You do the mandatory work of buying a motor insurance policy and renewing it when time comes. However, do you have complete knowledge of all the coverage that is being provided? No. It is equally important to be aware of the coverage provided in the policy. You must read what your insurance provider is offering you else, you may miss out on the benefits which you could have otherwise claimed.
The motor insurance coverage includes many things. However, there are seven very important details, which you should not miss to cover.
List of must have inclusions
- Coverage of Natural Calamities/Terrorist Attack
It is a myth that the motor insurance policy only covers damages arising out of accidents and thefts. However, the truth is that a motor insurance policy also covers damages arising out of a situation not in the human control.
These circumstances are natural calamities like flood, earthquake, hurricane, terrorist attacks or damage during transit. Your insurance policy must include coverage against these too.
- Renewal without Documentation
No one likes to go through the hassles of documentation. In most cases, insurance-related documentation is lengthy and time consuming. However, in this digital age, you can renew your policy without having to fill any more documents.
Online policy renewal is quick, hassle-free and involves zero documentation. You must ensure that your insurance provider supports online policy renewals.
- Third-party Premium
A comprehensive cover also includes third-party premium. This provides compensation against claims arising in case you unintentionally damage any third-party property or injure a person. Your motor insurance company pays for the damages caused to the third-party. The motor insurance claims process will have you make a claim. Nowadays, every car insurance comes with a third-party premium, as well as, an own-damage cover.
If you can assure your insurance provider that you will avoid third-party claims or will bear the expenses in case this rare situation happens, you can avail of a discount on the premium of third-party cover.
- No Depreciation Cover
For a motor insurance, depreciation is calculated at the rate at which the parts of the vehicle run down according to their age. While settling a claim, the insurance companies calculate depreciation at the rate. The differential between the market value and the depreciated value needs to be shouldered by the insured.
This can be avoided if you take a zero depreciation cover. In this case you can get a comprehensive coverage without any impact of depreciation.
- Accident Shield
No matter how common roads accidents are, they are very unfortunate and devastating. Your vehicle is important but so are the lives of all the vehicle occupants. By opting for an accident shield, you can avail of compensation for all the occupants in case of a complete disability or an accident-induced death.
- Engine Protector Coverage
There are many reasons due to which an engine can get stalled such as damage in gear box, leakage of oil or accidental inflow of water. If you opt for an Engine Protector Coverage, your insurance company bears the expenses of repairing your engine in case of these damages.
- Coverage for car accessories
Usually, during accidents, the coverage is only provided for the damage of car and not its accessories. You can add a car accessory coverage to your policy so that you are monetarily compensated for the damage or loss of the accessories.
This will increase the premium amount. However, it is cost-effective in the long run. This is because if you have to purchase the new accessories again, it will increase your overall cost.