Why Should You Have Vehicle Insurance ?

Opt for Add-on Covers for Comprehensive Motor Insurance Benefits

Consider this…

Abhishek has bought a new car, and paid a basic policy premium of Rs. 15,000. Due to the rainy weather, he had a mishap where he ran into a tree. Due to this accident, there has been extensive frontal damage to the vehicle. In such a situation, while a large part of repair costs would be taken care of by his policy, he would still have to spend at least Rs. 30,000 from his own pocket to get all repairs and replacements done.

On the other hand, had he opted for an add-on cover such as a depreciation cover at the time of purchasing his motor policy, he could have saved a massive part of the cost borne by him, by paying a mere Rs. 5000 a year.

With the ever growing prices of products, it is no longer easy for people to incur major unexpected expenses. In such cases, having an alternate option that helps optimize costs is always good. This example is particularly true in case of your motor policy. The situation shared above, is a clear indicator of how a few extra thousands can help you go a long way in case of your motor policy.

The concept of motor insurance add-on covers are fairly new across the industry, thus leaving a lot of people unaware of the benefits it comes with when taken over and above a basic motor policy. In most cases, while a basic motor policy covers repair and labour costs, the replacement of spare parts is not taken care of in full. There is depreciation in the amount paid out to the policyholder. In some situations, the standard car insurance policy quite possibly may not be sufficient to cover all the involved costs. As a result, insurers have turned to offering a customized solution which caters to the individual need of the customer. Some of the commonly available motor add-on covers currently available in the market are as below.

Add-on covers that can prove beneficial

Depreciation shield: An add-on of this type is perhaps one of the most beneficial cover that can be opted for. In case of any basic motor policy, the only cost that is fully covered is that of the basic claim amount on any repair that has taken place. However, often the damage that occurs may involve the replacement of car parts too. The cost involved in such part replacement is usually high, and also payable out of your own pocket. Taking the depreciation cover helps, as this cover takes care of the complete repair and replacement cost, thus practically negating any major cost that would otherwise have to be borne by you.

Round-the-clock roadside assistance: Another extremely helpful car insurance cover that can be opted for is that of the 24×7 roadside assistance cover. You can never be sure when your vehicle may break down or get involved in some unfortunate incident. The 24×7 spot assistance cover offers mechanical assistance and benefits ranging across a flat tire, minor repairs, towing assistance, and even assistance, such as medical coordination and legal advice, if required.

Engine protector: This type of add-on is particularly useful for anyone residing in areas that are highly prone to floods. Usually, for people residing in such areas, the vehicle is subject to risks such as floods, water logging, etc., which could create major damage to the engine. A standard motor policy would not suffice in these circumstances. Therefore, in such cases, taking an add-on cover like the ‘engine protector’ is advisable, as it covers any engine-related damage that may occur to the vehicle.

While a basic motor vehicle insurance policy is common, one cannot forget that it does not necessarily cover all the costs that could come your way. At such times, the variety of add-on covers offered is the best solution to opt for. The next time you are looking to make the most of your motor insurance and are looking for a comprehensive cover, it is recommended that you seek to obtain an add-on cover, as per your requirement.

[Source: http://www.demystifyinsurance.com/opt-for-add-on-covers-for-comprehensive-motor-benefits/]

Some tips to consider during car insurance renewal

Car insurance is mandatory in India. Without a valid insurance policy you will not be able to drive your motor on roads. There are general insurance companies that offer hundreds of car cover policies with customized solutions to meet consumer needs and requirements. The policy could be purchased for a year’s time and can be renewed after every year. However, most often consumers are confused at the time of car insurance renewal and tend to purchase any policy which may later not even cater to their needs. If particular element of the policy doesn’t cater your needs you will have to bear the financial losses.

Below are few tips to consider while opting for car insurance renewal:

Understand 

Before you buy insurance cover, it is essential to understand what cover you are willing to opt i.e a third party cover or comprehensive insurance.  Then you should wisely analyze if the requirements of your car compared to previous year. Drop out the least important requirements and then revise the amount of cover you would require. You should also keep in mind the minimum level of cover that is set as mandatory by your government. While is it unsafe to be underinsured, paying high premiums will also burn hole in your pockets.

Compare online

The wisest step would be comparing quotes online before car insurance renewal as it can save you a hefty amount of money and provide better coverage as well. It allows you to do a detailed comparison between insurance companies on the basis of their financial track record and claim settlement ratio.

No Claim Bonus

Every time you complete your car insurance year without a single claim you’re rewarded with No Claim Bonus points.  You can redeem the points against the claim amount or premium reduction. So check and see if you can avail of this benefit. If yes, then the discount will be deducted from your premium and you have to pay less for the current year. It is advisable, don’t claim for petty scratches or dent. Instead accumulate your bonus points and go for higher claim or discounts.

