New Car Insurance Guide: Everything First-Time Buyers Need to Know

Buying a new car? Then you also need new car insurance.

Having car insurance is not a choice; rather, it has become a necessity that you need to consider. According to the Motor Vehicles Act of India, every vehicle owner is required to have car insurance. Roaming on the road without a valid car insurance policy can lead to legal penalties.

Car insurance provides financial protection against any damage caused to your vehicle. It also covers losses in case of theft. Therefore, it is an essential part of keeping your new car safe. Read on to have a better understanding of why you need insurance and the factors you need to consider while buying it.

What are the Different Types of Car Insurance?

Car insurance is mainly of three types- comprehensive, third-party, and standalone.

Comprehensive Car Insurance

Comprehensive car insurance provides financial protection in a variety of situations. This coverage includes protection against own damages, total loss or damage caused due to theft, natural disaster and man-made calamities. This is an inclusive policy that covers everything under one plan.

Third Party Car Insurance

As per the Motor Vehicle Act, this type of car insurance is mandatory in India. The primary aim of this insurance is to protect you from liabilities that can occur due to an accident by a third party. It provides coverage against property damage, injuries, and death.

Standalone Own Damage Coverage

This is a policy designed to provide coverage against unforeseen or unexpected events to your vehicle. This type of insurance provides coverage in the event of theft, fire or man-made disasters. However, purchasing a third-party insurance is mandatory with this.

These are some of the common car insurance policies that you need to purchase if you do not want to get involved with legal complications.

Also Read: 5 Essential Car Insurance Add-Ons That Will Save Your Money

Importance of Buying Car Insurance

It is important to buy new car insurance for the following reasons.

Financial Protection

Car insurance protects against any damage caused to your car due to unforeseen circumstances. It also reimburses losses and relieves you of financial burden.

Damage and Loss Coverage to the Insured Vehicle

If your vehicle is insured, your policy provides financial protection against unexpected events such as fire or theft. It covers any resulting damage and reimburses losses when necessary.

Get Personal Accident Cover

Another benefit of getting car insurance is that you will get personal accident cover. For instance, if you face partial or total disability due to a personal accident involving your car, the insurance will bear the expenses.

No Claim Bonus

No-claim bonus is the reward that you get when you do not make any claims during a policy year. When you purchase a new car insurance policy, you might be eligible for a discount on your premiums.

What Factors to Keep in Mind When Buying New Car Insurance?

Apart from knowing about the different types of car insurance and the benefits they provide, you also need to keep in mind a few factors before making a purchase.

Compare the Policy

Always compare different policies to understand the kind of coverage they provide. For example, if you only take standalone damage cover, you should always compare the benefits with the comprehensive coverage. Comparing the coverages is essential to selecting the right one.

Read Through the Exclusions

Reading through the exclusion is extremely important. If you do not read through the exclusions, you will not be able to understand the factors that are not covered in the plan. Some policies do not cover factors like depreciation and intentional damage. It is important to read the exclusions list to make a well-informed decision.

Choose the Right Additional Coverage

Your insurance company provides add-ons to enhance your existing coverage. Thus, if you want to add extra coverage to the policy, you need to choose the right one. Not selecting the right one can cost you more.

These are some of the factors that you need to keep in mind while choosing the right new car insurance. Thus, while choosing the right one, selecting the correct platform is also essential.

Where Should I Buy the Insurance From?

This is a very common question that can be seen among new car insurance buyers. Read through this part of the blog to understand where you need to buy insurance. From the dealer website or from the official website?

Many people agree to the fact that while purchasing new car insurance, or even when you are thinking about car insurance renewal, choosing from the dealer website is the best option. However, the scenario cannot always be the same. The dealer websites may

1. Give contradictory information.

2. The prices are always different from the official website.

3. Do not let you choose the plans as per your choice.

Choosing or purchasing from the official website offers you:

1. Correct and accurate information about the product.

2. Updated prices in case of need.

3. Better transparency in premiums, add-ons, and coverage.

Thus, it is evident that while purchasing new car insurance, choosing from the official website will always be the smart move that you can take. However, if you still want to opt for a dealer website, you should compare the claims with those of the insurance company’s official website.

Also Read: How to Claim Car Insurance After an Accident in India?

Why Should You Choose Bajaj General Insurance for New Car Insurance?

Here are a few reasons why Bajaj General Insurance for new car insurance is a good choice.

1. With the comprehensive coverage plan, you will get full protection against your vehicle and can safeguard yourself from unforeseen events.

2. You can boost your policy with add-ons, including zero depreciation, along with roadside assistance and engine protection.

3. You get access to more than 7200 network garages to repair your bike.

4. Get fast claim settlements with a seamless process.

Get these benefits by choosing the right car insurance with Bajaj General Insurance today!

Note: The cashless garage network is subject to change. Please use discretion.

What are the Documents Required to Buy New Car Insurance?

The documents required to purchase new car insurance are listed below.

1. You need to carry a copy of the invoice issued by your insurer.

2. Your vehicle registration certificate

3. Government ID proof, such as your Adhaar card, PAN card and Voter ID

4. Chassis number or the Vehicle Identification Number (VIN) of the car

5. Your car engine number

Once you have submitted and shared it with the insurer upon successful verification, you can pay and get your policy.

What Documents are Required for Reimbursement Claims?

The following documents are required to claim reimbursement:

1. Original claim for direct bank settlement.

2. Copy of the Registration Certificate.

3. Copy of your driving license.

4. Physical or digital copy of your insurance policy.

5. Copy of Government ID, either PAN card or your income proof.

6. FIR or police report copy if required. However, this is mandatory in case of theft or third-party injury or death.

7. Original proof of the repair costs.

8. Cancel cheque for NEFT payments in the case of a non-cashless process.

How to Check New Car Insurance Online?

To check new car insurance online, you can follow the steps given below.

1. First, go to the Parivahan website.

2. Then click on the informational services.

3. Click on get vehicle details.

4. Log in to your account.

5. Enter the details it is asking for and click on Get Details.

6. Once you enter the details, you will get to see the insurance status of your vehicle.

Also Read: All About Compulsory and Voluntary Deductibles in Car Insurance

Final Thoughts

Thus, these are some of the factors that you need to keep in mind when you want to buy a new car insurance online. This blog outlines all the necessary factors that a new buyer must know.

Whether it is third-party car insurance or one providing comprehensive coverage, opting for the correct one and comparing helps you select the best one.

Frequently Asked Questions

What is the biggest mistake that first-time car insurance buyers make?

The biggest mistake made by first-time car insurance buyers is that they focus on the lowest premium and take insufficient coverage. Do not make this mistake, as this can further lead to out-of-pocket expenses.

How can you choose car insurance for a new car?

You can choose car insurance by comparing the insurance from different websites. This will give you a comprehensive understanding of the best policy that you need to take for your car.

How long does it take for a new car to become active?

This depends on the insurance company. Sometimes it can take a week or three days. It is always advisable to have a clear understanding of this from your insurer before purchasing.

Do electric cars need new car insurance?

Yes, electric cars need new insurance as well. Some insurance companies provide separate insurance coverage for electric vehicles. It also gives own-damage cover, along with in-transit damage and personal accident.

How can I save premiums for a new car insurance policy?

One of the easiest ways to save on car insurance is to compare policies from different insurers. Always select the one that offers higher deductibles. Always compare policies before purchasing one.

*Standard T&C apply. Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.