A motor insurance policy, is a contract under which the policyholder promises to pay a certain amount of premium for a specified amount of time. In return, the insurance company promises to offer coverage as per the rules and extent of coverage.
Generally, a comprehensive motor insurance policy covers three things: the vehicle, the owner-driver and third-party liabilities. However, the wordings and nature of a policy are not always understood by the policyholder. Most people buy motor insurance because it is a legal mandate; they generally opt for the cheapest plan and get done with it.
However, that is not the right way to go about it. An insurance policy, including motor insurance, can get difficult to understand for the common people, which can lead to people buying wrong coverage.
So, to make it clearer and easier for you to choose the best motor insurance in India, we list down common mistakes to avoid when buying insurance for your dear vehicle.
Mistake 1: Making decisions without conducting enough research
When purchasing an insurance policy for your vehicle, you must conduct extensive research about the different policies available in the market. Over the past few years, the insurance market has exploded, and you can choose from a host of two-wheeler insurance policies and providers. When you learn about the different policies available, you can compare them easily based on their features and how they suit your requirements. We at Auto Caretakers make sure you are made available with multiple types of policy quotations based on your requirements, hence easing it for you to make the best choice.
Mistake 2: Settling for the cheapest policy without looking at the features
Focusing solely on the premium price is a common mistake that individuals make when purchasing a two-wheeler insurance plan. While determining the total premium outflow is important to plan your finances and make funds available for your insurance policy, it should not be the number one criterion for choosing your bike insurance policy.
It is advisable to consider other critical factors like the coverage you will get from the plan, the additional features offered, the claim settlement ratio of the company, the claim settlement process, customer testimonials and after-sales service.
Mistake 3: Not providing the correct IDV (Insured Declared Value):
The Insured Declared Value or IDV is the current market worth of your bike – the invoice value minus the depreciation accumulated over the years. The IDV you choose for your bike when you buy bike insurance directly affects the premium. Higher IDV equals a higher cost of insurance.
As a result, when deciding on the IDV, you may want to go for a lower amount to get a lower premium cost. However, it is not the correct approach since the IDV is the sum assured of the policy. It is the amount you get when your bike gets damaged beyond repair or gets stolen. If you choose a lower IDV, the claim you get will also not be equal to the bike’s market value, leading to a loss in the long run.
Thus, make sure to choose the right IDV. You can be rest assured that Auto Caretakers will help & guide you to get the current market value of your bike when finalizing the IDV for your insurance.
Mistake 4: Overlooking the plan’s terms and conditions:
When purchasing the bike insurance policy online, it is imperative to go through the policy document’s fine print with a fine-toothed comb. The policy wordings are your best friend if your claim is denied or you face any other issues with the policy or the provider.
But many individuals overlook the terms and conditions and ignore the exclusion list in the policy. It can be quite dangerous as the benefit or coverage you wish for may lie in the plan’s exclusion list. This might result in your getting a lower claim amount or no claim at all.
Hence, Auto Caretakers always makes sure that you are made aware about the exclusion, inclusions and other features of your policy. Reading and explaining the terms and conditions before making the decisions and how are they beneficial for you, is always the first point we make at Auto Caretakers.