Beginners’ Guide to Choosing a Motor Insurance Plan

A motor insurance policy is an insurance that one never hopes to use especially in the case of an accident. According to the law, buying motor insurance is mandatory for every vehicle owner in India. You can’t assume that your vehicle would never be vandalized, stolen or be damaged in any accident. If these unfortunate incidents happen, the damage/repair bills can be a huge risk for your financial security. That is why having an insurance plan is absolutely necessary so that your financial safety is never exposed to any kind of risk.

Buying a car insurance plan is not that tough. But, buying the best insurance plan might be a little difficult as you need to be well informed. The premium depends on the condition of your vehicle. Here is the beginners’ guide to selecting an automobile insurance plan.


The term “deductible” means the money that you would have to pay from your pocket in case you file a claim. Deductible shares an inverse relationship with the premium. If the deductible is lower, then, the premium would be higher and vice versa. Think carefully before you go for a lower deductible.

Your Area of Residence Matters

If you live in urban area, your premium amount would be higher; if you live in the rural area then your premium would be lesser. In urban areas, vehicles are more prone to theft, break-ins and accidents etc.

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Your Insurance Should Be Sufficient

Being under-insured or over-insured is of no good. If you are over insured, you are just wasting your money and if you are under-insured then the purpose of having an insurance plan is not fulfilled. You would have inadequate coverage. In the end, you would have to pay for repairs from your own pocket.

The Model of your Car

Insurance premium for the top model cars such as Audi, BMW, and Mercedes is way higher than the premium for the basic model cars. The reason behind that is damage repair cost of expensive cars is also higher; hence the premium rate is higher.

Affordable Coverage vs. Adequate Coverage

When it comes to coverage, striking a perfect balance between affordable coverage and adequate coverage is important. Generally, issuance buyers want to have enough coverage and they don’t want to pay much for a premium. If you don’t want to pay much for your 4-5-year-old car, it is fine. But, if you have a brand new car, if adequate coverage costs you a high premium then it is totally worth it

Avail Discounts

Motor insurance providers offer various discounts on the base of numerous factors mentioned below.

  1. Installation of car security system
  2. If you don’t file for claim, you are offered NCB discount for a claim free year.
  3. If you are a member of any automobile association.

Now you are aware of ins and out of insurance. Before you buy insurance always compare so that you get a good plan. Having motor insurance plan safeguards you and your vehicle from potential risks.




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