First-time car insurance buyer’s guide.

Team Digit, 15 Feb 2019

Your first car is like your new born baby, delivered to you with utmost care. 

But the thumb rule for a first-time car buyer- ‘Always expect the unexpected’.

Leave alone first-time car buyers, even avid drivers do not realize the importance of a good car insurance policy or the add ons until it’s too late.

Most consider car insurance to be just another ‘supplement’ of the RC book which, if updated, at most can keep cops at bay and avoid fines- Right? Wrong!

The yearly premium you pay is just a meager sum when compared to the advantages it has to offer you in case of, god forbid, any mishap.

For hassle-free happy motoring, read on…

First and foremost, let’s get to know the types of Car Insurance Policies.

By and large there are two types of car insurance 

1)  Comprehensive  Car Insurance: If your first car happens to be a ‘sparkling new car’, it comes with this ‘premium insurance’ as default, valid up to one year from the date of purchase. And as the name suggests, it’s the ‘complete package’ that covers any damage to the vehicle, it’s occupants and the ‘third party’, in case of any mishap. 

The only downside of comprehensive insurance is the premium you have the pay every time you renew your insurance. Never the less, the premium you pay is well worth it. 

2)  Third Party: Unlike comprehensive insurance, third party insurance does not cover you, your car or yourself. As the name suggests it covers the insurance of only the ‘third party’ in case of any mishap.

The only upside of third party insurance is that renewal comes at 1/4th the price of comprehensive insurance. Else, It’s comprehensive all the way!

It is always advisable to buy a comprehensive car insurance when you are buying it for the 1st time, as your new car needs complete protection. To understand this better, here's a comparison!Now you know which one to select!

Ok, enough said, now it’s time for the ‘Chocolatey’ part of Car Insurance- Add-ons 😊

Welcome to the sweetest part of your comprehensive car insurance policy:
As the name ‘add-ons’ suggests, most, if not all car insurance companies give you a platter of ‘additional benefits’ that can be added to your insurance policy.

You have the freedom to choose and pick from them according to your requirements. Or shall we say just say, just pick the one’s that suit your taste!

Tips on add-ons: These perks are valid for comprehensive insurance ‘ONLY’! And, not to mention, comes at an additional cost. But trust us, it’s well worth it if you pick the right ones.             

Zero Depreciation: Age comes with its drawbacks. The same applies to your car. The older it gets, the more the value of your car drops aka ‘depreciates’. But, not to fret, this add-on ensures that the value of your car will remain as valuable as the day you bought it. After all the insurer will not consider depreciation during final settlement!

Tip: This add-on is beneficial for those who decide to keep their car for a long period of time.

Roadside Assistance: How do you fancy your car breaking down on a lonely dacoit-infested road at the stroke of midnight? Fear not, roadside side assistance is there to rescue. All you need to do is give us a call and we’ll come to the spot and repair your car. If not possible, we will tow it to the nearest service station. At least you’ll be dacoit-free 😊

Tip: This add-on makes a lot of sense if you often go on long drives- More chances of getting stranded in the middle of nowhere.

Return to Invoice: This is probably a driver’s worst nightmare- when your car is destroyed beyond repair! In other words, totaled in an unimaginable mishap. Thankfully there’s some conciliation is such extreme cases. Insurance companies will refund the complete value/amount mentioned on the invoice. That said, ‘DRIVE SAFE’.

Tip: This add-on is a must-have for all drivers, especially the first-time car buyer and driver.

Consumable Cover: Now days, insurance companies even cover your vehicle service costs, from the new engine oil put in to your vehicle right to that missing nut on your engine cover.

Tip: An add-on most suited for that knit- picky car insurance buyer😊

Tyre Protect Cover: Most people think that tyre damage is covered in a standard package policy, sadly it is not, unless it happens at the same time an accident occurs. So, to cover common scenarios where an accidental damage happens to only your tyre and not the car, you need this addon. It covers damages like tyre bursts, bulges or cuts, which make the tyre unfit for use.

Tip: This addon is super handy as tyre bursts are the most common car mishaps!

Passenger Cover: We hope this never happens but if something happens to the owner driver of the car, in an unforeseen incident, this cover is a fall back. So, not only is your car entirely protected, but also everyone who are travelling with you!

Tip: Addon that ensures your loved ones are safe and sound

To know all about add-ons and how they are useful, you can read this blog. 

Well, you still might have some questions on how to select the right insurance company for yourself, as for the next one year they are the ones who will help you protect it.

Here are some of the things that you should look at while you are making that big decision. 

·       Claim settlement speed - The claim settlement speed of an insurance company determines how fast they would settle a claim. this directly reflects the processes and efficiency of a company. 90.4% of motor claims settled at Digit are within 30 days. 

·       Premium and deductibles- Offers and discounts can be compared with different insurance companies to gra  the best deal. Also, there is a small amount that needs to be paid by you at the time of claim known as compulsory deductible. Some companies also let you opt for a voluntary deductible at the time of claims, where you pay a part of the claim. This reduces your monthly premium. 

·       Benefits and add-ons- Check for the right benefits and add-ons offered by the insurance comapany. We offer door step pickup, repair and drop with 6 months warranty, 24x7 customer care support, cashless repairs at 1000+ garages and advance cash for repair too!

·       Smooth claim process- Claims is the moment of truth. And at a time of distress you would want your insurer to make it easy and fast for you. At Digit, we provide self-inspection and audio claims, and completely paperless claims to make the whole process as simple as it gets!

·       IDV- IDV is the market value of your car and the value you get in case your car meets with an accident. So, it is very important to opt for the right IDV. Some  insurance companies offer a lower premium at the cost of a lower IDV. We, at Digit, provide customizable IDV to suit your personal needs, so when you need your insurance it is actually of help to you. 

And that’s not all, we went that extra step and conducted a poll amongst insurance experts and all of them unanimously voted “Benefits and Addons” to be the number one choice of the above, closely followed by a “Smooth Claim Process”.

So, all we can say is, go ahead, take your pick😊!

And if you want to know everything about your car insurance, read this!

 

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Team Digit

Digit is a General Insurance company on a mission to Make Insurance Simple for people. We are backed by Fairfax, one of the largest insurance companies in the world.

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