If you or your business relies on one or more tractors for the smooth functioning of business operations, you should get it secured under a good commercial vehicle insurance policy.
While the Motor Vehicles Act mandates commercial vehicles like tractors to get insured before operating on Indian roads, it should not be the only reason to get tractor insurance.
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No matter how skilled drivers you have, one cannot rule out any possibility of the tractor meeting an unfortunate event like collision, accident, theft, damage due to natural disasters, etc. During these cases, your business will not only face hefty financial damage if insurance is not there but will also face a business downtime as the tractor won’t be able to carry out the usual operations. And you won’t be able to take out newly purchased tractors without getting them insured.
Hence, it is best to get your tractors covered under commercial vehicle insurance to keep yourself and your business secure from financial damages arising from such situations. If you’re new to tractor insurance and are unsure how to pick the best policy, the tips shared below will help you do the needful.
1. Choose the Right Insurance Type for Your Tractor
There are two types of tractor insurance you can choose from. One is third-party tractor insurance, and the second is comprehensive tractor insurance. The former insurance covers the policyholder against financial losses arising from damages caused to any third-party properties and individuals. But it doesn’t cover damages caused to own vehicle and the tractor driver.
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If you’re looking for insurance that would cover both own damages and third-party damages, then you should go ahead with comprehensive tractor insurance. It will offer full coverage to the policyholder, with the scope to upgrade coverage by adding add-ons to the standard policy.
2. Look & Compare Available Policy Options
Once you have decided between third-party and comprehensive insurance, it’s time to look for insurers that offer the same insurance type. Search for at least three insurance companies offering your chosen tractor insurance type, and compare the shortlisted ones against their offerings and premium.
By following this tip, you should be able to pick a tractor policy from the best insurer that offers excellent coverage at a reasonable premium. You can either visit individual insurance company websites or look for insurance comparison websites that share exhaustive resources enough for your research.
3. Check the Tractor’s IDV
One of the most crucial factors you cannot afford to miss while looking for tractor insurance is the Insured Declared Value (IDV). To put simply, the vehicle’s IDV is the maximum sum your insurer will pay if your tractor gets stolen or damaged beyond repair. IDV and premium share a directly proportional relation, i.e., the higher the IDV, the higher will be the premium and vice-versa.
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Assuming the tractor has a possibility of even 1% of getting stolen or damaged beyond repair, this 1% event can cause significant financial damage to you. To prevent it from happening, you should go ahead with high IDV tractor insurance.
4. Enquire about Available Add-ons
Riders or add-ons are additional coverage clauses purchased separately to upgrade the policy’s coverage. Not every company offers the same range of add-ons, so you have to ask the insurer what available add-ons they’re offering. But before buying any add-ons, remember that the more add-ons you purchase, the more will be the premium. So only invest in add-ons that you deem necessary. It will ensure your tractor insurance offers optimum coverage at a fairly reasonable premium.
5. Search more about the Insurer’s Reputation
The Indian market has many insurance companies vying for peoples’ attention. In such a peculiar scenario, it is essential that you settle with an insurer known for offering the best customer support. If you really don’t want to end up with an insurance company that keeps its policyholders entangled in lengthy and complex claim filing processes only to deny it most of the time, do your due research before settling with one insurer.
You can take the help of online communities, Facebook groups, forums, etc., that are built around the Indian insurance and financial system. Post your doubts about the insurer you have, and invite unbiased reviews. The gathered inputs will help you decide if the insurer you’ve selected is worth proceeding with or not.
6. Double-check What’s Included & Excluded
You should never finalize any tractor insurance without knowing what exactly it covers and excludes. If you’re taking third-party insurance, only third-party damages will be covered; whereas, for comprehensive insurance, both own damage and third-party damage will be covered. Now that you’re aware of what is generally included in the two types of tractor insurance types, let’s understand what’s not covered.
Whether you take comprehensive or third-party insurance, your claims will be rejected if the tractor driver was found drunk driving, driving without a valid driver’s license, etc. The policies also don’t cover consequential damages to the vehicle and contributory negligence. If you’re buying tractor insurance online, you can easily read the inclusions and exclusions the particular policy offers on the insurer’s website.
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7. Look for Affordable Premiums Without Compromising in Coverage
As you’ll have to pay premiums on a recurring basis, it is essential that you pick a policy whose premiums are affordable. However, in the process of choosing a low premium, don’t compromise with the coverage. If you want to get full coverage at a decent premium amount, you should go ahead with comprehensive tractor insurance. This insurance offers various additional benefits in its standard plan compared to third-party insurance, making it an ideal insurance plan for most tractor owners.
8. See Whether the Claim Settlement Ratio is Satisfactory
When you take tractor insurance, you would expect the insurer to be swift with the claim settlement process. Unfortunately, not all insurance companies do that. A quick and simple online search will show you various complaints from policyholders of different insurers regarding their slow claim settlement or claim rejection processes. If you don’t want to land in a similar situation, always check whether the insurance company you’ve decided to go ahead with has a strong, positive claim settlement ratio or not.
9. Prefer Policies with Less Documentation & Hassle-free Onboarding
No one likes getting entangled in long, tedious, and complex onboarding processes. If this sounds like you, choose an insurer that requires less documentation work and has a straightforward and quick onboarding process. You should consider buying tractor insurance online as online processes are generally hassle-free and take a few minutes to complete the entire process.
10. Opt for Insurer Known for Offering Excellent Customer Support
As a policyholder, it is natural to have doubts, queries during the mid-policy term, or any other issues related to the purchased tractor insurance. In such cases, you would want a prompt and satisfactory response from your insurance company. Unfortunately, not all insurers are known for swift responses, so you have to be careful with the insurance company you plan to purchase the policy from. If you’re clueless, take help from online forums, communities, etc. Ask for their experiences and other inputs that would help you select the best insurer from the rest.
The need to have tractor insurance cannot be overlooked by anyone having its possession. It will save you from potential financial damages at a future date. Now that we have listed all the essential tips you should be aware of while purchasing tractor insurance, making the right decision shouldn’t be a challenge anymore. So go ahead, search, compare, and buy the best tractor insurance available online.