Some good memories leave a long-lasting impression on our lives, owning the first car with hard-earned money is one of them. Along with looking into the features of the vehicle, it is important to invest in good car insurance. First-time car buyers have many doubts in their minds about car insurance.
Before we get started, let us look at a not-so-fun fact! A total of 4,67,044 road accidents were reported in 2018. This is a huge number and India, as a member of the Brasilia Declaration, aims to halve this number by 2022.
In this blog, we have a detailed look at some of the important things that should be kept in mind when buying the first car insurance. Though it is intended towards first-time buyers, the guide can also be useful for repeat car-buyers since they might not have complete clarity of the changes in vehicle insurance norms and other relevant information.
Here are some of the tips that will assist first-time car buyers in purchasing the ideal car insurance:
Opt for a car insurance policy that suits your needs
There are two main categories of car insurance in India – Package car insurance and Third-party car insurance. Both the car insurance policies have a huge difference in their offerings.
Third-party liability cover only provides coverage (legal and financial costs) for damages made by your car to another vehicle. An important point to be noted here is that the policy does not cover damages in your car.
Financial assistance is provided for the damages on a third-party (i.e. people who are not your family members or property that you do not own). Damage incurred on your vehicle, driving under the influence of a substance, and driving without a valid license (or a learner’s license without someone seated on the passenger seat with a valid license) are some of the third-party policy exclusions that you should be aware of!
On the other hand, a Package car insurance policy offers financial protection for damages that occur on your own vehicle. By default, the features offered by third-party cover are included in the package cover. It also provides personal accident insurance and financial assistance in case of an unfortunate event like fire, car theft, etc.
Since package car insurance has more benefits, its premium is normally higher than a third-party car insurance cover.
Top-up with the required add-ons
Irrespective of the type of car insurance policy being purchased, you always have the flexibility to top-up with add-ons. Some of the add-ons available with companies offering car insurance policies are tyre protection cover, return to invoice cover, zero depreciation cover, breakdown assistance, and more.
Royal Sundaram General Insurance offers Car Shield which is a package car insurance policy that offers additional coverage at a minimum premium. The policy offers 12 unique add-ons that enhance the protection provided under the existing car insurance policy. It also offers bike insurance, essential vehicle protection for bike fanatics!
Deep-dive into Claim Process of different insurance companies
Claim settlement ratio is one of the important factors that should be considered when purchasing the first car insurance. Look for feedback from existing customers and shortlist an insurance provider that has a hassle-free and fast claim-settlement process.
Look for NCB of different insurance companies
For starters, No Claim Bonus (or NCB) is the discount on the premiums given by the insurance company if the vehicle owner does not file any claim in its preceding year.
Almost all the car insurance companies have the provision to transfer No Claim Bonus when you renew the car insurance through them instead of the previous insurer.
Apart from these pointers, you should always opt for car insurance that suits your needs and is aligned to the vehicle that is owned by you. Do leave your feedback in the comments section on how you zeroed in on your first car insurance…