Choose the right policy, not just the cheapest one! Pay special attention to these things when purchasing car insurance; these smart tips will come in handy!
If you're buying a new car, consider not just the price and model, but also the right insurance plan. Instead of buying a policy directly from the dealer, compare online, choose add-ons based on your needs, and opt for a long-term plan. This will not only save money but also provide better and longer-term protection for your car.
Buying a new car is a big and exciting moment for anyone. While you carefully choose the car's model, features, and color, most people rush into choosing an insurance policy.
This is where many buyers lose money. People typically purchase car insurance from the dealer because it seems easier, but did you know that you can choose your own insurance and save a lot of money?
It is not necessary to buy insurance from the dealer.
Many dealers include diesel insurance as a package when selling a vehicle. This makes the customer believe it's mandatory, but it isn't.
According to IRDAI regulations, customers can choose a plan from any insurance company. Dealer insurance often involves commissions and limited options, resulting in higher premiums.
If you buy insurance online, you can compare plans from multiple companies, view add-on covers, and choose the best coverage. To give you an example, if Diesel offers a plan for ₹25,000, the same policy can be found online for ₹18,000, a direct savings of ₹7,000.
Benefits of buying insurance on your own
When you buy a policy yourself from an insurance website or digital platform, you can choose add-on covers as per your needs, such as zero depreciation, return to invoice, road assistance, engine protection, etc. There are no commissions and the process is completely transparent.
It is better to take a long-term plan
Car insurance is typically purchased for one year, but renewing it every year can be cumbersome. In such a situation, a 3-year long-term insurance plan is more beneficial.
It not only eliminates the hassle of annual renewals but also offers a 10 to 15 percent premium discount. For example, if a one-year policy costs ₹18,000, a 3-year plan can be purchased for ₹48,000, a direct savings of ₹6,000.
Third Party vs. Comprehensive Insurance
In India, third-party insurance is legally required for every vehicle. This policy compensates for damage caused to another person in a road accident.
However, note that it does not cover damage to your own car. If you also want to ensure the safety of your car, it is better to purchase a comprehensive policy. This covers not only third-party insurance but also damage to your car, theft, fire, or natural disasters.
Don't decide just by looking at the price.
Many times, people choose only a third-party policy to save a few thousand rupees. However, if your car is new and an accident occurs, the entire cost of repairs will be borne by you. It's always wise to opt for a comprehensive policy by paying a slightly higher premium.