Important Things To Know Before Buying A Motor Insurance Scheme

A few people do not understand the importance of a motor insurance scheme when they spend so much to buy a vehicle. Be it buying their dream car or buying any other vehicle just for the purpose of transportation, they do a lot of research and spend their hard-earned money. But when it comes to purchasing a motor insurance policy, they think it is an unnecessary expense. The truth is, it is not and to be more honest, it might cost a person a lot of unnecessary expenses later when some unpleasant situations occur. On that note, let us now look in detail at the important things to know before buying a motor insurance scheme.

What Is The Benefit?

To all those out there who think that purchasing a motor insurance scheme is an unnecessary expense after shelling a huge amount of money to buy a vehicle, the fact is it will be a very wise act to do so initially rather than spending from savings, be it for self or a third party claim. Alongside that, it is mandatory for motor vehicle owners to insure their vehicles according to the Government Of India. Rules have become very strict as times have changed and so, driving a vehicle that is not protected with a motor insurance scheme is a criminal offence.

Does It Apply To All Types Of Vehicles?

There are a variety of vehicles available today and so there are types of motor insurance policies too to suit different requirements. One of the types is the commercial motor insurance scheme. As the name suggests, this type of a motor insurance policy is to cover vehicles that are used for commercial purposes, in case of some unexpected scenarios occur. And yes, even commercial vehicles should be insured as per the rules made by the Government Of India.

When And How To Purchase A Motor Insurance Scheme?

The best way to purchase a motor insurance policy for your vehicle is to do it alongside booking a vehicle. Every vehicle-selling company will assist its customers in purchasing a motor vehicle insurance scheme along with the vehicle vehicle-buying process. Hence, it is a relatively easy task. But if at all a person feels that the motor vehicle insurance scheme offered for the vehicle is not beneficial enough, then he or she can purchase one on his or her own. This is possible by contacting any reputed motor insurance policy issuing company either by visiting the office in person or can also be done using the internet by visiting the respective website. The important condition to remember is to have an active insurance policy for a vehicle before the owner starts to use it.

What Are The Types Of Motor Insurance Policies?

A motor insurance scheme is broadly classified into two types. One is called the third-party insurance while the other is termed as comprehensive insurance policy. The difference between these motor insurance types is explained below.

A third-party motor insurance type offers coverage for vehicle damage, property damage and physical injuries to the third party resulting due to the insured vehicle.

The comprehensive motor insurance type of a policy can be understood as the extended version of the above-explained third-party insurance scheme. A comprehensive policy covers both the third-party and the self which is definitely a highly beneficial feature.

Which Insurance Scheme Is Better?

Well, speaking in terms of benefits, the comprehensive motor insurance policy is surely the better version and that is exactly why it is costly as well. But if one wishes to be just a legally compliant driver or a rider, then it is enough to protect his or her vehicle with a third-party motor vehicle insurance scheme. But it is always better to think about being more pre-emptive than just being legally compliant because lives are more valuable than laws. As said earlier, commercial vehicles too have to be protected with a motor vehicle insurance policy and even commercial vehicle insurance schemes offer both types of coverage.

Important Terms To Consider While Buying A Policy

To be legally and completely safe, insuring the vehicle is mandatory but that doesn’t mean one should randomly or blindly purchase a motor vehicle insurance policy. There are certain important terms to be understood while purchasing a motor insurance scheme and they are explained below.

Premium – the amount a person pays in order to purchase a motor insurance policy for his or her vehicle. The premium amount can vary between different motor insurance types.

Validity – Generally the validity period of a motor vehicle insurance scheme is a year but sometimes, if a person wishes, an extended policy of more than a year can also be bought. It is important to know when the motor insurance scheme expires in order to renew it properly.

Type – while purchasing a motor insurance scheme, it is advised to choose the right type which can be either a third-party policy type or the comprehensive type based on the requirement.

Claim – It is mandatory for the rider or the driver to verify with the concerned staff or agents about how to file claims in case a necessity arises and how long will it take for settlement as well.

Coverage – understanding what are the features of a policy, be it a personal or commercial motor insurance scheme is very important so that the person knows how much protection is available.

Almost all of us have heard the famous saying “prevention is better than cure” and this holds absolutely true when speaking about buying a motor vehicle insurance policy as well. Be it a commercial motor insurance scheme or personal vehicle policy, insuring the vehicle can prevent a lot of unpleasant experiences which may arise later. Thus it is safe to say that choosing a policy from the right motor insurance types will ensure a worry-free and safe travel experience.