Your Brand New Car Also Needs A Car Insurance
- Author :
- TATA AIG Team
- Published on :
As the proud owner of a brand new car, this purchase is probably one of your biggest milestones. However, amidst this joy, you must never overlook the importance of getting car insurance for your brand new vehicle. If you are well-aware of the condition of Indian roads and the driving habits of most drivers, you might know that your vehicle will always carry a risk, however small, of ending up with some damages. But a good car insurance policy keeps you free from that thought and also makes you a more confident driver on the road.
You also can get insurance for your car if you want to protect your precious car against all the damages it can face through natural calamities, man-made disasters as well as theft. When choosing an appropriate car insurance policy, always be sure to first check the four-wheeler insurance price of different companies to choose one that meets your needs perfectly!
What is the importance of getting car insurance?
To safeguard the interests of all vehicle owners, the Government of India has made car insurance mandatory for every vehicle owner, as per the Motor Vehicle Act. While every car owner may not have a comprehensive car insurance policy, at least a third-party cover is a legal compulsion. With the help of a third party car insurance policy, the policyholder can at least save themselves from the hassles of third-party liabilities.
A comprehensive car insurance policy, on the other hand, provides more extensive coverage and should be purchased if the policyholder wants more protection than simple third-party insurance.
To explore the details of which insurance cover a new car owner should opt for, let’s look at the types of car insurance below:
Types of car insurance
When you look for car insurance details online, you will come across two major car insurance policies that are most prevalent in the Indian market. These are mentioned below:
Third-party car insurance
Third-party car insurance is a type of insurance policy where the insurance coverage only protects the policyholder from third-party liabilities. This means your insurance provider will settle the damages incurred by another vehicle or person that has been damaged or injured due to your vehicle. It is important to note that the policyholder of the third-party insurance cannot claim damages for their own vehicle.
Comprehensive car insurance
In comprehensive car insurance, apart from receiving a third-party cover, you can also receive insurance coverage for any damage caused to your car in an accident.
Own damage cover, as it is called, is what makes comprehensive insurance different from basic third-party car insurance. Moreover, comprehensive policies provide a great deal of flexibility where you can choose what type of damages your car can be protected against, which add-ons can be included in the policy and how you can reduce the premium amount through a No Claim Bonus, etc.
Tips to keep in mind while purchasing insurance for your brand new car
Purchasing car insurance in India is a smart choice. It does not just ensure that you obey the law but further results in financial cushioning when your car needs to be repaired in case of damages.
However, before purchasing car insurance, you must always compare car insurance quotes to make a fair decision and further, keep in mind the tips mentioned below:
Type of policy and the extent of coverage
Before purchasing a car insurance policy, you must always decide which type of car insurance policy suits your requirement. You can easily choose between third party car insurance and comprehensive car insurance; most policyholders generally go for a comprehensive cover as it also provides third-party insurance cover.
In addition to this, consider the extent of the coverage; the car insurance should ensure that you receive the maximum benefit from the policy.
Inclusion of add-ons
A majority of insurance providers offer additional coverage in the form of car insurance add-ons which can be included in your base policy to enhance the coverage. With add-ons, specific parts of your car can be protected from damage. For example, an engine protection add-on will cover the costs incurred by a damaged engine. While there are certain terms attached to the use of these add-ons, they can help you save some money if your car incurs some specific kind of damage.
Process of receiving a car insurance claim
While looking for insurance for your new car, you must also take into consideration the process of receiving a car insurance claim. Always check the claim settlement ratio of an insurance provider as this is a good indicator of how reliable your insurer can be while settling claims.
Always calculate the insurance premium with an car insurance premium calculator
The most important rule before purchasing the right insurance for a brand new car is to determine the total premium outflow. As your car is brand new, the premium cost will be higher (due to higher market value). Use a car premium calculator to calculate the exact car insurance premium you need to shell out to get the exact nature and extent of coverage you require for your new car.
Is it advisable to choose the new car insurance from your car dealer?
Most car dealers generally provide a third-party cover since it is illegal to drive a car without insurance. However, it is recommended that you purchase the policy online from a reliable insurance provider to get the insurance policy quickly and without any hassle. Moreover, the options available online can also help you choose better.
Secure your 4-wheeler with TATA AIG car insurance online
If you have recently purchased a brand-new car and are now looking for a reliable insurance company, then getting the TATA AIG car insurance online can be a good choice for you. We offer a comprehensive car insurance policy, with a choice of 12 attractive riders, to ensure complete coverage for your new purchase. Additionally, we have a seamless online purchase and renewal process to ensure a quick, easy and transparent transaction.
The bottom line
After all is said and done, it becomes pretty evident that car insurance plays a pivotal role in your vehicle safety. Hence, to safeguard your vehicle from all unforeseen incidents, you must get car insurance today.
Some FAQs to help you buy car insurance for a new vehicle
1. When you buy a new car do you need insurance?
When you buy a car, you will always require car insurance as it is legally compulsory for all vehicle owners to have valid car insurance under the Motor Vehicles Act.
2. How soon do you need insurance after buying a car?
As soon as possible! You are always advised to purchase car insurance immediately after buying your new car. This is because car insurance will ensure that you get the maximum coverage if your brand new car meets an accident. Additionally, it is illegal in India to drive your car on public roads without a valid insurance policy.
3. What happens to car insurance when you get a new car?
If you already had car insurance before purchasing a new car then you must note that your old car insurance will be eligible to cover your new car. If you have a No Claim Bonus discount on your old policy, you can transfer it to the new car insurance.
4. What comes first: Car or insurance?
If you are buying a new car and do not have existing insurance coverage then it is always advisable that you buy car insurance along with buying your car. Doing this will ensure that the coverage starts right from the time you take your car home.
Disclaimer / TnC
Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.