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Motor insurance companies in India offer a range of car insurance policies to meet the specific needs of vehicle owners. With so many policies available on the market and dozens of insurance providers, we can imagine the confusion customers face in choosing the right policy.

Motor insurance companies have plans varying with different features to different prices. So, it is very important to do market research and check your personal requirements before choosing the insurance plan that will be best suited for your needs.

Here are some tips to help you choose the right plan:

Start by Deciding the type of motor insurance plan

In India, insurance companies offer two major types of car insurance plans:

  • Third-party Insurance - It is mandatory by law. This plan only covers damages to the third party and you do not get compensation for the damages to your car.
  • Comprehensive Insurance - It covers both third-party liability and damage to your car.

Third-party insurance is cheaper than comprehensive insurance. However, if your vehicle is damaged, then third-party insurance will not cover for damages incurred by your vehicle. You have to pay for the repair charges out of pocket.

We suggest a third party liability plan, if you are looking to meet the legal requirements, stipulated by the Indian Motor Vehicle Act. However, if you have a luxury car or don't want to pay out of pocket for any damages, then a comprehensive insurance cover is the better choice. It will help reduce financial liabilities in the event of an accident.

Decide on the Riders 

Once you have chosen the type of plan, the next step is to decide on the riders. Riders are optional coverage and you can choose depending on your needs. Some of the popular motor insurance riders include passenger cover, roadside assistance and more.

The final cost of the plan depends on the type of motor insurance and the riders you have chosen. Use these two tips to zero in on the right motor insurance plan for your needs.

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