Best motor insurance, owning a car in India entails much more than just having transportation. Owners also prefer to make sufficient investments in the safety of the vehicle and its passengers because of the emotional value associated with it.
While choosing the most comprehensive coverage is the best course of action and cannot and should not be compromised, doing so with the potential to save some money is also a rewarding idea.
The Insurance Regulatory and Development Authority of India (IRDAI) has released several ground-breaking add-ons to vehicle insurance policies that make insurance more cost-effective as per the driver’s profile, something that may not have been achievable prior.
You ask how? Three new additions, in particular, allow you to customize your auto insurance coverage to match your driving style.
In essence, these extras factor in how frequently and in what manner the car is driven to determine the appropriate insurance rate.
After all, insurance is about protecting against risk, and the level of risk varies from driver to driver depending on how frequently they use their vehicle and how safely they operate it. And today’s technology makes it possible for insurance firms to consider such criteria.
Vehicle owners can also save money by purchasing a floater insurance policy for a number of vehicles thanks to one of the new add-ons. Here is all the information you require on the selection of car insurance add-ons based on your driving profile.
Pay as you drive
This addition is possibly the one that the post-pandemic era would warmly embrace. Millions of vehicles were left to rot in garages, parking lots, and basements as the epidemic brought the globe to a halt.
Despite the little risk to their automobiles, owners of the vehicles still paid the insurance premiums. Many businesses have permitted a remote or mixed work culture that still reduces commutes even after the pandemic.
Additionally, despite owning a car, there is an increasing trend toward using cabs to avoid traffic, parking problems, etc. The risk is also decreased because of the restricted usage. Why then do you have to pay the same insurance rate as before or as someone who uses their vehicle frequently and daily?
The pay-as-you-drive add-on can help with this because it considers your driving profile and habits and provides you the choice to pay a premium based on the distance you go.
Different insurance providers use a variety of techniques to evaluate usage, including mobile apps and tracking devices, to mention just two. You can therefore pay the insurance price according to your actual usage rather than a set amount.
Who ought to choose this: For individuals who only use their car occasionally rather than every day, this option is fantastic. Ideally, this rider should be chosen by people who work from home. This option is available for people who own multiple cars but drive one of them less frequently.
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Pay how you drive
In this situation, the risk is determined not just by how much you drive, but also by how safely you drive. The risk of an accident is higher for someone who ignores traffic signals, exceeds the posted speed limit, or drifts out of his or her lane.
Until recently, it was impossible to include this clause in an automobile insurance contract. However, modern technology allows for the policyholder’s driving behaviors to be observed and used to tailor his or her insurance package.
The good news is that the regulator just approved the pay-how-you-drive approach, which means a person with a track record, safe driving habits, and a commitment to following the law is likely to pay a significantly cheaper insurance price. One’s driving behaviors would be tracked and analyzed using a GPS tracker installed in the vehicle, supported by algorithms on the backend.
Who ought to choose this: I hope everyone! This extra benefit would encourage others to adopt safe driving practices in addition to rewarding policyholders who already exhibit them.
The policyholder can also try to lower their premium in the following cycle by improving their driving habits if their premium is on the higher side.
Insurance can be expensive for individuals who own multiple vehicles, especially if neither is being used at the same time—in essence, you are driving just one car but paying an insurance rate for two.
This is typical of many houses, which also have multiple automobiles for various family members with varying needs or an SUV for long-distance travel and a tiny car for daily use. Not to mention that the majority of folks also own a two-wheeler.
Instead of keeping numerous insurance policies that are mutually exclusive, IRDAI has now made it feasible to obtain a floater policy that protects your many vehicles. By covering all of the policyholder’s vehicles, including two-wheelers, this floater policy lowers the cost of the premium.