Important Factors to Consider While Getting Your New Car Insured

Posted by Sonia Nagpal on January 5th, 2016

There is more to being a responsible car owner than being a responsible driver and taking good care of your vehicle. Uncomfortable as it may be to think about it, it is highly likely that your car will get damaged someday. It may be an accident, a branch falling on the hood, a pebble cracking your windshield or a number of other possibilities. Repairing or replacing components and parts is expensive, especially if you buy a luxury car or if the spares for your car are rare. To protect yourself from such expenses and losses, a comprehensive car insurance policy is a must.

Comprehensive car insurance covers a wide range of potential losses and liabilities. This includes the cover for liability due to the third party and personal vehicle damage in accidents. In addition, it also covers the following:

•             Damage from vandalism

•             Theft of the vehicle or parts

•             Collision with animals and birds

•             Windshields and mirror damage

•             Damage from fire, whether caused due to a car component failure or external reasons

•             Damage from floods, water clogging, etc.

•             Damage caused by weather and natural disasters like hail, high winds, cyclones, earthquakes, etc.

•             Damage from falling objects or missiles

However, the insurance will not cover damages due to natural wear and tear as the car ages, mechanical or electrical breakdowns, or damage to the tyres and tubes. No claims are allowed for instances that involve driving without a valid license or driving under the influence of drugs or alcohol. As with all kinds of insurance, there is no cover for damage or loss caused due to nuclear or conventional war.

The other option is to go for third party liability insurance, which is legally required in any case. However, it only covers the cost of damage to the third party vehicle and their occupants. This may be viable for low-value cars where the cost of repair is less than the premium, but usually does not make sense for a new car.

Other important things to consider are briefly outline here.

•             Premium Cost: The premium cost will be higher for comprehensive coverage, and will be even higher for luxury cars and high-end models. Several other factors will determine premium cost, but this is the primary parameter

•             No Claim Bonus: Some insurers provide a No Claim Bonus (NCB) if there is no claim made. This accrues over the years and can be claimed upon renewal or transferred to a new car

•             Voluntary Excess: Some policies offer the option for voluntary excess. This can lower cost, but be sure to strike a good balance between cost and affordability

•             Road Side Assistance: If you opt for this feature, expect your costs to rise. If you have other cheaper and dependable services that can offer the same service, it is safe to opt out

•             Commercial vs. Personal Vehicle: The cost insurance for commercial vehicles is higher than personal vehicle, but since it is more likely to be damaged, it also makes practical sense to opt for more coverage

•             Safety and Security Devices: Installing anti-theft systems can lower the cost of the premium and even get you better coverage options

About the Author:-

Suggestinsurance.com is the online identity for IRDAI approved insurance broker – S B Insurance Brokers Pvt Ltd. On SuggestInsurance.com we offer quotes from leading insurance companies and let the customer explore the insurance plans, get their details, view and study brochure and other documents, compare features and benefits of these plans side by side and then take a decision.

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