The day when you bring home a new car is a special moment, and you might feel eager to finish the paperwork and get on the road. Nevertheless, your insurance options should also be closely considered before you get everything finalized.
A well-prepared car insurance checklist helps you review key aspects such as coverage, policy type, and insurer reliability, ensuring you make an informed decision. Keep reading to know more.
6 Point Checklist for Car Insurance: Key Things to Consider
Here are a few things you need to check in car insurance before taking your new car home:
- Choose the Right Type of Car Insurance Policy
Before taking delivery of your new vehicle, you should secure a suitable policy. Focus on selecting a plan that offers the right level of protection while aligning with your budget and usage needs. Here are the key policy options to consider:
- Comprehensive Car Insurance Policy: It covers both damage to your personal vehicle and third-party liabilities. It also covers accidents, theft, and natural disasters, and in most cases is accompanied by personal accident cover. This is the most reliable option if you desire well-rounded security.
- Third-Party Insurance:
A third-party car insurance is a legal requirement under the Motor Vehicles Act, 1988. It only covers liabilities arising from injury, death or property damage caused to a third party. However, it does not cover any damage to your vehicle, which limits its overall protection. It is ideal for those
who want flexibility or already have third-party insurance in place for high-value vehicles.
- Check Add-Ons
Enhance your policy by selecting add-on covers that offer extra protection beyond the standard plan. A zero depreciation car insurance add-on helps you avoid deductions on claim amounts caused by the ageing of vehicle parts.
You can also consider options like engine protection and consumables cover. These add-ons safeguard components and expenses that a basic policy does not include. Although these add-ons may slightly increase your premium, they can improve your financial protection.
- Check Insured Declared Value (IDV)
The IDV represents the amount your insurer will pay if your car is stolen or suffers irreparable damage. It is not the same as your car’s resale price. Since insurers may quote IDVs, you should assess your car’s current market value and select a policy that offers an IDV close to it. This ensures you receive a payout in case of total loss.
- Check No Claim Bonus (NCB)
You receive an NCB in car insurance upon completing a policy period without any claims, which is useful in lowering your premium over time. You are supposed to select an insurer who will enable you to enjoy this advantage even when you change the insurer. Moreover, you also need to check whether this bonus can be transferred when you sell your car.
- Check Garage Network
A wide network of authorised garages is essential. It ensures you can access cashless repairs conveniently, wherever you are. This helps to reduce both downtime and expenses during emergencies.
- Review the Claim Settlement Ratio
If you require service at a garage outside the network, you might need to pay upfront and be reimbursed later. In such cases, the insurer assesses your claim before settling the amount. To minimise uncertainty, choose an insurer with a strong claim settlement ratio. It reflects higher reliability in processing claims efficiently.
Selecting the right policy before driving your new car home is as important as the purchase itself. A well-thought-out car insurance checklist helps you review all essential aspects of your policy, from coverage and add-ons to claim reliability and long-term benefits.
By taking time to evaluate these factors, you can save money on your car insurance and also safeguard yourself from unexpected financial stress.
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