Car insurance is also known as motor or auto insurance. Such insurance offers protection to your vehicle from any kind of unforeseen risks and fateful circumstances. Basically, insurance will cover the losses that one incurs against theft, accidental damage, etc. New car insurance is necessary so that you can drive peacefully. Besides, it is also mandatory in India to get car insurance for new car as per the Indian Motor Vehicle Act.
- Third-party insurance: This type of insurance offers coverage to the car which you have dashed into. The third-party will receive the reimbursement. Thus, you won't have to pay for the damage.
- Comprehensive insurance: This one will offer coverage for your own car as well as the damages incurred by the third party. It is apt for losses like natural disasters and theft.
Some additional covers offered by different auto insurance companies
- Personal accident cover: This policy provides coverage against disability or death because of an accident. The nominee (in case of death) or owner (in case of disability) will receive the reimbursement amount.
- Zero depreciation cover: This one is suitable for covering expenses like the replacement of glass, plastic, rubber, and other such materials. Regular car insurance will not cover all such expenses generally.
- Invoice cover: This policy is meant for recovering the on-road price or at least the insured declared value of your car. Such covers are beneficial in case of a severe accident or theft of the car.
- Engine protection: Protect your car engine with this policy, especially when the monsoon gets destructive and floods the precious engine of your vehicle.
There are multiple brand new car insurance policies offered by different insurance companies. You need to be very specific about your exact requirement and budget and choose a policy that meets your criteria. It is quite easy to get confused because multiple companies offer a wide range of features and benefits.
However, now buying car insurance has become quite easy because of digitisation. Buying car insurance online is much easier and cost-effective as well. There will be no paperwork. You are required to compare the coverage and features offered by different insurance companies and choose the most appropriate one. While buying car insurance for a new car online, you will have to share the following details:
- Make and model
- Age of your car
- City where your car is registered
- Registration number
Tips and tricks to get the best car insurance
Are you planning to buy new car insurance, and then you should definitely go through these tips and guidelines to get a new car insurance policy at the best possible rate.
- Do proper research work: If you are a first-time insurance buyer, then you need to know about different parameters such as coverage, low premium cost, claim settlement ratio, and so on. Take the help of an online car insurance calculator so as to lay your hands on the best car insurance policy.
- Understand the claim ratios:
- Claim settlement ratio: This can be calculated by using the following formula = Number of reported claims/number of claims settled+ remaining claims at the beginning of the given year - remaining claims at the end of the given year.
- Claim repudiation ratio: Total claims/rejected claims
- Claim pending ratio: Outstanding claims/total claims
- A thorough understanding of your policy: Make sure you are capable of comprehending your policy document properly. It is a legal contract, and you must read it thoroughly before signing the document. Keep an eye on the following factors:
- Who is being covered?
- The time period of coverage
- Coverage: Exclusions, inclusions, and limitations
- Expense required for filing a claim or reporting a loss
- Periodical evaluation: Make sure you evaluate your car insurance at the end of each year to get an assessment of whether you require more or less coverage.
- Car insurance and credit score: Your new car insurance quote will depend on your credit score. The insuring company will go through your payment history, delinquencies, length of credit history, types, and number of credits.
- Bundled car insurance: This type of insurance is meant for more than one car. When you have multiple cars, you can buy this policy to enjoy great discounts on premium.
- No claim bonus: You will be entitled to this bonus if you have not made any claims for a year. The policyholder gets about 5 to 10% of the IDV as a bonus when he renews the policy. You will be amazed to know that the bonus can go as high as 50%, depending on your insurance plan.
- Knowing about the car's Insured Declared Value: The insured declared value or IDV is the amount that a policyholder can claim. This amount is reimbursed in case the car is completely destroyed in a severe accident or is stolen. IDV depends on the current market value of the car. All you need to do is to subtract the depreciation value of the vehicle from its selling price. The registration charges, as well as the new car insurance cost, will not be included as well.
- Cashless option: You should go for an insurance company that offers cashless options. In times of emergencies, a cashless option always saves you from unnecessary running around for cash.
- Network garages: Go for the insurance company, which can offer you network garages in close proximity to your place.
Q1. What are the different documents necessary for registering your claim?
- Proof of valid insurance document
- Copy of registration certificate
- Copy of tax receipt of your bike
- Repair bills and receipts of payments in case of reimbursement
- Copy of motor driving license
- Copy of FIR in case of death/third party damage/bodily injury/theft
Q2. How should I compare different car insurance plans?
Ans: Keep a check on these below-given factors, and you will get to buy the best car insurance policy for your new car:
- Past record of the insurance company
- Cashless garage network
- Premium and coverage
Q3. What do you mean by endorsement in car insurance?
Ans: It indicates a written document that clearly addresses the agreed alterations that have been made to the policy as per the request of the insured person.
Q4. Can I pay my car insurance premiums in installments?
Ans: Unfortunately, payment of insurance premiums in installments is not allowed according to Section 64V.