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Include Motor Insurance In Your Diwali Checklist To Stay Financially Secure

​Diwali is considered an auspicious occasion to buy new things. Many people plan to buy new vehicles in this festival of light. If you already have a vehicle, it's best to insure it with bike insurance or car insurance. 

Buying motor insurance is not only necessary under the Motor Vehicle Act, 2019, but it also protects you and your vehicle. Buying car insurance will also ensure that you are financially secure. Firstly, it will cover the cost of replacement and repair. However, if you are buying car insurance for the first time then there are certain things that you should be aware of.

Given below are some of the important things that you should keep in mind when you buy motor insurance this Diwali: 

Understand the Insurance

The first point that should be on your checklist is understanding the insurance policy. There are several companies in the market that offer various types of insurance. To understand fully and chose the correct insurance policy for your vehicle, you need to do thorough research. There is basically two types of car insurance: 

  • Third-party Car Insurance:
  • According to the Indian Motor Vehicle Act, 2019, it is mandatory to have a third-party car insurance. This is a basic plan that only covers third-party liability​

  • Comprehensive Car Insurance:
  • This insurance policy will give you wider coverage. This type of car insurance will not only cover third-party liability, but it will also provide coverage against the damage caused to you or your car due to an accident, natural or man-made disaster, riots, theft, etc. You can also enhance the coverage by adding add-ons covers.

    Set the Correct IDV For Your Car

    The sum insured fixed by your policy provider depends on the IDV of your car. In case your car gets damaged, lost, or stolen, it is the IDV of your car that will decide the amount you will receive. The IDV of the car is calculated by the depreciation value of the vehicle from the manufacturer's selling price of the car. Make sure you set the correct IDV for your car that should neither increase your premium, nor it should lower your claim amount. 

    Read the Documents Carefully

    Before you buy a car insurance policy, it is highly advisable to get through the exclusions and inclusions of the policy. This will give you a basic idea of what is covered under the plan and what is not. 

    Understand the Add-On Coverage

    Add-ons not only enhance the coverage, but it also gives extra protection to the vehicle and vehicle owner. However, you don't need to add all the add-ons as it will increase the premium rates. You should read carefully about them and choose what suits you the best. 

    Know About the Network Garage

    In the network garages, your vehicle will get repair and you don't even have to pay anything as your insurer will directly settle the bill with the garage. Make sure your insurer's network garage is present in your locality.