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What to consider before opting for a new car insurance

Are you thinking of purchasing a new set of wheels? Or have you just bought one and can’t wait to take your new car out for a spin? Before you do so, you must have your insurance in place.

If this is your first vehicle, you will need to buy your car insurance before driving it from the lot. It is illegal to be behind the wheel without car insurance, and you will have to pay a hefty fine if you get caught. Want to know what else you need to consider before buying new car insurance? Read on to find out.

Understand your requirements

When you buy a new car, you need to understand the kind of coverage you will require. Doing so will help you determine what type of policy to take and which insurance provider to choose as well.

Say you reside in an area that is more prone to floods, or there has been a string of car thefts around your locality lately - you will need a Comprehensive policy to cover the damages to your own car.

Insurance premium

When you buy your car insurance, you get to set your new car insurance price. You can either just buy insurance to tick the box and avoid any legal consequences, or you can research the various plans available to find one that meets your requirements at the best price.

Since third-party liability insurance is mandatory, that is the most basic plan offered. It provides financial coverage in the case of third-party accidents or damage. If your own damage isn’t a priority and you’re looking to get the most basic insurance to start with, compare the third party car insurance price of different  insurance providers and find the best one for you.

If you’re looking for more coverage, you can opt for an Own Damage or Comprehensive policy. However, keep in mind that your new car insurance price might increase since these policies offer extended coverage.

IDV

Your car’s IDV (or Insured Declared Value) is an important factor to consider when buying insurance as it is what determines your compensation. With a new car, your IDV is calculated with the ex-showroom price of your car minus the depreciation (which is usually 5% for a new car). So effectively, your new car’s IDV will be 95% of your vehicle’s ex-showroom price.

Add-ons & Discounts

Sometimes your insurance policy might not cover all of your requirements. In that case, you can opt for an add-on. Different insurance providers offer a variety of add-ons that provide extra coverage to ensure maximum protection for you and your vehicle. Chola MS offers you add-ons such as engine protection cover, roadside assistance, and zero depreciation cover to ensure that you have adequate coverage.

You can also research the different discounts offered by insurance companies. Offers, anti-theft devices and deductibles can help you reduce your new car insurance price. Plus, who doesn’t love a good discount?

Insurance provider

And the final step is to choose your insurance company. Each company has its own policies with different coverage and a variety of benefits. You can research the various companies and plans available, calculate and compare the new car insurance price for all, and choose the best car insurance policy for you. After all, your new car deserves the best.

And that’s about it. Once you have your car insurance in place, you can cruise down the roads knowing that you’re well protected. Find the right policy for you  here.

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