Add-Ons

Add-Ons help you customize your car insurance as per your need, besides adding on to the protection. Insurers provide consumer tailored solutions for add-ons that specifically suit your needs based on vehicle age, IDV, make & model and other factors. You should invest small money for additional benefits such as nil-depreciation insurance, roadside assistance and personnel cover known as “Add On covers.” Add-ons might increase your premium slightly but they provide extra protection to both you and your car.

Discount

Since you’re valued consumer, insurance companies will try every means to retain their customers. You will be offered renewal discount, festive discount etc. that can substantially reduce the burden on your pocket. Factors like good driving record, gear lock, anti-theft system, safety equipment will reduce your annual car insurance renewal premium by 5 to 10%.  Insurance companies’ gauge that you are concerned about your car and help you reduces the cost of the insurer and the benefit is carried forward to the consumer. Make sure you explore all the available options and minor details about your car at the time of car insurance renewal.

Why insurance renewal is important for your motor?

It is quite common to miss a credit card or utility bill payment due. The reasons could be endless like illness, emergency, travelling, hectic work schedule, etc. While, this is still a minor thing that could be rectified in time, skipping a motor insurance policy might will put you in danger of serious financial loss, if you were to meet an unfortunate incidence during this time. Also, most people who skip policies just to save the premium amount without understanding its repercussions will have to face the hassles later.

A motor insurance policy is an annual contract that needs renewal after every year on its due date as mentioned in the policy document. A lapse occurs when one fails to renew the policy by the due date. So, if the renew date passes away and had it been you meet an accident or so, any type of claim made will not be entertained by the insurance company. Moreover, after a lapse, in case of an accident one has to bear the entire cost from one’s own pocket. Therefore, it is important to have your motor insurance renewal on time to keep the cover continuing and prevent any financial losses.

Every motor insurance policy comes with a grace period for renewal. You can check this from your agent or insurance company without any further delay. The period can range from 3 to 30 days with or without any late fees or charges for using this grace period. You should immediately get in touch with the insurance company and check on options to renew the car policy. Some companies might allow you to renew the policy in case the lapse is only for a few days or else insurer will advise you to apply again for a fresh policy.

If you’ve applied for a fresh policy after a lapse, you should scan and shortlist insurance company based on competent premium offered, benefits & features available. Simultaneously, one should arrange all the previous policy documents, details of any past claims and basic motor documents such as RC, pollution certificate, etc. and keep them handy.

Motor insurance policy renewal is quite simple these days and can be done easily anytime from the place of your choice on companies websites. Nowadays, companies have introduced apps through which you can not only purchase policies, but also manage many things like paying premiums, renewing policies or claiming them. Insurance companies also chase and send reminders for policy renewal to customers through automated calls, emails and SMS alerts. Online renewal is also advisable as you can get a digitally signed policy immediately.

One can set reminders on mobile phones or calenders rather than depending on the insurance companies to provide renewal alerts. Expert service portals also come handy in such scenarios.

The consequence of motor insurancepolicy lapse:

•Renewal may be rejected

•Renewal may be allowed, but with some fines & penalties

•Fresh policy possible only after vehicle survey or inspection

•The company might charge a higher premium on the policy

•Possible loss of annual No Claim Bonus

•Utilize your valuable time and energy, take higher responsibility and possible loss of money in case of any accident during the lapse period

Know how to choose the best motor insurance policy…

Insuring your motor is mandatory by Indian Traffic law. But people, who are relatively inexperienced with car policy purchase, should have to compare quotes and then go for best coverage at affordable rates. A car purchase is a long-term decision and probably one of the expensive monetary investments that you make after property. Needless to say, we all love our cars and care for it a lot. Motor insurance policy is the best way to safeguard your beloved car. With ever expansion and rapid development on insurance segment choosing the best policy has been quite a daunting task.  Therefore, it is important to purchase right car policy else you might end up paying high premiums or cover rejected at the crucial moment of time. Most of us don’t really know what gets covered with a comprehensive motor policy and end up wasting energy, time, money and efforts thereby feeling frustrated when the claim is rejected.

A comprehensive motor insurance provides an individual with accidental cover while driving and also for its passengers, against any loss or damage done to your vehicle against natural calamities such as Fire, Explosion, Self-ignition, Lightning, Earthquake, Flood, Typhoon, Hurricane, Storm, Tempest, Inundation, Cyclone, Hailstorm, Frost, Landslide, Rockslide etc.

