Nothing feels exciting and happier than the thrill of driving a brand new car for the first time. However, your excitement can turn into worry with a minor accident or unexpected events if you don’t have a new car insurance plan. Choosing the right plan can be scary and confusing.
A new car insurance policy helps policyholders to manage expenses in case your car is stolen, damaged or causes harm or damage to a third party or their property. Keep reading to identify the key factors before investing in a new car insurance plan for your four-wheeler.
What are the Factors to Consider Before Purchasing a New Car Insurance Policy?
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Flexible Coverage
A single car insurance plan does not offer full coverage for individuals with different coverage needs. You can opt for a new car insurance plan that offers flexible coverage. For example, you can choose a plan that protects against unexpected events, such as damage to a third-party vehicle or your own car.
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Insurance Premium
Look for a policy with an affordable premium amount that suits all your required coverage. To ensure protection at a competitive rate, you need to obtain quotes from different insurance provider companies. Moreover, consider factors, available discounts and insurer services that may lead to lower premiums.
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Cashless Services
Another factor to consider before buying a new car insurance policy is the cashless facility. You can receive full repair and maintenance services for your four-wheeler at the network garage without any upfront payment. The insurance company directly settles repair bills to the garage.
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No-claim Bonus Benefits
Mostly, insurance companies offer a no-claim bonus to their customers for every year in which the customers do not file any claim. Considering this feature of a car insurance policy can provide a maximum bonus for a claim-free year. For 1 to 2 years of claim-free years, you can receive discounts on premiums.
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Add-on Options
A new car insurance plan provides coverage for accidents, car theft and third-party damage or injury. However, you can consider additional features or coverage to improve your claim payout, such as zero depreciation coverage and roadside assistance.
Adding too many riders can significantly increase the premium. So, assess your requirements before making any decision on add-on riders.
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Customer Assistance Facility
Before investing in health insurance, you must look for an insurance company that provides customer support. Presently, most insurance companies offer 24*7 telephone assistance to their policyholders.
If you add a roadside assistance feature, it helps settle or raise a claim or you want to know about network garages and their services.
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Plan Renewality
You need to consider reviewing the claim settlement ratio of your chosen insurance company. Check the website for customer feedback on insurance coverage and claim settlement to determine the higher chances of the claim getting approved.
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Check IDV
Before buying car insurance third-party online, check IDV (Insured Declared Value), which refers to the market value of your four-wheeler. It represents the maximum value you can claim for theft or loss of your car.
A higher IDV provides extensive protection, accompanied by a higher premium and larger payouts.
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Claim Settlement Ratio
Before purchasing a new car insurance policy, individuals may consider car insurance renewability features. You must purchase a plan that allows lifetime renewability of the plan in a quick and hassle-free manner. Lifestyle renewability ensures active coverage for your car.
For example, an insurance company facilitates document uploads and claim registration through the online webpage of the insurer. This makes the claim process easy and smooth without any disruption.
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Confirm Exclusion
While scrutinising policy documents, including terms and conditions, pay attention to the new car insurance excursions. All types of losses or damages are usually not covered under a single insurance plan.
For example, insurance companies often refuse coverage if the vehicle is reportedly involved in a crime or the driver is under the influence of an intoxicant or alcohol or damage from enjoying adventurous activities.
What Documents are Required to Purchase the Chosen Right Car Insurance?
Once you decide to buy car insurance, collect soft copies of all documents to upload online and complete the application within a few minutes.
- Car details, including registration number
- The driver’s license of the car owner
- Tax receipts
- Bank details
- Completed insurance forms
Wrapping Up
The most underrated key factor for buying a new car insurance policy is to know the difference between third-party liability and comprehensive car insurance. You must know that purchasing third-party car insurance does not protect you against man-made or natural damage to your own car.
Conversely, buying comprehensive insurance can safeguard against damages and accidents resulting from theft and events, and even covers third-party damages.
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