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Get insurance for your brand-new car

When buying a new car, individuals must purchase a comprehensive car insurance policy to keep themselves finally protected in the event of an unforeseen mishap. This type of insurance provides financial coverage for the car owner and third-party individuals, vehicles and property.  

One can also choose an own damage or a third-party policy. 

Things to consider while buying a new car

Buyers must take into consideration these aspects before purchasing a new vehicle: 

1. Budget

The first thing that individuals must consider while purchasing a new car is their budget. Car manufacturers in India tend to display only the ex-showroom price while advertising their vehicles. One should keep in mind that while purchasing the car, the RTO and insurance costs will also be added to the vehicle’s final cost. Moreover, there are also some companies that take a handling charge.

Besides the budget of buying a new car, you should also be mindful of the insurance requirement.

While calculating the premium amount for their car insurance, people can use the online car insurance calculator. It helps save time and calculates the insurance premium easily with just a few clicks. One will need to provide information like the RTO details, vehicle’s make, year and model, etc. 

Also Read – Auto Safety: Five Tips for Wet-Weather Driving

2. Ease of maintenance

Another vital thing to consider while buying a new car is its ease of maintenance. The spare parts for the vehicle must be readily available, and there must be an adequate number of service centres in and around the buyer’s area.  

3. Engine

When deciding on what engine capacity to choose, people must consider the car’s fuel efficiency and speed. The acceleration potential will vary across different car models and brands. Thus, individuals should finalise the engine capacity based on their driving style and the areas in which they would usually drive. 

4. Safety 

A car’s build quality is an essential factor to check when going to buy a new vehicle. The stronger a car’s chassis or body structure, the higher the protection it will provide in the event of an accident. 

5. Transmission

Individuals also need to decide the vehicle’s transmission type before they go to buy one. If one frequently commutes between cities or is looking for a subtle and more comfortable driving experience or, opting for an automatic transmission is the best. However, if a buyer wants the sheer pleasure of using a shift stick, then the manual transmission is the way to go. Moreover, cars with manual transmissions are cheaper than their automatic counterparts. 

Also Read – The Definitive Guide To Used Car Shopping

6. Fuel type

In the Indian market, most cars have petrol, diesel and CNG version. Usually, petrol versions of a vehicle are cheaper than their diesel counterparts. But, as petrol is more expensive, the operating costs of a diesel-powered vehicle will be lower. 

However, diesel versions of vehicles tend to be more expensive, and they also require more maintenance. Individuals can also opt for CNG variants if there are enough outlets in their cities. 

7. Modern safety features

Individuals must check whether the car has the necessary safety features like ABS, reverse parking, Electronic Stability Control, dual airbags, etc. These features will ensure the driver’s on-road safety. 

These are some of the critical facts that buyers must keep in mind when going to buy a new car. Adhering to them will enable people to make an informed choice that will provide value in the long run. 

Also Read – Top-Rated Cars Suggested to Buy Used in India

There are many reasons why it can be tricky to find the right car insurance. One of the most common, especially for certain types of drivers, is that their insurance premiums are too expensive.

So, how can you obtain an insurance policy that gives you the right coverage with the best premiums?

The answer – telematics insurance.

Read on to learn what car telematics insurance is, how it works, and how it can provide you with personalized insurance premiums.

What is car telematics insurance?

Car telematics insurance is a special type of policy for your car, that analyzes your unique driving behavior and provides this information to your insurer.

With most types of insurance, your premiums will be based on your likelihood of being involved in an accident, and therefore, making any claims on your insurance.

The purpose of telematics insurance is to give your insurer a more accurate picture of how safely you drive, so they can give you a personalized premium cost that closely reflects your driving.

How does telematics insurance work?

Telematics insurance works using advanced technology to assess your driving, providing this data to your insurer.

The technology uses telecommunications (phone lines, cables, cellular networks) and informatics (computer systems that structure data) to transmit the data from your car to your insurance provider for evaluation.

To do this, most insurers provide a computer chip that’s installed in your car windshield. However, some insurers do this through an application that’s downloaded onto your mobile device instead.