In today’s world, internet provides the entire world wide information just one click away. Motor insurance policy comparison efforts have highly reduced due to this. By searching over the internet for reduced cost automobile insurance you can get different quotes from different companies as per the information provided by you.

While purchasing a motor cover you can be entitled for many discounts such as if your vehicle has an alarm, discount for safety features like airbags, theft alarms, careful driving, non-smoker or alcoholic, purchasing from particular credit/debit card may also fetch good discounts. Review the status of all the drivers in your family. Most discounts will apply only to one portion of the policy, so just enjoy whatever you can bank upon.

Online comparison sites help you to avail vehicle insurance that will help you save quite a lot of money and time. Working over the internet is not difficult, you can easily compare quotes at the comfort your home or offices. Compare them in terms of benefits & features offered, discounts, premium payment flexibility or hassle free claim settlements.

Once you have selected the motor insurance policy make sure that you get the cover worth the money spent on your premium. Before signing an application for any insurance cover, call up and take a feedback of the insurance company past performance. Check if the company is listed and has valid licensing, talk to your family or friends, customer service or existing customers about their experience with the company. Check problem resolving ability and tackling of any crisis or claim procedure.

Many companies nowadays have come up attractive packages to lure new customers or retain the existing ones. All you need to do is hunt down your benefits as much as possible at optimum costs. You can have a look at other company websites online and check for their premium rates and what all things the other insurers are covering in the same rate of premium. This will help you to decide the best possible car insurance you can get from a valid insurer at lowest premium.

16 Important Car Insurance Terms

Ask yourself these questions when comparison shopping for auto insurance to lower your rate

How to choose the right motor insurance company in India?

Choosing which insurer you should purchase your car insurance policy from is a decision that has to be taken very wisely and after careful comparison. There are hundreds of motor companies in India that cater to their clients with customized car cover policies at affordable rates. Even though you can renew your car policy a year later, you can’t tell the extent to which you may need the insurance cover in future. Therefore, the best way is to compare policies before you purchase them or renew them each year. There are some factors that you must evaluate before deciding upon a particular policy being purchased from the list of motor insurance companies in India:

Premium:

It is the most important part of your finance management in car cover. There are many ways to cut down your premium such as parking your car in safe area, security alarms, No Claim Bonus, valid and reputed driving licensing etc. So, you should always look to cut down your insurance premium so that you get maximum coverage at affordable rates.

Riders:

There are some insurance riders every car owner can consider to incorporate in their plans. These riders provide additional and essential benefits to your car. Although, they come at slightly higher costs but the coverage they offer is well balanced and quite helpful. Some of these include Personal accident cover which financially safeguards you against unforeseen events causing bodily harm, such as Accidental Death or Permanent Total Disability arising due to a road accident; rental reimbursement rider covering the cost of renting a car, Road side assistance offer facilities like fuel refilling, battery jumpstarting, lost key replacement, legal advice etc.

Reputation:

There are several motor insurance companies in India that are available at your service. But it’s a two-way street under which you pay for the coverage and your companies provide protection to your car. Hundreds of fraudulent companies are being set up around in markets that may promise service & cover but at the time of claim you may find it extremely difficult to get money. Therefore it is necessary to do background check about the reputation and financial standing of the insurer you wish to take insurance from. Going through online reviews, speaking to friends and relatives, and staying abreast with financial news can help you keep track of the motor insurance company's reputation.

Convenient Buying:

Your insurer should be accessible anytime of the day or night. A well-established digital presence will make the difference and give easy claims online. Nowadays, motor insurance companies in India have introduced mobile app which is huge plus for consumer to manage policy while on the go. From purchase to renewal, claims to documentation everything is right under your belt along with these apps. It also makes it easy to get a car insurance plan online as you get a digitally signed policy through their portal.

Cashless Garage Facility:

The most important part of car crashes is to arrange finances to pay to the garage people. If at all, you get a cashless garage facility it would be like a boon for that moment. Some advanced insurers offer a cashless garage facility wherein, if you get your car serviced at a garage that is part of your insurer network, you can get it fixed under a cashless claim.

Customer Service Team:

It is very important you maintain a healthy relation with your motor insurance company. Understand there customer service problem solving ability, way of approaching customers and closing concerns under deadlines. One quick way to check this is to visit the insurer’s website and contact them via chat or phone calls and assess how quickly and helpfully they respond to your concerns.

Benefits of owning suitable car coverage

Car insurance is mandatory in every state of India. It can help you compensate the loss of huge sum amount during accidents, natural disasters or man-made calamities. Driving a car without valid car insurance is illegal in India. In case of death or bodily injury to a third party or any damage to its car, the car cover policy provides you with necessary compensation. Such type of vehicle insurance is known as third party cover and protects you from any financial losses.

