Motor insurance: Tips for car and bike owners

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MOTOR INSURANCE
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Motor insurance Tips for car and bike owners
Buying your first car or bike no doubt changes
life forever. That tremendous amount of freedom,
pride, joy and self-accomplishment of owning a
new set of wheels also comes punctuated with some
responsibility. Aside from cleaning and general
maintenance, one of the most important care
factors is getting the vehicle adequately
insured. Motor Insurance provides protection
against physical damage resulting from
collisions, natural and man-made calamities.
Essentially, if your vehicle is insured, you
stand to recover the financial costs that arise
from accidents, damage, theft, and injury to self
and others. And thats simply why it makes
financial sense to keep your vehicle insured as
long as its in use.
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Not many know that driving a motor vehicle in a
public place in India without insurance is a
punishable offence. While the first year of motor
insurance is made available on purchase of the
vehicle, its the subsequent years that require
deliberation and action. Facts and
terms Whether you got to choose your first policy
or got handed one by the vehicle dealer, for your
second and subsequent years you have the option
to get a policy that best suits your
requirements. Before that, lets break down the
basics
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There are broadly two kinds of Motor Insurance
Third Party Liability Insurance and Comprehensive
Insurance. Third Party Liability Insurance covers
the risks that arise from damage caused by the
insured vehicle to other people, property and
vehicles (third party). All motor vehicles in
India are legally liable to own this
insurance. Comprehensive Insurance covers the
risk of Own damage self, other passengers
(under Personal accident cover) and insured
vehicle (battery and tire exempt) and also the
affected third party. Bodily injuries and
resulting death are covered in this policy.
Hence making it the most prudent form of motor
insurance. A comprehensive policy also has add-on
options that will provide coverage for electrical
parts, 247 roadside assistance etc.
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Like any buying decision, purchasing a motor
insurance policy requires some time, effort and
application of smart-spending strategies. Here
are three ways you can save on motor
insurance Buying and renewing policies online
can result in lower premiums. By not claiming
smaller expenses (like scratches and minor
dents), you could have a claim-free year, leading
to a no-claim bonus. Recently, three-year
insurance policies for two-wheelers were
introduced. With this you can get coverage for
three years at todays rate and a no-claim bonus
of up to 20 (accrued up front). With a little
thought and care, you can get the best motor
insurance deals and keep your set of wheels
protected against possible financial losses.