Buying a car is a big decision that requires a lot of thought and consideration. From determining the budget to choosing the brand and model to deciding whether you want to go for a new car or an old car, you need to weigh a lot of factors. No matter which car you decide to buy, one thing that you must do is to insure it and renew the policy periodically. In India, insuring your four-wheeler is mandatory to avoid penalties and legal procedures. Insuring your car is the best way to ensure the safety of your vehicle and to protect it from all types of damages. Thus, it becomes crucial for you to know all about buying car insurance for both new cars as well as old cars.
Choosing the right car insurance is very important as it will keep you and your vehicle protected against legal and financial liabilities, depending on the type of coverage that you go for.
Knowing about Car Insurance in India
Purchasing third-party insurance is compulsory for car owners as per the Indian law provisions. Under car insurance plans in India, you can choose between comprehensive car insurance and third-party car insurance. Also, you have a range of car insurance plans to pick from. You can check for car insurance online and go for the one that best suits your needs.
Where third-party car insurance is concerned, you enjoy coverage for damages caused to third-party property by your insured car. On the other hand, comprehensive car insurance covers personal injuries, damages to the insured car, and third-party liabilities.
Now, when you have to choose an insurance plan, there are a variety of factors to consider. Among these are Insured Declared Value (IDV) and add-ons. Besides, you should base your choices on whether you are insuring an old car or a new car, as discussed in the following details.
Purchasing Insurance: Old Car Vs New car
Here are some scenarios to help you make the right choice when purchasing insurance for your new car and old car.
- Type of Policy
A third-party liability policy offers basic coverage. Under such plans, you cannot claim for damages arising due to fire, natural calamities, and theft. On the flip side, a comprehensive policy entails both mandatory cover and own damage cover. Here are some scenarios to help you know how to choose the appropriate cover for your new and old cars:
- Because new cars are susceptible to theft and vandalism, you should consider buying a comprehensive car insurance plan by paying a little more. You are then protected against vehicle total loss and accidental damages. Buying new car insurance online takes only a couple of minutes.
- If you have accumulated No Claim Bonus on your old car insurance policy, then you can avail discount on the premium. However, you have to renew your insurance plan before the expiry of your current policy to enjoy the No Claim Bonus discount benefits.
- If you are the owner of an old car and a new car, purchasing comprehensive insurance plans for both vehicles can get expensive. In such cases, consider purchasing a comprehensive new car insurance policy for the newly-purchased car. And, if your old car is not much in use, then buying third-party liability cover may suffice. Take your call as per your needs and driving habits.
- Add-on Options
Third-party policies do not come with add-ons. You have to purchase comprehensive insurance to buy add-ons. Add-on covers are best described as additional plans that complement your comprehensive insurance policy.
Depending on the age of your car and how much you drive your car, you should choose your add-ons in your car insurance online plans. You should consider getting zero depreciation add-on cover. This add-on coverage negates the depreciation factor during claim settlements. Remember, such coverage is not available for cars that are over 5 years.
More so, getting roadside assistance cover is advisable if you drive through secluded areas often. Do not forget, purchasing add-ons can lead to paying higher premiums. That’s why you must ponder over your add-on options and opt for the plans that match your insurance needs.
- Car Usage
Before comparing car insurance online plans, know about your car usage.
Do you use your car daily? Do you own another car? Will you be using your car for long city trips frequently? Do you have a history of meeting with car accidents? How many of your family members will be driving the car?
Answer all these questions and study which insurance providers are offering the desired coverage. Based on your requirements, you should choose your car insurance online plans.
Conclusion
Whether you want to purchase a car insurance online plan for a new car or an old car, it is always better to compare the different plans and their features. Also, make sure you renew your car insurance on time and study the policy terms thoroughly.
