Purchasing a new car in Indian culture is a source of joy for the entire family. It signifies joy, fulfillment, and the start of those trips you’ve been planned with your family in your new car. People often overlook the fact that purchasing a new car is not only a matter of fun, but also a significant liability.
If you think about it, having a car or buying a new automobile is a significant responsibility because we have to make sure we don’t hit someone with it when driving. If this occurs, we must have adequate insurance coverage for both our car and the third-party to secure recompense.
It is not only our obligation to have car insurance, but it is also required by law under the Motor Vehicle Act to have third-party liability insurance. There are a variety of insurance providers on the market that offer various types of auto insurance policies, but we should choose the best plan for us. We must compare automobile insurance policies before choosing on which policy to purchase. There are a few points to remember in this regard:
Shortlist your requirements: Before purchasing a car insurance policy, it is critical that you first determine what coverage you require. Simply make a list of the types of coverage you want in a policy, such as TPL, IDV, add-ons, and so on.
Coverage comparison: After you’ve narrowed down your criteria, go online and compare policies. Furthermore, the coverage provided by a third-party liability policy differs from that of a comprehensive policy. The liability policy only covers any loss or damage to a third party, but the comprehensive policy provides full coverage, including TPL, vehicle damage, and personal injury. As a result, thoroughly comparing automobile insurance packages before purchasing is recommended.
IDV (insured declared value) of the automobile: The premium rates are based on the IDV (insured declared value) of the car, which is the current worth of your car after a certain amount of depreciation. The IDV of an automobile is determined by the vehicle’s age; the older the vehicle, the greater the premium.
Premium: Another crucial thing to consider when picking the correct auto insurance coverage is the premium that you must pay to the insurer. Some automobile insurance policies may be available at relatively inexpensive premiums, but this does not necessarily imply that the coverage is better. Before making a final selection, you should compare the policy’s features and benefits. If you can get better coverage for a little more money and it’s worth it to you, you should do so. Keep in mind that auto insurance premiums are always influenced by a variety of elements such as model, age, vehicle type, capacity, and fuel type.