Exciting times lie ahead if you are in the market for a new car. However, amidst the thrill of test drives and choosing colors, there's one crucial aspect that often gets overlooked – insurance. Buying new car insurance is not just about complying with legal requirements but protecting your vehicle and ensuring peace of mind when on the road.
Too often, individuals rush through the insurance purchasing process, opting for the first plan they come across or simply renewing their existing policy without a second thought. However, understanding the fine print of new car insurance plans can help you make an informed decision.
We, at RenewBuy, aim to bridge the gap in knowledge that many people have regarding new car insurance. From understanding complex policy jargon to uncovering hidden benefits, we're here to equip you with the information you need to make an informed decision.
What is New Car Insurance?
New car insurance, as the name suggests, is a type of motor insurance specifically tailored to protect brand-new cars from various risks. Depending on the type of coverage you select, a new car insurance policy can be either a standard liability insurance or comprehensive car insurance.
New car insurance policies often come with additional features and benefits designed for car owners. Understanding the specifics of new car insurance can help minimize the financial risks associated with car ownership. By familiarizing yourself with the coverage options, you can select a car insurance plan that suits your needs and budget.
What are the Types of New Car Insurance Policies?
There are two types of car insurance policies, each offering different levels of coverage and protection.
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Third-party Car Insurance
This type of policy is the minimum legal requirement in India as per law. It covers damages and injuries to other’s vehicle or property if you're at fault in an accident. However, it does not cover damages to your vehicle. While it's the most basic form of coverage, it may not provide adequate protection for your new car.
Also Read: All About Third-Party Insurance
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Comprehensive Car Insurance
Comprehensive new car insurance offers more extensive protection for your vehicle. In addition to covering damages to other parties in accidents, it also covers damages to your vehicle from various perils, such as theft, vandalism, natural disasters, and collisions with other vehicles or objects. While typically more expensive than third-party insurance, comprehensive coverage can provide greater peace of mind and financial security.
Choosing between third-party and comprehensive new car insurance depends on your needs and budget. While third-party insurance may be sufficient for some people, comprehensive coverage can offer broader protection.
The following table covers the differences between third-party and comprehensive insurance plans you can choose from:
Parameter Comprehensive Coverage Third-Party Coverage Coverage Provides extensive coverage for both your car an d third-party insurance benefits. Offers basic coverage for damages to other vehicles, individuals, or property Damages to Your Car Covered Not Covered Damages to Other Parties Covers damages and injuries to other parties if you're at fault. Additional Perils Covered Includes theft, vandalism, natural disasters, and collisions. Typically excludes coverage for theft, vandalism, etc. Cost Generally more expensive due to broader coverage Typically less expensive due to limited coverage Recommended for Recommended for new car owners seeking comprehensive protection May be suitable for budget-conscious individuals or those with older cars
What Should You Consider While Buying a New Car Insurance Policy?
When purchasing new car insurance, you need to consider several factors to ensure you get the right coverage at the best possible price. These include:
Coverage Needs
Start with assessing your coverage needs based on the value of your car, your driving habits, and your financial situation. While comprehensive coverage offers broader protection, it may not be necessary for everyone. Evaluate your risks and priorities to determine the level of coverage that suits you best.
Policy Features
Look beyond basic coverage options and consider additional add-ons offered by different insurance providers. These features can make your policy more comprehensive in nature and provide added peace of mind in case of emergencies or accidents.
Deductibles
Decide on an appropriate deductible for your policy. A deductible is the amount you'll have to pay out of pocket before your insurance company pays the rest at the time of a car insurance claim. Opting for a higher deductible can lower the new car insurance price but may require you to pay more in the event of a claim. This is why you need to choose a deductible you can comfortably afford in case of an accident.
Policy Exclusions
Review the policy exclusions carefully to understand what is not covered by the chosen new car insurance policy. This may include specific types of accidents, damages, or circumstances. Knowing the exclusions can help you avoid surprises and ensure you're adequately protected.
Possible Discounts and Savings
Inquire about possible discounts offered by different insurance providers, including those for safe driving, bundling multiple policies, or installing anti-theft devices. Taking advantage of these discounts can help lower the new car insurance price and save you money over time.
