Dents To Engine Damage: Comparing Motor Insurance Premiums Is A Must

From the 'whoopsies' of hitting a kerb to calming a driver who is ready to throw hands because their car got dented, motor insurance comes handy in both situations and many more.

A wide variety of products are now for customers to choose from based on cars, coverage, locations and parts.

"The same premium has to be paid by everyone despite how they drive. There are innovative products now," said Amit Chhabra, chief business officer of general insurance at Policybazaar.com. "Simple indicators like distance driven are taken into consideration and there are options like top-up that are available."

In terms of payment as well, there are options to get around the huge one-time payments as one can break down the premiums into equated-monthly-installment payments.

When one compares the prices and premiums of policies available in the market, there might be vast variations between the offerings. Now this can be based on how long the company has been in the game.

"The way insurance is priced is essentially predicting the number of claims that might come. Bigger companies with long-term data will have a better idea of patterns in the past, while a new company might not," Chhabra said.

For instance, a Toyota Innova may be a long-distance-drive car for some, while it can be a comfortable car to be chauffeur driven for some others. An older and newer company treats the car differently, he said. Now the rates can also vary depending on the objective of the insurance company.

One can search the market for the lowest prices but one does wonder if this means that one has to settle for limitations in coverage. Chhabra assures that the lower premium does not call for compromises in coverage as most policies come with standard coverage.

"Incase of car insurance, there's hardly any difference between policies. As a seller, I would always sell you the policy with the higher premium," he said. "The more options one has, that's when the price drops. A consumer must compare before you buy."

Exploring the options available in both the cost and coverage aspects is the best route to take.

After clearing the cost aspect, focus comes to the coverage. There are a few options available and one can always add-on extra covers if necessary.

"Third-party coverage has a standard price as it covers any damage to a third-party. Compensation, medical bills along with more is covered here," he explains. Own-damage cost covers self-inflicted damage and add-ons are also available.

There are a few options like zero-depreciation, bumper-to-bumper add-ons along with more. Engine-protector is also a good add-on especially in flood-prone areas, according to Chhabra.

Finally, in health insurance, there are various grounds on which a claim can be rejected. The motor insurance system works differently.

"A claim can broadly be denied if there was a pre-existing issue that was not disclosed. If renewals are done on time, even these problems may not be too bad," he said.

Thus, there may be fewer chances of rejections if timely renewals are done.