MOTOR INSURANCE: A floater policy works out better for your many cars

financialexpress.com:

Individuals owning multiple vehicles such as private cars as well as two-wheelers can opt for a motor floater policy for convenience, flexibility and lower premium as compared to standalone policies. Such a cover solves the problem of keeping track of the renewal dates of all separate policies and paying multiple premiums.

Like a standalone motor insurance policy, a floater policy covers third party liability, own accidental damage and personal accident cover of the owner-driver.

Insurers offer an option to insure up to five vehicles and policyholders can remove any vehicle which is sold or add a new vehicle purchased. If one of the vehicles covered in the policy is transferred, then the insurer will remove it from the cover and refund the applicable premium.

The vehicle with the highest insured declared value will be considered the primary vehicle by the insurer. This amount will be considered as the sum insured of the motor floater policy and the other vehicles covered will be treated as secondary vehicles under the cover.

The premium for the cover is calculated based on the distance covered and the usage of the vehicles and the driving style and history of the driver. A policyholder can even turn on/off the coverage as per the usage of the vehicles, which will help reduce the overall premium.

Rakesh Goyal, director, Probus Insurance Broker, says a floater motor insurance helps an individual with multiple vehicles by providing coverage that extends across all his vehicles under a single policy. This simplifies management and offers cost-efficiency. “Pricing in a floater motor insurance policy is typically determined by considering factors like the total number of vehicles, their types, and usage. It can be more