How is monthly car insurance policy beneficial? Is it cost effective?
There are countless situations in which a monthly car insurance policy would be far more beneficial than an annual plan. If you find yourself in one of these situations and are keen on a cost effective car insurance policy, you might want to get a monthly car insurance plan.
Some of the situations in which a monthly car insurance plan would be beneficial include:
- When you have two cars and use one rather infrequently
- Similar to the above situation, perhaps you commute to work by another means and only use your car for road trips
- When you borrow a family member, friend or colleague’s car for a short period (or lend your car)
- When you hire a driver temporarily
- When you are moving to a new city and intend to have your precious set of wheels transported to the new city
- Maybe you’re alright with your third party insurance policy for most part of the year, but during our infamous monsoon, you want the additional safeguard of comprehensive insurance
- When you’re in a mad rush and haven’t got time to think about exactly what policy you want
- When you are learning how to drive or you are lending your car to someone who is learning how to drive and you want additional cover, over and above your third party insurance
- When you travel frequently for long periods or live in two places and your car sits unused, safely in your garage for long periods
- When you purchase a new car midway or nearing the end through your insurance and are not keen to change the policy mid contract
- When you are visiting a place prone to insurgency and/or riots and you are concerned about vandalism
As you can see, there are many situations in which you would be better off with a monthly car insurance plan. You must already have third party insurance in place in most of these situations, particularly the ones where your car is not sitting entirely unused. In such cases, you would simply add on comprehensive insurance as a monthly plan.
Why monthly insurance is beneficial:
The foremost benefit of opting for monthly insurance is cost effectiveness. Since you only purchase insurance or or only add on comprehensive insurance during the months when it is actually required, you are saving on the amounts that you would have had to shell out for the other months as part of an annual plan.
Especially if you have a high end car that you are not utilising for months at a stretch could could save a sizable amount by not paying the annual sum unnecessarily and only paying up for the months during which you intend to use your car.
Situations in which monthly car insurance might not work:
It is important to underscore that if you are using your car at all, no matter how infrequently, you must – as per the law – have third party insurance in place. It is only comprehensive insurance that you can incorporate as and when necessary. However, if you are leaving your car entirely unused for months at a stretch, then you can afford to also forgo third party insurance until you decide to take the car out of hibernation, at which point you must have the insurance in hand before the wheels begin turning.
Additionally, even if you do not intend to use your car, but park it out on the street, it is essential to have car insurance because your vehicle is at the mercy of nature and other drivers. More so if you are leaving your ride unused on a tree lined street amidst the monsoon.
If you leave your car unused for months but you have a friend or family member take it out for a spin to keep it fit and smooth, you still need at least third party insurance in place.
How to go about getting a cost effective car insurance policy:
If you find yourself in one of the situations where you use your car infrequently but still need insurance because it is still being used, to some extent, you are certainly going to be very focused on getting a cost effective car insurance policy, even if monthly car insurance is not an option.
Step 1: log on to the IIFL website at www.iiflinsurance.com
Step 2: you will see a tiled menu with all the insurance options. Choose private car insurance
Step 3: fill up the online form with all the relevant registration and personal details
Step 4: after you have filled up the form, scroll up and click on add filters to toggle your IDV and add ons
Step 5: scroll to the bottom of the add ons page for additional covers and discounts and select any that are applicable
Now browse through the offers that will be sent to you by IIFL’s partners. Since you are approaching the insurers via an online marketplace, they feel pressured to offer you the best deal possible as they are aware that their competitors are also sending you offers. Select the best deal, pay up and you are done.
People are saying that I need a monthly plan because my watchman has to move my car out of the building daily to allow other cars to exit. Is this true? I do not use my car at all at the moment.
If your car is being driven on the street, or driven at all, you need at least third party insurance as per the law. What if your watchman accidentally grazes (or worse) another car? Or what if some speeding vehicle hits the car when exiting the building daily, as per your description? Get insurance right away.
I am planning to move from Mumbai to Cochin for a period of three years to complete my higher studies and I want to take my car. It is an old car and I really cannot afford comprehensive insurance and insurance for a whole year. Is there some small cover I can get?
Yes, all you need to do is opt for a monthly insurance plan that covers the period during which your car is being transported.
Can I get third party insurance on the IIFL website?
Yes, you can get both third party insurance and comprehensive insurance, a range of add ons, additional cover and optional discounts on the IIFL website, for both two wheelers and four wheelers.
How does IIFL manage to extend better deals? What is the catch?
There is no catch. IIFL’s insurance is an online proposition, which is cheaper to run. Moreover, being an online marketplace, the insurers tend to offer you better rates since the competition is tough.