Are You A First Time Car Insurance Buyer?

12 Jul Are You A First Time Car Insurance Buyer?

Having one’s car insured is an important financial decision but buying car insurance proactively is usually the last thing any person thinks of. As per ‘Indian Motor Vehicle Act, 1988’ buying Car Insurance is mandatory, whether, you are buying a new car or even if it is a second hand purchase. Generally it is confusing for the first time buyers to know which car insurance suits them the best. Having said that, there are a few things every first time car insurance buyer should keep in mind before buying a car insurance policy.

So here are certain tips for first time car insurance buyers:

  • Understand the necessary coverage: Coverage will vary from person to person as it depends on various factors like: cost and type of the car, type of coverage you wish to buy etc. So it is very important to understand which type and how much coverage is suitable for your car. Car Insurance providers offer various coverage options for you to consider Here are the types of car insurance policies:
    • Liability Coverage:This coverage provides protection against the damages caused by you to the third party assets. This coverage does not provide for the damages caused to your vehicle.
    • Comprehensive Coverage:As the name suggests, this coverage offers protection to all kinds of damages like: damage to your car, damages done by you to the third party asset, theft of asset, vandalism, earthquake, etc. This plan offers an umbrella protection to all kinds of damages.
  • Consider Add-ons: Add-ons in case of car insurance are like additional coverage’s, which you might be interested in buying. These add-ons cover the cost required for services like towing, roadside assistance, etc. So it is worth giving a thought to such add-ons while buying your car insurance.

Are You A First Time Car Insurance Buyer?

  • Understanding the Deductibles: In car insurance, it is a general equation that your premiums will be generally low if the deductibles from your car insurance policy are higher i.e. higher the deductibles the more you have to shell out for the damages caused. Whereas, lower deductibles will reduce the risk of paying for the damages but it will increase your premium amount. So while buying your first car insurance policy you should find the right balance between premium paid and the amount you can afford to incur for the repairs in case of an accident.
  • Discount on Safety Features: You should inform your insurance provider about the safety features that your car has. Generally, an insurance policy covers for the theft of cars but now-a-days some cars come with inbuilt safety features so the chance of theft is very less. While buying Car Insurance for Cars with such enhanced security systems the buyer can negotiate for lower premiums and buy the policy accordingly.
  • Compare:Before narrowing down on the car insurance policy, it is better to compare and see what features other insurance providers are offering and at what premium. It is always advisable to compare first and then shop for your car insurance policy.

Know your policy: Lastly it is very important to know your policy before you actually buy it. A buyer should be aware of all the terms and conditions of an insurance policy before signing the contract documents for the policy.

Apart from car insurance being mandatory it is a very important and safe practice to purchase car insurance. Thus, keep your eyes open while purchasing your first car insurance and understand everything about the policy as it will save a great deal of your time, money and worry.

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