Points To Keep In Mind While Purchasing Vehicle Insurance

Published on 13-Mar-2023

This article serves all the necessary points & information that one should be aware of while purchasing a vehicle insurance policy in India. It may include types and benefits of motor insurance.

Buying vehicle Insurance is compulsory in India for every motor vehicle. It offers a protection cover to your vehicle to secure all your motor assets whether it is a car, truck, bike, or any other vehicle, etc. Therefore, you can easily understand the importance of having insurance cover for your vehicles. But, there are several things that need to be considered before buying any insurance plan for your motor vehicle such as:

Involvement of third-party coverage,
Add-on plans,
Personal accident cover,
Comprehensive insurance policies, etc.

Let us discuss all the essential points that should be in our mind while buying a vehicle insurance plan. Below is a brief description of all that we must discuss with our policy advisor:

1. Know the insurance coverage and benefits associated with the policy

The most essential thing that one should keep in mind is the coverage and benefits the motor insurance company is offering to you under your insurance plan. As this will help you to choose the coverage amount and what is covered under the policy.

The coverage & amount will be determined by the policy you buy. Your insurer will inform you about the complete benefits and tenure of the plan. Some insurers offer comprehensive coverage, while on the other hand, some may offer third-party cover only.

One thing you need to ensure is that you read the policy documents carefully and agree to the terms and conditions mentioned in the plan.

2. Look at the Insured Declared Value IDV closely

One thing you must examine while buying a vehicle insurance cover is the Insured Declared Value IDV that is offered by your insurer depending on the type of plan you choose. IDV stands for the current market value of the vehicle.

In case of total loss or damage to your motor assets, your insurer will pay a compensatory amount to you. So it is essential to discuss all aspects related to IDV with your insurer.

3. Buy Comprehensive Insurance Plan for Your Motor Vehicle

Apart from Third-Party Vehicle Insurance which covers a third-party liability under the plan, it is necessary to buy a comprehensive plan to ensure complete financial protection for your motor assets. It covers loss or damages to third-party property as well as damages caused to one’s own vehicle.

It also includes damages caused due to natural calamities such as floods, cyclones, and earthquakes and man-made disasters like theft, riot, etc.

4. Check Additional & Add-ons Plans

It is always good to look at various add-on plans to add more coverage and benefits. It minimizes the risk of any financial security due to damages or loss to vehicles for your private cars, bikes, trucks and commercial vehicles, etc.

5. Never Miss A Personal Accident Cover For Your Motor Vehicle

You should never overlook personal accident damage cover for your car as it offers protection against any physical loss or damage due to an accident. It offers coverage to all passengers as per the seating capacity of the vehicle.

6. Check For Motor Insurance Premium

It is not advisable to only look for a vehicle insurance premium. You need to assess the complete plan including other benefits and coverage. One should avoid selecting their motor vehicle insurance based on premium only as service and experience also matter a lot. So you should be aware of the whole aspect of the plan you are going to buy.

7. Must Calculate No Claim Bonus NCB for Your Vehicle

No Claim Bonus NCB is a policy reward granted by an insurer to a policyholder for not raising any claim in the given tenure of the plan. So in simple terms, if you do not file a motor insurance claim during the policy term, then you would be offered an NCB. It is a discount on premiums that are given for next year by your insurer during the renewal of the policy.

8. Understand The Terms and Conditions Mentioned In the Policy Agreement

It is crucial to go through the terms and conditions of the car insurance policy and check for the plan benefits given for every wear and tear of the vehicle. Vehicle owners should consider each and every instruction while buying vehicle insurance online.

For purchasing a motor insurance in India, Policy.Online helps you with top insurers and exclusive insurance plans for your vehicle. You can get quotes and compare them and select the best plan for you accordingly. Our policy experts are always ready to advise you anytime.