How to save on insurance premium in this covid-19 crisis.
How to save on insurance premium in this covid-19 crisis.

How to save on insurance premium in this covid-19 crisis.

03/06/2021
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We are more than a year into the COVID-19 pandemic, and, the result is that our lives are changing drastically. Most of us have been hardly using our vehicles as commute to work remains cancelled due to the lockdown and also trips and journeys to see family and friends remain suspended. The situation is expected to continue for a few more months as work-from-home orders continue to be in place at least until 70% of the population is vaccinated.

In fact, many studies conclude that until remote work adoption and shift to online shopping remain in action, the traffic volumes probably will not be going to increase. With people hardly taking their vehicles on road, it does not make sense in buying a comprehensive motor insurance policy.

Save on Premium with Third-party + Fire + Theft Insurance

A combination of Third-party Cover and Own-damage Cover – a comprehensive motor insurance policy protects you against damages to your own vehicle and third party in case of an accident. Buying a comprehensive motor insurance policy only makes sense when you are taking your vehicle on road every day and driving for a considerable number of kilometres.

During the lockdown period, when you are hardly driving your vehicle and only using it for emergency purposes, it is better to get Third party + Fire + Theft insurance in place of a comprehensive policy and save considerably on the premium. In the last one month – with lockdown rules again coming into force – there has been 2x increase in the sales of Third party + Fire + Theft insurance plans. Currently, these plans are available with a prominent insurer like Future Generali, United India Insurance and Digit. For a 1200CC sedan, the plan costs approximately Rs 4,500 – Rs 5,500.

As weather in north india tend to rise upto 42 degrees most vehicles that catch fire usually get completely damaged and cannot be used again. The insurer places such vehicles under the total damage category in which the vehicle owner gets the complete IDV of the vehicle. Fire and Theft are the two most common incidences that cause maximum damages to the vehicle and it is always important to provide adequate coverage to your vehicle against both of them. Third-party cover is also important, as it is mandatory by the government for driving the vehicle on road.

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