Difference Between Buying Insurance Policy For New Car v/s Old Car
Whether it is an old antique car or a modern new car, ensuring its safety and maintenance is the owners’ responsibility. One of the best ways to ensure the safety of your vehicle and to protect it from all types of damages is to get comprehensive insurance for your car.
Car Insurance in India
There are 2 main types of four-wheeler insurance in India: Comprehensive car insurance and third-party car insurance.
While the third-party insurance covers the damages incurred by a third party due to the insured car, comprehensive insurance for a car also covers own damage, personal injuries in addition to third party damage. Own damage refers to the damage the policyholder’s vehicle suffers in the event of an accident.
In India, you must have at least third-party insurance to drive your vehicle legally on the road. Tata AIG helps you choose from a variety of car insurance plans to secure your car so that your car is never on the road without a protective cover. And when the policy is a couple of weeks away from its expiry, you can bank on TATA AIG car renewal for a seamless online process!
If you are in a dilemma when considering the right insurance company, the easiest pick can be TATA AIG. Before purchasing an insurance policy and being carried away with the variety of add-ons we offer at TATA AIG, we suggest you go through your needs and assess which policy would best suit you. Consider factors like the IDV (Insured Declared Value) and other add-ons that might best suit your car.
One of the big considerations while buying an insurance policy for a car is whether the car is old or new.
How to purchase insurance - Old car vs. New car
New cars are more susceptible to robbery, theft, and vandalism, whereas old cars may need more maintenance and servicing. However, there is no hard and fast rule on these requirements, which is why the choice of the insurance cover should be made as per the scenario. Here are some scenarios to help you understand the purchase of the appropriate insurance cover:
● If you have a new car, a comprehensive insurance policy will be an ideal choice to protect it against damages such as accidental damage or total loss. You can buy car insurance online for a new car in a matter of minutes!
● If you have an older car or if you have recently purchased a second-hand car, kindly do not neglect insurance for the car. If you use the car regularly, then it is advisable to get a comprehensive insurance policy.
● If you possess an old car and a new one too, comprehensive insurance for both can be quite expensive. Here, you can take a call and get only a third-party cover for your old car if it is not in use most of the days.
● If your old car insurance policy has accumulated a No Claim Bonus discount, then it is better to renew the policy before the expiry and continue getting the discount on the premium.
● If the old car is a second-hand car, then it is best to have the ownership of the insurance and the rights transferred in time. Alternatively, the new owner can purchase a policy of their choice.
The process of car insurance purchase remains more or less the same for old and new cars, with the exception of the extent of the coverage.
● Choosing an insurance company that suits you
IDV can reduce the four-wheeler insurance premium amount to be paid periodically for old cars as compared to new cars, but this results in a reduced claim amount. For new cars, the IDV value remains the promised maximum, meaning you get the maximum reimbursement from your insurance company. But for old cars, there is a drop at a fixed rate in the IDV. The extent to which a car is used can also be factored in to determine which type of insurance to get. The next step is to compare the policies offered by different agencies.
When choosing a reliable policy, be sure to thoroughly research insurance companies for a car that can provide quality service. We, at TATA AIG, are particular about the quality of customer service so that we can uphold the reputation of being an efficient insurance provider.
● Picking the suitable add-ons
After choosing an insurance provider and an insurance plan that meets your requirement, you can select a few additional covers to enhance your insurance coverage. These add-ons cover specific situations which can otherwise exceed your comprehensive insurance policy cost. With add-ons like Zero depreciation, Roadside Assistance, Engine Secure, etc. from you can pick the ones that best suit your car’s needs.
For example, Zero Depreciation may not apply to old cars that are above 5 years, whereas Roadside Assistance might be of great use for any car owner whose car breaks down in a secluded spot.
Since the inclusion of too many add-ons to your comprehensive car insurance policy can lead to you paying higher premiums, we recommend carefully mulling over which add-ons are best suited for your policy.
● How to purchase car insurance online.
With TATA AIG, it is a breeze to purchase or renew motor insurance. Here are a few simple steps which you can follow to buy car insurance online -
- Visit the Car Insurance page and fill in your car’s registration number and click on “Get Price” for a new policy or “Renew” for car insurance renewal.
- On the next page, select the brand name, car name and variant and hit “Continue”.
- Input details as prompted by the screen. Select the nature of the policy coverage. Choose from the list of add-ons.
- You can then check your car insurance quote and proceed to purchase the policy you need.
Lastly, you can download a soft copy of your car insurance on your PC or mobile device for use, as and when needed.
We at TATA AIG value your time and save you from the hassle of unnecessary paperwork when it comes to car insurance. And in case of any confusion, we have our insurance experts to guide you through your dilemma and help you towards a secure future. No middlemen; just you and us!
Here are a few Frequently Asked Questions you may want to refer to:
1. Is it more expensive to insure a new or old car?
The premium for a new car is higher than that of an old car as they have a higher IDV (Insured Declared Value), based on which the car insurance premium is determined.
2. Is new insurance for old car insurance worth it?
Yes! Old cars are more prone to damage due to their reduced performance and engine problems. This makes it even more essential to insure them.
3. When buying a new car, how do I transfer insurance?
Apply for a car insurance transfer from the company, and a small transfer fee is to be paid. Along with this, certain documents like Form 30, Form 29, a No Objection Certificate from the existing policyholder, the Inspection report conducted by the insurance company, and the new RC are to be submitted too.
4. When buying a new car, when do you get insurance?
Once you complete the online purchase of your car insurance, you can get your policy in a matter of minutes. With TATA AIG providing an online mode of application, all you need is your car registration details.
5. Can I drive a new car without insurance?
It is advisable not to drive your car, old or new, without an insurance policy because having a car insurance cover is a legal mandate in India. Without a car insurance policy, you might have to pay hefty traffic fines.