In today’s times owning a motor vehicle has become easy due to easy finance facilities available. They have also become an integral part of one’s lifestyle and today almost everyone owns a motorcycle. Irrespective of whether you own a car or a bike, an insurance policy has become a must to be able to ply the vehicle on Indian roads.
However, if you own multiple vehicles then purchasing a separate insurance cover for all can turn out to be a hassle. However, you can now purchase a single policy for covering all your vehicles. Read on to know all about motor floater policy which provides coverage for multiple vehicles.
Motor floater policy meaning
A motor floater policy refers to a single motor insurance policy which provides coverage for multiple vehicles. A single car owner who owns different types of vehicles such as two wheeler and car can avail coverage under this type of policy. Under this type of insurance, over five vehicles can be covered.
The motor floater policy eliminates the need of purchasing a different policy for covering each vehicle and also keeping a tracking of renewal dates of each policy. Under a motor floater policy, you can also choose between comprehensive and third party insurance cover.
Buying comprehensive cover for covering all vehicles is a good choice as it offers coverage against third parties as well as own damage.
The highest sum insured under a motor floater policy will be the vehicle having the maximum insured declared value. It will be the primary vehicle and other vehicles will be considered to be secondary vehicles.
The motor floater policy provides the below coverage:
Motor floater policy provides coverage for own damage under the below circumstances.
The comprehensive coverage offered under motor floater policy provides coverage against own damage and third party insurance. Similar to comprehensive car policy, comprehensive motor floater policy provides coverage against third party damages and own damages.
No claim bonus refers to the discount offered by the insurance company for making no claim in a policy year. This discount goes up to 50% for five consecutive claim free years. The discount is applicable even if you change the insurance company. This discount can be availed only on comprehensive insurance policy.
The motor floater policy will be canceled under the below scenarios
Hassle free purchase: Purchasing motor floater policy is hassle free as all your vehicles are covered under the same policy for which you have to pay single premium
Usage based premium calculation: With the insurance industry evolving, IRDA has recently announced the launch of usage based policy in which the premium for the motor policy will be charged based on your usage. Pay as you drive and pay as you go are two types of insurance one can choose from. Apart from usage, the driving behavior of the user will also be taken into account. If you drive safely, following all the traffic rules and regulations, the premium charged would be lesser.
Ease of change in policy details: In case if you want to change any details in the policy then under motor floater policy you can do so at a single go instead of updating details in individual policies.
Simplified documentation: Paperwork becomes a cumbersome process in case you want to purchase a policy for different vehicles. However, with a multi floater policy, all you need to do is follow a single documentation process under which the insurance company will provide you coverage with minimal paperwork.
Better pricing: One of the benefits of motor floater policy is that it is offered at a discounted rate.
The transfer of ownership request will be acknowledged by the insurance company upon request made by the new vehicle owner with the consent obtained from the old owner
In case if a single vehicle's ownership is transferred then the coverage for the same will be removed from the floater policy and the premium will be refunded.
In case if the new owner is purchasing all the vehicles covered under the motor floater policy then the entire policy will be transferred in the name of the new owner.
Given below are the disadvantages of purchasing motor floater policy
This type of car insurance provides coverage to third party life and property and does not cover the insured vehicle
This type of car insurance provides coverage to your vehicle as well as third party and property
This type of insurance provides coverage for your car’s damages and losses including events caused due to man made, natural calamities, and theft.
Motor Floater insurance is a type of motor policy that provides coverage for more than a single vehicle owned by a single vehicle owner.
Motor floater policy ensures hassle-free purchases, saves you from the hassles of availing a seperate policy for each vehicle, the premium is calculated based on your usage and the policy can also be customized i.e. you can cover up to 5 vehicles under a single policy.
The premium for a floater policy depends on the vehicle’s make and model, engine, year of registration, etc.
A motor floater policy provides coverage for up to 5 vehicles owned by a single vehicle owner, whereas non floater policy only covers a single vehicle
If you own more than one vehicle then buying a floater policy is a good choice
Multi vehicle policy refers to a policy which provides coverage for more than one vehicle
No, a vehicle owner can own a single PA cover for multiple vehicles
Multi vehicle insurance refers to a policy that covers multiple vehicles registered on the same address.
You can save money on multi car insurance as insurance companies offer you discount for covering more than one car under your policy.
