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How to choose the best type of motor insurance for your vehicle?

Selecting motor insurance properly and with due consideration is essential if you want to get a good deal, with optimal coverage and useful benefits. If you want to get the best motor insurance policy based on all of these parameters, a little shopping around is always a good idea. Hence you should choose online motor insurance, especially a platform that allows you to browse and compare offers from a handful of reputed insurers. 

Why online motor insurance is preferable

A good example of smartly selected online motor insurance is motor insurance purchased using a platform like the IIFL website. Of course, most insurers have their own websites today, so why opt for a third-party website? Well, very simply because a third-party website acts as an online marketplace. The insurance buyer is in a relative position of strength because they get to compare offers from competing insurance companies. And as you know, when there is competition, corporations tend to bring the best possible offer to the table. 

Types of motor insurance 

There are several types of vehicle insurance, differentiated not just on the basis of the type of vehicle, but also on the coverage. Let’s have a look at these two modes of categorization

  • Vehicle-based types of motor insurance 

There are two types of vehicle insurance based on the kind of vehicle you own, that is private car two-wheeler insurance. The names are fairly suggestive and self-explanatory, so we can move on to the next type of insurance. 

  • Coverage based types of motor insurance 

There are two types of vehicle insurance based on the type of coverage extended by the insurer. These are a little more complex than the prior two types, so let us explore in a little more detail. 

Third-party insurance – also referred to as TP, this type of vehicle insurance is compulsory as per law. For you to drive your vehicle legally on Indian roads, you need to have third-party insurance. This type of motor insurance covers you against any damage occurring to a third party’s vehicle in an accident. Additionally, TP insurance covers your financial liability in the event that the accident in focus causes death to the third party or injury

Comprehensive insurance – also referred to as OD (which stands for own damage) this type of vehicle insurance covers you against damage to your own vehicle. A comprehensive insurance policy also covers you against damage to your vehicle in a flood, or amidst a terror attack and even against total loss or theft. Other instances when this type of motor insurance comes in handy is when you are transporting your car from one city to another – any damages or loss that occurs in transit are covered by this type of vehicle insurance. 

Considerations when choosing motor insurance 

If you are seeking the best motor insurance policy, which is usually the case with savvy insurance buyers, you should observe and compare the following factors 

  1. Premium – this one is rather obvious and is the very first factor that most motor insurance buyers will observe and compare. It is indeed a significant factor, but do not allow yourself to be swayed entirely by a low or affordable premium amount as the other factors on this list are also fairly significant, if not the most significant. 
  2. IDV – The Insured Declared Value is the maximum amount payable by the insurer in case of total loss or theft of your vehicle. 
  3. Claim settlement ratio – This is of utmost importance. Always consider the claim settlement ratio of the insurer before signing up. What is the use of having a competitive premium amount and an excellent IDV, with a whole bundle of amazing add-ons and freebies if your insurer is in the habit of rejecting claims for no good reason? On the IIFL platform, you can be assured of finding only the best and most genuine insurers with optimal claim settlement ratios. 
  4. Add ons and pricing for add ons – Consider the add ons available such as roadside assistance, engine protection, key replacement, and so on. Are the ones most useful to you available? Compare rates between different insurers.
  5. Any freebies – Any personal accident cover or other freebie being offered should be considered for usefulness. 

How to go about getting online motor insurance 

Getting online motor insurance is a quick and easy, nearly instant process on the IIFL website. Simply follow the five-step process detailed below

Step 1 – click here: www.iiflinsurance.com 

Step 2 – Select the type of vehicle insurance relevant to you based on the type of vehicle you own from the menu of insurance products that will open up.

Step 3 – fill-up the quick online form by selecting the right options from the choices provided. 

Step 4 – play around with the list of add ons and view the quotes carefully every time you make a change to see how it has affected pricing. There is no cap, no limit, no cost, and no guilt involved in the number of attempts you can make.

FAQs

No insurance company has a claim settlement ratio of 100. Should I be worried? Does this mean that my claim will not be settled?

It is highly unlikely that you will find an insurance company with such a 100% claim settlement ratio and if you do, that should worry you. Every insurance company is plagued with bogus claims. They must have some discretion and reject these in order to remain profitable and stay in business. Provided you have a genuine claim and an active policy, and you go about the process as prescribed and so long as your insurance policy covers whatever you are claiming, you should not have any issues getting your claim settled.

Do I need to get OD insurance for a very old vehicle that I will probably have to sell for nearly nothing?

This is at your discretion entirely but yes, new vehicles and expensive vehicles are usually more in need of OD insurance. Weigh the amount you intend to get for your vehicle, what you might need to pay for repairs in the interim, and the amount of insurance to make the right decision.

Is OD insurance important since it is important for everyone to get TP insurance?

Yes, because not everyone is law-abiding.

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