Choosing Insurance: New Vs. Used Cars

Driving a vehicle on Indian roads requires mandatory third-party insurance, regardless of age, as per the Motor Vehicles Act of 1988. Legal obligations aside, having car insurance is beneficial for your own protection. Failure to comply with this requirement can lead to legal consequences, emphasizing the importance of obtaining and renewing insurance for four-wheelers in India.

How Do I Get New Car Insurance Vs? Old Car Insurance: Comprehensive Or Third-Party?

A third-party liability policy is fundamental but lacks coverage for theft, fire, and calamities. In contrast, a comprehensive policy includes both required coverage and own damage protection, making it a better choice, especially for new cars at a higher price.

Your old car insurance premium will be lower if you don’t file any claims during the policy’s term because of the No Claim Bonus, a reduction for not filing any claims. Additionally, because of an older car’s low insured declared value (IDV), the premium is lower than that of a new car. ## *

Choose a comprehensive new car insurance plan to obtain comprehensive insurance coverage for your new vehicle. If you own two cars, you can choose a Comprehensive new car insurance plan for the recently purchased vehicle and a Third-party Liability coverage for the older, less-used vehicle. *

Selecting The Correct Add-Ons

Please take note that Add-ons cannot be purchased using a third-party policy. To purchase Add-ons, a Comprehensive Plan must be purchased. Think of them as extra plans you can incorporate into a comprehensive base plan.

The age and use of the vehicle determine the add-ons. For a new car, for instance, choosing a Zero Depreciation Add-on is advised since it eliminates the depreciation factor while resolving claims. It’s possible that second hand car insurance does not offer such a cover. *

Similarly, if you drive alone, there’s no reason to shell out more money for a Passenger Cover Add-on. Older vehicles break down more frequently, so adding roadside assistance is a good idea. *

Recognise How To Use The Vehicle

Recognise how the car is used before plopping down in front of your laptop or using your smartphone to compare car insurance online. Ten questions to pose to yourself are as follows:

  • Will you use the car every day?
  • Will you frequently take lengthy trips in the city in the car?
  • Do you frequently take road trips across state lines?
  • Do you drive another vehicle?
  • Who is going to operate the vehicle?
  • Will you be using the vehicle for personal purposes only, or will other family members also be seated in it?
  • Have you ever been in a car accident before?
  • Is flooding a problem in your area?
  • Is car theft common in your area?
  • Does rioting have a past in your area?

Purchase Car Insurance Online

Both new and used cars can have online car insurance purchased. Purchasing or renewing an online car insurance policy only takes a few minutes. If a significant amount of time has passed since the policy’s expiration, the insurance company may want to inspect your vehicle in certain circumstances. You can use a car insurance calculator to check on the prices of premiums to be paid. *

* Standard T&C Apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.