The first thing your car dealer advises you when you buy a new car is to get car insurance. Insurance for your car is just as important as one for your home, besides being mandatory in India to at least have third-party cover. Buying a car could be no less than a milestone in one’s life. For some, it is an asset, while others save money for months just to buy their dream car.
Car Insurance Checklist
Buying the first insurance cover that you chance upon might not be a wise choice. Here is a checklist to guide you when you choose the right cover.
· Cover – Although premium cost increases with the age of the vehicle, it is wise to opt for comprehensive cover that covers the automobile against loss or damage as well as third party liability.
· Premium – Buying a plan with the lowest premium might not get your car insured fully. Buy cover that amounts fully to the price of the car. Choose a plan because of the benefits it offers and not because of a low premium. The right mix is adequate cover with maximum benefits.
· Get Insured When Your Car is New – If you are looking for a policy to cover your new vehicle, don’t wait for months to decide upon the policy. Get the automobile covered when it is still new to avoid inflating your premium because of depreciation costs.
· Type of Cover – Any automobile cover can generally be categorised into two: third party liability and comprehensive cover. Third party liability pays to the third person in case of injury or damage to their property in the event of an accident with your car. Comprehensive insurance covers third party liability, as well as personal accident, liability and theft. Comprehensive insurance is recommended despite it being more expensive than third party liability.
· Buy Online – Buying car insurance online will give you the opportunity to research well before you buy a policy. You can also calculate the best insurance cover for your needs online by providing information about your car and your driving habits.
· Add-on Cover – You can also buy add-on covers to enhance your policy. Add-on cover for replacement or engine protection is a good pick, especially for expensive cars.
Get your car insurance renewed before it expires. You can encounter hundreds of risks when on the road. You can also avail the no claims bonus offered by most insurance companies on renewal.