While third party cover takes care only of the third person health, life or property damage repairs, a comprehensive car cover protect your car from any man made or natural calamities like terrorist attacks, theft, riots, earth quake, cyclone, hurricane etc. in addition to third party’s claims/damages.

At times, car coverage could be confusing and difficult to understand. There are certain guidelines that could be followed by car cover buyers which help them choose car policy at cheaper rates and best features. Car cover acts like a great friend at the time of crisis. It covers the losses made in an accident and thus saves you from paying out the huge sum from you.

Some benefits of car insurance cover:

•Offers benefit to survivors when an accident results in death

•Covers lawsuits, including legal fees brought against you as the result of an accident. Covers the bills of vehicle repairs due to damage cause in an accident.

•Covers damage to your car caused by other than an accident such as fire, theft, flood, etc.

•Car insurance policies allow premium discounts for theft or for owning more than one policy with the same insurer.

•No claim bonus is offered on renewals provided you fulfill certain terms and conditions. You can accumulate and claim a bonus of around 50 to 60 % within a span of 4 -5 years.

While getting a car insurance ‘one-size-fits-all’ insurance policy doesn’t exist. Different people have different set of needs for their cars. Internet is one medium which can help you compare car insurances under a single umbrella. It will help you not only choose the right car cover but will save time and most likely, unnecessary waste of money. It is good that you compare policies in terms of benefits & features, discounts & deals, flexible payment options and hassle free claim procedures.

One thing to learn while quoting for car policy would be when it comes to deductible on your insurance, you should know how much you will be able to afford. The higher the deductible, the lower your insurance cost will be. Please understand that you pay this amount if you do get into an accident, so if you don’t have an emergency fund, a high deductible, will not make you financially sound in that crisis situation.

Also, understand that your car insurance will cover only those things permanently attached to your vehicle, like your car stereo, damage to seat covers, windows panes, dashboard etc. So, if you keep your CD collection, laptop, sports equipment, or cell phone in your car, you might want to consider the extra protection of a property insurance policy. Take note of what coverage is included in the premium so that you can compare quotes more accurately.

Things to know while buying vehicle insurance…

When a person buys vehicle, he or she wants it to be safe. Even a small dent or scratch will make your mind reluctant and mind sad. Imagine what happens when you accidently bump into another vehicle, person or property? Else your vehicle gets destroyed due to some natural calamities like fire, earthquake, storm, etc. or man-made incidences like getting stolen? For a moment there will be tremors running in your mind. Not only will you have to pay hefty fees from your pockets but also get an emotional setback. To avoid such crisis situation vehicle insurance offers the necessary financial support to an individual when your car meets into any of the situation discussed above. Vehicle insurance is important for overall security of your life as well as your vehicle. 

Motor insurance comes with a certain premium to be paid to the company. Company will then cover you financially depending upon the terms and condition and insured declared value of your vehicle. Often it’s difficult to pay higher installment from your pockets. Therefore, the best way to find some beneficial deals would be getting a free insurance quote online. By spending a little time comparing quotes online you can shop for the best deals at affordable prices. It is advisable when you visit online websites compare quotes in terms of benefits & features, discounts offered, hassle free payment options, good claim settlement ratio, better renewal offers, etc.

You can quickly make the comparison between varied vehicle insurance policies on internet. There are several online sites which have the additional features of comparison that lets you get different customized policies under single umbrella.

Before opting for insurance policy purchase, its better you know all your demands and considerations. You need to have a thorough knowledge about different available quotes, check if the policy is affordable by you or not because to avail the benefits you should a pay certain premium. But make sure it doesn’t cause a burden on your family budget.

Internet helps you get vehicle insurance quotes at the leisure of sitting at your home or place of work. You can easily access different quotes available on the internet. The rates of all the policies are quite clear and transparent. Thus, it helps you save money, time and energy in visiting place for collecting brochure, forms, filling them up, getting documents attested and finally submission. 

The same follows at the time of renewal and claims. The best part is you don’t have to get an appointment on internet. You can access it 24 X 7 anytime and anywhere from the place of your choice. You don’t need to create an account for reading insurance quotes; they are available for free nowadays.

The company reputation in the insurance markets, their claim settlement ratio, customer service approach is very important to consider before purchasing vehicle insurance. The company should be genuine, economically strengthen , must have free insurance quotes available on net.

In simpler terms, an affordable vehicle insurance policy should encompass all your car needs is what one should aim for. Therefore, it is necessary to compare car insurance prices in such a manner that it will strike a balance between cost, coverage and exclusions. Besides, comparison it’s the reputation of the company and its claim settlement track record that must be considered while comparing car insurance quotes.