Here are some primary factors you must consider while choosing the right motor insurance policy
In precarious situations where vehicles are exposed to various types of risks such as accidents or damages, motor insurance protects customers’ finances. However, it is imperative to be informed and choose the right policy which helps in getting maximum benefits out of the same.
To make the most of a motor insurance policy, there are a few key factors that one must consider, such as:
Knowledge of the Coverage
It is important to possess knowledge about the coverage. This is what makes a difference between just meeting the mandatory requirements and optimally benefitting from the policy. One must be aware of a few key things, such as, 'what is the policy all about and coverage details'. It is essential to understand key terms such as premiums, policies, deductibles.
Additionally, the policyholder must evaluate the benefits he will get, before buying a policy and make an adequate purchase.
One must focus on opting for car insurance at the right value while purchasing a car. This is a crucial consideration when the vehicle is purchased on loan because many financiers would require the vehicle to be insured at the correct value.
Deductibles are an essential part of a motor insurance policy. A deductible is an amount paid by the policyholder, at the time of the claim. There are two components of a motor insurance deductible: compulsory deductible and voluntary deductible. A buyer must always select a deductible within their financial capacity. Any unnecessary bearing on a policyholder should be avoided to its maximum. Understanding the role of deductible while choosing a motor insurance policy is important to get the most out of your policy.
Optional Add on Covers
With multiple add-on cover options, customers must understand them well before purchase. Add-ons are an essential aspect of an insurance policy. These must be carefully evaluated before making the final choice. e.g., roadside assistance cover may be more suitable for an irregular vehicle user due to which the vehicle might be exposed to electrical or mechanical failure.
If you live in a city prone to natural calamities, you must opt for a policy with the ones covering engine guard or return to invoice kind of add ons.
Avoid Policy Lapse
One must ensure to renew the motor insurance policies. If one does not renew the policy on time, it will lapse. In such cases, due to lapse one may lose no claim bonus earned making the product offering costly.
Motor vehicles are of great importance in our daily lives. Especially, today with the influx of Covid-19 risks, private vehicles have gained paramount importance in our lives. Many people have started shifting to travel by private vehicles instead of boarding a means of public transport. This has led to an increase in sales of vehicles which has, in turn, increased the need for motor insurance policies for people. Therefore, one must be well informed before buying motor insurance.
The author is Product Strategy Head – Home & Motor, SBI General Insurance
DISCLAIMER: Views expressed are the author's own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.