Friday, July 12, 2024
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Guide to choosing the right motor insurance

Have you ever bought a new car or two-wheeler during the exciting festival season? If you have, you’d know that the thrill of bringing home a new set of wheels can be irresistible. It’s a moment of joy, a symbol of freedom, and a promise of countless adventures on the open road. However, as you revel in your latest purchase, there’s one critical aspect you should never overlook: motor insurance. 

  1. Online or Point of Sale Insurance

Imagine this scenario: you’re at the dealership, surrounded by a whirlwind of car models, financing options, and accessories. Amidst this frenzy, the dealer-salesperson introduces you to motor insurance. In the grand scheme of things, the insurance cost may appear small compared to the overall vehicle price. It’s tempting to rush through this decision. 

Dealer vs. Online Options 

If you take a step back and examine the cost more objectively, you might reconsider the insurance offered by the dealer. It’s common for insurance obtained through a dealership to be costlier than what you can find online. Yet, that doesn’t mean you should write it off entirely. 

Online insurance options are often more budget-friendly, but insurance purchased at the point of sale can lead to a smoother claims experience. The decision between online and point-of-sale insurance should be a careful trade-off between the cost of purchase and the convenience during a claim. Each case is unique, depending on the insurer, dealer affiliations, and your own awareness. 

  1. Carefully Choose the Base Policy:

When selecting your motor insurance policy, it’s crucial to consider the base policy. Legally, you must have a third-party cover for three to five years, which only covers damages to third parties. It’s essential, but it doesn’t protect your vehicle or yourself in case of accidents. For that, you’ll need own damage (OD) covers. 

Comprehensive Coverage with Own Damage (OD) Policies 

Theft, natural calamity damage, road accidents, and other non-wear and tear damages are covered by OD policies. They are essential for any driver, even for those who drive frequently. Natural disaster coverage in OD is especially vital if you live in urban areas prone to flooding. Remember not to start your engine if your vehicle has been in a flood to avoid engine damage that insurance won’t cover. Moreover, ensure your insurer-declared value (IDV) is set at the highest level, maintaining a higher starting value for your vehicle as it depreciates over time. 

  1. Pick the Right Add-Ons:

The beauty of motor insurance is that it can be tailored to your specific needs with add-ons. Zero depreciation, a popular choice, eliminates depreciation and fully covers damages. Return to invoice add-ons ensure that you’re reimbursed without depreciation, even including registration and road taxes, in case of total damage or theft. 

For those with rarely used vehicles, switch-on/off insurance policies are available. They allow you to optimize your insurance costs based on usage. You can also opt for engine protection, key & lock insurance, or other add-ons based on your requirements. 

In the world of motor insurance, the choices are vast, but the right choices can save you money, time, and stress in the long run. Consider your options carefully, tailor your policy to your needs, and drive with peace of mind, knowing you’re covered.

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