Buying A New Car This Festive Season? Don’t Let Insurance Costs Surprise You
The festive season brings excitement and a surge in new car purchases across India. However, drive-away costs extend far beyond the ex-showroom price. Auto insurance is not only a mandatory legal requirement but also a crucial financial safety net. Understanding invoice breakdowns, Insured Declared Value (IDV), optional add-ons, and proper claim procedures ensures you secure the best policy coverage without overpaying.
Festive car buyers must look beyond purchase prices and evaluate ownership expenses. For diesel SUVs, standard insurance quotes often exceed Rs 40,000 for a one-year personal cover and three-year third-party protection. (Image: Canva)
A detailed invoice combines own-damage, third-party, and add-on rates into a final premium. The Insured Declared Value (IDV) sets the maximum theft or total loss payout, typically capped at 95% of ex-showroom value. (Image: Canva)
Zero-depreciation is essential for new cars to avoid out-of-pocket costs on replaced parts. Return to Invoice helps in total loss or theft, while engine protection is invaluable in flood-prone, waterlogged regions. (Image: Canva)
Experts advise against automatically bundling key replacement, NCB protection, tyre insurance, or personal belongings cover. Review individual costs, exclusions, and claim limits rather than blindly accepting expensive, pre-packaged dealer bundles. (Image: Canva)
Lower premiums often mean a lower IDV or higher voluntary deductibles during claims. Always compare like-for-like coverage, cashless garage availability, and claim processes across multiple insurance providers. (Image: Canva)
In the event of an accident involving third-party vehicles, stay calm and move to safety. Exchange names, contact details, vehicle registration numbers, and insurance policy info with the other driver without getting into arguments. (Image: Canva)
Gather your driving licence, registration certificate (RC), policy document, accident photos, repair estimates, and FIR copies. Filing a police report provides official documentation often requested by insurers during claim processing. (Image: Canva)
Notify your insurance provider promptly following an incident. Insurers typically mandate a surveyor inspection to assess damage and approve repair estimates before garage mechanics begin any restoration work on the vehicle. (Image: Canva)
