Auto Insurance Tips for First-Time Car Buyers – Chola MS

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If you are buying a car for the first time, choosing an insurance policy can be quite difficult and here are some tips to simplify this process. Read to find out more.

If you are buying a car for the first time, choosing an insurance policy can be quite difficult and here are some tips to simplify this process. Read to find out more.

Buying a new car is a big milestone for many. It is an important part of life and it is important to secure the car by choosing the right one. car insurance Politics. If you are buying a car for the first time, choosing an insurance policy can be quite difficult and here are some tips to simplify this process.

Understand the different types of car insurance policies

Third party insurance – This car insurance policy is compulsory under the Motor Vehicles Act 1988 and provides protection against liability arising from an accident involving a third party person or property. If someone drives without valid liability insurance, they can be fined heavily or jailed.

Own damage insurance – This is a policy that covers damage to the insured vehicle. Since the third party is mandatory, this policy will not suffice. Separate liability insurance will be required.

Back to back insurance – This insurance policy covers own damage, total loss or damage caused to the insured vehicle by theft, explosion, fire, natural disasters, etc., and civil liability. This is an all-inclusive policy that covers everything under one premium.

Understand your insurance requirements

Purpose of the vehicle – Understand the use and purpose of the vehicle before choosing the insurance cover. If you rely heavily on your car and travel in heavy traffic every day, you may need higher coverage.

Financial affordability – The insurance cover directly reflects on the insurance premium that one has to pay. It is best not to be over-assured or over-assured for very little.

Compare products online

There are several insurance companies available today and choosing the most reliable and efficient insurance company can be a daunting task. One can visit the official website of these insurance companies or read about them on the insurance comparison sites. Policies should be compared on various parameters such as coverage, claims settlement, additional benefits, etc. One should also read customer ratings and reviews to get a better idea of ​​the insurance company.

Choose the right add-ons

Additional covers can be included to enhance policy coverage by paying an additional premium. Some of the add-ons available are zero depreciation cover, return on invoice, engine protection cover, roadside assistance cover, consumables cover, etc. It is important to choose only necessary add-ons because each add-on is an extra. Cost.

Understand the insurance conditions

When buying insurance, one can be confused due to the jargon used. It is important to be aware of certain insurance conditions that affect the performance of the policy. Here are some examples:

VDI This stands for Insured Declared Value, and it is the total amount the policyholder will receive in the event of total loss or damage to the car. The IDV directly reflects the premium to be paid.

Franchises There are two types of deductibles to be paid, mandatory and optional. A mandatory deductible is a minimum amount that must be paid to initiate an insurance claim. A voluntary deductible is an amount that policyholders can choose to pay if they are willing to share some of the financial burden.

NCB No Claim Bonus is a discount offered at the time of auto insurance renewal for completing a claim-free year. One can benefit from up to 50% reduction on their insurance premium.

Understanding policy exclusions

It is important to understand what is excluded from the insurance policy. Many situations such as losses due to war or outside the geographical territory will not be acceptable to the insurer. It is better to be aware of all these conditions before buying a plan.

Understanding insurance these days is simple, thanks to advances in technology and the development of new-age insurance companies. Make sure you know the inclusions and exclusions, read the terms and conditions before buying a car insurance policy.

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