Commercial Car Insurance

Buying the first car is very big milestone in many individuals life, it is equally important to get the right car insurance for first-time car buyers in India. As a first-time car owner in India, you’re probably aware of the mandatory third-party car insurance requirements in India as per Motor Vehicle Act, 1988. Here’s a comprehensive guide that will walk you through the process of choosing the right car insurance if you’re first-time buyer.

Understanding car insurance in India

Car insurance offers financial protection against accidents, thefts, natural disasters and third-party liability. As per law, it is mandatory in India to have third-party insurance. Here are few types of car insurance policies in India:

  • Third-party liability insurance covers damages to third parties.
  • Comprehensive car insurance covers own car damages, personal accidents, and third-party liability.
  • Own-damage insurance cover own car damages.

Factors to consider for first-time buyers

  • Consider choosing comprehensive car insurance for adequate protection.
  • Try to balance premium cost with coverage benefits.
  • Understand the deductible amount.
  • Consider including add-on covers like Depreciation, Engine Protect, Roadside Assistance along with car insurance.
  • Research for insurer’s reputation and credibility of the company.
  • Ensure a hassle-free and smooth claim settlement process is offered by insurer.
  • Always read and understand the policy term and conditions carefully.
  • Provide correct car details and personal information while purchasing car insurance policy.
  • Try to renew car insurance policies before it expires.

Which documents are required for buying car insurance?

Here’s the complete list of documents required to buy car insurance:

  • Identity proof: A valid government-issued identification proof is required while buying car insurance.
  • Address proof: You may be required to provide a proof of your residential address like electricity or gas bill or rental agreement (if living in a rented house).
  • Vehicle registration certificate: The insurer will need vehicle registration certificate (RC) of the vehicle for which you’re buying a car insurance.
  • Previous insurance details: You’re required to provide details like existing policy number, insurer’s name and date of expiry, if you’re renewing or switching your car insurance.
  • Driving license: You’ll need to provide your valid driving license, to verify your eligibility to drive and insure the car.
  • PAN card: You may be required to provide your Permanent Account Number (PAN) card for financial transactions and identification process in India.

Frequently Asked Questions by first-time buyers

What is the minimum car insurance requirement in India?

Third-party insurance is mandatory car insurance requirement in India as per Motor Vehicle Act, 1988.

Can I renew my car insurance online?

Yes, you can renew your car insurance online from Zurich Kotak General Insurance.

What is the impact of delayed renewal?

Delayed renewal of car insurance can lead to lapse in coverage and may increase car insurance premiums.

To conclude

As seen in this comprehensive, car insurance is not just mandatory, but it is important for first-time car owners in India. First-time car owners can navigate through the complex world of car insurance in India.