5 Phases That Car Owners May Go Through Regarding Motor Insurance


Motor insurance is a vital aspect of owning a vehicle, and car owners often go through several phases related to it. From the initial excitement of buying a car to exploring various insurance options, these phases reflect the journey of a car owner in managing motor insurance.

The 5 Phases Of Buying A New Car Insurance Policy

What Kind Of Car Insurance Do I Require?

The most fundamental query that anyone purchasing a new car insurance policy must pose and respond to. There are different kinds of car insurance policies available. As follows:

  • Third-Party Liability Coverage:To protect the rights of the third party, the law of the land has made this coverage mandatory. If your car causes an accident, this car insurance protects you financially from any liability you may have towards a third party. *
  • Comprehensive Insurance:As the name implies, comprehensive insurance includes coverage for both your car’s damages and any injuries you may cause to others. This car insurance covers both natural disasters and human-caused accidents that result in damage to your vehicle. Theft is also covered. *
  • Standalone Damage Coverage:In 2019, vehicle owners could purchase a standalone policy for their vehicles thanks to the Insurance Regulatory and Development Authority of India (IRDAI). This enables the vehicle owner to initially only purchase third-party coverage and postpone purchasing a policy to cover their vehicle until ready. # *

Which Plan Is The Ideal One For Me?

The due diligence process begins once you’ve selected between third-party or comprehensive car insurance. The insurance cost for your new vehicle depends on several factors, including the make and model. During your due diligence, compare policies based on factors such as the network of cashless network garages, premium, brand reputation, and motor insurance claim settlement percentage.

What Add-Ons Do I Require?

Have you ever worried about what might occur if your engine breaks down and needs to be repaired? Or what if you can’t afford to make your car’s EMI payments for a few months? Don’t worry; you can purchase add-ons to your standard car insurance to ensure you won’t need to worry about these things. The most well-known motor insurance companies frequently offer add-ons like:

  • Zero-Depreciation cover
  • Engine Protector
  • EMI Cover
  • Personal Belongings Cover
  • 24/7Spot Cover
  • Consumable Expenses Cover *

What Is My New Car’s IDV?

The amount your insurance company may pay for your stolen or irreparably damaged car is called the Insured Declared Value (IDV). For a new vehicle, it’s ideal to set the IDV as close to its market value, such as INR 10,00,000 for a sedan. Vehicles older than six months typically have a 5% IDV depreciation.

How Do I Purchase The Final Policy?

Now, for the final step in purchasing car insurance – payment. Opting for online car insurance is the most convenient way to do this. Just provide the essential information about your vehicle, including make and model, engine and chassis numbers, and RTO registration details. Once the online verification is complete and the insurance company approves, you can make the payment.

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