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Why should you insurance your motor vehicle?

In India, it’s a mandatory to have an insurance cover if you wish to drive your vehicle on road. Every vehicle is insured upon a value based on the manufacturer’s price of the vehicle minus the depreciation costs as per the age of vehicle known as Insured Declared Value. The third party property damage is covered up to costs of around 7-8 lakhs for cars and Rs 1 -2 lakh for a two-wheeler. And there is not such limit on the cover for injury or death of the third party.

The premium of your vehicle insurance policy is determined on a number of factors such as make and model, engine capacity, age, fuel type, the city you stay in, customer’s age, profession, security elements, and modifications done/accessories added to the vehicle.

One of the most common ways to save premium on vehicle insurance would be accumulating your No Claim Bonus (NCB). NCB’s help you get a discount on your premium if you haven’t made any claim in the prior years. These discounts will get increased with each successive year of zero-claim and go up to as high as 50% to 60%. It is advisable don’t claim for petty dents or a small scratch, instead, accumulate these bonuses and utilize for higher discount premiums. Another way to reduce premium would be installing safety devices, having a membership of an automobile association, choosing higher deductibles, parking in garages or safe area, etc.

You can always enhance the protective cover by opting for add-on covers to protect the risks that are not covered under a standard policy. Some common add-on would be zero depreciation, No-Claim Bonus, hospitalization, etc. Most vehicle insurance companies offer the cashless facility if it’s repaired at their authorized garages. Else, you can repair the car at your preferred garage and then claim the amount from the insurer. There is some standard exclusion such as normal wear & tear, a mechanical or electrical breakdown in the car. If the person driving the vehicle doesn’t have a valid license or driving under the influence of alcohol or drugs, you will not be able to claim vehicle insurance. Also, in case you're not happy with the existing insurance provider you can change the insurer without losing the benefit of any no-claim bonus that you may be eligible for.

Online purchase lets you compare varied policies offered by 5-6 or more companies at one time. The modern technology is highly improved and speedy. All you need is to visit any of the car insurance comparison websites in India and feed in the requisite details. You’ll then be able to compare different car insurance policies along with features, benefits, discounts, payment modes, claim settlement ratio, etc. under a single umbrella. Make sure you finalize on a plan that offers you the best features and price (premium) features.

In the manual purchase, many times due to the hectic work schedule consumer are not able to visit the company or attend agents on insurance issues.  But once you’re done with the selection process of vehicle insurance online, you thereby get assured about the policy reaching in your inbox. The company keeps sending you e-reminders for insurance premium, renewal dates, latest modifications in terms & policies, government mandates, easy claim procedures and other facilities in a timely manner.