motor insurance policy is to make sure you compare before buying. Comparison not only helps in keeping the premiums at an affordable level, but also ensures all essential features for a buyer are included in the policy’s scope. A vehicle insurance calculator is a nifty tool that can be used in this process of comparing different plans not just based on their price, but also the feature set offered within. *
- Acquiring adequate information
When you buy a motor insurance plan, make sure to identify your needs and only then narrow down your choices. This will help you get the exact policy coverage. To help arrive at a decision, it is important for you to understand the policy terms thoroughly. While there is information on the internet on how different insurance clauses affect the payout of your policy, it is best to gather complete information before paying the premium. To support your buying process, insurance companies offer a helpline facility that helps resolve any doubts and gather necessary information. *
- Know the policy coverage
Understanding the policy coverage is essential once you have shortlisted a handful of policies. This process helps to make an informed choice of insurance policy both at the time of purchase and at vehicle insurance renewal. *
* Standard T&C Apply
The don’ts of motor insurance policies
- Avoid a hasty purchase
The number one mistake to avoid is making a hasty purchase decision. Not only does it leave you with unsatisfactory insurance cover, but also the risk of choosing the wrong insurance plan. *
- Hiding necessary information
Insurance is based on the principle of trust. When you conceal any necessary information about your vehicle to the insurance company, you may end up attracting legal proceedings due to defrauding the insurer of vital information. In addition, your claim application can be rejected. *
- Avoid leaving blanks in your insurance application
Lastly, do not leave any blanks in your application form. This creates an ambiguity about what the insurance company must know about. While some of these fields do not impact the premium calculation, a few of them do. So, remember to not leave blanks in your application form. *
* Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.