How to Purchase Insurance Policy For New Car Vs Old Car
Read more to know how to purchase Insurance Policy of For New Car Vs Used Car.
Buying a car insurance policy has become a cakewalk nowadays, as there is a number of car insurance companies available in the market. Even, the process is now as easy as pie; can be done in a few clicks since there are many online providers you can find. As we all know that getting insured with a third party insurance policy is a legal requirement to drive cars on the Indian roads, but it does not come equipped with all the necessities that a car owner requires in a policy.
A third party/liability only policy only ensures coverage for third party bodily injury, death and property damage up to Rs. 7.5 lakh caused by the insured’s car. But, in an unfortunate event, an insured might face own property damage or injury for which there is no financial protection. For this, he has to take a comprehensive policy where there are also several add-ons to protect more in some specific scenarios. However, whether you purchase a new car or an old second-hand car, you have to be insured and renew the policy on time. There is a little difference between the process of purchasing a policy for a new car and a second-hand car and they are explained in this article.
How To Buy Car Insurance Policy For A New Car
- Assess Your Requirement
- Compare Several Car Insurance Policies
- Choose Your Add-ons
- Purchase Your Policy
1. Assess Your Requirement
The very first step of the process is a vital one as you have to understand which model of which company will serve your purpose. We all have different requirements when it comes to purchasing a car. Some people have huge families, thus need a big car, or some people need a car for travel purposes, so a small car will fulfill the requirements. It also includes which car insurance policy you should take. In this case, the experience of driving matters the most.
2. Comparison of Several Car Insurance Policies
The second step involves the comparison of several insurance policies before going to purchase an ideal plan. You can check any online platform including our Insurance Dekho, where we use a comparison tool to help you calculate the premium amount of different plans of different companies. You should research the different terms related to the car insurance policies as it will help you at the time of buying.
3. Choose Appropriate Add-ons
Choosing appropriate car insurance add-ons coverage might be a difficult task for you as being a driver of a new car or a first-time driver you could face a lot of problems while deciding which add-ons will be appropriate for you. For this also, you have to research the different add-ons available with a comprehensive car insurance policy and compare the amount which you have to pay for these.
4. Purchase Your Policy
It is the last step as it involves only the payment and verification of the documents. It is recommended to read all the papers thoroughly before making the final payment.
How To Buy Car Insurance Policy For Second Hand Car
The process of purchasing a car insurance policy for a used car is slightly different from the former one, as the first three steps involved with finding the car you want, determining whether you will opt for a new policy or the old one and if you want a new one, there will be another step to inform the old insurance company.
Buying an old car or a used car saves a lot of money as they are priced lower than the new cars. Though you still need to carry a valid car insurance policy as per the law. After finding the right car of your choice you have to determine whether you will continue with the old insurance or purchase a new plan. If you are planning to continue with the old, then the policy paper needs to be transferred to the new owner. Sometimes it becomes a difficult task to change the features and the type of policy before it ends. But, on request, the insurance companies might provide the option for endorsements.
However, if you do not want to change the name in the papers, you can get a new insurance policy for the old car. In that case, you have to inform the old insurance company to request for endorsements.
After this, the remaining steps of the process are the same as the process of buying a policy for a new car.
For further reading:
Disclaimer: This article is issued in general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.