Top Benefits of Buying a Suitable Vehicle Insurance Policy from a Reliable Insurer

April 25, 2023

Buying a vehicle is one of the milestones for most people. If you choose accessories over insurance for your vehicle, you need to think again. Sometimes, the happiness of buying a vehicle can tone down the importance of Car Insurance but don't let it slip away from your mind. 

With each passing year, traffic on roads is sky-rocketing because the number of vehicles is increasing. These aspects also lead to car accidents in India. According to the national crime records bureau, there were 4, 96,000 traffic accidents in 2015. This figure clearly indicates our susceptibility to accidents. Accidental claims can put a burden on an individual, so the most promising way to avert car and personal damage expenses is to get a car insurance policy. An insurance policy is also easy to claim for medical costs too.

As per Motor Vehicle Act, whether you buy a new car or a used one, buying a third Party insurance is mandated. You can also go for a comprehensive cover. It shields you against financial and legal penalties towards a third party. Contrary to this, a comprehensive insurance policy covers your vehicle against damage caused because of accidents, fires, larceny, natural disasters, etc.

According to the law, car Insurance is required because IRDA announced that every car owner should buy a car insurance policy. Driving around without valid car insurance is prohibited in India. In case of death or bodily injury to a third party or any damage to the car, the car insurance policy delivers compensation. Such type of car insurance is understood as third-party insurance, and it safeguards you and other people or family members who may be driving your car.

How can car insurance protect you?

Many people hesitate a lot whenever it comes to buying a vehicle insurance policy because they are not aware of its benefits. Insurance works by forming a metaphorical shield that delivers coverage for unexpected circumstances or events, no matter how they happen.

Every insurance policy is different, and their goal can be either to cover for an event that might happen soon or one which might happen at some point in the future. Besides providing coverage against losses related to any sort of hazard, such as fire, natural disasters, theft, accidents, and many others, it also offers some special protections to individuals from unforeseen life situations.

  • Assured for financial liability: You certainly don't wish to spend your money by paying mammoth accidental damages? Right car insurance can save you and your money from suffering enormous financial damage.
  • Guaranteed repairs and replacement: The car insurance provider investigates the intensity of damage and determines whether to repair or substitute the spare parts. A car insurance policy saves your vehicle for many types of car damages.
  • Legal Requirement: Breaking a law can make you bear repercussions. Legal problems do not just lead to heavy fines or imprisonment but also disturb your mental peace.
  • Guaranteed medical claims: If the driver or passenger gets badly wounded, it gets difficult for an individual to bear the heavy medical expenses particularly if you are the sole earner in your family. An appropriate car insurance policy guarantees the medical expenses are covered to help you manage your finances.
  • No Claim Bonus: No claim bonus or NCB is offered to auto insurance customers during renewal if there is no claim during the last policy period. It is similar to a discount provided to the customers for not filing a claim in the prior policy period.
  • Personal accident cover: It protects you from death due to accident, permanent disability, and the maximum amount paid to sustain the car insurance policy.
  • Network garages: Car Insurance companies sustain a sweeping number of network garages that give services in all areas to avail cashless benefit.

If you don't have a car but have a motorcycle, as per the Motor Vehicle Act, in India, every two-wheeler owner must always maintain relevant third-party insurance. But, as per a report by the General Insurance Council, about 60% of the two-wheelers owners in the country do not maintain a reasonable insurance policy. It means innumerable people are prone to endure financial trouble every time they ride their bike.

To lessen this gap, lately the Supreme Court has made 5-year third-party insurance compulsory for new two-wheeler owners. But why do existing two-wheeler owners think about getting a long-term two-wheeler insurance plan?  

Save money on Premiums

Insurance companies are not allowed to sell basic third-party insurance at a price higher. They are required to follow a price range that is appointed by the Insurance Regulatory and Development Authority of India. But the regulatory body raises the insurance premiums by nearly 20% on a yearly basis.  

So, if you are planning to get 1-year bike insurance this year, you will mostly need to pay a 20% higher premium when you renew the policy next year. You can save yourself from paying this much with the help of a multi-year policy. For example, if you buy 5-year insurance, you will not have to worry about premium hikes as the premium cannot be elevated within the policy tenure.  

Eradicate the Hassles of Policy Renewal

One of the typical reasons why people do not renew their bike insurance is the demanding renewal process. But this problem is history now, two-wheeler insurance online has eradicated these obstacles.  

Nevertheless, it is still a prevalent misconception that renewal is a tiresome process, and requires a lot of paperwork. Multi-year insurance turns into a wise way to evade standard renewals as your vehicle will be insured for 2-5 years.  

Cancel the Policy whenever you want

Undoubtedly, a 5-year insurance policy is a long-term contract. If you are bothered by the thought that what will happen if you do not like the services of the insurer or what if the claim process is demanding? Take it easy because you can cancel your policy anytime you like and find a different insurer.  

The current insurer will refund the unused premium amount. Furthermore, feel free to transfer your current NCB (no claim bonus) to the new insurer. You will be requested to get an NCB certificate from your present insurer and purchase the policy from the new insurer before canceling your current policy. After that, submission of the NCB certificate to the new insurer will be required, and your bonus will be transferred to the new policy.

Don't waste your time waiting, and look for top vehicle insurance companies right away. Insurance can help you reap several advantages without making you work for it.

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