Compare And Buy Car Insurance For A New Car

Check how you can compare plans, premiums and coverage details to buy insurance for a new car online.
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Compare And Buy Car Insurance For A New Car
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3 mins
05-June-2024

Purchasing a new car is a significant and exciting investment. And it is important to ensure you have secured your vehicle from any accidental damages or risks. This is where insurance for a new car comes in handy. Having insurance for your new car ensures you have adequate financial protection in case of an accident, theft, or natural calamity.

Read on to know the importance of having car insurance, the coverages it offers, and exclusions. Also, know the things to consider when buying car insurance for a new car.

What is a new car insurance?

New car insurance policy covers your brand-new car against unforeseen risks or damages. It is a mandatory requirement for every vehicle owner to have valid car insurance in India. A new car insurance policy offers complete coverage against third-party liabilities and own damage. It also covers damages caused due to natural calamities or accidents. Purchase a new car insurance policy to get complete peace of mind and financial security while driving on Indian roads. So, ensure to get your new car insured at the earliest and enjoy a safe and stress-free driving experience.

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Importance of having insurance for a new car

Having an insurance policy for your new car is necessary as it offers the following benefits:

Covers accidents:

Accidents can cause significant damage to your car. Repairing or replacing parts of the new car can be expensive. If you have insurance for a new car, it will cover the repair or replacement costs.

Covers damages or loss from theft:

Your new car is at a high risk of theft or damage. Having new car insurance helps you get compensation for incurred losses.

Protects your vehicle:

A car insurance ensures that your four-wheeler in protected in case of any unforeseen incident that may damage your new car.

Covers legal liabilities:

Get coverage in case you are at fault for damages or injuries caused to a third party due to an accident. Having insurance for your new car covers the legal liabilities, and it prevents you from incurring significant financial losses.

Types of new car insurance

There are two types of new car insurance available in India.

Comprehensive insurance

Comprehensive insurance is a type of car insurance that provides protection against damages caused to or by your vehicle. It covers both third-party liabilities and damage to your own vehicle in case of an accident, natural calamities, or theft.

Third-party liability insurance

Third-party insurance is a mandatory insurance policy as per Indian law. This type of insurance covers damages caused by your vehicle to a third party in case of an accident. It covers the legal liability arising out of such damages and is the most basic form of car insurance available.

Inclusions of car insurance

Here’s what a comprehensive car insurance policy covers.

Own damage cover

Get coverage for repairing damages or replacing any parts of the insured car. Own damage car insurance covers the damages caused by floods, earthquakes, riots, fire, accidents, and other perils mentioned in the new vehicle insurance.

Third-party cover

A comprehensive car insurance also includes coverage for third party liabilities and serving the mandate as per Indian law. New car insurance covers damages caused to third-party property or bodily injuries.

Personal accident cover

You get coverage of Rs. 15 lakh if the owner-driver/insured suffers injury or disability due to an accident. You also get coverage for accidental death. In such cases, the nominee receives the sum insured. Some insurers also extend coverage for passengers injured in the car.

Exclusions of car insurance

Some common exclusions in car insurance policies include:

  • Damages caused by drunk driving or under the influence of drugs.
  • Damages during illegal activities or races.
  • Damages due to normal wear and tear of the car parts.
  • Damages due to mechanical or electrical breakdown.

Add-on covers for new car

While you get most of the damages covered through standard coverage plans, some add-on covers offer additional coverage. You need to pay an additional premium to avail of these add-on covers that can significantly reduce your expenditure in the long run.

Zero depreciation cover

Zero depreciation cover is a popular add-on cover that provides complete coverage for the replacement of parts without considering the depreciation of the parts. Usually, insurers deduct the depreciation value of the car when settling the claim. This cover is ideal for a new car, as the value of the parts is relatively high, and you can get significant coverage.

Engine protection cover

An engine protection cover is a must-have add-on cover for your new car, as car engines are susceptible to damage. New vehicle insurance covers damages caused by waterlogging, lubrication failure, and other issues that might require engine repair or replacement.

Return to invoice

This add-on cover ensures that in case of theft or an accident total damage, you get the claim amount equal to the invoice amount.

Personal accident cover for passengers

While most insurers offer only personal accident cover for owner-driver, few offer coverage for the passengers as well. Therefore, having a personal accident cover for passengers can benefit you. It provides financial protection in case of accidental death or permanent disability caused to the passengers of the insured vehicle.

