Due to the litigious nature of our society and the increasing prices of vehicles, car insurance rates are on the rise across the country. The bad news is that insurance isn’t likely to come down in price anytime soon. The good news is that there are things you can do to minimize increases or reduce the burden on your wallet.
Buy Car Insurance for New Cars Online
You’re probably really happy and proud of yourself right now. After all, you’ve finally taken the leap and bought that car you’ve been talking so much about! We wouldn’t want to kill the happy bug, but with a new car comes a new set of responsibilities. Now, let’s imagine this scenario- Imagine, you’ve just planned a weekend getaway with your friends in your new car. With all that music and chatter, you suddenly hear a loud sound and you realise your tyre has just burst! Yikes. If you’ve been responsible, you probably won’t make a big deal out of it.
After all, if you have a car insurance in place, with the right add-ons then this little accident won’t only be solved soon, but will also not eat away your weekend budget. Why are we telling you this hypothetical story, anyway? To help you make some responsible choices of course! So, let’s get started- shall we?
Why is it Important to Insure your New Car?
Insurance is your new car’s shield against unexpected events. It helps cover your new car against thefts, financial losses caused by accidents and any subsequent liabilities you may come across unexpectedly. In India, driving a car, new or old without a valid car insurance is illegal. As per the Motor Vehicles Act 1988, it is mandatory to have a car insurance that at least covers for third-party liabilities.
There are essentially two types of car insurance plans- you can either opt for a Third Party car insurance or a Comprehensive Car Insurance. To make things easier for you, we’ve put down a table together that’ll help you compare the two, after which you can make the choice that suits you better.
Third party
A Third-party car insurance is one of the most common types of car insurance; in which only damages & losses caused to a third-party person, vehicle or property are covered.
Comprehensive
A Comprehensive car insurance is one of the most valuable types of car insurance that covers both third-party liabilities and damages to your own car as well.
Difference between Comprehensive & Third party Policies
| Comprehensive Car Insurance Policy | Third-Party Car Insurance Policy |
|---|---|
| A Comprehensive Car Insurance Policy covers third-party damages, along with coverage to your car in case of damages due to accidents, fire or natural calamities, theft and loss of car. | A Third-Party Car insurance policy covers for third-party damages to a person, vehicle or property. While there’s a limit to up to 7.5 lakhs for damages/losses to a third-party vehicle or property; there’s an unlimited liability in the case of a third-party person. |
| A recommended choice, as it not only protects you on a legal basis, but gives you and your own car extra protection as well. | This policy is usually bought by customers who rarely use their cars, or are using an extremely old car. |
| With this policy, you can opt for useful add-ons and covers which gives you complete coverage. | With this policy you can’t opt for any add-on covers. |
| This policy offers extensive coverage. | This policy offers limited coverage. |
| The premium of a comprehensive insurance policy is higher than that of third-party insurance. | Third-party insurance policy is less expensive as compared to a comprehensive car policy. |
Things to consider when buying insurance for your New Car
There are several factors to keep in mind when buying car insurance for your new car. Paying attention to them will ensure that you fetch an ideal level of cover. Some of these factors include the following:
- Policy type – Know the two different policy types, it is very important to know the options to be able to make an appropriate decision. Choose between a Third-Party Insurance Policy or a Comprehensive Plan, depending on your insurance needs.
- Add-Ons – Choosing the right add-ons along with your policy can give you maximum benefits. Some of these are, Zero Depreciation Cover, No Claim Bonus Cover, Return to Invoice Cover and Engine Protect cover. Learn about the add-ons offered by your car insurance provider and customize your plan based on your personal requirements.
- Claim procedure – This is very important as it is what insurance is all about! Ensure your insurance provider’s processes are not only easy but also quick, and hassle-free! You can easily find this information on your insurance provider’s website or social media channels. If you’re interested in learning about how we work with our claims, you can check-out our claim report card here.
- Compare car insurance rates online – With the benefit of the internet, you can do a quick search to compare different car insurance quotes. Remember to not only cover the rates but also look at the kind of service benefits, claim processes and customer feedback!
- Right IDV – The right IDV plays an important role in choosing or renewing the policy. Higher the IDV, higher is the compensation at the time of unforeseen situations. In case of Digit, we just let you customise your IDV. After all, you know your car better.
Is it a good idea to buy New Car Insurance from the Dealer?
The best of us prefer to escape all the time and energy that will go into looking for the right insurance company online or offline. No wonder, many people are tempted to opt for any car insurance offered by dealers. It saves time and of course, it is convenient. But is it the right thing to do? Let’s see what can go wrong if you plan to buy a policy from your dealer:
- You will get limited options – Once you’ve purchased your car from the dealer, the second thing they’re likely to sell you a car insurance policy. While this may be convenient, it comes with the disadvantage of limited options, as compared to options online. Additionally, your car dealer will probably have tie-ups with specific insurance companies and will offer you insurance solutions provided by these companies only.
- Best Add-ons – You won’t have the freedom to choose from a wide range of add-ons that can give your car better coverage. Buying a car insurance online gives you the benefit of customizing your plan with different add-ons to choose from.
- Can’t compare rates – Comparing rates is very important but when you plan to buy insurance from a dealer you will not get this opportunity.
We recommend go online, do some research or better, directly buy your car insurance policy online. The process is fast, there’s no paperwork and the best part- you know exactly what to expect out of your car insurance since you’ll be the one choosing it!
How to Buy New Car Insurance Policy Online?
Step 1 – Fill your Vehicle’s Make, Model, Variant, Registration Date (select new car) & the city you drive in. Press ‘Get Quote’and choose your choice of Plan
Step 2 – Choose between a Third-Party Liability Only or a Standard Package (Comprehensive Insurance).
Step 3 – Give us details about your No Claim Bonus earned
Step 4 – You will get quote for your premium. If you have chosen a Standard Plan you can customize it further by selecting add-on’s, setting the IDV and confirming if you have a CNG car. You will see the final premium on the next page.
How much you save with us on insurance while buying a New Car