Author: Siddharth PriyadarshiPublish Date: Sat, 30 Jul 2022 02:00 PM (IST)Updated Date: Sat, 30 Jul 2022 02:00 PM (IST)
New Delhi, Business Desk. Buying a car is a necessity as well as a question of prestige. Now if the car will run on the road, then there will definitely be minor accidents with it. Many times, after an accident, the condition of the vehicle becomes such that thousands of rupees are spent in getting it repaired. In such a situation, Motor Insurance helps you. But often when we go to buy a motor insurance policy, we come to know that the premium amount is very high.
Like health insurance, motor insurance comes in handy when your vehicle suffers damage caused by natural calamities like an accident, flood or earthquake. But before getting a new insurance for your car or renewing the old insurance, you should know which policy is right for you and which is not. The cost of the policy may vary from one insurer to another. Different insurance companies have different rates and sometimes the difference between the two can be 20 to 30 percent. Therefore, you should choose the policy very carefully.
Third party liability or comprehensive insurance cover
There are two types of insurance coverage- third-party liability insurance and comprehensive insurance cover. Third party liability insurance is mandatory and provides limited protection. It only covers you damage caused by someone else or your vehicle to someone else, whereas comprehensive insurance protects against damage caused to the vehicle due to artificial and natural causes and also covers third party benefits. The Insurance Regulatory and Development Authority of India (IRDAI) has made it mandatory for first-time car buyers to purchase a one-year comprehensive insurance policy and a 3-year third party insurance policy at the time of buying a car. You only need to buy a Standalone Own Damage (SAOD) policy for the second and third years.
Reduce premium burden like this
If you want to reduce the burden of your motor insurance premium, choose a third party insurance policy. But if you are buying a luxury car then take a comprehensive insurance cover. Apart from this, if you want to add-on things like zero-depreciation, engine protector, no claim bonus, then you will have to spend a little more money for this.
Edited By: Siddharth Priyadarshi