First-time Car Buyer? A Guide to Help You Choose a Suitable Vehicle Insurance

As a first-time car buyer, you enjoy the convenience of travelling on your own transportation, not being required to encounter crowds in public transport. However, you should not neglect the need for good four-wheeler insurance. If a mishap occurs that results in damage to your vehicle, your vehicle insurance will provide the required financial safety.

You have the advantage of buying car insurance online rather than going through the hassle of purchasing it offline. Here is a guide that will help you select the most appropriate car policy for your vehicle.

Tips That Will Help You Select a Suitable Vehicle Insurance

The following are some useful tips on how to choose car insurance for proper financial coverage of your vehicle.

Know the Different Car Policy Types

Today, car insurance is more than a mandatory expense; it portrays your preferences and style. Before selecting an insurance policy for your vehicle, you should know about the different types of car insurance policies.

• Third-party Car Policy – This policy provides coverage for the damage that your vehicle causes to a third party. It is legally mandatory to own this insurance policy.
• Own-damage Car Policy – The own-damage car insurance covers your own vehicle when it is damaged because of natural or man-made causes or due to accidents.
• Comprehensive Car Policy – This policy provides coverage for third-party and own damage.

Important Add-ons for Your Car Insurance

When looking for the best online car insurance policy, it is recommended that you opt for a comprehensive policy, as you can include add-ons for extra financial protection of your vehicle. Some of the add-ons that you can include to your policy include:

• Zero Depreciation Cover – This ensures that you get the full value of your car without deducting its depreciated value when raising a claim.
• Engine Protection Cover – This covers the expense of repairing or replacing your car’s engine when it is damaged.
• Roadside Assistance Cover – This provides emergency roadside assistance in case of accidents or breakdowns.
• Consumables Cover – This covers the cost of repairing or replacing consumables, like oils, bolts, nuts, etc.
• Return to Invoice Cover – This ensures that you receive in compensation the original price you paid when you purchased the car.

Compare Insurance Prices

It is recommended that you compare car insurance policies by different insurers instead of purchasing a policy from the first insurer you come across. Nowadays, insurers offer you the advantage of using their online car insurance calculator to know their premium quote.

Compare these quotes to know which insurer offers you the most affordable car policy. However, do not forget that just because a policy is less expensive, it is the most appropriate one for you. A car policy with proper coverage and an affordable price is what you should look for.

Learn about IDV and Premium

Once you have completed making a car insurance quote comparison, you must focus on the different terms used in this insurance policy. Insured Declared Value, which is the current market value of your vehicle, is a commonly used term and you must be aware of it.

Another term that you will come across is car insurance premium, which is the amount that you have to pay to your insurer to get coverage for your car.

Know What No Claim Bonus is

Another aspect to consider before you find the best car insurance for your vehicle is the No Claim Bonus. NCB is a reward you earn for not making any claims in a particular policy year. This reward can be used to lower the insurance premium cost during policy renewal, thereby saving you a significant amount.

Find out What Voluntary Deductible Means

The amount that you have to pay as a policyholder at the time of claim settlement is known as a voluntary deductible. If you choose a high voluntary deductible, your premium cost will be low and vice versa.

Conclusion

Finally, you have to know about your insurer’s reputation by reading customer reviews and finding out their claim settlement ratio. If the company is known to settle most of the claims, its claim settlement ratio will be high, which means you can trust the insurer to pay your claims.

The above-mentioned tips will surely guide you into buying the right four-wheeler insurance for your first car.

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