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

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. 

Thus, continue reading this blog to have a better understanding of the factors that you need to keep in mind related to new car insurance.

What are the Different Types of Car Insurance?

Comprehensive Car Insurance

This comprehensive coverage provides financial protection for diverse aspects. 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, 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. Hence, it protects from third-party accidents.

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.

Importance of Buying Car Insurance

The importance of buying car insurance includes

Financial Protection

Having car insurance is not a choice, but rather a necessity that you need to take to keep yourself protected from the rising road accidents. Eliminate the risks of legal fines. 

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 also covers any resulting cause and reimburses you when necessary.

Get Personal Accident Cover

Another benefit of getting car insurance is that you will get personal accident cover. For instance, due to a personal accident, you are facing permanent or total disability.

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?

Now that you know the different types of car insurance and the benefits that having new car insurance has to offer. However, you may think about some of the factors that you need to keep in mind while choosing the best car insurance. 

Compare the Policy

You first need to compare the policy that you want to purchase with another policy. 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 select 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 depreciation, intentional damage. Thus, to know these readings of the exclusions is important. 

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. Thus, choose the right one, and you can enhance your existing policy.

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.

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

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 Documents Do I Need to Carry to Insure New Car Insurance?

The documents that you need to carry to ensure 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?

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?

Follow the steps below to know how you check car insurance online:

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. 

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.