A plentitude of motor insurance plans is provided in India that serve the specific needs of a buyer. But, what exactly is motor insurance? Long drives with family or friends are the most enjoyable pastime, or a fun road trip will probably be on your bucket list. So, to ensure financial coverage in case of any road accident, you must have motor insurance.
Motor insurance policy ensures financial protection to the customer against car accidents or theft. Therefore, choosing the right motor policy is of utmost importance.
Here are a few key tips that you must read before buying motor insurance.
- Be clear with your needs – One must be clear with their needs and the type of motor policy they wish to purchase. Generally, there are two types of insurance- Third Party Insurance and Comprehensive Insurance. If your vehicle is old and you don’t take it out often, opt for third party insurance. It will prevent you from paying more money in premium policy that you might not need. On the other hand, if you use your vehicle on daily basis, choose a comprehensive policy along with third-party insurance. It will reduce financial liabilities in accidental events and theft.
- Opt for add-ons – Always ask for add-ons! Add-ons are those beneficial tokens that provide gigantic coverage against certain damages but, these are not included in the usual policy. You need to pay an additional amount to purchase these to widen the scope of the policy. These add-ons don’t take only the extra penny from your pocket but provide extra coverage too. Remember, add-ons are available only to comprehensive policyholders.
- Comparison is the king – Remember, comparison is the key to choosing the right motor insurance policy. The insurance market is flooded with various companies! So, after finalising the type of insurance policy that best suits your need, comparing plans from different insurance companies is the best approach. First, analyse your insurance expectations and then compare them with policies offered by different companies. Prepare a list and study the plans regarding inclusions and exclusions, type of add-ons, claim process, etc.
- Claim Settlement Ratio – Before opting for the plan, always check the Claim Settlement Ratio of the company. CSR or claim settlement ratio refers to the total number of claims settled by the insurance company. If the CSR of the company is good, then take the process further, else do not opt for that insurance company.