The Essential Car Insurance Checklist for Your New Vehicle
Modified On Apr 01, 2020 07:53 PM By Sponsored
Ensure your brand new car remains new, come what may, with Bajaj Allianz Car Insurance
Few in India would dispute that buying a car is second only to buying a home. Why? Because it is i) a collective decision – one that involves the entire family and everybody weighs in with their opinions, and ii) requires extensive research across vehicle type, features, brand, colour etc., and iii) requires adequate financial planning to ensure that the EMI outflow fits within your budget.
This clearly shows that a car is more than just a vehicle; it’s an emotional asset for most owners – especially if the purchase is the first one. And as with any asset, it too must be protected by the best car insurance available in the market. But how do you pick the right car insurance for your new vehicle in a market with a wide variety of options?
In this article, we will take you through the “Car Insurance Essentials” checklist to help you separate the wheat from the chaff and help you safeguard your prized possession in the most efficient and effective way.
Car Insurance Types
Before we deep-dive into the checklist, it is absolutely important that we understand the broad categories of car insurance. In essence, there are two types of car insurance covers - a third party car insurance cover as mandated by the Indian Motor Vehicles Act 1988 and a more comprehensive cover that insures against damage to both third-party vehicles and your own.
Because of the extent of its coverage, a comprehensive car insurance cover usually costs more than a third-party liability cover. However, the higher cost is offset by the greater protection offered especially, if your car is fresh out of a showroom.
The majority of insurance companies provide products and services that can be classified in the above two categories. However, some of the leading insurers like Bajaj Allianz also offer other types of cover that can help reduce the higher premium. For example, in addition to a standard and comprehensive cover, Bajaj Allianz offers a car insurance plan where you can reduce the coverage amount and number of add-ons, thus lowering your premium amount. However, it is important to remember that reduction in premium comes at a cost of coverage which may not be available when you need it the most.
Now that we know the broad types of car insurance, let us move to the features that you must check before buying a car insurance policy.
Car Insurance Deductible
A deductible refers to a fixed amount you need to pay out of your pocket when filing a car insurance claim. It’s similar to how a copay works in health insurance. The deductible and premium charged are typically inversely proportional to each other i.e. a higher deductible will lead to lower premium and vice-versa. With Bajaj Allianz Car Insurance, a buyer can customize the overall plan and choose the deductible amount, hence giving you the flexibility to optimize your monthly / quarterly / yearly budget.
No Claim Bonus
The No Claim Bonus also popularly known as the NCB is the reward given to you if you make no claims during the term of your car insurance policy. It’s adjusted as a discount on your premium during car insurance renewal and is capped at 50 per cent on the own damage premium.
Car Insurance Add-Ons
As the term indicates, add-ons are additional covers that an insurer like Bajaj Allianz provides to its customers. These are over and above the base insurance cover and as such, increase your car insurance premium amount. The exact quantum of increase is completely dependent on the number of add-ons you choose.
For instance, some of the most popular add-ons offered by leading insurers like Bajaj Allianz are:
Zero Depreciation – Also referred to as ‘zero dep.’ This add-on cover pays you the full insured amount during a claim without considering depreciation. Zero depreciation is a reinforcement for your standard insurance and is perfect for new cars.
24x7 Road Side Assistance – A 24x7 road-side assistance add-on is among the best investments you can make while buying a car insurance policy. It can rescue you from several sticky situations that are part and parcel of driving. For instance, Bajaj Allianz’s 24x7 Sport Assistance add-on cover offers help with a flat tyre, dead battery, towing service, and even legal advice in case of an accident.
Engine Protector – The engine is the most valuable part of your new car and with an engine protector add-on cover, you can insure it from damage caused by oil leakage, water ingress, gearbox malfunction etc. Bajaj Allianz’s engine protector add-on also covers the replacement or repair of your new car’s critical engine parts such as pistons, crankshafts, and cylinder head.
Consumables Cover – Replacing consumables regularly is the key to keeping your car functioning like new for years together. But replacing them out-of-turn after an accident or damage can set you back by quite a bit. You can avoid this by opting for Bajaj Allianz’s consumables add-on, which covers labour and material expenses related to engine oil, brake oil, air and fuel filters, gearbox oil, AC gas oil, brake oil etc.
Conveyance Benefit – Life without your car can be hard, especially when it’s undergoing repairs after an accident. You can tide over this hardship by opting for Bajaj Allianz’s conveyance benefit add-on that provides a ‘per day’ cash benefit for the time your car is out of action.
Key & Lock Replacement – Bajaj Allianz tailors its car insurance offerings after thinking through every trouble a new car owner like you might face. Nothing exemplifies this better than the ‘Key & Lock Replacement’ add-on that covers the high cost of making a duplicate key for your new car if you lose the original one.
Personal Baggage – If you are someone who carries valuable personal baggage in your car during commutes, it makes sense to opt for Bajaj Allianz’s personal baggage add-on as it covers loss or damage suffered by your personal baggage kept inside your car.
Car Insurance Cashless Garage Network
When buying insurance for your new car, always go with a provider that offers a wide and robust cashless garage network. This ensures you can file a claim and get your car repaired from an authorised garage wherever you are in India. This is similar to buying health insurance where it’s advised to opt for a provider with the wide network of hospitals with cashless facility.
For instance, Bajaj Allianz has a pan-India network of over 4,000 cashless garages. You can even check out the cashless Bajaj Allianz garages in your area using your PIN code or city name.
Car Insurance CSR (Claims Settlement Ratio)
CSR refers to the percentage of claims paid out by the insurer. Simply put, go for a provider that has a high CSR. This ensures you face minimum hassles while filing a claim and also get paid quickly for the damages suffered. Bajaj Allianz is a great example of this as it has a CSR of over 90 per cent, one of the best in India.
Car Insurance Claims Settlement Process
A customer-friendly and fast claims settlement process goes a long way in soothing the pain of seeing your car damaged or immobile. When buying car insurance for your new car, sort through the insurer’s claims settlement process carefully. Needless to say, always go for leading insurance providers like Bajaj Allianz, whose claims settlement process is fast, thorough, and keeps you updated continuously via phone, SMS, and email.
Car Insurance Customer Service
One of the most important criteria when buying new car insurance is customer service. While the CSR and claims settlement process are good indicators of customer service levels after buying your insurance, there are other signs you can rely on to judge an insurer’s customer support.
An insurer like Bajaj Allianz, for instance, makes the insurance buying process easier by offering a free online car insurance calculator. If you go ahead with the purchase, the company instantly issues an online car insurance policy without any paperwork. Bajaj Allianz also mails you a digital softcopy of the policy document that you can carry in your phone. Rounding off the brilliant experience are Bajaj Allianz’s 24x7 instant support and automatic renewal reminders.
Your New Car Deserves the Best
Buying a new car is a major enhancement for your lifestyle. At the same time, it’s also a big step for you financially. In this scenario, any unintended or accidental damage to your new car can cause both mental and financial distress. You can avoid such a situation by letting Bajaj Allianz’s car insurance carry the burden for you while you keep clocking the miles on your car for years to come.