If you choose the latter, it’s important that you have your location services switched on at all times, both inside and outside of your vehicle.

To analyze your driving, both forms of telematics will use motion sensors and global positioning system (GPS) to accurately register every movement whilst you drive – and also track this against your positioning on the road.

This information is then sent to your insurer.

How does telematics insurance give you personalized insurance premiums?

The main benefit of telematics insurance is that you receive personalized insurance premiums as a result of your unique driving being analyzed. Here are some of the ways this is achieved with the technology:

• Measuring your driving speeds – This measures how fast you’re driving on different roads, and compares it to the legal limit of your location. If you’re driving too fast, the system will pick it up.
• Recording how well you maneuver your car – The technology can also analyze how well you execute a range of different car maneuvers. For example, this could be how safely you’re turning your vehicle around corners (i.e., at what speeds). Also, it can asses whether you’re colliding with anything whilst parking.
• Assessing your braking – The software will be able to tell how well you’re stopping the car in time. If, for instance, you get distracted and need to brake harshly at the last minute, the system will pick up on this.
• Seeing if you use any devices on the move – It’s important to give the road your full attention when driving, so your telematics will register if you’re using your phone whilst on the move.
• Tracking the times of day you drive – It’s well regarded that later times in the day pose more of a risk to drivers, so the system will keep track of the specific times of the day you drive your car.

With all this essential data, your insurer gets a full picture of your driving behavior, and as a result, tailors your premiums to reflect this.

The safer you drive, the cheaper your premiums will be!

It is worth pointing out from the start that this isn’t an argument about it being a commodity or not. It is more about thinking that it is for the purpose of shopping around for the best prices. Once you conclude this process and get your results you can switch back to your original view point and consider the findings in front of you based on the quote you got.

About 2/3 of motorists hardly ever get alternative quotes and just keep renewing their policies year after year. They have absolutely no idea if they are paying a fair premium or even if their current provider is any good at times. The problem is that most large car insurers know this and they even have calculations that aimed at predicting at what price current policyholders would walk out.

Keeping It Simple

Of course, buying any kind of a policy is a serious matter and deserves attention. But there may be a downside to a timid approach. One of the reasons people withhold from getting car insurance quotes from multiple companies is that they overthink it and that makes the whole process look much more complicated than it is. 

The idea is to prevent it and get more people looking after their interest by trying to find the best price they can get in the marketplace. That is how healthy markets are formed and prices brought closer to each other. Otherwise, there would be wild swings between the cheapest and most expensive and many insurers would be able to get away with charging whatever they like. 

There has been a study by the Financial Conduct Authority (FCA) in the UK looking into ways motorists use car insurance comparison websites. They have identified two types of attitudes towards this medium. One group was very cautious and worried about the possibility of muddling things up and not getting paid when they have a claim because of it.

The other group was keen to go through the whole process, see the results and save money that they didn’t hang around to look at explanations or adverts on the platform. They just sailed through the form completing all the details required as quickly as possible. They pointed out in interviews that this was the only way. If they carefully looked at every detail on the way they wouldn’t probably make it to the end as they would get confused and bored with it.

So, thinking that all the policies and vehicle insurers are pretty similar to each other and all they needed to do was to find the cheapest and save helped them. Still, they just didn’t buy the cheapest coverage. They reported that they looked at the price, brand and coverage and chose the policy that gives the biggest savings, most brand comfort and extra add-ons.

Is Car Insurance a Commodity?

Majority of people in the industry would fervently argue against it being a commodity. They are probably right since there are many intricacies to arranging coverage. However, if you think that most companies follow the industry standards in drawing up policy documents and finalizing claims you wouldn’t be too far off from thinking that they may be similar after all.

Unfortunately, this isn’t necessarily the case and an ordinary motorist wouldn’t be able to tell if the policy wordings are standard or favors the carrier in a way that they can easily decline a claim. However, you need to have faith in these things. You need to have faith in the company and the state insurance commissioners to ensure no funny businesses going on in an industry that trust is everything.

