What you should know before getting motor insurance?

As per the Motor Vehicles Act 1988, vehicle insurance is mandatory if you wish to drive on Indian roads. However, that should not be the only reason to get a motor insurance policy. Motor insurance safeguards your vehicle from unexpected risks and damages, whether it’s a mishap, breakdown, damage due to a flood, or an attempted break-in. It also protects you, your passengers, other vehicles, people, and property against financial risks if you are involved in an accident. 

Luckily, you can now buy or renew car insurance online in minutes. But before you do that, here is a checklist of best practices to help you determine the right insurance policy that suits your needs. 

Get all-round coverage
 

By law, only a third-party liability cover is mandatory. This protects the interest of other vehicles, pedestrians and assets in the event of an accident but provides no financial support to the vehicle owner. This makes it critical to get comprehensive insurance coverage that protects not just you, but also your vehicle from accident risks and other mishaps, such as theft and natural calamities. 

A comprehensive cover can safeguard car owners, drivers, and all passengers against financial liability for accidental injury and hospitalisation. 

Secure all bases with add-on benefits
 

Various add-on covers are also available with motor vehicle insurance to increase protection. Zero depreciation cover, for example, compensates against deductions on your claim that may be related to depreciation in the value of vehicle parts over a period of time. Engine protect cover and consumable cover also provide specific coverage for auto parts that are not covered under a standard insurance plan. And while add-on features will increase your insurance premium, their benefit far exceeds the cost. 

Evaluate the deductible
 

A deductible is a fixed amount that car owners opt to pay upfront when filing a claim – for example, while repairing the vehicle. The higher the deductible you opt for, the lower the insurance premium and vice versa. There is no compulsion to opt for a deductible; you can have the insurance company bear 100% of the costs. However, it is important to decide this based on your financial situation, age, state of the car, and the real risk of a claim based on your driving habits and the locality where you stay.

Avail of NCB discounts
 

No Claim Bonus (NCB) is a feature insurance companies offer for every claim-free year. Starting from the second year of the policy, you can get a discount of 10% on your premium amount, going up to a maximum of 50%. It is advisable to choose a service provider that not only offers NCB but also lets you transfer the benefit to another service provider if you wish to change insurers. Also, check if the NCB benefit is transferable to a new owner if you sell the vehicle.

Check the quality of service network
 

The quality and expanse of the network of garages offered by the insurer is a crucial factor to consider before you purchase an insurance cover. A mishap or breakdown can happen anytime and anywhere, so having an insurance plan with an extensive garage network with cashless service across India ensures you can get the car fixed quickly from the nearest authorised garage without wasting time and money.

Assess the insurer’s claim settlement ratio
 

If you have to take your car to a garage that is not included in your insurer’s service network, you might have to pay for the repairs and thereafter make a claim by submitting the bills and expense reports. In such a scenario, the service provider will evaluate the claim, after which they may or may not pay the total costs incurred. To avoid any grievances later, it is best to go with an insurance company with a high Claim Settlement Ratio (CSR).

Simply put, CSR is the percentage of claims approved vis-à-vis the total number of claims filed by policyholders in a given year. As a benchmark, a CSR of 90% and above is considered satisfactory and minimises the chances of claim rejections.

Make an informed choice
 

Whether you are looking to renew an existing vehicle insurance policy or get a new one, make sure to compare costs, as well as features and benefits from different insurers. Metra Trust puts you in the driver’s seat by allowing you to choose a plan from not one but three different general insurance companies. Get customisable coverage for your car and fortify it with add-ons, such as zero depreciation cover, consumables cover, roadside assistance, engine protection, garage cash cover, and loss of personal belongings cover, to name a few. 

Keep track of policy renewal
 

Due to working from home, many families would have barely used their cars, and the vehicle insurance likely may no longer be valid. Irrespective, you need to know the renewal dates on your motor insurance policy. Driving a vehicle without a valid insurance policy can attract a fine of Rs 2,000 and/or imprisonment of up to three months if you are a first-time offender. However, the financial liability increases significantly if you meet with an accident and don’t have valid insurance. 

If you do have insurance, it is advisable to set up an auto-debit ECS to renew your car insurance online. On the other hand, if the policy has lapsed, you can still salvage some benefits if it hasn’t been more than 90 days since the policy’s expiry date.

Buckle up and head here for a safe and secure ride with vehicle insurance plans from Metra Trust!

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Metra Trust or its affiliates to any licensing or registration requirements. Metra Trust shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.