When you go out, you normally use your bike, car, or government or private commercial transport. Therefore, just as we purchase life insurance to safeguard our loved ones, we also purchase motor insurance, or automobile insurance, to safeguard our vehicles.
What is motor insurance? Let’s understand motor insurance in simple words.
Motor insurance defends you financially in the unfortunate case of an accident or catastrophe, offering different benefits, such as compensation for damage caused by accidents, riots, and more. Additionally, it gives coverage in case your vehicle falls prey to theft, giving total protection for your two-wheeler or car. It’s similar to having a reliable friend by your side who will support you in case of unforeseen difficulties.
What is a motor insurance policy ?
A motor insurance policy is like a legal pact between you and the insurance company. When you get one, they promise to protect you and your vehicle from certain types of damage. It’s a safety assurance for both you and your ride.
Who needs it and why ?
Many people choose the cheapest motor vehicle insurance without thinking, only to regret their choice when their vehicle is stolen, they get in an accident, or they want to sell it.
Motor insurance, whether acquired online or offline, is like a safety net for you. It protects your interests in numerous scenarios. Investing in auto insurance and ensuring timely renewal is vital for a few major reasons:
It covers hospitalization bills. Motor insurance decreases your liability. In India, obtaining third-party automobile insurance is a legal necessity, which implies it protects vehicle owners from accidents caused by them.
With car insurance online, you can conveniently request support from the convenience of your home.
Types of motor insurance coverage in India
Insurance coverage refers to the various types of protection that are offered. In addition to the basic coverage specified in the policy, you have the option of selecting a variety of add-ons that can increase the level of protection provided by the policies. There are five types of coverage available in India. Let’s understand the same
1. Third-Party Liability Only Cover
Benefits under this kind of vehicle insurance include the following:
Third-party auto insurance coverage is required in order to drive on public roads, as per the Motor Vehicles Act. The sum assured should be proportional to the driving conditions and sufficiently large to avoid out-of-pocket expenses from your side.
2. Collision Damage or Own Damage (OD) Cover
Collision damage car insurance helps pay for repairs when your car gets damaged. The cost of this coverage depends on your car’s age and its insured declared value (IDV), which is determined based on its market value.
If you make a claim under this coverage, the most you can get is the IDV minus the depreciation. If you’re still paying off a car loan, it’s a good idea to have collision coverage.
3. Personal Accident Cover:
You are using personal accident car insurance coverage when you wish to protect yourself as the driver and owner of the vehicle and ask for reimbursement for medical costs after an accident.
4. Zero Depreciation Insurance:
In India, this coverage is widely offered as an add-on to car insurance policies. If your car receives damage and requires part replacements, the insurance provider will adjust your claim based on the reduced worth of those parts. If you choose Zero Depreciation Cover, you will receive the full claim amount without any cost depreciation.
5. Comprehensive Car Insurance:
The most comprehensive coverage is offered by comprehensive auto insurance, which also covers non-collision damages such as storms, floods, fires, and theft, as well as responsibility for other people and your own vehicle. By adding more features, you can enhance a comprehensive auto insurance policy.
Conclusion:
To sum it up, motor insurance serves as a dependable shield for your vehicles, providing financial security when the unexpected occurs. Whether you opt for essential third-party coverage or comprehensive policies with customizable add-ons, motor insurance in India offers a diverse array of choices to fit your specific requirements. It’s an essential aspect of responsible vehicle ownership, offering you the assurance that you’re well protected while on the road. So, make your selection thoughtfully and drive with confidence, knowing that your investment in motor insurance has your back.
Below are some frequently asked questions:
1: What is motor or vehicle insurance in simple terms?
Motor or vehicle insurance is a way to protect your bike, car, or any other mode of transportation, just like we purchase life insurance to safeguard our loved ones.
2: What exactly is motor insurance?
Motor insurance, in simple words, is your financial safety net in case of accidents, damage, or theft of your vehicle. It offers compensation for accidents, riots, and more, providing comprehensive protection for your car or bike.
3: What does a motor insurance policy mean?
A motor insurance policy is like a legal agreement between you and the insurance company. It ensures protection for you and your vehicle from specific types of harm, acting as a safety assurance for both.
4: Who needs motor insurance, and why is it important?
Many people opt for the cheapest insurance without much thought, only to regret it when their vehicle is damaged, stolen, or when they plan to sell it. Motor insurance, whether purchased online or offline, serves as a safety net, offering financial protection in various situations, including hospitalization coverage. In India, having third-party motor insurance is a legal requirement, safeguarding vehicle owners from accidents caused by them.
5: What are the types of motor insurance coverage available in India?
There are various types of motor insurance coverage in India. These include:
1) Third-party liability only covers
2) Collision Damage or Own Damage (OD) Cover
3) Personal Accident Cover
4) Zero-Depreciation Insurance
5) Comprehensive car insurance
Each type of coverage provides different levels of protection and can be customized with additional features to enhance your policy.
Transport illustrations by Storyset