Buying a new car is always an event in a family or an individual. The joy of purchasing a car should be accentuated with a matching car insurance policy. Apart from the customary "Nimbu-Mirchi-Totka" to safeguard from an evil eye that is a ritual with any new purchase in India. It lifts the spirit, but on the ground, as you drive your favourite car on the road, you are mandated to protect yourself from the vagaries of unforeseen events. The Motor Vehicles Act, 1988 has made Third-Party Insurance compulsory for all motor vehicles on the road in India.
The need for car insurance:
The practice in India is that your car dealer includes the insurance policy in the purchase package of your new car. Though he acts as the facilitator, it is in your interest to be aware of the nuances that go into car insurance to protect you from financial losses in case of an accident. The car insurance not only covers for third-party losses but also for own damage.
Directly dealing with the insurer secures you a lower premium on several features including savings on overheads that is passed on to you. Flickr
Types of car insurance:
There are broadly two types of car insurance:
Add-on covers:
These are necessary to enhance coverage of your car insurance. Some of the add-ons are enumerated below.
Computation of IDV is important. Lower IDV will reduce the premium, but will also impact by lesser compensation. Flickr
Inclusions in car insurance:
Exclusions in car insurance cover:
Car Insurance Premium Calculator:
When opting for a preferred comprehensive insurance policy, the fundamental components that determine your premium by the car insurance premium calculator are:
New car buyers will compulsorily have to subscribe to third party liability cover for 3 or 5 years.
Long-term Car Insurance Policy:
IRDAI has prodded insurers to issue long duration policies for vehicles from 1st September 2018, consequent to the directive of the Supreme Court. Thus new car buyers will compulsorily have to subscribe to third party liability cover for 3 or 5 years. While these increase the cost of policy due to the upfront payment, in the long run, it works out to be economical. However, on the flip side, you lose out on annual discounts based on NCB.
Claim settlement ratio:
While buying a car insurance policy, you need to factor in the claim settlement ratio of the general insurance companies. Of the major insurers, Bajaj Allianz Car Insurance Renewal makes sense as they have consistently been in the top bracket with good claim settlement ratio.
Ways to reduce car insurance premium:
Even while you chose your policy meeting your needs, some factors may still impact the amount of premium. The various ways to lessen the premium are:
Buying online insurance in UAE entitle the insurance buyer to avail exclusive offers and discounts. Pixabay
Online purchase of Car Insurance:
Among the many options, the best option is to buy or renew your premium online. Let us see how it benefits:
Bottom Line:
Now that you are aware of all the nitty-gritty of car insurance, you are in a position to arrive at an informed decision. Various aids like car insurance premium calculator and 24/7 assistance for Bajaj Allianz Car Insurance renewal, helps you to choose the right car insurance policy.