For vehicle owners, motor insurance is an investment that is essential and needs to be planned for every year. Motor insurance is not just crucial for your safety and your car’s well-being on the road, but it also protects you against legal implications. According to the Motor Vehicles Act, 1989, it is mandatory for vehicle owners to insure their car or bike against third party liabilities and accidents. Driving your vehicle without motor insurance can land you in legal trouble.
Motor insurance covers your vehicle against losses, thefts or damages caused due to natural or man-made calamities. It also takes care of any third-party liabilities that may occur during an accident. Choosing the right policy will help you cover medical expenses, and in case of the unfortunate death of the insurance holder, it provides the sum insured to the family.
Factors that affect your motor insurance premium
Bajaj Finance offers comprehensive motor insurance plans with various premium brackets and an easy online insurance process. Here are some of the factors that impact motor insurance premiums.
Location
Before offering motor insurance to a customer, one of the first things that companies look for is their location. For example, if a person lives in an accident-prone area, they will charge a higher premium in comparison to someone living in a safer neighbourhood with better infrastructure. Similarly, there are many areas with common car theft cases; premiums are also higher in such places because companies compensate the car owners in case of stolen vehicles.
Type of engine
The Stand-Alone Car/Bike Insurance Plan offered by Bajaj Finance customises your premium based on your vehicle category and type of engine. If your engine runs on diesel, the premium for your motor insurance will be higher because it also increases your Insured Declared Value (IDV). If you own a luxury or a sports car, the premium will be even more. Therefore, the higher the IDV of your vehicle, the higher will be its premium.
Type of coverage chosen
Your premium also depends on the kind of motor insurance that you buy for your vehicle. For example, your premium will vary depending on whether you have chosen a comprehensive insurance that offers extensive coverage or a cover that only takes care of third-party liabilities. Bajaj Finance offers both third party and comprehensive motor insurance policies with customisable premium rates. Ideally, people prefer buying comprehensive insurance so they are prepared for any unforeseen expenses that may arise.
Opting for Multiple Add-ons
Your motor insurance premium depends on the benefits that you’ll be getting from the policy. Many vehicle owners prefer customising the insurance as per their needs. Your car insurance premium is subject to change as per the add-ons you choose to add to your policy. Generally, add ons like personal accident cover, maintenance cover, etc are made available. Motor insurance plans from Bajaj Finance come with a host of attractive add-ons, which gives the policyholder the chance to re-evaluate their current plan.
Safety features
The more you take care of your car, the lower is the cost of the premium. If your car is equipped with safety features like gear lock, GPS, and airbags, it instils confidence in the insurance provider about your vehicle. Therefore, you pay a lesser premium.
Motor insurance is a necessity and so whether you are looking to renew your insurance or buy a new one, go ahead and choose from offerings by Bajaj Finance Limited. Because at Bajaj Finance Limited, we partner with some of the best insurance providers and bring you plans that are best suited to your needs.
