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  /  Motor Insurance   /  How to Choose an Appropriate Motor Insurance?

How to Choose an Appropriate Motor Insurance?

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The Motor Vehicles Act, 1988 has made it compulsory for every car owner to buy a minimum amount of motor vehicle insurance. Moreover, with a wide range of car finance options available, the dream of owning a car has become a reality. The motor insurance companies are also offering different kinds of insurance coverage options, so that the individuals need not have to compromise for their prized possession.

If you are looking for ways to get best quotes on motor insurance policy premiums then we suggest some practical yet effective ways to find the appropriate motor insurance:-

Research about the riders that these insurance companies offer 

Apart from offering a standard motor insurance policy, the motor insurance company also provides several add-on covers to protect your car against damage. Though these riders come at an extra cost of the base policy, they are worth purchasing. For example:

  • Zero depreciation cover – This add-on is ideal for a new car, as it includes the complete cost of repair of the car. Most of the car insurance companies offer this add-on for a car which is less than 5 years old.
  • Engine protection cover – This insurance cover protects the most important component of the car-engine. Hence, this kind of cover is ideal for people who live in areas where waterlogging is always a constraint.
  • Roadside assistance cover -This add-on insurance cover offers dedicated emergency services like towing, refuelling, tire change, etc. Roadside insurance cover is definitely a must as it provides the much-needed assistance during an emergency.
  • Consumable cover – The cost of consumable spikes up the motor vehicle repair bill amount significantly. This add-on insurance cover protects you by including this amount in the claims payout. Hence the costs of consumables need not be borne from your pocket.

Premium Amount

You can calculate the premium amount with the help of motor insurance premium calculator. The premium amount is generally based on IDV or insured’s declared value of the car. It refers to the market value at the time of purchase of the insurance. It also takes into consideration the depreciation value of the car.

The premium amount is also dependent on the cubic capacity of the car engine. The higher the cubic capacity, the more will be the premium amount. Age of the car is another factor that helps to calculate the car insurance premium. The older the car, the more will be the depreciation and higher the risks. Hence the premium amount would be higher.

No Claim Bonus (NCB)

An NCB is a good incentive for careful driving. It can be used to avail a discount in the subsequent year provided the policyholder has not made the claim before. Since NCB is an attractive benefit, make sure that your policy has provision for this component.

Hassle-free process

Another thing that you need to think upon before buying an appropriate insurance policy is whether the claim settlement procedure is smooth and easy. The motor insurance online policies are also available that protect the customers from unpleasant eventualities.

Don’t follow someone else’s footsteps blindly

Suppose, if a family friend has purchased an insurance cover from a particular company, that doesn’t mean you also have to join the bandwagon. You should assess your requirements carefully and select an insurance policy based on your requirements.

In a nutshell, a motor insurance policy is an instant, hassle-free way to protect your car from untoward incidents.

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