Buying a New Car During the Festive Season? 7 Insurance Things to Check

A car insurance policy is an essential safety net for unexpected situations on the road. However, there are many features to consider. This can leave one feeling confused about which features and benefits to prioritise when purchasing a policy.

This festive season, get the best car insurance policy for your new car for optimal protection against any unforeseen circumstances on the road. Read on to know all about the festive season car insurance policy.

What are the 7 Things to Mandatorily Check When Purchasing a Festive Season Car Insurance?

Here is a list of the 7 things that you need to keep in mind when getting car insurance for your new car this festive season:

1. Type of Policy

Before taking delivery of your new car this festive season, you need to get a suitable car insurance policy. This is mandatory in India to be able to legally drive your car as well.

You need to focus on selecting a suitable plan which offers the right protection while still fitting your budget goals. Wondering what are the types of car insurance policy? Well, primarily, there are two types of car insurance policies to choose from:

1. Comprehensive Policy: A comprehensive car insurance policy covers both third-party liabilities and damage to your personal vehicle. Furthermore, it also provides coverage for natural disasters, theft and accidents as well.
2. Third-Party Liability Coverage Policy: This type of car insurance policy is a legal mandate in India, according to the Motor Vehicles Act, 1988. It offers coverage for liabilities that arise from death, injury or natural disasters.

2. Insured Declared Value or IDV

The insured declared value is the amount which an insurer pays if the car is stolen or suffers from any irreversible damage. This is not the same as a car's resale price.

Because insurers can quote IDVs, you need to carefully assess the current market value of the car and choose a policy which offers an IDV that is close to that amount. This will ensure that you get a payout even in case of total loss.

3. Add-Ons

You can further enhance your diwali car insurance policy by getting add-ons that offer extra protection apart from just standard coverage. There are different types of add-ons available out there, which suit different needs.

For instance, a zero depreciation add-on can help you avoid deductions on any claim amounts that are caused by ageing vehicle parts.

4. Claim Settlement Ratio

This is another important determinant when choosing a car insurance policy. It showcases a higher reliability factor for insurers and how well and how often they process claim settlements.

For car insurers with a low claim settlement ratio, it indicates that they give out frequent rejections or slow service. Always ensure you choose an insurer who has a higher claim settlement ratio.

5. No Claim Bonus

Policyholders get a No Claim Bonus if they do not file a claim on their car insurance policy during a policy year. In this scenario, when purchasing a car during the festive season, choose an insurer who will let you avail this advantage even if you change insurers.

The No Claim Bonus can be availed only as a discount upon renewal during the next year.

6. Extent of Network Garages

An insurer having a vast range of network garages is ideal and something to look for in an insurer. For instance, you need to check whether their partner garages are situated in nearby areas where you reside. This will help you avail a cashless repair facility at these garages or centres.

You will see this information on the insurer’s site regarding their partner network garages.

7. Policy Terms

Purchasing an affordable insurance plan does not always go as planned when you finally try to claim. Hence, it is very important that you check the extent of inclusions, exclusions and other terms and conditions of the policy.

This will eventually help you in the long run when you try to claim your car insurance policy.

Final Words

When purchasing a festive season car insurance, make sure to thoroughly compare all types of car insurance options which best fit your budgetary needs. After all, you should purchase a policy which best fits your driving, financial and lifestyle needs. Moreover, you can check the comprehensive car insurance from Bajaj General to secure your finances from any unforeseen events.

Frequently Asked Questions

Which car insurance to get between a third-party liability and a comprehensive car insurance?

If you want only the legally mandatory base-level protection, then get third-party car insurance coverage only. Otherwise, if you want all-round protection which extends to your own car as well, get a comprehensive car insurance policy.

Should I purchase car insurance directly from a car dealer?

It is ideal to get a car insurance policy from a digital insurer instead, as they are cheaper than getting one from a car dealer, where you would not even be able to conveniently compare different car insurance policies.

Will online insurers inspect my car when quoting a premium?

When it comes to new cars, insurers do not inspect them when quoting a car insurance premium.

**Standard T&C apply

Disclaimer: 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.

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 change. Please consult an expert before making any related decisions.