Brand New Car Insurance Cost in India
The cost of a brand new car insurance policy in India would be a little higher than the cost of an insurance policy for a pre-used car. This is because the more valuable a vehicle is, the more valuable the insurance cover is as well. The risk associated with a new vehicle is higher and this is another reason for the higher premium. Take a look at this article to know all about car insurance premiums and how you can choose the perfect policy for your brand new car in India.
New Car Insurance Cost
There are many car insurance companies in India that offer car insurance plans. Most of them offer both third party liability plans as well as comprehensive plans. The different plans are priced differently. This is a reason why you need to compare the brand new car insurance quotes and find the best plan at the best rate.
Things to Consider
Before you buy a car insurance plan for a new vehicle that you just purchased, keep the following points in mind and then choose accordingly:
- Compare the quotes
It is very important for you to compare the various car insurance quotes before you choose your ideal plan. When you compare, you get to see the best plan that is available at the most economic rate. This helps you to make a smart purchase and also have an excellent brand new car insurance plan.
- Pick the right type of cover
Car insurance is available in many forms. This includes the third party liability cover, the own damage cover and the comprehensive cover. As you have a new car, it is highly advisable for you to have a comprehensive plan. You need to cover your vehicle, as well as get all other aspects associated with car insurance as a new car owner. Compare between the comprehensive new car insurance plans to get the best and the most effective results.
- Compare the insurers
As mentioned above, there are many insurance providers that offer car insurance policies. You need to compare the reviews and ratings of the insurance providers to see which is the best insurer. This is important because the best insurance provider will have an awesome customer support team who can help you as and when needed. Also, a good insurer will have a high claim settlement ratio, which will prove to be beneficial for you in the long run.
- Check the claim process
You also need to evaluate the claim process of the brand new car insurance policy that you buy. If the claim process is complicated, you will face many issues during a claim. It is a new car and you may need to make claims frequently, you make sure the plan you buy has a simple and straightforward claim process.
- Consider getting riders
A new car needs to be covered in the most comprehensive way possible. To ensure this happens, you need to add some riders to your new car insurance plan. This is important because riders make your plan more flexible and customised. Explore all the available riders and choose the ones that suit you the best.
- Look at long term insurance
Since you have just purchased the vehicle, you would surely want to keep it with yourself for the next few years. It is therefore a very good idea for you to opt for a long-term car insurance cover. The long-term plans prove to be more economical and also protect you from issues such as forgotten due dates, etc. So get a long-term comprehensive car insurance policy and stay doubly secured.
- Buy online
Last but not the least, you should consider getting a new car insurance plan online. It is very useful for you to buy insurance online. Firstly, you get the plan at a cheaper rate. Then, you get to compare and make an unbiased decision. This helps you in getting the best car insurance plan in a quick and simple manner.
If you buy your brand new car insurance plan after keeping the points mentioned above in mind, you will surely be able to get the best coverage with all the features you need, and you will also pay the best price for it.
There are some excellent car insurance add-on covers that you can get along with the car insurance plan for your new vehicle. The most popular car insurance riders are:
- Engine protection rider
The engine protection rider is one of the most important add-on covers that you should get, especially when you have a new car. This protects the most important component of the vehicle – the engine. Unfortunately, comprehensive car insurance plans do not offer any coverage for engine damage. This is why you need to get this beneficial rider to keep the engine of the vehicle secured at all times.
- Zero depreciation rider
The zero depreciation rider is another important rider to consider. With time, your vehicle ages and so the value of the car falls. When you make a claim, this depreciated value is taken into consideration and the claim amount is subsequently less. To avoid this from happening, make sure you take the zero depreciation rider and the value of your car and its parts will not be depreciated in value during a claim.
- Personal accident rider
The personal accident rider is a very handy rider to have. If you die in a road accident, your family stands to get a sum assured under this rider. Also, if you get permanently or temporarily disabled, then also some compensation is paid out. Life is unpredictable and road accidents happen even when you drive carefully. As a result, this rider proves to be very beneficial, especially if you are the primary breadwinner of your family.
- Roadside assistance rider
The roadside assistance rider promises to send a mechanic to you if your car breaks down in the middle of the road. If the mechanic fails to fix the problem, the insurance provider sends a towing vehicle that takes your car to the nearest garage. This is a very beneficial rider to have.
- Vehicle replacement rider
If your new car gets damaged beyond repair following an accident or due to fire or even a natural calamity such as an earthquake, the insurance provider will compensate for the damage and offer the entire price of the vehicle to you when you make a claim. You can then purchase a brand new car and replace the vehicle that has been damaged beyond repair. The same holds true when the car is stolen and cannot be traced by the police.
Do remember here that every rider is available at an added cost. This is why you need to evaluate your needs and determine which riders you need. You may not need to attach every single rider to your brand new car insurance plan, so choose wisely and pay the correct premium.
Comparison Table of top Car Insurers
When you buy a car insurance plan, it is important to compare the insurance company too. The price should never be the only criteria based on which you should buy the new car insurance plan. Check out the claim settlement ratio of the car insurance company, the features on offer and also the price and only then will you find a good insurance cover. Here is a table of comparison of the leading car insurance providers of the country:
|Name of insurer||Claim settlement ratio||Network garages|
|IFFCO Tokio General Insurance||95.3%||4400|
|Royal Sundaram General Insurance||92.6%||4700|
|The Oriental Insurance Company||91.7%||3200|
|HDFC ERGO General Insurance||91.2%||6800|
|Tata AIG General Insurance||90.5%||5100|
|New India Assurance||89.6%||3100|
|SBI General Insurance||89.5%||16,000|
|Bajaj Allianz General Insurance||88.8%||4500|
|Cholamandalam MS General Insurance||85.8%||7200|
|Go Digit General Insurance||80.4%||1500|
As you can see, the different car insurance companies have different claim settlement ratios. Also, the number of network garages differ from insurer to insurer. Assess all the factors carefully and then choose the best plan from the best insurer.
It is very easy to find a good car insurance plan for your new car in India. Explore your options, compare, get the correct riders and you will have an excellent new car insurance policy in no time. The plans are available online and this makes it all the more convenient for you to buy the policy instantly.