Buying a car these days is a big achievement, especially when it is your first car. But along with buying a car, there is another important thing which people often ignore – that is car insurance. If you are going to buy car insurance for the first time, then do not worry. Here we will explain everything to you in simple language so that you can easily understand and choose the best car insurance for yourself.
What is Car Insurance?
First of all, it is important to understand what is car insurance. Car insurance is a kind of protection plan that gives you money in case of any damage, theft or accident to your car. This reduces the risk of your financial loss and you can drive your car without any tension.
Types of Car Insurance
When you go to get car insurance, you will get two types of insurance plans:
Third-Party Insurance
Third-Party Car Insurance is the most basic and mandatory insurance. In this, only the loss of the other person is paid if you have an accident.
Comprehensive Insurance
This is a bit expensive but in this, along with the damage to your car, third-party damage is also covered. It also covers theft, fire and natural disasters like flood and earthquake.
Keep Budget in Mind
The biggest problem while buying car insurance for the first time is budget. You have to see how much premium you can afford and how much coverage you are getting from it. Never buy a policy just by looking at the cheapest premium. Always compare coverage and benefits.
Comparing Policy
There are many insurance companies in the market and all have different plans and premiums. You should go online and compare different policies. There are some popular comparison websites like PolicyBazaar and CoverFox, where you can easily see the plans of all the companies.
Think Carefully About Add-On Covers
There are some extra covers in car insurance which are called Add-On Covers. These cost a little extra money but give you more protection. Like:
- Zero Depreciation Cover
- Roadside Assistance
- Engine Protection
- Personal Accident Cover
You should only take those Add-On Covers which are necessary for you. Taking everything will increase the premium.
Understand the Claim Process
Before taking insurance, it is very important to understand how the claim process works. If there is an accident or theft, you have to inform the insurance company and submit documents. The faster and simpler the claim process is, the better the insurance company will be.
No Claim Bonus (NCB)
This is a special benefit that you get when you do not make any claim for a year. This reduces your next year’s premium. While taking car insurance for the first time, also keep NCB in mind.
Read Customer Reviews
Nowadays everything is available online, so always read customer reviews before taking insurance. This will let you know how the company’s service is and how satisfied people are with it.
Conclusion
Getting car insurance for the first time can be a bit confusing, but if you keep all these tips in mind, it will become quite easy for you. Always choose a policy according to your needs and budget and if there is any confusion at any point, seek help from an insurance advisor. A good car insurance policy gives you peace of mind along with giving you financial security.
