With increased urbanization and improved standard of living, the number of motor vehicles in India has risen significantly. Owning a personal vehicle has become a necessity for most Indian families. Today, a car is more than just a personal mode of transportation. It also reflects one’s status and position in the society. As the number of vehicles on Indian roads continues to rise, it has become essential to understand the role and significance of motor insurance.
With an increase in vehicles on roads, the number of road accidents has also gone up. An accident not just poses a threat to your own life but can also jeopardize the safety of other people on road. Moreover, it can cause significant damage to your own vehicle and third party’s vehicle. This, ultimately, can cause huge financial losses. Buying motor insurance is one of the most effective ways to avoid financial hit at such times.
Whether you own a car or a two-wheeler, it is important for you to insure your vehicle before you hit the road. There are mainly two types of motor insurance covers:
Third Party Car Insurance
This is the minimum level of cover required by the law. A third party car insurance policy covers only the third party damages. It provides compensation related to damages caused to other people’s property or injuries sustained by them.
Comprehensive Car Insurance
Comprehensive car insurance cover provides financial protection against damages suffered by others as well as damages caused to your own vehicle. The premiums for a comprehensive motor insurance policy may be a bit high, but it protects you against all types of financial losses that may result due to a road accident or mishap.
When it comes to motor insurance, the attitude of vehicle owners in India has evolved a lot. Until a few years ago, most people only opted for compulsory insurance cover. However, these days, many vehicle owners choose comprehensive covers to ensure complete safety of their vehicles. A car is an expensive purchase. Due to financial constraints, most people find it difficult to replace it. A comprehensive car insurance policy provides complete peace of mind to the car owners.
Factors that Affect Car Insurance Rates
Motor insurance premium rates depend on several factors. Previous violations and accidents, certain age groups, vehicle use, make and model of your vehicle are some of the factors that can affect the premium rate. The companies look at motor vehicle records to check if the driver has caused any accidents before. They also check if the driver has made any car insurance claims. Many car insurance companies also look at the credit history of the applicant.
Car Insurance Cost-cutters
- Discounts– Car insurance providers offer various types of discounts to vehicle owners. Maintaining a safe driving record, installing car safety features and using anti-theft devices are some of the key factors that make you eligible for these discounts. A car insurance discount can significantly bring down your premium rate and make care insurance policies more affordable.
- Deductibles– Raising your deductibles means that you’re agreeing to pay for a larger portion of your own damages. This means, your car insurance company will have to pay less. Due to this reason, the company may agree to give you a lower premium.
- Policy Lapse– If you let your motor insurance policy lapse, you may have to pay more when you buy a policy. People who renew their motor insurance policies before they lapse are viewed as more responsible.
- Safety Features– Installing safety features including anti-theft devices is an excellent way to reduce the chances of a mishap and bring down care insurance premiums. Electronic stability control, collision monitoring and telematic devices are some of the key safety features that can be installed in a vehicle to reduce premium rates.
Finding a reliable motor insurance renewal company is the first step when it comes to buying a car insurance policy. There are many motor insurance providers that offer different options to procure the best motor insurance online.