Motor Insurance Policy If you are going to insure your car or are thinking of renewing the old insurance, then first you should know which policy is right for you and which is not.
Buying a car is a matter of prestige as well as necessity. Now if the car will run on the road, there will definitely be small or big accidents with it. Many times, after an accident, the condition of the vehicle becomes such that thousands of rupees are spent in repairing it. In this case, Motor Insurance helps you. But often when we go to buy Motor Insurance Policy, it is found that the premium amount is very high..
Like health insurance, motor insurance comes in handy when your vehicle is damaged due to natural calamities like accident, flood or earthquake. But before getting new insurance for your car or renewing the old insurance, you should know which policy is right for you and which is not.
The cost of the policy may differ from one insurer to another. Different insurance companies have different rates and sometimes the difference between the two can be 20 to 30 percent. That’s why you should choose the policy very carefully.
Third party liability or comprehensive insurance cover
There are two types of insurance coverage – Third-party liability insurance and comprehensive insurance cover. Third party liability insurance is mandatory and provides limited protection. It only covers you for damages caused to you or someone else by your vehicle, whereas comprehensive insurance protects against damages caused to the vehicle due to man-made and natural causes and also covers third party benefits.
The Insurance Regulatory and Development Authority of India (IRDAI) has made it mandatory for first-time car buyers to buy a one-year comprehensive insurance policy and a 3-year third party insurance policy at the time of buying a car. For the 2nd and 3rd year you need to buy only a Standalone Own Damage (SAOD) policy.
Reduce the burden of premium like this
If you want to reduce the burden of your motor insurance premium then go for a third party insurance policy. But if you are buying a luxury car then take a comprehensive insurance cover. Apart from this, if you want to add-on things like zero-depreciation, engine protector, no claim bonus, then you will have to spend some more money for this.
