Nothing beats the feeling of buying your first dream car with your hard-earned money. It is a complete inner peace when you take a whiff of that new car smell and drive off with your prize. It literally feels like you are in the lap of luxury. However, we should not forget that buying a car is a big investment that is best protected by quality car insurance. Having car insurance provides that extra confidence in you knowing that you are financially protected.
Maximum people buy insurance after buying the car, but it is a big mistake that car owners make inadvertently. In actuality, it could cost them extra money than they anticipated it. The wise thing to do is to buy auto insurance once you have a complete idea regarding the kind of car you have decided to buy. According to the Motor Vehicles Act. 1998, it is compulsory for all cars to have car insurance. Given below are the significant facts that you should consider to find the ideal car insurance policy for your requirements.
Things to Consider When Buying Car Insurance
Understanding the types of car insurance coverage
When it comes to buying car insurance online, Indian citizens have two coverage options:
- Third-party liability insurance
- Comprehensive insurance
Third-party Liability Insurance
This insurance plan provides protection to the car owner from legal liabilities that may arise due to accidental injury, death, and property damage of the third party. However, the plan does not provide any coverage to the driver or the owner.
When you choose a comprehensive car insurance policy, you get the following benefits:
- Own damage cover: This offers protection to the insured vehicle from damages caused by man-made disasters, natural calamities, and accidents. Even the theft of the insured car is covered under this insurance policy. Simultaneously, any damage to the insured car during transit will be covered by this policy.
- Third-party liability insurance: This coverage is similar to the above-explained third-party liability insurance plan.
- Personal accident cover: This all-inclusive plan protects the owner-driver of the insured car from any injury or death due to an accident. On the other hand, the passengers in the vehicle are not covered by this policy.
Hence, it is proven that a comprehensive car insurance policy provides wide coverage to the insurance holder. Therefore, if you are thinking of buying motor insurance, it would be best to choose this policy.
Identifying Your Insurance Requirements
The amount of car insurance coverage you require is dependent on several factors. It includes the worth of your asset, the amount that is due to the car financer, the presence of dependents in your life, and the amount of capital that you can afford to spend at the unsettling period of an accident. It should be noted that all car owners should have a car insurance policy that includes third-party liability cover. It is advised to buy comprehensive car insurance when you have financed the car or when you cannot replace it easily.
It would be sensible to decide on your budget and then choose the right add-on insurance coverage. For instance, if you stay in an area that is prone to flooding, you should purchase an engine-protect add-on policy to provide protection to your vehicle’s engine. On the other hand, if you have a tight budget then you can ignore this option and park your car at an elevated surface.
It doesn’t matter what kind of car insurance you are thinking of buying, make sure that you are comparing the policies of different insurance companies before coming to any conclusion. You can do this research work at many insurance comparison websites to avoid working hard by checking every insurance company and their policies individually. After you come to know the estimated costs for different car insurance products, weigh out the expense with the coverage covered and then choose the most affordable option. Make sure to check the reputation of the insurance company and its customer service. Also, check whether the company has a healthy incurred claims ratio along with a great claim payment track record.
Know The Coverage of The Policy You Buy
The insurance policy documentation is indeed filled with legal jargon that may confuse you in the beginning as you are a first-time buyer. However, it is essential to read the policy documents and get all your queries clarified before making any decision. Remember to focus on the exclusions and know the conditions given because they will benefit you during the time of making a claim.
Evaluate Your Insurance Requirements Regularly
While you are progressing through life, there are high chances that your insurance requirements may start to vary. Therefore, it is necessary to assess one’s insurance requirements periodically and update the coverage that a person already has. When your family becomes big, you may need to buy a bigger car that fits your children and spouse, and hence, you should change your car insurance simultaneously. Nonetheless, increase or decrease income may also impact your decision to change your insurance requirements. Overall, it is wise to assess your insurance needs regularly so that you stay benefitted in the end.
Never let your insurance lapse
Everyone knows that driving a vehicle without an insurance policy is considered illegal. So, it is essential to make sure that there is no break in the insurance coverage that you have bought. Sometimes insurance companies may deny your request to insure your car after a break in insurance. Hence, renew your car insurance right on time to stay safe on the roads.
Now it is quite clear that several factors need to be considered when choosing a car insurance policy. Also, it is understandable that several factors affect car insurance rates. Whether it is your age, the area of registration, your job, the make and model of the vehicle, your insurance policy price may not be the same as that of your friends. Make sure to remember this and other facts discussed above when buying your car insurance.