5 Factors to consider regarding motor insurance before buying your first car

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06 Jun 2023

Key Factors for Motor Insurance When Buying Your First Car

Buying the first bike or car is an important milestone in almost everyone's life. You will surely take good care of it, but are you ensuring your motor vehicle is insured against uneventful situations? If not, we have enlisted five points you should consider about your car insurance policy while buying your first car.

But first, do you know why an insurance policy is important for your motor vehicle? Driving without a license is an offense and can attract a big penalty. When a vehicle gets insured, the motor insurance policy covers the loss due to damages caused by a third party with or without the policyholder's knowledge. Two-wheelers have been mandated to have 5-year coverage, while four-wheelers must have a 3-year coverage.

Points to Remember

  1. Do not accept the very first offer you get from the dealer.

When you reach out to a dealer to buy a car insurance policy, don't accept the first offer from your dealer. You should always compare various insurance policies available on websites from different companies to ensure you get the one that suits your needs best and is compatible with your budget.

  1. Opt for a comprehensive motor insurance

As much as third-party coverage is important, having a comprehensive plan that insures against natural causes such as floods, earthquakes, fire, etc., is also important. Look for insurance policies that cover damages or losses caused by natural disasters.

  1. Inspect the Insured Declared Value (IDV)

When buying an insurance policy, always note the insured declared value (IDV) of your vehicle, which is the amount your insurer has to pay when you claim your insurance in case of a stolen vehicle or damages caused by any factor. IDV varies from one policy to another, therefore, you should ensure that your IDV is close to the current market value of your car to enjoy the maximum benefits in case of any mishap.

  1. Check for add-ons

You should opt for add-ons as they enhance the coverage facilities. Opt for add-ons necessary for your vehicle type, such as Zero Depreciation, Consumable Expenses, Roadside Assistance, Mandatory Excess, etc.

  1. Look for more than just the premium.

Opting for a car insurance policy based on only the premium should be avoided. It is because there are several important factors/add-ons that you must consider to receive the best insurance coverage and cashless experience. In addition to availing of the best facilities, remember that the service and experience you will get after claiming the insurance amount are also important in choosing the policy.

Conclusion

Motor insurance protects you from the financial damage that your vehicle can bring after the mishap and unexpected damages. Therefore, choose your vehicle's insurance policy following the above-mentioned tips and get the most out of it.

Look for add-ons that suit your vehicle's current and future needs, and choose the most suitable motor insurance policy according to your preference and budget.

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Team Kotak GIC

The content of this blog has been created and carefully reviewed by the esteemed team at Kotak General Insurance, with the sole purpose of providing valuable guidance and sharing insights on the importance of general insurance. Our objective is to assist users in making informed decisions when purchasing or renewing insurance policies for their cars, bikes, and health. Our expertly curated information aims to empower our readers with the knowledge they need to protect their valuable assets and financial interests.