Insurer’s Customer Service and Reputation
Research the customer service reputation of the chosen insurance provider before making a decision. Look for reviews and ratings from other policyholders to gauge their satisfaction levels. Additionally, consider the ease of filing claims, responsiveness to inquiries, and overall reputation within the industry.
New Car Insurance Quote Comparison
Don't settle for the new car insurance quote you receive at first. Shop around and compare new car insurance quotes from multiple insurance providers to find the best deal. Online comparison tools and insurance agents/partners can help you easily compare prices, coverage options, and policy features to make an informed decision.
How to Buy New Car Insurance?
To purchase new car insurance, you can choose between the two primary channels available: online and offline. Each option offers its own set of advantages and considerations. Let’s find out more.
Online New Car Insurance Purchase
Directly from Insurer's Website
Most car insurance companies now offer the facility to purchase car insurance directly through their websites. This process typically involves filling out an online application form, providing details about your car, driving history, and coverage preferences, and receiving a quote instantly. If the new car insurance quote you obtain meets your requirements, you can proceed to purchase the policy online and receive your insurance documents via email.
Through Aggregator Websites
Alternatively, you can use online insurance aggregators or comparison websites to compare quotes from multiple insurers at once. These platforms allow you to input your car-related information once and receive quotes from various insurers, making it easier to compare prices, coverage options, and policy features. Once you've selected a suitable policy, you can complete the purchase online directly through the aggregator's website.
Offline Car Insurance Purchase
If you prefer a more personalized approach or have specific questions about coverage options, you can purchase new car insurance offline through insurance agents. These agents represent specific insurance companies and can provide guidance on policy options, coverage limits, and more. They can also assist with filling out paperwork, answering any questions you may have, and helping you understand the terms and conditions of the policy.
Considerations
Convenience
Buying new car insurance online offers the convenience of comparing new car insurance quotes, completing the purchase, and receiving policy documents without leaving the comfort of your home. On the other hand, purchasing insurance offline through agents allows for face-to-face interaction and personalized assistance throughout the process.
Speed and Efficiency
Online purchasing is often faster and more efficient, with instant quotes and electronic delivery of policy documents. Offline purchasing may involve more paperwork and processing time, depending on the insurer and agent's procedures.
Information Accuracy
Whether you buy new car insurance online or offline, it's essential to provide accurate information about your car, driving history, and coverage needs to ensure you receive an affordable quote and the right level of coverage.
Payment Options
Online facilities to purchase new car insurance typically allow making payment via credit/debit cards, net banking, or digital wallets. Offline agents may accept payments in cash, cheque, or bank transfers.
Regardless of whether you choose to buy the policy online or offline, you must compare new car insurance quotes, review policy details carefully, and select a reputable insurer that meets your coverage needs and budget.
What are the Benefits of Buying New Car Insurance Online?
- Convenience of comparing quotes from multiple insurers at your fingertips
- Instant access to policy information and coverage details
- Ease of purchasing new car insurance anytime, anywhere, without visiting a physical location
- Faster and more streamlined application process, with minimal paperwork
- Exclusive discounts for digital purchases
- Electronic delivery of policy documents for immediate access
- Easy access to customer support via email, live chat, or online portals
- Flexibility to make changes to your policy and manage your account online, 24/7
Add-Ons or Riders You Can Add to a New Car Insurance Plan
| Add-On/Rider | Description |
|---|---|
| Roadside Assistance | Provides assistance during breakdowns, flat tires, or emergencies while driving, including services like towing, fuel delivery, and battery jump-start |
| Zero Depreciation Cover | Ensures that you receive the full value of your car's parts during repairs without factoring in depreciation |
| Engine Protection Cover | Offers coverage for damages to the engine and its components, which are typically excluded from standard policies |
| Personal Accident Cover | Provides financial protection in the event of accidental death or disability of the insured driver or passengers, offering compensation for medical expenses, loss of income, and other related costs |
| No-Claim Bonus Protection | Safeguards your accumulated NCB in case you make a claim during the policy period |
| Key Replacement Cover | Covers the cost of replacing lost or damaged keys, including locksmith charges |
| Daily Allowance Benefit | Offers a daily cash allowance for alternative transportation (e.g., rental car, taxi) while your car is undergoing repairs following an accident |
| Consumables Cover | Covers the cost of consumable items such as engine oil, coolant, brake fluid, and nuts and bolts, which are typically not covered under standard car insurance policies |
Also Read: List Of Car Insurance Add-On Covers Available In India
How to Buy New Car Insurance?
