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