While third-party insurance is mandatory, it is advisable to buy a comprehensive motor insurance product to ensure complete protection of your vehicle.
Owning a car has been associated with endless possibilities and a sense of freedom. At the same time, owning a car needs adequate knowledge and funds for a hassle-free ownership experience as car ownership comes with a lot of responsibility. Here are some tips for first-time car insurance buyers.
Before your beloved vehicle hits the road, one has to buy a third-party motor insurance policy as well. It is a basic insurance cover that protects the policyholder against any damages that could occur to a third person’s property. Also, driving without a valid insurance policy may attract a huge penalty as new cars are mandated to have a 3-year third-party cover and 2-wheelers must have a 5-year third-party cover.
Buy comprehensive motor insurance
While third-party insurance is mandatory, it is advisable to buy a comprehensive motor insurance product to ensure complete protection of your vehicle as it covers damage caused to one’s own property due to natural disasters such as floods, cyclone, and earthquakes.
Research and find the best for your vehicle
Your car dealer may offer you insurance options at the time of purchase but don’t always go by what the dealer is offering and look at insurers’ websites to compare premium costs and go for a plan that suits you best.
Check insured declared value (IDV)
Another important thing that you must look at carefully is the insured declared value (IDV) of the vehicle. IDV is the amount your insurer will pay in the unfortunate event of your car getting stolen or bearing irreparable damage. Some useful add-ons include Zero depreciation cover, return to invoice cover, consumables cover, roadside assistance, engine/tyre protect cover, among others.
Based in New York, Stephen Freeman is a Senior Editor at Trending Insurance News. Previously he has worked for Forbes and The Huffington Post. Steven is a graduate of Risk Management at the University of New York.