What is Motor Insurance: Types, Benefits, and Coverage

Third-Party Liability Insurance

As per the motor insurance law in India, it is important for all motor owners to get third-party liability insurance at least according to the Motor Vehicles Act. It is the minimum that every car owner should get. It covers deaths, injuries and damages to the property caused to a third party in case of an accident with your car without covering damages done to the owner’s car.

Comprehensive Insurance

Another type of insurance is the comprehensive insurance. It is the best motor insurance policy as it covers damage to your own car and third-party liabilities. It also covers burglary, theft, fire, accident and natural threats such as earthquakes and floods. Car owners who want all-inclusive coverage can choose this motor insurance policy online.

Financial Security

A major advantage is financial safety. Accidents can cause costly repairs and medical expenses, which car insurance coverage helps cover, eliminating financial burdens.

Legal Compliance

According to the legal rules, motor insurance needs to adhere to the Motor Vehicles Act so that the car owner to get a minimum of third-party insurance. Or else, it may lead to fines, or suspension of the license.

Liability Coverage

 A car insurance plan offers third-party liability coverage covering injuries to the body, damages done to the property and legal expenditures, that occurred at the time of the accident. It means that the affected parties will get financial compensation without burdening the policy owner.

Protection Against Theft and Natural Disasters

An all-inclusive plan offers safety against natural hazards, burglary, accident and vandalism. It allows car owners to recover their losses and repair damage without major financial strain.

Peace of Mind

Getting the best motor insurance policy from the best insurance company will help you avoid financial setbacks in unexpected situations. By choosing motor insurance renewal punctually, you can continue enjoying the services without any problem.

You can select the right plan as per your needs with the help of a premium calculator. Compare the policies and choose the ideal motor insurance policy online for a trouble-free experience.

Liability to Third Parties

The policy indemnifies the insured in case of an accident done by the car. The company will pay for the body injuries or death of any person as per the Motor Vehicles Act and also cover the damage done to the property belonging to the third-party.

Personal Accident Cover for Owner-Driver

It offers financial protection against unexpected incidents, offering benefits based on the injury acquired. The company pays compensation according to the injuries or death sustained by the Owner-driver of the car as per the insurance of the vehicle.

Zero Depreciation Cover

It offers complete claim settlement without taking the depreciation of the car and its parts into consideration. It is advantageous for new vehicle owners as it enhances the insurance payout.

Roadside Assistance

It offers emergency coverage and includes services like towing, battery jump-start, delivery of fuel, flat tire change and on-spot repair. It is good for those owners who travel long distances or those who drive in remote locations.

Engine Protection Cover

Engine repairs may be expensive, precisely if the damage occurs because of water ingress, leakage of oil or mechanical failure. It offers financial safety against engine-related problems, which standard policies don’t cover.

Selecting the best motor insurance policy helps you protect yourself and your car from unforeseen financial loss. Compare the policies using a premium calculator and select the one that fits your needs best.

Inform the Insurer

Once the accident, burglary, or damage has taken place, you should immediately inform your insurance company. Most companies have round-the-clock helplines or online claim websites for immediate reporting. Instant information helps enhance the claim procedure.

File an FIR

If there has been a burglary, damage, or accident, it is important to file an FIR at your nearby police station. It is a compulsory document during the claim process, especially if the car has been involved in some criminal activity.

Submit Documents

Fill in the claim form and submit the documents required such as motor insurance policy online information, your valid driving license, RC and FIR (if needed) along with the pictures of the accident.

Inspection and Approval

The insurance company will send a surveyor to assess the damage, evaluate repair expenses and verify the claim. After the evaluation, the company approves or modifies the amount of the claim depending on the terms and conditions of the motor insurance coverage.

Repair and Settlement

In case of cashless claims, you can get the repairs done at a network garage and the insurance firm will settle the bill. However, in case of reimbursement, the policyholder will pay for the repairs and eventually submit bills for repayment.

The above-mentioned steps will help you enjoy a trouble-free motor insurance claim settlement procedure. You can choose online platforms to track your claims and renew motor insurance online effectively.

Vehicle Type and Age

It begins with vehicle model, age and make. These are the basic factors that help determine the insurance premium. If you own a high-end luxury car or sports car, they have higher repair expenses and risks involved, causing a high-price motor vehicle insurance. Also, new cars have higher premium costs because of their increased market value, but older cars have lower premiums.

Driving History

The past history of the driver has a major role in defining the insurance cost. A good driving record without any accidents and claims invites lower premiums with additional discounts. On the other hand, claims, traffic violations and a history of accidents can lead to higher premium amounts.

Location

The geographical location also has a role in assessing the cost of the premium. Vehicles on urban roads with higher traffic, accident rates and risks of theft attract higher insurance premiums in comparison to rural areas car insurance.

Usage and Mileage

Vehicles driven over long distances or used for commercial purposes (such as taxis or delivery vehicles) have increased wear and tear, leading to a higher probability of claims. Consequently, their motor insurance renewal premiums are higher compared to privately owned vehicles with limited usage.

Add-Ons

Opting for additional motor insurance coverage such as zero depreciation, engine protection, roadside assistance, or consumables cover enhances protection but also increases the premium. While add-ons provide extra security, it’s essential to evaluate their necessity before adding them to a motor insurance policy online.

No-Claim Bonus (NCB)

NCB is a reward offered to policyholders for claim-free years. With each claim-free renewal, NCB reduces the renewal premium, sometimes up to 50% for consecutive claim-free years. Utilizing online motor insurance renewal platforms allows vehicle owners to retain and apply NCB discounts easily.

Keep these factors in mind when you buy a new policy or renew motor insurance online. Compare plans, and choose the best motor insurance policy that offers desired coverage effectively.