Motor insurance is also known as auto insurance or vehicle insurance. It safeguards your vehicle against any financial losses that occur due to some reason. The policy can also cover the driver of the vehicle and passengers.
Motor insurance covers the financial losses incurred due to accidents and other mishaps. Let’s dig deeper and try to understand the meaning and importance of motor insurance.
All motor insurance covers basic damages to the vehicle, but the add-on covers offered might vary depending on the insurance company. The common mishaps covered are -
Fire, explosion, self-ignition, lightning
Burglary or theft
Riot & Strike
Natural calamities like earthquakes, floods, storms, cyclones, hurricanes, landslides, etc.
Accidental external means
Malicious acts or acts of terrorism
Other things that are covered under motor insurance and come as add-on covers are -
Personal accident cover for passengers and owner, if they are driving during the accident
24X7 roadside assistance
Zero depreciation cover
EMI protection
No claim bonus
Engine, gearbox, and tyre-protect cover
Daily allowance cover
Key and lock replacement cover
Loss of personal belongings cover
Consumables cover, etc.
Motor insurance, even though compulsory in India, has multiple benefits. Let’s look at some of the advantages of getting vehicle insurance -
Motor insurance policies help you pay for the costs of repairs or replacement if your vehicle is damaged or stolen. Thus, it provides you with peace of mind.
If you get in an accident, motor insurance helps you pay for damage to your and third-party lives and property.
As mentioned earlier, the law mandates that you get a motor insurance if you own a vehicle.
All insurance policies are not the same. The premium you pay varies based on various factors, which are -
The type and price of your vehicle
The condition of your vehicle, first-hand or second-hand
Your driving history
Your age and gender
The amount of coverage you choose
There are broadly three types of motor insurance available. They are described here in brief -
Covers damage and injury to other people or properties involved in the mishap.
Covers damage and injury to your life, vehicle, and property involved in the mishap.
This covers bothe third-party and own damage insurance. Includes damage caused by fire, theft, or other natural calamities.
People are mostly confused between a third-party insurance and comprehensive insurance. You can read which of the two is best for you here.
Apart from being a legal requirement, motor or vehicle insurance is important to safeguard yourself and others involved in accidents related or caused by your vehicle. Learn more about the types of policies available, and the premiums you have to pay for maximum security.You can now get a motor insurance from Moneyview starting from just Rs.1.5 per day. To know more, go to the Moneyview website or download the app.
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