Buying a new car is an exhilarating experience. With countless brochures to skim through, and a handful test-drives later, it can be a bewildering experience to choose the right car for you, but all in all, it is an exciting journey. The immediate next step after buying a new car is to get an insurance cover for it. Most dealers recommend one type of insurance policy for all buyers, but that shouldn’t be the case. Every buyer has different needs and thus buying insurance must be dealt skilfully. This article complies some essential tips that can help you select the right car insurance policy ticking all your requirements one by one. Let’s have a look –
- Knowing the different types of car insurance plans available
The first step in buying a car insurance policy is to know the various car insurance plans that can be bought. Since the Motor Vehicles Act makes it mandatory to buy an insurance plan, there is no denying you need to get one to comply with the law. There are two types of policies that can be bought – third-party and comprehensive plans.
A third party car insurance policy is the bare minimum stipulated by the regulator, Insurance Regulatory and Development Authority of India (IRDAI). This policy ensures protection against legal liabilities that become payable to third parties in the event of an accident or damage. On the other hand, comprehensive policies cover not only such third-party liabilities, but also the damages to your car. It also includes protection from natural as well as man-made disasters and includes a personal accident cover too. Further, comprehensive plans can also be customised with optional coverage known as add-ons. These are policy features that can be opted for over and above your comprehensive policy.
- Know your coverage requirements
The next step is to know how much coverage you need. Based on the selection of the type of policy and other optional features, car insurance prices are determined. How crucial is the vehicle in your life, how precious it is, how much can you shell-out in case of repairs, and many such questions can help you determine how much insurance coverage you need.
- Compare and shop
Once you have a clear picture of how much coverage you require, you must start comparing the available options. Based on your policy features and budget, you can shortlist the different plans that fit within your need. Ignoring this critical step of comparison can cost you hefty since a myriad plans are available within a similar price range offering more or less similar features.
- Read the terms and conditions
Once you have shortlisted and finalised your car insurance policy, thoroughly examine the terms and conditions of it. In case of any queries, you may ask the insurance company and get them resolved or clarified. A thorough understanding of policy specifics will help to select the right insurance plan based on your requirements.
- Make regular assessment and avoid any lapse
Lastly, once you have purchased an apt insurance policy, make sure to periodically assess the coverage offered by it and your requirements. This can help you take necessary corrective action if you need to switch, upgrade or even downgrade the insurance cover. Also, keep and eye on the renewal date as a lapsed policy loses its renewal benefits subject to term of the policy.
These are some effective tips to select the right insurance policy for you brand new car. So, make the right choice and always keep your car insured, both for legal reasons as well as mental peace. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.
