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Tips for buying car insurance for a first-time buyer?

Tips for buying car insurance

Are you thinking about buying your first car? Okay, so the last thing on your mind may be auto insurance. It is necessary, though. The Indian Motors Act makes it mandatory for all car buyers to insure their vehicles.

As of now, why are so crucial for you to buy auto insurance. Well, if your car is covered, in case of accidental damage to your vehicle, auto insurance will come to your aid.

Of course, you have to pay an annual premium to the company to get insurance coverage, but it helps to reduce the costs that you will have to face if you have an uninsured car.

In short, when your vehicle is involved in an accident, you pay the company for your financial support, thus reducing your financial burden. 

Types of Vehicle Insurance

  • Third-party liability policy
  • Comprehensive coverage policy

Tips for first-time insurance buyers

Do some research- As a first-time insurance buyer; you should know all the details of insurance policies on the market. Find the right source online to view and compare plans based on many factors like low premium rates, coverage, additional benefits, claim settlement, etc. Use the online car insurance calculator to complete your policy need.

Get to know the claim settlement- Claim data provide us with relevant information and helps when selecting a product or insurance company to make the final decision. If you are declining between two insurance companies offering similar benefits, claims data can help seal the deal.

What you should know about third-party insurance-
·         Third-Party Insurance offers
·         Death or bodily injury to third parties
·         Damage to third party property
·         The accidental death of driver/owner of the vehicle
·         The driver/owner of the car suffered a total permanent disability.
·         Key features of the third-party insurance
·         Exclusions in the third-party insurance

Understand your buy- If you want to avoid future confusion, it is necessary to read the documents thoroughly before signing on the dotted line. Ask an insurance professional to explain the different types of insurance, terms and conditions and benefits.

Comprehensive Cover- If your requirement for ideal auto insurance coverage is not met by third party insurance, choose the highly popular comprehensive insurance coverage that will take care of you and your vehicle. The policy covers damage to your car as a result of accidents, collisions, etc. This comprehensive plan includes vehicle damage, third party legal liability, personal accident coverage and theft — Add-On options like zero depreciation cover, engine protector, accessories cover, medical expenses, etc.

Insurance requires periodic assessment- As your life changes, your insurance changes. Experts suggest that you need an annual evaluation to review your insurance to assess whether more or less coverage is required for your insurance policy to work. For example, married, divorced, starting a family, self-employed, or starting a new job, taking care of your aging dependents, planning to retire.

Credit Score and Car Insurance-
  • Your payment history, late payments and delays
  • Length of your credit history
  • Types and numbers of credit such as loans and credit cards 
Personal accident cover- With 1214 road accidents occurring every day in India, you can never be safe to protect yourself and your family from severe financial contingencies.

Know about mandatory Deductibles- A mandatory limit is a minimum amount you as a policyholder will pay for each claim. The amount of compulsory deduction for a four-wheeler is Rs. 500 for a two-wheeler from Rs. 50 as per the Insurance Regulatory and Development Authority of India (IRDAI).