Many people shun the idea of insurance due to numerous reasons. People think of car insurance as a liability, in their attempt to avoid unnecessary payment outflow, they miss the crucial point of securing their lives. Unlike other liabilities owned by you that offer service or temporary gains, car insurance is more like an investment which covers damages in case of a mishap.
The second most common reason, due to which people don’t enroll in car insurance policies in India, is that they think car insurance is a way to con people off their money. Simply because there is no immediate return on investment, this policy is seen as a burden by many. We all know that this is not true, but why do people keep saying it? What is the reason behind it? The answer is negligence.
When people buy a new car they ask their vendors to find them the cheapest car insurance available in the market. Moreover, companies that offer such policies, keep the offers for a limited period duration. Due to which, people ignore the terms and conditions printed on the back of the form or in most cases don’t even get to see them. These terms and conditions then become the reason why people develop negative sentiments towards insurance.
When buying car insurance here are the important details that you need lookout for in the fine prints section:
- Third party insurance cover: The third party insurance cover plays an important role in an insurance It is also mandated by the Motor Vehicles Act. A third party insurance covers damages like physical injury, death and damage to third party property – while using your vehicle. If this perk is not included in your insurance policy, then your insurance may not be considered valid by the traffic department.
- Own Damage: Most of the insurance policies that come with limited period offer have this perk missing. This is the most important thing that you need to clarify from the insurance Own Damage has a wide area of possibilities attached to it, and you need to look the kind of circumstances that the insurance covers. A comprehensive standard insurance policy covers the loss or damage caused to the vehicle by accident, theft, fire, explosion, lightning, strikes or act of terrorism or natural calamities.
- Usual damage: In an unfortunate event such as accident, a cheap insurance policy may offer less than 50 percent of the claim amount for damage repairs. Moreover, some insurance policies have terms and conditions, which make filing for claim futile. In such cases, you can consider buying a zero depreciation insurance policy, as it offers upto 95 percent claim amount in the initial years.
Reading the fine print when selecting the right motor insurance is crucial; it can help you responsibly choose a policy that not only covers your vehicle but also saves you from additional damages. It is recommended that you read all the insurance documents carefully and consult your insurance agent if you have any doubts.
If you have queries on understanding the terms and conditions of Car Insurance, do feel free to drop us a message at PL-India Motor Insurance and we shall revert at the soonest. Alternatively, do email us at firstname.lastname@example.org.