How to purchase a better motor insurance policy

Posted by sanjay on March 14th, 2017

A motor insurance will cover the damages done to third party property or health as well as damage to your own car. Natural calamities like fire, earthquake, cyclone or man-made riot incidence might erupt anytime and you may never know the amount of damage it can cause to your vehicle. In the event of repairing your motor,  it can make a big hole in your pockets. Therefore, it's important to own a suitable cover that will help you arrange necessary finances during motor repair, third party property damage or loss of life.

Also, there are rider options available for a number of eventualities – depreciation cover, accident cover, emergency, road assistance, cover for electrical accessories or loss of personal belonging, etc.

Although, rider are very helpful but they entail higher premium. One must judiciously select add-on features as per their need rather than blindly purchasing as pushed by an agent. Roadside assistance would be of help for the elderly and women. Selecting your motor insurance wisely will ensure that you don’t have to end up shelling out a higher premium for options which you might never use.

Here are basic tips to consider while choosing motor insurance premium:

Minimize modifications

Any change to the vehicle, beyond the standard specification, will bound to increase the costs on premium. Such as speaker modifications, car modifications, fitting alloy wheelers or spoolers will increase your premium as could any up gradation to the engine. So, if you make some changes, it is important to intimate the insurer else it will be not covered by insurance.

Enhance security

Adding security equipment like immobilizer, alarm approved by the Automobile Research Association of India will help you bring down the cost of premium amount varying as per the insurer.

Buy Online

Online sites help you compare motor insurance policy of different companies under one umbrella. You can compare the costs, benefits & features, discounts, claim settlement ratio, any inclusion & exclusion, etc. and then give a careful though on buying your policy. Purchasing the policy online will make your total premium costs 10 to 15% lower. There is a number of aggregator websites which help you carry out a quick and convenient comparison of the policies and make a judicious selection of it. Purchasing the policy online could make your total premium cost 10-15% lower.

No Claim

In case you drive safely with no casualties in any given year, it will entitle you to discount on the premium in the next year. This accumulation will help you bring down the discount on premium to up to 50%. One should avoid making a small claim if the repair amount is less. It is advisable to compare the repair cost with the saving on account of no-claim bonus and then decide accordingly.

Share right information

Sharing personal details like age, occupation, any member in car association, driving records, can help you get some discount on motor insurance premium costs of up to 10-15% as these factors will determine the risk profile. Thus, a premium for a responsible driver would be lower compared to youngsters who might opt reckless driving ways. Certain insurers offer discounts for sharing such information.