Car Insurance Tips Every First-Time Buyer Should Know : The buying of a car is certainly a joyful experience for a first-time buyer; however, one very important step that has eluded the majority of first-time buyers is automobile insurance. Car insurance is mandatory in India for the third party only; however, most first-time buyers find it difficult to understand the difference in types and choose the right one for their needs. Let’s attempt to untangle that.
The two broad types of car insurance are third-party and comprehensive. Third-party insurance covers damages and injuries to another person or his vehicle, which is basically the least coverage under law. It does not cover damages sustained to the insured’s own vehicle.
Comprehensive insurance provides cover against loss arising from third-party damage and damage caused to the insured’s own car through accident, theft, fire, or forces of nature. Though comprehensive plans are somewhat more expensive, they truly represent full coverage and are strongly recommended for new car owners.
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Another consideration to check would be the Insured Declared Value (IDV) of the car in question. This amount represents the maximum that any insurer would be liable to pay in the event of theft or total loss of your vehicle. Choose IDV wisely-not too low since it could mean lower payout, and not too high since it would unnecessarily increase your premium.
Other optional add-on covers that are useful. Zero depreciation cover being one, it pays the full amount of your claim, without deduction for parts wear and tear. Roadside assistance – useful in those situations when your car breaks down all of a sudden- and engine protection – invaluable if you live in a flood-prone area- are other worthwhile add-ons.
Make a comparison of policies before buying online. Look into coverage, claims procedures, premium rates as well as customer reviews. Another thing to keep in mind is to select an insurer with a lot of cashless garages, as it would make the process of repair hassle-free. Don’t forget No-Claim Bonus (NCB). If you do not make a claim during the policy period, you will earn a bonus toward a rebate when renewing your policy. In the years, this can lower your premium by nearly 50%.
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To sum it all, buying insurance for your new car is equal to buying the car itself. It’s all about protecting your investment and peace of mind when driving. Know it well, take your time, and make a wise decision that suits your driving needs and budget.
