Do Women Car-Owners Need Motor Insurance Add-Ons

Do women car-owners need motor insurance add-ons ?

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April 24, 2023

Women drivers are a growing demographic — according to Statista, 6.8% driving licences were issued to women in 2019 (latest data), of the total 206 million that year in India. Several reports also show that women are generally safer on the road than men (they tend to be more cautious and less likely to engage in risky driving behaviours). But despite being less likely to be involved in accidents, women drivers can still benefit from additional protection on the road.

While third-party insurance is mandatory for all car owners, it is always recommended that one opts for comprehensive motor insurance that covers damage to the owner’s car and third-party liabilities. But there are still certain damage expenses that comprehensive motor insurance might not cover. This is where policy add-ons come to your rescue, offering enhanced coverage. Particularly for women drivers, there are a few motor insurance add-ons that should be considered.

For women who are primary earners

The ‘daily allowance cover’ is an add-on that pays for your commute to work in case your car has broken down and is getting repaired. This add-on comes in handy for women who are single mothers or sole breadwinners of the family. It typically provides a sum of up to Rs 500 to cover daily transportation costs, usually for a two-week period. The coverage, however, may differ in terms of the amount and duration depending on the insurer. This option is particularly beneficial for those who rely on one vehicle. It’s important to note that this add-on is valid only if your car is getting repaired at a garage that’s in your insurance company’s network.

Protection when travelling alone

Roadside assistance is an essential add-on for all drivers, especially for women. A car can break down at anytime, anywhere, and if it happens in the middle of nowhere, women drivers can face a great deal of inconvenience. Roadside assistance coverage can provide support in the event of a breakdown, flat tyre, or other mechanical issues, ensuring that women are not left stranded in an unfamiliar area, and unable to seek help. Women should speak to their insurance provider to discuss which level of coverage may be appropriate for their individual needs and circumstances.

Good driving behaviour gets rewarded

Pay How You Drive (PHYD) plans are based on telematics devices installed in the car to track the driving behaviour of the driver. PHYD is especially beneficial for women drivers as they generally demonstrate safer driving behaviours than men, resulting in lower insurance premiums.

Under the PHYD model, the driving habits are tracked, and drivers are rewarded with a discount on their premium for good driving behaviour. Women who follow rules and drive carefully will end up paying a lower premium than someone who violates rules or crosses the speed limit. This add-on helps in maintaining road safety by rewarding drivers who practice safe driving habits.

Protection for valuable belongings

The ‘personal belonging cover’ is a useful add-on for women who commute to work on a car on a daily basis and carry valuables with them. While comprehensive motor insurance policies may cover the cost of any damage to the car, these don’t cover the cost of personal belongings that are damaged or stolen. This cover provides coverage for loss or damage to personal belongings that are kept inside the car, up to a certain limit.

It’s important to note that this add-on comes with a few exclusions of its own. Some of these are:

—Any incident that has occurred due to the policyholder’s negligence;

—Claims arising out of a borrowed property;

—Personal belongings that were left in the car overnight;

—Loss of items due to a car accident.

Pay only for the distance you travel

While Pay As You Drive (PAYD) is technically not an add-on, it’s a highly recommended comprehensive plan for women drivers. It allows the policyholder to pay the premium as per driving frequency. One can purchase from pre-decided distance slabs like 2,500 km or 5,500 km, as per need, and pay the premium according to that. Alternatively, one can choose the model where they can switch off their policy when their car is not being used, ultimately reducing the premium.

This option works best for women who work remotely or in a hybrid model or those who don’t drive often and prefer public transportation or cabs instead.

It is always advised to compare multiple options online before making a decision. Also, don’t forget to read the policy fine-print thoroughly before you buy any plan.

financialexpress.com

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