Motor insurance is a lifesaver, whether it’s for the occasional scrape against a kerb or more significant mishaps.
With a wide range of products now available, tailored to suit various vehicles, coverage requirements, and geographic needs, customers have plenty of options to choose from.
Amit Chhabra, chief business officer of general insurance at Policybazaar.com, explains the evolving landscape of motor insurance: “The same premium was traditionally paid by everyone, regardless of driving habits. However, innovative products now take into account indicators like distance driven. Additionally, top-up options are increasingly available for customers.” For ease of payment, many providers now allow premiums to be split into equated monthly installments instead of requiring one large upfront payment.
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Patterns and Premiums
Comparing policies from different insurers often reveals significant variations in premiums. This is largely influenced by the insurer’s experience and approach to pricing.
“The way insurance is priced depends on predicting future claims. Established companies with extensive data can identify patterns more accurately, while newer companies might lack such insights,” explains Chhabra.
Even the same car may be treated differently by different insurers. For instance, a Toyota Innova could be viewed as a long-distance vehicle by one company, while another might cater to its use as a chauffeur-driven car. Additionally, each insurance company’s objectives—whether focused on acquiring customers or maximizing profitability—impact premium structures and coverage offerings.
Cost and Coverage
While lower premiums might raise concerns about coverage limitations, most motor insurance policies include standard coverage regardless of price.
“In the case of car insurance, differences between policies are minimal. Comparing options is crucial to finding the best deal,” Chhabra adds.
Add-Ons and Disclosures
Dear Lykkers, once the cost aspect is addressed, the next focus is on the coverage options. Standard motor insurance policies often include third-party coverage, which addresses damages and medical expenses for third-party individuals. Additional coverage options, such as own-damage protection, are also widely available.
For those seeking enhanced protection, add-ons like zero-depreciation, bumper-to-bumper, and engine-protector coverage offer valuable benefits.
Engine-protector add-ons, in particular, are recommended for vehicles in flood-prone areas.
The Importance of Timely Renewals
Unlike health insurance, where claims may face rejection for various reasons, motor insurance primarily denies claims due to undisclosed pre-existing issues.
Timely renewals significantly reduce the likelihood of claim denials, ensuring continued protection against unforeseen damages.
By thoroughly comparing options, understanding coverage, and staying proactive with renewals, motor insurance can offer both comprehensive protection and peace of mind.
