By Venkatesh Naidu

Buying your first car is a dream come true for many. It not only provides a sense of independence but also adds to your social status. Owning a car brings a lot of responsibilities along with it, and one of the most important responsibilities is to buy your car insurance policy.

A car insurance policy is mandatory as per the Motor Vehicles Act, and it is also important to renew it on time to ensure the coverage of your car is not affected. Car insurance is not just a legal requirement, but also an important safety net for your vehicle. When buying your first car’s new insurance, there are a few things to keep in mind to ensure that you make an informed decision and get the best possible coverage.

Know the Types of Insurance Policies

There are two types of motor insurance policies in India – Third Party Liability and Comprehensive Cover. Third party insurance covers the damages caused to other people or their property due to an accident. Comprehensive cover, on the other hand, offers all-round coverage and includes both third-party and own damage cover. It is advisable to opt for a comprehensive cover as it offers complete protection.

Compare Policies

It is always a good idea to compare policies from different insurers before making a purchase. Look for policies that offer maximum coverage at an affordable premium. You can use online insurance comparison websites to compare policies from different insurers and choose the one that best suits your needs.

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Choose the Right Insured Declared Value (IDV)

The Insured Declared Value or IDV is the maximum amount that the insurer will pay in case of total loss or theft of the car. It is important to choose the right IDV as it determines the premium you pay. If you choose a lower IDV, you will pay a lower premium, but in case of a total loss or theft, you will receive a lower claim amount.

Check the Add-ons

Insurance add-ons are additional coverage options that you can opt for along with your basic policy. These add-ons come at an additional cost but offer enhanced coverage. Some common add-ons include engine protection, roadside assistance, zero depreciation cover, and personal accident cover. Check the add-ons offered by different insurers and choose the ones that best suit your needs.

Read the Policy Document Carefully

Before finalizing your insurance policy, read the policy document carefully. Make sure you understand the terms and conditions, coverage details, exclusions, and claim process. If you have any doubts or queries, do not hesitate to ask your insurer.

Renew your Policy Timely

Finally, make sure you renew your car insurance policy on time to avoid any lapse in coverage. Most insurers offer a grace period of 30 days after the policy expiry date for renewal. If you fail to renew your policy within this period, you may have to pay a higher premium or lose out on the accumulated benefits.

In conclusion, buying your first car’s new insurance can be overwhelming, but by keeping these factors in mind, you can make an informed decision and get the best possible coverage for your vehicle. Remember, insurance is not just a legal requirement, but also a safety net that protects your car and your finances in case of unforeseen events.

(The author is CEO, BajajCapital Insurance Broking Ltd. Views expressed are personal.)