5 reasons to insure your new car


03 Aug 2023

Read about 5 reasons to insure your new car. For more information, check out the car insurance policy from Kotak General Insurance.

Buying a car is an exciting experience. You’ve saved up for months, done the research, and finally settled on the perfect car for you. But before you drive off the lot, there’s one more important step you need to take: insuring your new car. There are numerous reasons why car insurance is essential, but here are five of the most important ones.

Why should you insure cars?

If you're in the market for a new car, you may be wondering whether or not it's worth it to insure it. The answer is simple: yes. Car insurance can protect you financially in the event of an accident and help you avoid hefty repair bills. Here are five reasons why you should insure cars that are brand new:

1. Mandatory on Indian roads

Having at least a third-party liability insurance policy is mandatory on Indian roads as per the 1988 Motor Vehicles Act. Not abiding by this can cause a hefty payment or even license cancellation. A third-party coverage covers you against any rising claims due to damages caused by the insured vehicle to any third-party property.

2. Coverage against natural disasters and man-made calamities

Whether it's an earthquake, a flood, or a fire, a comprehensive car insurance policy can help you cover the costs of any damage. You can also get coverage for theft, vandalism, and other damages. With new car insurance, you can rest assured that you and your vehicle are protected in events like these.

3. Personal accidental coverage

Personal accidental coverage includes financial coverage in case the owner-driver is met with an accident while driving the insured vehicle. In such cases, the insurance provider will cover the medical expenses to treat the injuries as well as offer compensation in case of death. However, if the accident is found to be due to the driver’s intoxication, no coverage will be offered.

4. Add-ons

Car insurance offers additional add-ons to enhance their level of coverage. These coverages can range from roadside assistance to rental car coverage and more. These add-ons can help provide you with the extra protection you need while driving. It's important to understand the different types of car insurance add-ons available, so you can make the right choice for your needs.

5. Peace of mind

Car insurance offers complete peace of mind to the insured. Knowing that your vehicle is protected from financial losses due to unexpected events is a great reassurance. Car insurance covers damages that may be caused to your vehicle in the event of an accident, theft, vandalism, fire, and more. With car policy, you can rest easy knowing your car is safe and secure.


So, don’t neglect to get your new car insurance before you drive it off the lot. Not only will the process be simple, but when you are safely covered by an auto insurance policy, you will also be protected in case of an accident, theft or vandalism. We hope that our article on why car insurance is important has helped shed some light on an often-overlooked aspect of buying a car.

Visit Kotak General Insurance for More Information.

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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.