What nobody tells you about buying motor insurance
Published by India Today
Abhishek Kumar's role: Quoted
Abhishek Kumar said first-time buyers often take only third-party cover without comparing policies. He suggested basing the IDV on market value, choosing comprehensive cover and only useful add-ons, and checking exclusions and claim rules.
What Abhishek Kumar said
What mistakes do first-time buyers make with motor insurance?
Many first-time buyers take only basic third-party cover without comparing other policies first. They also underestimate how much cover they need, give incorrect details or skip the policy terms, and any of these can later lead to a rejected claim. I suggest choosing comprehensive cover rather than third-party alone, and setting the IDV on the car's current market value, not its sale price.
Which motor insurance add-ons are worth paying for, and which are not?
Add-ons for zero depreciation, roadside assistance and engine protection can be worth having, as they cut your out-of-pocket costs and are useful when there is a breakdown or a large repair bill. By contrast, covers for daily allowance, extra consumables, tyre protection (unless your roads are very rough) and cover for lost belongings are frequently bought yet seldom claimed.
How can I lower my motor insurance premium without losing the cover I need?
Compare policies on online insurance aggregator sites, then set the IDV sensibly, pick only the add-ons you need, use your No Claim Bonus and consider a voluntary deductible to bring the premium down. Before finalising, read the exclusions, deductibles, claim limits, add-on conditions, renewal rules and how a claim is made, because these decide what you can actually claim and what you pay.
In our words, from what he said in the piece. General information, not personal advice.
More of Abhishek's views on insurance
The article looks at India's growing passenger vehicle and motor insurance markets and the avoidable mistakes first-time buyers make. It covers setting the insured declared value, choosing between third-party and comprehensive cover, picking useful add-ons, cutting premiums and reading policy exclusions before buying.
Publisher source
What nobody tells you about buying motor insurance