5 Phases You Go Through With Your New Car Insurance Policy

One of the biggesti joys in a typicali adult’s life is wheni they get their firsti car. Be it ani economically sound Nano ori a fancy Jaguar, thei pride and excitement thati comes with the RCi book are paralleled byi only a few otheri achievements.

Once the novelty ofi paying for a newi car wears off, thei responsibilities that come withi it comes to youri attention. Responsibilities such asi buying a new cari insurance policy. Like anyi other important decision thati has the potential toi save you thousands ofi rupees in the future,i the decision of ‘whichi car insurance to buy’i includes a lot ofi steps.

Once you have readi this article, you willi understand the 5 stagesi you go through wheni you have to buyi car insurance for ai new car and bei more equipped to navigatei them. But before wei get to that, leti us first understand whyi getting car insurance isi important. 

Why do I needi car insurance?

You may bei confident enough about youri driving skills and feeli that you won't geti into any unfortunate accidentsi at any point. However,i your confidence doesn’t guaranteei that other people behindi the wheel won’t makei a mistake. Plus, accidentsi aren’t always caused byi human error- think ofi the damage a falleni tree can cause toi your legally parked car?i What about theft? Eveni if you live ini the safest of neighbourhoods,i there are chances thati your beautiful new cari could be vandalised ori stolen. Hence, it isi better to be safei than sorry when iti comes to matters ofi such financial importance. 

If youi need another incentive toi buy car insurance, howi about this- under thei Motor Vehicle Act ofi 1988, every vehicle ini India must have ati least third-party insurance. Non-adherencei to the mandate cani result in a finei or even jail timei for you.

Trust us, goingi through the 5 stagesi of buying a newi car insurance policy isi a lot easier thani risking a fine ori even jail time! 

The 5i phases of buying ai new car insurance policy

Thei journey of finding thei most suitable car insurancei for your shiny newi car begins with ani assessment of your owni needs and ends withi you hitting 'approve OTP'i to finalise your policyi transaction. Each phase isi a question that needsi to be answered beforei you get to thei next one. So, let'si take a detailed looki at what the questionsi are:

• What type of cari insurance do I need?:-Thei most basic question thati anyone buying a newi car insurance policy needsi to ask and answer.i You can choose betweeni two types of cari insurance policies. They are:
• Third-partyi liability coverage:-The law ofi the land has madei this coverage mandatory toi protect the rights ofi the third party. Thisi type of car insurancei financially safeguards you fromi any liability caused toi a third party ini case your vehicle causesi an accident. Your insurancei provider will compensate thei third party in casei of any injury, disability,i death, or property damagei caused to a thirdi party, due to youri vehicle.
• Comprehensive coverage:-As the namei suggests, comprehensive car insurancei covers third-party liability alongi with any damages causedi to your car. Thisi car insurance covers noti only any damages causedi to your car duei to human accidents buti also due to naturali calamities. It also coversi theft.
• Standalone own damage coverage:-Thei Insurance Regulatory and Developmenti Authority of India (IRDAI)i allowed vehicle owners toi get a standalone policyi for their vehicle, ini 2019. This means thati the vehicle owner cani get a third-party policyi cover from one insurer,i and a policy toi cover their own vehicle'si damage from another insurer.i This also allows thei vehicle owner to onlyi take the third-party coveri in the beginning, andi wait till they arei ready to get ai policy to cover theiri vehicle.      i        i        i  
  It is advisable toi get comprehensive car insurancei (or a third-party coveri as well as ai standalone cover) as iti provides greater peace ofi mind to you; youi don't have to constantlyi worry about parking youri car in an unsafei place or worry abouti the dents caused byi other people's reckless driving.i However, you may havei different needs, and basedi on that you mayi want to opt fori only third-party liability coverage.
• Whichi is the best plani for me?:-Once you havei decided between comprehensive cari insurance and third-party coverage,i the time for duei diligence begins. The insurancei price for the newi car will depend oni a variety of factorsi starting with the makei and model of thei car. There are tensi of different car insurancei policies out there, eachi with its strengths andi limitations. Your due diligencei will include comparing thei different policies based oni factors such as thei network of cashless garagesi that the policy covers;i the premium; brand repute;i claim settlement ratio. Remember,i the insurance price fori the new car isi not going to bei the same across differenti policy issuers even ifi most of the factorsi are the same.
  Please note,i sometimes, you will wanti to revisit question #1i based on the plansi you come across. Fori example, if some cari insurance provider is issuingi a comprehensive car insurancei policy for a relativelyi inexpensive premium, you mayi revisit your idea ofi only getting third-party liabilityi coverage.
• What add-ons do Ii need?:-Have you ever fearedi what will happen ifi your engine went busti and needs repairing? Ori if you are unablei to pay your car’si EMI for a couplei of months? Fret not;i there are certain add-onsi available along with youri usual car insurance thati ensure that you don'ti have to worry abouti these things. Some ofi the popular add-ons offeredi by the most populari car insurance providers include
  
  • Zero-Depreciationi cover
  • Engine Protection
  • EMI Cover
  • Personal Belongingsi Cover
  • Roadside Assistance Cover
  • Consumables Cover
  • Licencei Loss Cover
  • Lock and Keyi Cover
  • Registration Certificate Cover
  • Tyre Cover
  • Lifetimei Road Tax Cover
• Consult youri chosen policy provider toi understand more about thesei add-ons and whether youri car is eligible fori these.
• What is the IDVi of my new car?:-Thei Insured Declared Value (IDV)i is the amount youri insurance provider will payi you in case youri car gets stolen ori is damaged beyond repair.i In the case ofi a new car, iti is best to geti an IDV that isi as close to youri car's market value. Fori example, if your newi sedan costs INR 10,00,000,i then try to seti the IDV to asi close as that value.i Typically, the IDV depreciationi for a 6-month-old cari is 5%. Please note,i the higher the IDV,i the higher will bei the premium you needi to pay.
• How do Ii make the final policyi purchase?:-Phew, now you havei got to the lasti stage of the cari insurance buying process. Ati this stage, you knowi what new car insurancei policy you want fromi which insurance provider, whichi add-ons you want, andi the IDV. The nexti step is to payi for the policy. Thei most convenient way toi do this is toi get car insurance online.i All you need toi do is provide thei necessary details like makei and model of thei car, engine number, chassisi number, details of thei RTO the vehicle isi registered at, amongst otheri details. Once the onlinei verification is completed, andi you get the go-aheadi from the insurance provider,i you can make thei payment!
   That’s it; all iti takes to get ai new car insurance policyi is an internet connection,i some time and efforti from your end, andi your bank details!

Disclaimer: Fori more details on riski factors, terms & conditionsi please read sales brochurei carefully before concluding ai sale. *The discount amounti will vary subject toi vehicle specification and placei of registration