A car is a sign of independence. In today’s times, it is not a luxury but a need. If you are buying a car for the first time, then you are bound to get overwhelmed by the number of things you need to consider and decisions that you need to make. Right from the make and model of the car to the type of car insurance you want to buy; it is a long list of decisions.

Talking about car insurance, the IRDAI has made it mandatory for every car to have a third-party liability insurance policy. This protects you against financial losses arising from damages to any third party due to an accident involving your car. Apart from this, there are other types of policies and numerous add-ons that you need to choose from. To make the process of buying car insurance simple, we have created a list of dos and don’ts for your benefit.

Car insurance offers three primary covers:

1. Third-party liability cover, which protects you against financial losses from damages caused to any person or property by the insured car. This is a mandatory requirement.
2. Own-vehicle damage cover which reimburses repair costs for damages caused to your car due to a natural disaster or an accident.
3. Personal accident cover which offers personal cover to the car owner in the event of death or disability while driving the car.

Some do’s and don’ts that you need to keep in mind before buying a car insurance policy:

DO’s of buying a car insurance policy

Here some things that you must do before buying car insurance:

1. Research and Compare:
   There are numerous car insurance plans available in the market. Hence, before you buy a policy, ensure that you consider all options and compare car insurance online. Opt for reliable insurers like Tata AIG that offer cost-efficient plans providing comprehensive cover for your car. Comparing plans will also give you an idea about what you can expect for a specific premium amount.
2. Read the policy brochure carefully:
   Insurance policies specify their terms and conditions in their brochure. Hence, before buying the policy, it is important to carefully go through every detail mentioned and ask questions if you have any doubts.
3. Understand all the add-ons available to you:
   Add-ons allow you to customize the policy based on your requirements. Insurers offer different kinds of add-ons designed to suit the varying requirements of car owners. Hence, it is important to understand all the add-ons available to you so that you can choose the right ones.
4. The proposal form:
   Many car owners allow the car dealer to fill the proposal form on their behalf. A simple error in filling the form can cause unnecessary delays while raising a claim. Hence, ensure that you fill the proposal form yourself and keep a copy of the form with you for reference.
5. Look beyond the premium:
   Many new car owners usually purchase car insurance with the lowest premium. This stems from the thought that buying car insurance is compulsory and hence, buying a third-party liability cover is enough. These plans have a lower premium than comprehensive plans since they offer only third-party liability cover. It is important to compare plans and buy the most cost-efficient one as opposed to the cheapest one.

DON’Ts of buying a car insurance policy

Here some things that you must avoid before buying car insurance:

1. Don’t buy a policy offered by the dealer without researching:
   Many car dealers offer a car insurance plan to new car buyers. While it is mandatory to buy at least a third-party liability cover for your car, it is not compulsory to buy it from the dealer. Don’t buy car insurance from the dealer unless you research the market and evaluate your options.
2. Don’t assume any benefits:
   While researching the market, you will come across many add-ons and features that car insurance offers. However, when you finalize a particular policy from a specific insurer, read through the policy documents again to understand the features offered. For example, two insurers might offer different benefits under the roadside assistance add-on. Don’t assume.
3. Don’t make wrong declarations:
   An insurer calculates the premium amount based on your car and the details provided in the proposal form. Sometimes, car owners aware of the premium calculation process make false declarations to avail of a discount on the premium. If the insurer catches the wrong information, then your claim can get rejected in the future.

Summing Up

While car insurance cannot prevent accidents from happening, they can ensure that at least the financial losses are taken care of. During exigencies, apart from the emotional and physical distress, finances can get strained too. A comprehensive policy can ensure that you don’t have to worry about money during such crises. Follow the tips mentioned above, and buy the perfect car insurance policy for you.