It is at the end of the day a promise that they will compensate your losses in exchange for the premium they demand. It is fair to say that most carriers are behind their words. At times they may be extra careful and make drivers go through hoops but there are many crooks who think they can bend the system and get paid for nothing too.

The definition of auto liability coverage may seem straightforward initially, but consider the following real-world scenario: you’re at a four-way stop a short distance from your residence. You’ve driven this route so often that you don’t realize the other automobile should have the right of way. A moment later, you find yourself in the middle of an intersection after colliding with another driver’s vehicle.  

When an accident occurs, insurance companies will work together to assess liability (if you live in a no-fault state). It is your liability insurance that pays for the damage to the other driver’s vehicle up to your policy’s maximum, less applicable deductibles. Read over here to know more about Liability car insurance coverage.

Auto liability coverage definition

Your financial responsibility for the injuries and property damage sustained by others as a result of an accident is covered by your liability auto insurance. You’ll need liability insurance if you want to operate a motor vehicle in the United States legally.

Your liability auto insurance policy will be used to pay for damages after an accident you cause. Your liability insurance, known as third-party liability coverage, will foot the bill for any damages incurred (within policy limitations).

To what extent does liability auto insurance protect you?

One type of affordable auto insurance is liability insurance, which helps cover costs if you cause an accident. Both of these things are necessary for its proper functioning:

Liability insurance for bodily harm

This coverage will help pay for medical expenses and other costs incurred due to injuries you cause in a car accident. Medical bills, rehabilitation, and wage loss due to injury are all standard components of bodily injury liability coverage, abbreviated as “BI.” Likewise, it may be used to pay for the deceased’s funeral expenses in the event of an accident.

Liability insurance for property damage

Shorthand for “property damage,” this insurance policy helps pay for repairs after an accident in which you were at fault. It could be worthwhile to rebuild the fence you damaged in the accident or fix the other driver’s car if it was destroyed.

The contents of a car are sometimes included in property damage liability coverage.

Let’s say you and another driver have a little collision, and the other person’s trunk contains $4,000 worth of crystal that is now sparkling rubble. Your property damage liability insurance should cover a new bumper and windshield.

If you are sued following an accident, your liability vehicle insurance will pay for legal representation and related costs.

Coverage for drivers who are neither fully nor adequately insured

Be aware that liability insurance only covers the other party’s losses, not your own. However, if someone hits you and doesn’t have automobile insurance or enough insurance to cover your bills, uninsured and underinsured motorist coverage choices will kick in to help cover the costs. Simply put, you are buying protection against drivers who do not follow the law. Either or both of these forms of insurance may be mandated in your state.

Car Insurance Coverage Limits for Liability

Depending on the coverage you choose when you buy the policy, each part of liability vehicle insurance has a maximum amount of money it will pay out. Among them are:

Limit of Liability for Damage to Property

This limit is the most money that will be paid out for property damage. Any costs that go over the limit are the fault of the driver who caused them.

Liability Limit for Each Person Who Gets Hurt

The per-person limit is the most the insurance company will pay to each person hurt in an accident.

Body Injury Liability Limit per Accident

The liability limit per accident is the most money the insurance company will pay out to all the people hurt in an accident. To rephrase, up to the policy’s maximum, the insured driver will be responsible for paying for the medical expenses of anyone wounded in an accident the insured driver caused. The driver at fault would have to pay for medical costs above that amount.

How much liability insurance do you need for your car?

For legal driving in most places, you’ll need to purchase at least the minimum liability limits required by law in your state. While obtaining the bare minimum required by your state will reduce your insurance premium, it will also increase your risk of a catastrophic loss. Your low cost car insurance company will only pay up to the limits of your policy if you cause an accident. Insurance with lower coverage can run out more rapidly, leaving you responsible for any remaining expenses.

Conclusion

Liability coverage is the bare minimum when it comes to auto insurance. If you don’t have sufficient liability insurance, you won’t be able to buy collision or comprehensive insurance, let alone additional extra coverages like medical payments or personal injury protection.