Whether you own a two-wheeler or a four-wheeler, it is mandatory to have a motor insurance policy. Not complying with the law puts you on the wrong side of the Motor Vehicles Act that attracts hefty penalties. To avoid such a situation, it is best to buy a motor insurance cover right from the start. Buying is not sufficient, but also ensuring its consistent renewal is important.
The price of your motor insurance coverage is influenced by several factors like age of the vehicle, the engine’s cubic capacity, type of policy, etc. But it is essential to know about the different policy features that can help you lower your liability for a marginal increase in premium. *
This article elaborates on the several factors that strengthen your insurance cover to provide an all-round protection. Continue reading to know more about it.
- Motor insurance renewal before the policy coverage ends
While buying at least a third-party policy at the purchase of your new vehicle is essential, it is also imperative to constantly renew it over each period. Every policy is valid for a specified duration. When you opt for motor insurance renewal in advance before its coverage ends, you get a seamless insurance cover for your vehicle. *
A comprehensive plan is an optional upgrade to the basic third-party plan. When you renew a comprehensive plan in advance, several accumulated benefits like the no-claim bonus are carried forward to subsequent periods. *
- Understanding IDV and its importance
Thoroughly understanding the insured declared value or IDV is crucial when you are shopping for a motor insurance plan. It is basically the maximum compensation which the insurance company pays in the event of damages to your vehicle beyond repair, including theft. *
Since the IDV is the maximum risk which the insurance company needs to underwrite, it also impacts the premiums directly. This IDV can be tweaked within a specified range for comprehensive policy and thus, many policyholders lower it to reduce the burden of premium. While it may aid in getting an affordable insurance plan, it increases the amount of loss you would have to bear in the event of an unfortunate mishap. Thus, lowering the IDV is not advisable. Instead, you must ensure the right IDV is set for your vehicle based on its age.
- The importance of add-on covers
Add-ons are optional features that can be clubbed with your standard comprehensive coverage. These features help enhance the policy’s overall scope to include several risks that are otherwise specifically excluded. For instance, you reside in a flood-prone region and an engine protection cover to your motor insurance plan is a nifty upgrade helping you safeguard financial losses due to repairs to the engine. *
There is no one add-on, but several that can be purchased. But selecting them must be a carefully thought-out process. Since they are optional upgrades, they impact your premium directly. To know how each add-on impacts your premium, you can make use of a motor insurance calculator which is a free tool made available by insurance companies. *
Apart from the above considerations, opting for the right amount of voluntary deductibles helps balance the premium too. In addition to that, periodic evaluation of the policy coverage, say at renewal, helps keep the coverage fresh and relevant for each period. *
* Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.
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