Things To Note When Purchasing A Motor Insurance Plan

So you have just bought yourself your dream car and are calculating your way through your financing process. Feels great, right? But before you take your car out for a spin, have you decided on your motor insurance yet? Motor insurance is different from your motor warranty, and is not something you should buy on a whim or postpone till another time when you feel like getting one. It is something that needs proper research.

In addition, whether the car is brand new or second-hand, it is mandatory for the drivers to purchase motor insurance before the car is allowed to be on the road. The policy must cover the basic requirement of at least covering third-party liability for bodily injury and deaths.

Why is motor insurance necessary?

Do you purchase motor insurance just because the Government makes it mandatory? Or do you purchase the bare minimum protection for your motor vehicle so that you avoid paying higher premiums? If your answer to any of these two questions is 'yes,' then you are committing a huge mistake.

While purchasing motor insurance is mandatory in order to be able to drive your car on the road, the key purpose of motor insurance is to ensure your motor vehicle is protected against any financial consequences as a result of a road accident, loss by natural events, or theft.

Before purchasing a motor insurance plan, here are some things to note:

1. Types of motor insurance

Regardless of how the motor vehicle is to be used – private or commercial, there are two key types of motor insurance available:

• Liability of third-party motor insurance: This is the bare minimum insurance policy you can get for your motor vehicle. It covers only the third party's incurred damage or loss in an accident, but it does not cover your vehicle.

• Comprehensive coverage motor insurance: This essentially covers both your vehicle as well as the third party during an accident.

2. Policy terms

Being aware of the insurance policy's terms and conditions is important. A lot of times, the biggest mistake made by most individuals when purchasing a policy is not being aware of the exclusions. The policy's inclusion is about what the insurance covers. On the other hand, the exclusions are about what the insurance does not cover. Therefore, it is critical to be aware of both the inclusions and exclusions to make a well-informed decision.

3. Motor insurance riders

Suppose you have decided to purchase comprehensive motor insurance; you might then want to consider extending your policy cover with riders. Riders essentially are additional covers that can be added to the current policy. Additional covers might increase the premium. Hence, make sure to check with the insurance provider about motor insurance riders, such as personal accident cover, on-road assistance, and other relevant covers to ensure you optimise your motor insurance to the best you can.

4. Claim procedure

One of the key aspects of ideal motor insurance is the efficiency and ease of its claim procedure. Also, check with your provider the insurer's claim settlement ratio. It determines the number of claims the company has paid in a year, thus telling you about the insurer's reliability.

Tips to help you find the best-suited motor insurance policy

1. Know what you require: Assessing your needs will help you determine the type of motor insurance cover you should get as well as any relevant riders. Coverage should be your priority, not how much your premiums are.

2. Compare policy quotes: Ideally, you want an insurance policy that is value for money. While you need to prioritise coverage, you also do not want to pay excessively for something similar you could get at a better rate.

3. Select an insurer with a wide network of workshops: In cases of an accident claim, insurers typically have a network of workshops. Always make sure to inquire about the list of workshops when selecting the right insurer. An insurer with a wide network of workshops that provides cashless claims ensures that your claim will be efficiently settled.

Conclusion

All in all, choosing the right motor insurance policy is not that difficult. With a little research and due diligence, you can get the best coverage for your motor vehicle within your budget. If you are looking for some of the best motor insurance plans, look no further than India International Insurance. We understand the pain many clients face when submitting an accident claim. Hence, we pride ourselves on offering hassle-free and around-the-clock solutions for our clients.

For more information on our motor insurance, you may visit us at https://www.iii.com.sg/motor-insurance/ or contact us at +65 6347 6100.