What does your motor insurance quote cover?

Posted on: Jan 4, 2019 | | Written by:

What does your motor insurance quote cover?

Published on January 4, 2019. EST READ TIME: 3 MIN

The whole purpose of getting quotes for motor insurance from various insurance providers is to get the best coverage at the most affordable cost. Many of you go to multiple vendors to get quotes in order to make an informed choice in terms of coverage. It's not just important to look at the cost when selecting among motor insurance quotes, but rather one must look at the coverage and benefits as well.

Motor Insurance quotes generally have an addendum to them in the form of a list of benefits and coverage they provide. Typically, that will include safety cover for your car in case of theft, damage while in transit by rail or road, malicious acts etc. by taking into account the locality in which you live and the purpose for which you use your vehicle, you should opt for a policy that suits your need. The motor insurance quote will also include the bonuses that you could avail, if eligible.

It will also tell you about the people who will be provided coverage under the policy. Additionally, the injury that may be caused to a third party or the damages to the property of the third party is also covered in the amount presented as a motor insurance quote. It will also tell you about other miscellaneous claims that you are entitled to make such as towing charges after an accident.

Cashless claims are also part of the benefit provided instead of the premium; in this, the customer can utilize the services of the garage network in repairing the damage to their vehicle without having to pay in cash. All you got to do is present your up-to-date and valid insurance card and the rest will be taken care of by the insurance provider, isn't it amazing?

Thus by studying your motor insurance quote properly, you will be able to make good judgments and be secure.

6 Important Points To Know About Online Motor Insurance Quotes

When you finally sit down to compare the car insurance policy available online, make sure you know the following details:

• Knowing What IDV is

IDV, Insured Declared Value, is the value of your vehicle set by the insurance company. IDV becomes useful when your car suffers complete loss or gets stolen. In such a case, you get no repairing benefit since the vehicle cannot be repaired anymore. This is when you get the compensation amount based on the IDV of your vehicle. It is an agreement between the policyholder and the insurer where a compensation amount is fixed for your vehicle.

Remember: A high IDV will hike the premium of your motor insurance and a low IDV will keep you at a loss in times of need. So, make sure you get sufficient IDV.

• Understanding Policy Types

In the policy documents and quotations, you can also read about the type of car insurance policy you are purchasing. The 'Type' here refers to the policies given on the basis of the purpose of the vehicle. Private and commercial vehicles need to have different types of car insurance policies.

Note: Do not skip reading about it in detail and the coverage, make sure you understand all the aspects of the coverage.

• Opting for Add-ons

When you read the quotes for motor insurance, you will also get to know about the scope of add-ons. If you want to increase the coverage of your motor insurance, you can purchase useful add-ons. However, not all car insurance policies have the scope of add-ons. So, you must check for it if you want to purchase any.

• Tenure of the Plan

All motor insurance plans have a specific tenure, it can be annual or multi-year as well. If you want to continue availing the services of the insurance company, you need to renew the policy before the tenure ends. You can easily know about it in the motor insurance quotes.

• Garages In the Network

The benefit of cashless service is only available at the network garages of the insurance company. So, the larger the network garage, the higher your chances to enjoy cashless claims.

Did you know?: HDFC ERGO has a network of over 6400+ garages where you can avail the advantage of cashless repairs.

• Insurer Performance

The quotations of an insurance company and the car insurance policy might tempt you to purchase it. The coverages provided and the benefits offered may sound quite lucrative. However, you need to take a pause before the final step of purchasing the policy. You must know about the past performances of your chosen Insurer. The claim settlement ratio and incurred claim ratio are numbers that can help you analyse the performance of an insurer. Apart from this, you may also choose to know about customer reviews and feedback.

Factors That Decide the Motor Insurance Quotes

You may find out that certain details change the quotations of your motor insurance. You may wonder why it happens. This is because there are different factors that impact the motor insurance quotes and the premium charged.

The type of engine in your vehicle, the vehicle's make and model, the age of the vehicle, and its location are some of the prime factors. The new vehicles have a higher premium than the older ones. Also, if you live in a risky-prone location, the premium can go high. The age of the car owner also impacts the quotes. Additionally, if you choose to purchase add-ons, the premium further increases. However, if you have safety devices installed in your vehicle, the premium is decreased.

Conclusion

A car insurance policy is a must-have document for all motor vehicle owners as per the Motors Act of 1988. Since there are so many options available, shortlisting and comparing quotes of motor insurance can help you find the most suitable insurance coverage for your car. Know all the details of the quotes and the performance of your insurer before finalising a deal.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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