What Is a Motor Floater Policy and How Does It Work?

This guide provides everything you need to know about motor floater policies, how they work, their benefits, and whether they’re right for you.

What Is a Motor Floater Policy?

A motor floater policy allows individuals or businesses to insure multiple vehicles—be it cars, bikes, or other vehicles—under one comprehensive policy. This type of policy covers both third-party liabilities and own-damage for all the insured vehicles, simplifying policy management and reducing paperwork. It functions much like a family floater health insurance, but instead of covering individuals, it covers your vehicles under a single plan.

This policy is particularly beneficial for individuals who own more than one car or bike or for families with multiple vehicles. Instead of juggling numerous renewals, premiums, and documentation, a motor floater policy streamlines everything into one convenient package.

Why Choose a Motor Floater Policy?

Here are some reasons why upgrading to a motor floater policy makes sense if you own more than one vehicle:

1. Simplified Insurance Management

Keeping track of multiple policies for different vehicles can be overwhelming. With a motor floater policy, you consolidate all the vehicles under a single policy, leading to one renewal date and one premium payment.

2. Cost Efficiency

Combining multiple vehicles under one policy can often reduce the overall premium you pay. Most insurers offer discounts when bundling vehicles into a motor floater plan, making it a cost-effective option. The premium is calculated based on the total Insured Declared Value (IDV) of each vehicle, ensuring fair coverage across all vehicles.

3. Coverage Flexibility

The motor floater policy allows you to include different types of vehicles under the same policy, offering flexibility to adjust the coverage for each vehicle individually. You can opt for comprehensive coverage or third-party only coverage based on the vehicle's value and usage.

4. Reduced Paperwork

With just one policy to maintain, the documentation required is significantly reduced. This makes managing and renewing your insurance more hassle-free.

5. Add-Ons for Enhanced Protection

Just like individual vehicle/car insurance policies, you can enhance a motor floater policy with various add-ons such as:

• Zero Depreciation
• engine protection cover
• roadside assistance
• Passenger cover

How Does a Motor Floater Policy Work?

A motor floater policy calculates the premium based on the IDV of each insured vehicle. The total Sum Insured is the combined IDV of all vehicles under the policy. Here's how it works:

• Single Renewal Date: All vehicles under the policy will have a common renewal date, which simplifies premium payments and policy renewals.

• Comprehensive Coverage: The policy covers own-damage (for accidents, theft, natural disasters, etc.) and third-party liabilities for each vehicle.

• Custom IDV for Each Vehicle: The IDV is calculated individually for each vehicle, ensuring that every vehicle is covered adequately based on its value.

• Claim Process: The total Sum Insured decreases with each claim. In case of a claim for one vehicle, the remaining coverage continues for other vehicles without impacting their individual coverage levels.

• Add or Remove Vehicles Mid-Term: If you buy or sell a vehicle during the policy period, you can adjust the policy to add or remove vehicles, making the motor floater policy highly adaptable.

Motor Floater Policy vs. Individual Vehicle Policies: A Comparison

Who Should Opt for a Motor Floater Policy?

A motor floater policy is ideal for:

• Families with Multiple Vehicles: If your family owns multiple vehicles (both cars and bikes), a motor floater policy simplifies policy management.

• Individuals Owning Multiple Cars or Bikes: For vehicle enthusiasts or those who own multiple vehicles, a motor floater policy helps save time, money, and effort.

• Businesses or Fleets: Small businesses or fleet operators can benefit from bundling their vehicles under one policy, ensuring uniform coverage and streamlined claims.

Steps to Switch to a Motor Floater Policy

Switching to a motor floater policy is simple and can be done online. Follow these steps:

Step 1. Evaluate Your Needs

Assess the number of vehicles you own and their respective coverage requirements. A motor floater policy can be tailored to provide specific coverage levels for each vehicle.

Step 2. Compare Policies

Not all insurers offer motor floater policies. Use platforms like Coverfox to compare premium rates, coverage options, and add-ons provided by different insurers.

Step 3. Provide Required Documents

You’ll need the Registration Certificate (RC) of each vehicle and basic identification proof to switch to a motor floater policy. If you're switching from individual policies, you may also need to provide copies of your current insurance policies.

Step 4. Customize Your Coverage

Choose the right coverage for each vehicle under the floater policy. Add-ons like zero depreciation and engine protection can be added based on the vehicle's age and condition.

Conclusion

The motor floater policy is a flexible, cost-efficient solution for individuals and businesses with multiple vehicles. By consolidating coverage under a single policy, you reduce the hassle of managing multiple renewals and premiums. Whether you own multiple personal vehicles or run a business with a fleet, switching to a motor floater policy can save you both time and money.

FAQs on Motor Floater Insurance