No Claim Bonus protection cover

Insurers offer No Claim Bonus (NCB) for making zero claims in the policy year. The insurer gives it as a reward to the policyholder for recording healthy driving habits and ensuring safety. You can get up to 50% NCB over five years. However, if you make any claim, even for minor damages, you can lose the accumulated NCB. The NCB protection cover allows the policyholder to retain the bonus even if they make a claim.

Roadside assistance cover

This add-on cover aids in case of any breakdown or emergency while driving on the road. New vehicle insurance covers services such as towing, fuel delivery, battery jump-start, and more.

A step-by-step guide to buying car insurance

Follow the below steps to buy car insurance at Bajaj Finance Insurance Mall.

Step 1: Visit Bajaj Finance Insurance Mall and view the car insurance plans offered by leading motor insurance companies.

Step 2: Click on 'Get Quote’ to open the online application form.

Step 3: Enter the vehicle type, two-wheeler registration number, mobile number, and residential PIN code. Check the terms and conditions and click on the ‘Get Quote’ button below.

Step 4: Choose the IDV, NCB value, add-on covers, and plan type to get a list of relevant policies. You need to update your current policy expiry date here.

Step 5: Click on the ‘Buy Now’ button. You will need to add owner-driver personal accident cover mandated by the RTO. Click on ‘Next’ to proceed.

Step 6: Confirm the vehicle registration date. Click on ‘Proceed’.

Step 7: Enter vehicle owner’s name, date of birth, residential address, and contact number. Also, enter vehicle engine and chassis number (as per the RC) and previous policy details.

Step 8: Review your filled details and make the payment through your preferred online payment mode. You can use net banking, UPI, credit/debit card to buy the policy.

Why compare car insurance online?

Comparing car insurance online offers several benefits:

Cost savings

By comparing multiple policies, you can find the most cost-effective insurance for your new car.

Coverage options

You can evaluate different coverage options and choose the one that best suits your needs.

Convenience

Online comparison tools allow you to compare policies from the comfort of your home.

Transparency

Get detailed information about premiums, coverage, and exclusions without the pressure of a sales pitch.

Discounts

Many online platforms offer exclusive discounts on new vehicle insurance policies.

By comparing car insurance for new cars online, you ensure you get the best deal with the most suitable coverage.

Factors used for car insurance comparison

When comparing car insurance for new cars, consider these factors:

Premium costs

Compare the premium rates offered by different insurers.

Coverage

Evaluate the extent of coverage, including third-party liability and comprehensive cover.

Add-ons

Check for additional benefits like zero depreciation, engine protection, and roadside assistance.

Claim process

Assess the ease and efficiency of the insurer's claim process.

Customer reviews

Look at customer feedback and ratings to gauge the insurer's service quality.

Network garages

Ensure the insurer has a wide network of cashless garages.

Discounts and offers

Compare the discounts and special offers provided by different insurers.

Types of car insurance policy comparison

When comparing car insurance for new cars, consider the different types of policies available:

  • Third-Party Liability Insurance: This basic cover is mandatory by law and covers damages to third parties.
  • Comprehensive Insurance: Offers extensive coverage, including third-party liability, own damage, and theft.
  • Standalone Own-Damage Insurance: Covers damages to your vehicle but does not include third-party liability.

Comparison Tips:

  • Understand policy inclusions: Know what each policy covers to avoid unexpected surprises.
  • Check exclusions: Be aware of what is not covered under the policy.
  • Compare add-ons: Look for policies that offer beneficial add-ons like zero depreciation and engine protection.
  • Evaluate customer support: Choose an insurer known for good customer service and a hassle-free claim process.

Comparing new vehicle insurance policies online ensures that you select an ideal insurance for your new car, providing peace of mind and financial security.

Things to consider when buying car insurance for a new car

When buying car insurance for new car, consider the following factors:

Coverage: Understand the coverage options offered by the new vehicle insurance policy and choose the ones that best suit your needs.

Add-ons: Consider adding add-ons such as zero depreciation, engine protection, or personal accident cover to enhance your coverage.

Premium: Compare the premiums offered by different insurance providers and choose the one that offers the best value for money.

