When you buy a new car you do a lot of research, gather information and even ask for opinions from friends and keep an eye on the latest features and models before making a decision. But often you…
When you buy a new car you do a lot of research, gather information and even ask for opinions from friends and keep an eye on the latest features and models before making a decision. But often you do not give much thought to the insurance that will protect your vehicle in every way. This doesn’t just apply to new vehicles, older vehicles also need to be insured. Whether your vehicle is new or old, motor insurance is not only legally required but also extremely important for your and third party’s safety. The Motor Vehicles Bill, 2019 has made insurance mandatory for all vehicles before they hit the road.
Car insurance is necessary
When you’re driving, there’s always a risk of uncertainty. It could be something serious like an accident or something as simple as a vehicle breakdown. Your motor insurance is the shield that protects you and your vehicle and makes your life easier. Telling you what not to do while buying new motor insurance or renewing the existing cover-
Accepting the first insurance offered by the dealer without thinking – It is natural to go with the first insurance plan you get from the dealer. You may find that dealers have commission-based partnerships with only a few insurance companies, limiting your options. Also, the extent of coverage and features may be limited in this case. So, spend your insurance money wisely by comparing policies online before making a decision.
Relying only on third party insurance – This can apply to both first-time car buyers and those looking to renew their policy. Third-Party Insurance (TPI) takes care of any damage caused to your vehicle by a third party. However, this is only the minimum you should have. This may save you from hefty fines but will not cover any damage caused to you or your own vehicle. If you have a new vehicle or if you rely only on TPI, you should opt for comprehensive insurance with adequate coverage and features.
Not opting for riders or add-ons – Often, new vehicle owners are not aware of the riders they can opt for for their vehicle. After choosing a policy with adequate coverage, you should make it good by adding riders. There are some damages which are not covered by the policy but can be added with riders like Roadside Assistance Cover, Zero Depreciation Cover (Bumper to Bumper Cover), Engine Depreciation Cover or No Claim Bonus Protection Cover. These riders are not available only with third party insurance. ,
Forgetting to renew the policy on time – If you forget the renewal date and grace period, then this mistake can cost you dearly. If you do not renew the policy on time, it will lapse. Additionally, renewing your insurance after the due date will require you to go through the documentation again. It is quite possible that your renewal may be rejected depending on the condition of the vehicle. Renewing your policy within the stipulated time will save you from every hassle.
No-Claim Bonus – Your policy has a no-claim bonus, a discount on your premium on renewal in case there is no claim. As per the rules, you can get up to 20% discount on your first year without any claims, 25% for two years, 35% for three and 45% for four years. Keep this in mind.
Giving false information or hiding information – While renewing the policy, do not hide any information, do not give false information about the condition of the vehicle or yourself. Doing so is counted as a serious crime and falls under the category of insurance fraud. This may result in heavy fine or even imprisonment. If you wish to change any information, you must do so at the time of renewal.
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