car insurance policy

Generally, new car owners have a lot of doubts about car insurance. You can find some of the most frequently asked questions in this article, which will clarify your doubts about the car insurance policy. First and foremost, you must remember that buying car insurance is mandatory, and you will have flexibility when choosing the type of coverage and the company. You can purchase insurance directly from the insurance company agents or choose the insurance brokers who can offer multiple plans in one place. The paperwork required for such options is less, and you can quickly complete the transaction. Choose online car insurance as this can save you lots of money spent on insurance.

Is buying car insurance mandatory?

  • Buying car insurance is mandatory per the Motor Vehicle Act, and you will be penalized for driving the vehicle without proper protection. The traffic police can check any car running on the road for insurance papers. They impose a severe fine when the car is used without insurance coverage. The penalty will grow for repeat offenders, who can even be imprisoned for violating traffic rules. For this reason, you should at least be covered with a third-party insurance plan offering nominal coverage. As per the latest guidelines issued by IRDAI, buying insurance for the first three years is mandatory, and you need to pay the premium once for the first three years. After that, you can renew the policy in the usual way.
  • When purchasing your first car insurance policy, it's crucial to make informed decisions to protect your investment and ensure adequate coverage. As part of your due diligence, consider arranging a pre-purchase vehicle inspection in Brisbane. By opting for a comprehensive review from a reputable provider like SAB Safety Certificates, you can gain valuable insights into the vehicle condition you're considering insuring. This knowledge can help you make an informed decision and choose the appropriate insurance policy for your needs. For reliable pre-purchase inspection services in Brisbane, consider contacting SAB Safety Certificates.

Are there different types of insurance policies?

  • Every insurance policy sold in the market is different, and you must be aware of this fact while buying car insurance for the first time. Note that other plans offer different types of coverage, and you should choose them based on your budget for the insurance coverage and your individual requirements. Let us check the prominent types of car insurance plans available in the market.

Third-party coverage:

This is the basic plan you can get in the market and the most inexpensive option for customers. It offers coverage against legal liabilities that arise out of an accident situation. When your vehicle has caused damage to third-party property or life, you can use the policy to compensate the victims. You can get this cheaply by choosing third-party insurance online from reputed companies. However, the plan also has its share of drawbacks, and your vehicle will not be covered. This means that personal damage will not get any coverage, and you will have to pay all the expenses for your car from your pocket.

Comprehensive coverage:
This is an advanced version of the third-party cover, and you can get all the benefits of the third-party body in this plan. Along with that, you will even get coverage for your own vehicle, and this is the best option you can choose for new cars. However, it is slightly expensive when compared to third-party cover. In this regard, you can select this if you have a reasonable budget for the insurance policy. As the market value of the new car will be high, it makes sense to buy this for the first few years to get the best protection for your vehicle in the future.

Which policy is the best?

  • This question is tricky to answer, as it depends on various factors. Primarily among them is your individual need, and what suits one person may not be the obvious choice for another. You should understand the benefits of all the plans in the market and choose the optimum policy that offers good coverage for your car. Generally, it is a good idea to go for a comprehensive system for the initial few years as this provides a good range even though the cost is slightly higher than the third-party plan.

Can I buy car insurance from any company in the market?

  • As a consumer, you have complete flexibility and can choose car insurance from any company. As there are many companies in the market, it makes sense to use the online car insurance calculator so that you will have the details about all the plans suited for your car.

Can I choose the sum assured coverage for the car?

  • You need to understand that the maximum sum assured coverage offered for any car depends on the vehicle's market value. This keeps depreciating yearly, and your truck will get less coverage with time. You cannot choose the sum assured range as this is decided by the insurance service provider based on various factors.

Can I choose the tenure for the car insurance?

  • First-time car insurance buyers have no choice as per the latest guidelines by IRDAI. You have to buy compulsory insurance for three years at a stretch. After that, you can renew it annually or go for multi-year plans, depending on your convenience.

Where can I buy car insurance?

You can buy car insurance from multiple sources. Each has advantages, and you can choose any option that meets your requirements.
  • Buy from insurance companies: Most people new to the insurance market choose this option as they can quickly get in touch with agents of insurance companies at the car showroom. However, you must find a way to compare different plans this way, and you may pay more in such cases.
  • Buy from online brokers: This is a better option, and you can save a lot of money when you choose online car insurance for your new vehicle. This is also a convenient option as you need not visit any office, and all the transactions can be completed quickly. You can even compare different plans and choose the policy from any company.
  • Buy directly from insurance companies online: If you have zeroed in on any company, you can buy insurance through their official portal. Most reputed companies have this option, saving time and money. You can even use their online car insurance calculator to know the premium rates for different plans offered by the company.

How much does car insurance cost?

  • This depends on the type of insurance policy you choose for your car, and the cost will be significantly low for third-party coverage. However, the comprehensive coverage will be slightly higher but offers better protection than the other options. You can use the online car insurance calculator available at reputed insurance portals and get some idea about the cost of car insurance.

Can I get compensation for repairs and general maintenance?

  • You will usually only get coverage for general maintenance and mechanical repairs. Resume that the insurance policy will only offer compensation when some untoward incident happens to your vehicle and the car owner has to take care of general maintenance like servicing and other tasks.

Will the car insurance policy cover the life of passengers?

  • You must choose specific add-on coverage with the comprehensive plan to get coverage for the passengers. A few add-on covers offer good protection in such cases, and you can buy them by paying an additional premium along with your comprehensive plan.

Is it mandatory to renew the policy later?

  • Yes, it is mandatory to have continued coverage for your vehicle throughout its lifetime. Once the policy expires, your vehicle will lose coverage, and you will be putting yourself and your car at risk. For this reason, you should always renew the policy before its expiry to avoid many problems.

Will the insurance company pay compensation if the car is stolen?

  • It is possible to get compensation for the complete loss of a vehicle due to theft when you have exclusively chosen the theft cover along with your comprehensive coverage. Even though this costs additional money, choosing such options for new vehicles is worth it.

Is coverage offered for damages due to natural disasters?

  • When you buy a comprehensive insurance plan, your vehicle will be covered for damages due to natural disasters like earthquakes, storms, heavy rain, and floods. You can even get coverage for fire accidents with such coverage.

Is there any difference in coverage if I buy the policy online?

  • The features are the same when you buy the policy online. The only difference may be in price, as you can get cheaper deals with online brokers than regular insurance agents.