Why insurance cover is important for your motor

Why insurance cover is important for your motor?

Cars have become the most important part of individual life. It is one of the prime sources of luxury and convenience at the time of travelling places especially during long journey. We all dream to own a car one day. However, just owning and driving your car is not enough you have to ensure that you protect your motor from getting damaged or causing damage to third party life or property as well. The best way to deal with this would own a suitable motor insurance policy.

People who don’t have a suitable motor insurance policy land up in huge financial losses in case of accidents that lead to third party or own vehicle damage, loss of life, property damage or health damages.

Imagine this financial loss will burn a big hole in your pockets as well as disturb your future financial goals.

In India, car insurance cover is pre-requisite to drive your vehicle on road. The law mandates you should own minimum third party cover to get your car on road. Third Party car insurance offers cover against losses done to third party property, health or loss of life when you are at fault. It covers any damage or injury caused by the insured person to another person or property.

A comprehensive cover, as the name suggest, offers overall protection against damages done to your car due to any man-made incidences like theft, vandalism, burglary or natural incidence like fire, storm, earthquake, etc. You can say it offers dual security from third party losses as well as you own damage cover. You can always enhance your policy with add-ons like accessories cover, engine protector, zero depreciation cover, medical expenses, etc. A comprehensive cover is highly popular as it offers end-to-end solution and ensures less stress for the policyholder.

Today, there are many insurance companies who offer various customized policies which one can avail with premium discounts on motor insurance. Understanding a motor coverage will help customer stay tuned with the latest discount and offers, benefits on car policies, claim settlement ratio, premium payment flexibility, etc.

Your insurance cover also depends on factors such as geographical location, engine capacity, price and age of vehicle. In this era of online service, several new parameters are being considered to determine the premium rates, thus providing various ways to lower your insurance policy.

Motor Insurance companies offer different policies to existing and potential clients that can help them reduce premium by 10 to 30% simply by giving correct and proper information to the insurer. It is not about switching your insurance provider every time, with few simple steps and paying attention to details may help you save on your car insurance costs to great extent.

The latest versions of car model nowadays come with a lot of safety measures or within the option of adding them. It could be anything from safety airbags, advanced braking system, anti-locks, anti-theft devices, GPS tracking device, etc. They allow you for safe driving and reduce the risk of damage and theft to the vehicle. Such application can offer consumer a discount of around 3 to 5% on the premium payment.

Every time you complete your motor 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.

While taking a cover each make and model has its own claim record and the insurer prices the vehicle based on its claim experience.