Buying a new car is an exciting experience, especially for first-time car buyers. There are a lot of factors that first-time buyers need to consider, with car insurance being one of the most important ones.
If you want to keep your brand new car financially protected against accidents, theft, disasters, etc., it is important to secure the vehicle with comprehensive car insurance. However, buying car insurance for the first time can be a complicated and intimidating process. So, we have compiled a list of valuable tips that can help you get a better understanding of the car insurance buying process:
Research Different Car Insurance Plans
There are dozens of reputed car insurance companies in India that offer car insurance plans of varying costs, features, and benefits. When you seek coverage for your car, you must take a look at all available plans and analyse them based on their features and benefits. This will help you find a car policy that gives the best value for money.
Buy Car Insurance Online to Save Time and Money
The cost of buying car insurance online is generally cheaper than buying insurance from an agent as there are no commission fees involved. Moreover, you get your car plan activated within minutes by just uploading your documents and paying the online fees.
Car Insurance Renewal
When looking for the right car insurance provider, ensure that they also offer car insurance renewal options. As per the New Motor Vehicles Act, 2019, you cannot drive your vehicle without a valid and active insurance plan. So, remember to renew your car insurance before it expires.
Understand the Inclusions and Exclusions
Inclusions and exclusions in car insurance refer to those situations that are covered under the plan and those that are not covered, respectively. Understanding what kind of coverage is offered under each plan is the key to finding the appropriate policy for your vehicle.
Consider the Type of Plan
Although third party car insurance policy is generally cheaper than comprehensive insurance, it does not provide any own damage cover for your precious new car. If you want to keep your car protected against a variety of damages, comprehensive car insurance is the ideal choice for you.
Consider Add-on Covers
If you choose to buy a comprehensive car insurance policy, you can also enhance the plan by buying valuable add-on covers such as zero depreciation cover, engine protection cover, consumables cover, etc. Carefully scrutinise your specific needs and then choose the right add-ons to buy.
Enter Your Details Correctly
Once you have finalised which car insurance plan to purchase, you need to make sure that all the details you have filled in the car insurance application are correct. You also need to ensure that all the documents you submit are updated and accurate.
Consider Voluntary Deductibles
If you wish to reduce your car insurance premium costs, you may choose to opt-in for voluntary deductibles. Voluntary deductibles refer to a small percentage of the repair costs that the policyholder will have to pay, while the insurance provider covers the remaining expenses.
Understand the Insured Declared Value (IDV)
The Insured Declared Value or IDV is the maximum amount of money that you can get in a car insurance claim if your vehicle is stolen or completely wrecked. When looking for a car insurance plan, choose a policy that offers an IDV equal to the current market value of your car.
To Conclude
Now that you understand the basics of buying a car insurance policy, you can use these tips to find the perfect plan for your new vehicle. Make sure that the car plan you finally end up choosing offers adequate coverage and provides all the features you need. Another tip for first time insurers, remember to read the car insurance policy document thoroughly before buying to understand all the terms and conditions. Finally, consider buying car insurance online to save valuable time and money.
