Buying a new car is an exhilarating experience. Countless hours of research, discussions, and many test drives later, you finally arrive at a choice. Be it long, and it is an experience to enjoy in itself, especially if it is your first car. But it doesn’t end once you have made up your mind about the vehicle you want to buy. You also need to take into account the registration and insurance process. Among the two, registration is managed by the dealer, but insurance is something that, if left to the dealer, may not be the best. Hence, you must carefully select an insurance policy.
It is equally essential to selecting a car since it ensures coverage for your vehicle. In addition, this insurance requirement cannot be overlooked since it is mandatory as per the law. The Motor Vehicles Act of 1988 makes it compulsory to have insurance coverage besides registration and PUC for all vehicles registered in the country. This article elaborates on a few crucial tips that new buyers must consider to simplify the insurance selection process.
Third-party coverage is mandatory.
The foremost thing to remember is that third-party coverage is the bare minimum insurance coverage. Driving without one is a punishable offense attracting hefty fines. Internet technology enables you to purchase third-party car insurance online, making it convenient to buy it from your home. This policy offers coverage for any legal liabilities that may arise due to an accident for bodily injuries or property damage of a third person.
Opt for a comprehensive cover
Although third-party coverage is the minimum requirement, it has certain limitations about coverage where any damages to your cargo are uninsured. With a comprehensive insurance policy, these own damages to your vehicle are covered under the policy in addition to third-party liabilities. Also, any damages due to perils of nature and artificial events are included in a comprehensive policy’s scope. Since the policy coverage increases when you purchase a comprehensive plan, the premium is steeper but offers a more significant benefit. * Standard T&C Apply
Keep an eye on the insured declared value.
Insured declared value or IDV is the maximum amount you need to pay if your vehicle is damaged beyond repair or stolen. However, please do not confuse it with the resale value of your car. When you purchase comprehensive car insurance online, you can increase the IDV based on your coverage requirement, but doing so will increase the premium too. So, keep in mind the impact of the IDV and set one for your policy. * Standard T&C Apply
As insurance policies have certain limitations, add-on covers in comprehensive plans help cover these limits. Apply They are optional coverage that you can opt for over and above the standard policy scope. There are various add-ons to choose from, but not all add-ons are helpful for you. Thus, it is essential to select only those that safeguard against specific perils that you estimate. Since they are optional covers that can be bought, they impact your premium. * Standard T&C Apply. With a car insurance calculator, you can assess its impact on your premium and compare it before you purchase.
Buying car insurance is simple, even for first-time buyers with these handy tips. Also, remember that insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.