What is a Motor Insurance?

An insurance that protects you and your vehicle (car/bike/commercial vehicle) from financial losses and damages like natural calamities, thefts, burglaries, malicious acts and accidents. There are 3 types of motor insurance in India.

Why should you buy a Motor Insurance?

Well, there’s no running away from this! As per the Motor Vehicles Act 1988, it is mandatory for all vehicles in India to have at least a Third-party Liability Policy to drive/ride legally. Additionally, if you equally (or more so) care about your vehicle, it is important to have a Comprehensive Policy in place as well.

Why is Motor Insurance so important anyway?

• To drive/ride legally (Third-Party Liability Policy is mandatory in India)
• To financially protect any third-party from damages caused by your vehicle in unforeseen situations
• To protect and cover your vehicle in case of natural calamities, fire, theft and malicious activities
• Low cost premium
• To protect yourself from losses caused by external property damage
• To protect and compensate your family in the case of an accidental death

Note: Benefits may differ based on the plan you choose. To ensure you're entitled to all benefits, it’s best to purchase the Comprehensive Plan.

Given the number of options available today. It is important to pick an insurance that is simple, reasonable, protects and covers you in all possible situations and most importantly, guarantees to settle claims as soon as possible. After all, that’s the most important part of an insurance!

Here are a few tips that will help you pick the right motor insurance online for your vehicle:

• Right Insured Declared Value (IDV) - IDV is the market value of your car. Your premium will depend on this. While looking for the right motor insurance online, make sure your IDV is stated correctly. Know more about IDV in Bike Insurance & IDV in Car Insurance
• Service benefits - Consider services such as 24x7 Customer Support, Convenient Pick-up and Drop, and Wide Network of Cashless Garages, among others. In times of need, these services matter.
• Review Add-Ons - While picking the right motor insurance for your vehicle, consider the add-ons available to ensure maximum benefits. Check the Car Insurance add-ons & Bike Insurance add-ons provided by Digit.
• Claim Speed - It’s the most important aspect of any insurance. Pick a motor insurance company you know will settle claims quickly.
• Best value - From the right premium and after services to claim settlements and add-ons; pick a motor insurance that conveniently covers everything you think you will need at the best possible value.

Before buying or renewing your motor insurance online, it is wise to use the premium calculator so that you can see how choosing different plans with different addons would affect your insurance premium.

Making the right adjustments and checking the final insurance premium will help you decide on the right motor insurance plan for you.

Calculate insurance premium for your vehicle using the car insurance premium calculator or the bike insurance premium calculator.

Parameters that decide your insurance premium

No two vehicle insurances can be the same. Your insurance premium can differ based on many factors like the kind of policy you choose (Third-Party vs Standard/Comprehensive), the make and model of your vehicle, the market value of your vehicle, the city you live in, the properties of your engine, the purpose of your vehicle (private/commercial), and of course, whether your vehicle runs on petrol, diesel or CNG.

Tips to reduce your motor insurance premium

A lower premium price can be tempting for many, but make sure you don’t incorrectly state your IDV or take in only a Third-Party Policy just because you want to save some bucks.

Here are a few other ways that can reduce your premium, without risking yourself or your vehicle:

• Transfer your bonus: An auto insurance is connected to the owner of the vehicle and not the vehicle itself. If you’ve had a motor insurance before, make sure you transfer your bonus to your new car.
• Make use of your NCB: NCB is the No Claimed Bonus you could receive if you haven’t made claims for the term. This then gives you a suitable discount while renewing your vehicle policy online. So, make sure you drive safely and perhaps, you can also save on not claiming for the little nitty-gritties and save up for the rainy days!
• Decide on a decent deductible: In any vehicle insurance, a deductible is the amount that will be paid by you while making a claim. So, when you’re opting for your deductible, decide on an amount you can pay comfortably rather than keeping it zero or too less. The higher your deductible, the lower your regular insurance premium. This especially works best if you know you’re a safe driver and have had a track of no claims for a while.

Don't blindly go for insurances that offer a lower premium. While comparing motor insurances online, keep the following in mind:

• Service Benefits: Great services really matter in times of trouble. Make sure to evaluate services each insurance company is offering and make a sound choice accordingly. Some of the services Digit offers are Doorstep Pickup, Repair & Drop with 6 months Warranty, 24*7 Customer Care Support, Cashless at 1000+ Garages etc.
• Quick Claim Settlement: The whole point of insurance is to get your claims settled! So make sure you pick an insurance company that will guarantee quick claim settlements. 90.4% of Digit’s claims are settled within 30 days! Additionally, we have a zero hardcopy policy, which means we only ask for soft copies. Everything is paperless, online, quick and hassle-free!
• Check your IDV: A lot of insurance quotes online will have a low IDV (Insured Declared Value), i.e. the market value of your vehicle. While the IDV affects your premium, it also makes sure you get the right claim at the time of a settlement. The last thing you want during a theft or damage is to find out your IDV was low/at the wrong value! At Digit, we give you the option to set your IDV while buying your motor insurance policy online.
• Best Value: Finally, pick a vehicle insurance that gives you a fair combination of it all. The right price, services and of course, quick claims!

What is IDV?

A vital part of motor insurance, an IDV is the Insured Declared Value of your vehicle, that will be paid out to you in case of a mishap.

It is determined based on the market value (including depreciation) of your vehicle and directly affects your premium. Since a vehicle depreciates with time, directly affecting the IDV, your premium too will reduce based on the same.

What is NCB?

NCB is the No Claimed Bonus that you receive when you haven’t made any claims for the policy term, i.e. you’ve been a safe driver and therefore, your premium at renewal will be discounted by your insurer. Know more about NCB in Bike Insurance & NCB in Car Insurance.

The Energy Matters

As mentioned before, there are a lot of things that really affect your insurance premium. One of these factors also happens to be the fuel running your car. For example; a car that runs on CNG, LPG and Diesel will have a higher premium than that of Petrol.