How To Purchase Value For Money Motor Insurance

By Author: Pranav V Sharma
Total Articles: 141
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Motor insurance for your vehicle is mandatory under Indian law. How much you pay for motor insurance depends o¬n several factors, including your age and marital status, where you live, and what you drive. Factors that you can least control may have the greatest impact on your insurance costs. Your age, gender, and driving record are key factors that affect your insurance premium. You can't do anything about your age, and few people will move just to lower their insurance premium. You can, however, choose a vehicle that costs less to insure. Although you're buying a single motor insurance policy covering a specific vehicle, a number of components make up the final cost.

Each motor insurance policy will have a different type of coverage. You need to understand what coverage your vehicle gets under your motor insurance policy. Bodily injury liability covers injury and death claims against you, and legal costs, if your vehicle injures or kills someone. Property damage liability covers claims for property that your car damages in an accident. Medical payments pay for injuries to yourself and to occupants of your car. Uninsured ...
... motorist protection covers injuries caused to you or the occupants of your car by uninsured or hit-and-run drivers. Some add-on coverage will cost you extra on your current motor insurance premium, but if it protects your vehicle, it is well worth buying.

"Under-insured" coverage also is available, to cover claims you may make against a driver who has inadequate motor insurance. Collision coverage covers damage to your car up to its book value. Collision coverage carries a deductible, which is the amount per claim you have to pay before the insurance takes effect. The lower the deductible, the higher the premium is on your motor insurance policy. Comprehensive motor insurance covers damage to your car from theft, vandalism, fire, wind, flood, and other non-accident causes. Comprehensive motor insurance coverage also carries a deductible.

Y¬ou might want a sports car or a fancy SUV, but your insurance company may charge you more to protect you while driving it. Motor insurance premiums are based partly on the price of the vehicle, which affects the replacement cost if it is stolen or "totaled" in an accident. How expensive the vehicle is to repair can also affect the cost. In addition, surcharges may apply to vehicles that are frequently stolen or involved in accidents. Motor insurance companies set rates based on their own experience. It all boils down to a company's actual experience with a particular vehicle or category of drivers. That is why it pays to shop around for insurance.

Author Profile :

Pranav Sharma is an insurance agent based in Mumbai; Pranav assists individuals and corporates in purchasing the right motor Insurance & often shares his insights about the vehicle insurance industry on internet.