Buying a new car for the very first time will be very special to you for a long time. But what is important for this special car to be running well and secured for years is a car insurance policy. Although many car owners do not take it seriously, motor insurance is the most important responsibility when you own a car.
What exactly is motor insurance?
Motor insurance or car insurance is a very convenient medium of safeguarding yourself and your car against unfortunate accidents leading to losses. In India, under The Motor Vehicles Act, 1988, it is mandatory for all cars to have a valid car insurance policy.
If you are a first-time car insurance buyer, then you need to know the value of a car insurance policy before you buy one. You must understand all the information given by the insurer regarding car insurance, only then you can go ahead and purchase it.
We have created a go through guide for first-time car insurance buyer so that they can know the significance of the car insurance policy and how it will secure you from accidental expenses.
- Know the Car Insurance policy Lingo:
To know the coverage offered by your chosen car insurance policy, you must know the frequently used terms in the documents. So here we help you with the decoding of words that are mentioned in your car insurance lingo.
- First -party: The person who is buying insurance for his newly bought car is called the First-party.
- Second -Party: An insurance company that is insuring the car is said to be the Second-party.
- Third-party: If a person is injured or affected in any way by the car that is insured is the Third-Party.
- No Claim Bonus (NCB): If a claim is not raised by the owner of the car or by the third party within the active policy period, then the insured will receive the advantage of a discounted premium on car insurance renewal.
- Own Damage (OD): If the owner faces any injury or damage is caused to the insured car, then it is termed as Own Damage.
- Insured Declared Value (IDV): Insured Declared Value is the current market value of your car. You need to know the Insured Declared Value of your car as it decides the premium amount over the years.
- Claim Settlement Ratio (CSR): This is the ratio of the number of claims settled to the number of claims received in one year by the insurer. Future Generali is an insurer with a high claim settlement ratio for the motor insurance it offers.
- Add-ons: Add-ons are the additional coverage options available with your car insurance policy.
- Depreciation: Depreciation is the decreasing value of your car.
- Types of Car Insurance Policy
There are two types of car insurance policies for you to choose from namely, Third-party car insurance or Comprehensive car insurance. Out of these two, Third-party car insurance is mandatory under the Motor Vehicles Act, 1988. The Third-part motor insurance covers for all the loss or liabilities caused to the third party due to the accident.
Whereas the other type of insurance names as Comprehensive car insurance facilitates better coverage than the third-party insurance. It has the coverage similar to the third-party insurance but also covers in case of Own Damage as well as thefts, fire, natural or man-made calamities.
- What kinds of add-ons are offered?
When you buy or get a car insurance renewal, you also have the option to customize it with some add-ons. There are several add-ons offered. Here we list a few general one is for you to understand.
- Roadside Assistance: Your motor insurance will offer you with services like towing, minor repairs, fuel, battery, jumpstart etc.
- Engine Protection: Insurance covers the expenses of repairing or replacing the engine of the car.
- Return to Invoice: The amount mentioned on the total invoice ien case of a total loss to the car will be compensated.
- Consumable Cover: The consumable cover add-on includes the repairing or replacing of consumables such as nuts and bolts, engine oil etc.
- Loss of Personal belongings: Under this add-on, you can raise a claim for loss of expensive personal belongings like a smartphone or a laptop.
- NCB protect: A No Claim Bonus can be retained even after claiming with this add-on.
- Always Compare before you buy
Just like you spend time selecting the car and then the variants of the car, it is necessary to choose your car insurance policy carefully. Before you purchase it, compare it with what other insurers are offering in their car insurance plans. Choose a similar type of coverage that you require and compare other aspects to come up with a decision. Always select a reputed insurer and for further satisfaction, read the reviews of already policyholders available online and then confirm.
- You can opt for voluntary deductible
If you want to reduce your car insurance premium, you can opt for voluntary deductibles. If you opt for sharing of repair expenses on the claim, then it will result in a lower premium.
- Know about the dealer insurance
When you purchase a car, the dealer offers you a car insurance plan with it. Always try to know more about what the dealer is offering you, at times it may not be that beneficial and it may not be cheap as well. So as it is not compulsory to buy motor insurance from the dealer, make sure you go online and compare different insurance plans well.
- A bundled car insurance can save you money
You can insure all the cars in your garage together, this will save you a lot of money. Bundling the insurance of your cars can provide you with discounted premiums for all your cars.
- Always have a check on renewals
After you have bought motor insurance and customized it with all the add-ons you need, you must track the renewals. This will help you in availing a discount on the car insurance premium when no claim is raised. Buying a car insurance plan online with Future Generali can make it much easier for you to track renewals.
Future Generali offers the best Car Insurance plans if you are buying insurance for the first time or even looking out for car insurance renewal. We offer bonus and discounts that include No Claim Bonus offers, Voluntary Excess Discounts, Anti-theft devices discounts and transfer of NCB. Connect with Future Generali online and we will help you find the right Car Insurance Plan.