Everybody dreams of owning a car once in a lifetime. An individual utilizes his/her entire life savings to purchase their dream car. While a majority of customers buy a new vehicle, the rest of them opt for a used one as per their requirements. However, thorough research & investment to buy a car is not the last step. This should also to extend to buy a car insurance policy as every four-wheeler owner must compulsorily secure their vehicle with third-party coverage, according to the Motor Vehicles Act, 1988.
The premium is an essential aspect of every insurance policy. On availing car insurance
, the policyholder must pay the premiums on time, whether you own a new car or a used one.
Premiums for car insurance:
|New Car Insurance
||Used Car Insurance
|Since new cars have a high market value, their IDV & subsequently premium is higher as compared to that of old cars.
||With a considerably lower market value & depreciated IDV, used cars attract relatively lower premiums.
|Suitable coverage for new cars would be a comprehensive policy, which covers third party liabilities as well as own damage cover. With greater coverage comes a higher premium price tag.
||Used cars car be equipped with any desired coverage. Comprehensive would be relatively cheaper due to a lower IDV and third party rates are fixed as per IRDA guidelines.
|No Claim Bonus cannot be availed if you are buying a car insurance policy for the first time.
||The accrued NCB of the vehicle can be utilized during renewal to lower the premium even further.
A majority of policyholders consider premium as the prime indicator for selecting a car insurance policy. However, buying car insurance based on this evaluation might result in acquisition of a policy with inadequate coverage. Listed below are some simple steps to guide you on how to buy car insurance for your new / user car:
- Opt for suitable coverage
While purchasing new car insurance or a policy for their existing vehicle, a policyholder must prioritize & opt for coverage based on their needs. Some vehicle owners choose to buy comprehensive coverage since it covers own-damage as well as damage caused to third party. Whereas others go with a third party car insurance cover for liabilities as they want to spend a lower premium initially. Evaluating insurance basis its coverage is key to ensure that you receive necessary financial backup when required.
- Incorporate add-ons
Add-on covers enhance the base coverage of a policy. They can be utilized for comprehensive plans but cannot be availed on a third party only policy. Look out for riders like engine protector, depreciation shield, lock and key replacement cover, and so on. These riders are specific in their application and can aid you in saving up on some unfortunate expenses in the future.
While riders are certainly beneficial, only go with the ones that are of utmost importance.
A policyholder with a new car must opt for relevant riders since the protection of the vehicle is essential. Used car owners may not be able to avail the zero depreciation add-on if their car is older than 5 years during policy purchase.
- Avail No Claim Bonus (NCB)
The NCB is offered to policyholders who have not filed for a claim for one or more years. Whether a policyholder has a new car or a used one, the NCB is available to everyone. In case an individual has accumulated NCB from their previous car insurance, they can transfer it to their existing or new car insurance. If they are selling their old car, they can transfer bonus with the help of a NCB retention letter from the insurer. The No Claim Bonus is associated with the vehicle and not the policyholder, hence transfer of a vehicle results in transfer of the NCB once all the necessary formalities are met with. You can avail the accrued NCB during car insurance renewal online
to enjoy continued coverage in a hassle-free manner.
- Keep Essential Documents Handy
At the time of purchase, the insured asks for all the relevant documents. If a policyholder owns a new vehicle, he/she must submit the following documents:
For used cars, the following documents must be submitted:
- Car inspection certificate
- Transfer of ownership
- Driving license
To sum up, irrespective of a new or a used car,compare car insurance online
. That way, an investor can reap maximum benefits at an affordable rate. Bajaj Allianz General Insurance not only allows a policyholder to buy car insurance online but also opt for car insurance renewal online. Based on the type of policy, every car owner can protect their vehicle from road mishaps, natural calamities, man-made disasters, and so forth with ease.
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