Having a vehicle gives you the utmost comfort of travelling, freedom, convenience, and pride. However, driving a vehicle comes with some responsibility. As the vehicles are prone to some risks, some security is required for the vehicle and vehicle owner. These risks can be anything from accidents, theft, and natural disasters to legal liabilities, which is why having Motor Insurance is essential. If you buy a vehicle, it is necessary to know the benefits of motor insurance. Motor insurance not only provides financial protection but also peace of mind.
In this comprehensive guide, we will discuss everything in detail to provide the best option for you. Furthermore, get in touch with us at 9810325138 if you want to know more and create a future with financial freedom.
What Is Motor Insurance?
Motor insurance is insurance for vehicles, which is a mutual contract between the vehicle owner and the insurance company. Motor insurance, the vehicle owner pays the regular premium. In exchange, the insurance company protects the policyholder from financial loss caused by accidents, third-party liabilities, theft, or natural disasters involving the insured vehicle.
In India, motor insurance is a legal requirement for the vehicle owner. It is not only a smart financial choice but an essential tool for a vehicle owner. Every individual who has a vehicle must have basic third-party liability benefits of motor insurance that comply with Indian law.
Types of Motor Insurance
As we all know, motor insurance is an important tool for anyone who has a vehicle. Knowing the benefits of motor insurance, it becomes crucial for people to understand the types of motor insurance. It protects the owner from financial loss against road accidents, theft, natural disasters, and third-party liabilities. Depending on the vehicle you have, you can choose the type of insurance.
Car Insurance
Car insurance is an insurance for four-wheelers that provides coverage for the cars. This insurance covers any car, SUV, or private four-wheeler. The car insurance protects the owners from financial breakdowns due to any damage, accident, theft, third-party liability, or natural disaster. The benefit of motor insurance is that it offers comprehensive coverage to the vehicle and vehicle owner in case of unexpected events on the road or even in the loss of the car. The insurance also provides peace of mind.
Two-Wheeler Insurance
Two-wheeler insurance is insurance for vehicles such as motorcycles, scooters, mopeds, or any other two-wheeler vehicle. The insurance protects the car and vehicle owner from financial loss due to theft, accident, or any other damage. Two-wheeler insurance is a must for anyone having a bike or similar vehicle, which covers the mandatory plan of third-party liability.
Commercial Vehicle Insurance
Commercial vehicle insurance is for a vehicle that is used for any commercial purpose for the business profession. The vehicles used for transporting goods, services, or passengers are commercial ones. These vehicles are trucks, buses, taxis, vans, and construction equipment. The benefits of motor insurance can be customized to the risk and requirement and the usage of the vehicle depending on the nature and use of commercial purposes.
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Benefits of Motor Insurance
Financial Protection Against Accidents
One of the primary advantages of motor insurance is that it provides financial protection in the event of an accident. From a minor crash to a major collision, the motor vehicle covers it all. It offers comprehensive coverage for repairing the damage. Most motor insurance covers the repair cost, so one can not incur the financial burden of an accident. Also, this motor insurance offers medical coverage to passengers if they get injured in an accident.
Legal Liability Coverage
According to Indian law, motor insurance is mandatory for third-party insurance liability. The policy offers coverage from legal liabilities in case of damage and injury to a third party by your vehicle. If your vehicle causes damage to a third party, you will be legally responsible, and the insurance saves you from compensation.
No-Claim Bonus (NCB)
Suppose the policyholder does not claim during the policy terms rewarded as the No Claim Bonus (NCB) by the insurance company. Upon renewal of the policy, the NCB provides discounts on the premium. The policyholder can save up to 50% on the premium by saving NCB if they claim for a short time.
Third-Party Damage and Injury Coverage
Any kind of property damage or injuries to a third party due to collisions with other cars or pedestrians. Not having motor insurance may make you responsible for the coverage of injury and medical expenses of the third-party vehicle and other property.
Personal Accident Cover
As the vehicle and vehicle owner are prone to accidents on the road, the motor insurance offers personal accident coverage. With this coverage, the insurance provides financial protection to the driver in case of death or permanent disability due to an accident with the insured vehicle. With personal accident insurance, the vehicle owners and passengers are covered to receive financial support in difficult times.
Add-On Benefits of Motor Insurance
Motor insurance has some benefits with an optional add-on, which provides some extra protection above the standard policy.
Zero Depreciation Cover
With Zero Depreciation Cover, the policyholder will receive the full repair cost without any depreciation deduction of any part of the vehicle. This add-on is efficiently beneficial for the new vehicle owner since it covers the entire cost of the parts, such as plastic components, tyres, or windshields.
Engine Protection Cover
In this add-on, the insurance covers the damage to the engine for any reason, such as water ingress or oil leakage; this coverage is not usually covered in standard policies.
Roadside Assistance Cover
In the event that your car breaks down while travelling, this add-on offers emergency services like fuel delivery, flat tyre assistance, and towing.
Return to Invoice Cover
With the return to invoice cover add-ons, the policyholder gets the full invoice value of the car instead of just the current market value of the car. Due to the uncertain situation, complete loss, and theft of the vehicle, the return to invoice provides coverage for registration costs and road tax.
Consumables Cover
The regular standard policy that covers consumables, like engine oil, brake failure, nuts and bolts, but with the add-ons, these consumables are also covered.
Final Words!
As we all know, vehicle insurance is a mandatory financial protection for every vehicle owner, and it offers a wide range of benefits of motor insurance. Motor Insurance offers coverage just beyond legal compliance. The insurance provides financial coverage against accidents, theft, any natural calamities, or third-party liability. This provides peace of mind to secure coverage for the policyholder and the vehicle.
Vehicle owners can maximize their protection and enjoy the freedom of driving without worrying about financial instability due to unforeseen events by choosing the appropriate motor insurance policy and customizing it with add-on covers. Motor insurance is an essential purchase that protects your vehicle and your financial stability.
Moreover, investors can get in touch with us at 9810325138 to learn more about finances.
FAQ
Motor insurance is mandatory to guarantee that the owners of motor vehicles can afford to pay for any harm or damage they may cause to other people in the event of an accident. In case of a traffic accident, it lessens the financial burden of the vehicle owner or third party.
If someone is injured or killed by your car, or if it damages someone else’s property, third-party liability insurance shields you from financial liability. This kind of insurance does not cover damage to your car and is mandated by law.
If you do not file any claims during the policy term, insurance companies will give you a discount known as a No-Claim Bonus (NCB). When you renew your policy, this bonus can drastically lower your premium because it builds up over time.
It is possible to transfer your No-Claim Bonus (NCB) when changing insurance providers. Since the NCB is associated with the policyholder rather than the car, you can keep it even if you switch insurance companies or purchase a new vehicle.
Yes, the majority of insurance providers allow for online renewals. In just a few minutes, you can visit the insurer’s website, enter your policy information, and renew your coverage. You can compare plans and make changes with ease using this quick and convenient process.
The policy will lapse if you fail to renew the insurance on time, leaving you without coverage.