Claim process: Check the claim process for the insurance provider and choose one that offers a simple and easy claim process.

Network garages: Check if the insurance provider has a network of garages and go through the list to know the nearest garage for quick access.

Having new car insurance is essential to protect your investment and ensure financial security. Know the coverages and exclusions of the insurance policy before buying one. Compare policies, consider add-ons, and verify the authenticity of insurance providers before making a purchase. Choose an insurance provider that offers the best coverage, premiums, and claim process to get the best value for your investment.

Frequently asked questions

What is the insurance cost for a new car?

The insurance cost for a new car depends on various factors such as the car’s make and model, brand, the location, and the type of coverage chosen. On average, the insurance cost for a new car can range from 2% to 5% of the car's total value.

Which insurance should I get for a new car?

To protect your new car against unforeseen risks or damages, it is recommended to opt for a comprehensive car insurance policy. A comprehensive insurance policy offers coverage for third-party liability and own damage, including damages caused due to natural calamities or accidents.

Is car insurance mandatory for a new car?

Yes, car insurance is mandatory for every vehicle owner in India, including new car owners. The Motor Vehicles Act, 1988, makes it mandatory for all vehicles plying on Indian roads to have valid insurance coverage. Failure to have valid insurance can lead to heavy penalties or even imprisonment. So, it is important to get your new car insured at the earliest. You can buy new car insurance online.

How is insurance calculated for a new car?

Insurance for new cars is usually calculated based on the car's value, model, year, and other factors such as your driving record and location. Insurance companies use these factors to calculate the risk associated with insuring your car and determine the premium to charge.

Why is having car insurance necessary?

Car insurance is vital because it protects you financially against damages or injuries caused by accidents. Without insurance, you may end up with significant expenses for repairing or replacing your car, as well as paying for medical bills or property damage.

What is Zero Dep Insurance?

Zero Depreciation (Zero Dep) insurance, also known as bumper-to-bumper insurance, covers the full cost of replacing car parts without factoring in depreciation. This means you receive the full claim amount for repairs or replacements of parts, ensuring you don't bear any out-of-pocket expenses due to depreciation.

How to calculate insurance value of car?

To calculate the insurance value of a car, determine its Insured Declared Value (IDV). The IDV is the current market value of the car, which factors in depreciation based on the car's age. IDV is calculated by taking the manufacturer's listed selling price of the car minus the depreciation for the first few years. This value determines the maximum sum assured by the insurer in case of total loss or theft.

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Insurance is the subject matter of solicitation. *T&C Apply - Bajaj Finance Limited (‘BFL’) is a registered corporate agent of third-party insurance products of Bajaj Allianz Life Insurance Company Limited, HDFC Life Insurance Company Limited, Future Generali Life Insurance Company Limited, Bajaj Allianz General Insurance Company Limited, SBI General Insurance Company Limited, ACKO General Insurance Limited, ICICI Lombard General Insurance Company Limited, HDFC ERGO General Insurance Company Limited, Tata AIG General Insurance Company Limited, Niva Bupa Health Insurance Company Limited, Aditya Birla Health Insurance Company Limited, Manipal Cigna Health Insurance Company Limited and Care Health Insurance Company Limited under the IRDAI composite CA registration number CA0101. Please note that, BFL does not underwrite the risk or act as an insurer. Your purchase of an insurance product is purely on a voluntary basis after your exercise of an independent due diligence on the suitability, viability of any insurance product. Any decision to purchase insurance product is solely at your own risk and responsibility and BFL shall not be liable for any loss or damage that any person may suffer, whether directly or indirectly. Please refer insurer's website for Policy Wordings. For more details on risk factors, terms and conditions and exclusions please read the product sales brochure carefully before concluding a sale. Tax benefits applicable if any, will be as per the prevailing tax laws. Tax laws are subject to change. Tax laws are subject to change. BFL does NOT provide Tax/Investment advisory services. Please consult your advisors before proceeding to purchase an insurance product. Visitors are hereby informed that their information submitted on the website may also be shared with insurers. BFL is also a distributor of other third-party products from Assistance Services providers such as CPP Assistance Services Pvt. Ltd., Bajaj Finserv Health Ltd. etc. All product information such as premium, benefits, exclusions, sum insured, value added services, etc. are authentic and solely based on the information received from the respective insurance company or the respective Assistance service provider company.

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