Car Insurance

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With 2021 coming to an end, it is the time when many car dealers are offering deep discounts—one for clearing out their old stock and second to replenish newer models as manufacturer roll them out. So, if you are looking out for a new car this festive season, you’ve come to the right place.

Your new car purchase must be based on the requirements of you and your family. In addition to that, you need to figure out how you are going to finance it, using a lending facility or from your savings. Further, do not forget to account for its repair cost and its intervals as it will require you to visit the service station. In addition to all these requirements, you must buy car insurance online too. This comes as a legal compliance wherein the Motor Vehicles Act requires all car owners to purchase a car insurance policy along with registration requirements. However, legal compliance isn’t the only thing that a car insurance plan ticks off. It offers a financial coverage against damages that can burn a hole in your wallet. Here’s a checklist that must be ticked off when you are buying a new car:

1. Selecting the right type of policy

Start with choosing the correct insurance policy based on your coverage requirements. Essentially, car insurance plans are available in two types—third-party plans and comprehensive plans. While selecting either type of insurance plans, you need to remember the requirements, the coverage each of them offer since they are distinct from each other. A third-party policy offers coverage against legal liabilities that may arise during an accident or collision injuring a third person or their vehicle. On the other hand, comprehensive plans provide a 360-degree coverage against third-party liabilities as well as any damages to your car. *

2. Deductible of your car insurance plan

Once you have finalised the type of insurance plan, do check the deductible of the policy. Deductible is that amount which you must pay before the insurance coverage kicks in.As deductible requires you to bear an expense from your own pocket, it has an impact on the premium. Thus, higher the deductible, lower are the car insurance prices. *

3. Add-on coverage

Car insurance add-ons are optional yet additional coverage available when you purchase a comprehensive plan or a standalone own-damage cover. These covers can be bought in addition to your standard policy to make up for the shortcoming of one. This way, the insurance coverage of your car insurance plan can be enhanced. However, you need to keep in mind that not all add-ons are useful for you. Selecting too many add-ons simply increases the premium while offering no real benefits. Hence, you must only buy those add-ons that add value to the insurance coverage. *

4. Cashless garage network

Many comprehensive policies include the benefit to avail cashless repairs. The only caveat is such repairs need to be carried out at an authorised repair shop. These authorised repair shops are those that have tie-up with your insurance company and are known as network garages. Hence, to avail a cashless claim, you need to check whether the insurance company has a wide cashless network garage. *

5. Claim settlement ratio and its process

Lastly, you must not forget to check the claim settlement ratio which refers to the percentage of claims settled as compared to claim applications received. Higher the number, higher is the probability that a valid insurance claim will be settled. In addition, you must also be aware of the settlement process as it helps when raising an insurance claim. *

* Standard T&C Apply

These are some pointers to remember when buying a car insurance plan for your new car. Not just that, these nifty tips will help to avail the right insurance cover even at car insurance renewal. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.

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