Is single insurance for multiple cars an excellent investment 02nd January 2023
Many people are passionate about cars and love to add them to their collections with multiple vehicles of different classes and brands. Are you someone who owns multiple cars? If yes, your primary concern would be maintaining the insurance documentation of individual vehicles
What's the solution? If you own more than one car, you can have a single insurance policy covering all your vehicles. Yes, you read it right. The IRDAI offers a provision of paying a single premium for your multiple cars under a multi-vehicle policy or motor floater policy.
Let's understand in depth about this motor floater policy.
Merits of a multi-vehicle policy:
● It can cover up to 05 personal cars registered under a single owner.
● Helps in reducing the hassle of paying and managing multiple premiums and remembering the renewal dates of different policies for different cars.
● Customisation flexibility is offered to the insured to add or remove the cars covered in the policy.
● When you insure more than one car with the same insurance policy, you can be sure that you will save money and get better deals. The likelihood of long-term benefits is assured.
● A hassle-free process will result in less paperwork, and both the insurance provider and car owners may find the process convenient. The management and renewal of the insurance will be simpler for car owners since there will eventually be a single due date for all cars.
● The premium will be calculated and charged based on the usage of the cars, which is a crucial advantage for the insured.
Limitations you must be aware of.
There are a few restrictions you should be aware of before choosing to purchase multi-car insurance.
● Policy premium burden:
With a single renewal date, payments would typically be in substantial sums. Compared to allocating funds for various programs in an equitable manner, this significant money may put a strain on your finances.
● High-risk driving:
If the owner-driver is considered under the high-risk category, the policy's total cost may go up. Thus, it is important to have disciplined driving behaviour and a good record to avoid paying hefty premiums.
● Failure to renew on time:
Failing to renew your car insurance before expiry could cause all the cars covered by the policy to expire. This will happen because there will be a single renewal date for all the cars. If you forget to renew the policy on time, all the cars could become uninsured. Furthermore, you risk losing the NCB on all the cars if you go past the 90-day grace period following the renewal date.
Even though there are a few significant restrictions, insurance companies are working on solutions that could eliminate them, such as simple payment choices and extended grace periods so that you can have best car insurance in India.
*Imp:
The multi-car or motor floater policy is in its initial stage of formulation in India. It has some clauses and is applicable for selective services. Make sure to check further details with your insurance company for a better understanding and get the best out of your car insurance plan.
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Disclaimer: The information provided above is for illustrative purposes only. To get more details, please refer to policy wordings and prospectus before purchasing a policy.