New car insurance purchase can ensure the safety and protection of your vehicle on the road. However, going through a myriad of options available and considerations can often feel overwhelming. Here, we'll guide you through different ways of buying new car insurance, breaking down the steps involved.
Steps to Buy New Car Insurance Online
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Determine whether you want to buy directly from the insurer's website or through insurance aggregator platforms. Direct purchase can offer convenience, while aggregator platforms can provide the option to compare quotes from multiple insurers in one place.
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Collect relevant information about your new car, including its make, model, year of manufacture, etc.
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Determine the coverage and features that best suit your needs and budget. Consider comprehensive coverage, deductibles, add-ons, and policy exclusions when customizing your insurance plan.
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Start researching insurance providers and comparing quotes online. Request quotes from multiple insurance providers. Provide accurate information to ensure you receive accurate quotes tailored to your specific requirements.
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Review each quote carefully, comparing coverage limits, premiums, deductibles, and other features.
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Once you've compared quotes and evaluated your options, choose the insurance provider that offers the best combination of coverage, price, and customer service.
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Once you've selected a provider, proceed to complete the purchase of your new car insurance policy online. Follow the insurer's instructions for filling out the application form, making payment, and receiving your policy documents electronically.
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After purchasing your insurance policy, carefully review the policy documents to ensure all details are accurate and meet your expectations.
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If you have any questions or concerns about your policy, contact the insurance provider's customer support team. They can provide clarification, assistance with policy-related inquiries, and guidance on managing your insurance coverage effectively.
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Keep track of your insurance coverage and stay informed about any updates or changes to your policy. Review your coverage needs over time and adjust your new car insurance plan as necessary to ensure continued protection.
Steps to Buy New Car Insurance Offline
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Research local insurance agents in your area who specialize in new car insurance. You can find agents through recommendations from friends or family or by contacting insurance companies directly.
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Reach out to the insurance agents you're interested in working with and schedule consultations to discuss your insurance needs. During these meetings, agents will assess your requirements, provide information about available coverage options, and offer personalized recommendations based on your circumstances.
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Gather relevant documents, such as your driver's license, vehicle registration, and any existing insurance policies. This will expedite the application process and ensure that the agent has all the information needed to provide nearly accurate quotes.
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Discuss different coverage options available for new car insurance. Consider factors such as comprehensive or third-party coverage, deductibles, and optional add-ons or riders that may enhance your coverage.
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Request quotes for insurance policies that meet your requirements. Agents will provide quotes based on the coverage options discussed and any additional factors that may affect the new car insurance price, such as your driving history and the type of vehicle you're insuring.
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Review the quotes provided by different insurance agents in terms of coverage, premiums, deductibles, and any additional benefits offered. Pay attention to differences in coverage and pricing to determine which policy offers the best value for your needs.
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Once you've reviewed and compared quotes from different agents, select the provider that offers the most suitable coverage at a competitive price. Also, consider the insurer's reputation and claims handling process when making your decision.
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After selecting an insurance provider, work with the selected agent to complete the application process. Provide the required information or documentation to finalize the policy.
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Once your application is approved, you'll receive your new car insurance policy documents from the insurance agent. Review the policy documents thoroughly to ensure all details are accurate and you understand your coverage and obligations under the policy.
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Stay in touch with your agent and regularly review your coverage. Update your agent about any changes to your driving habits, vehicle, or personal circumstances that may affect your insurance requirements.
Steps to Buy New Car Insurance from RenewBuy
You can simply buy a new car insurance policy from RenewBuy in just a few steps. View plans available here and proceed with completing the policy purchase process.
What are the Documents Required to Buy New Car Insurance?
- Your identity proof (Aadhaar card, PAN Card)
- Vehicle Registration Certificate
- Car invoice
- Valid Driving License