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Checklist for First Time Car Insurance Buyers

​After months of research and plans, finally buying your first car is always a special occasion in everyone's life. So first of all, congratulations from us for your first car. We understand that just like your car, you need the best car insurance for it. You must have put a lot of efforts for the car purchase, and this is the last step of that process, which will secure your and your car's future.

We have made a checklist for first-time car insurance buyers to save your little time.

Your Details

Starting with your details, every car insurance policy document requires your precise details like address proof, driving license and related details. After purchasing car insurance online, the insurers send the hard copy of your policy document by using your address.

Details of Car

The next thing you need is the important information of your cars like registration number and engine capacity. The amount of premium is dependent on the engine capacity of your car, thus keep these details handy.

Car Insurance Policy

There are two types of car insurance policies available in the market:

Third Party Insurance: The legal liabilities arising from third-party injury, damage or death are covered under this type.  

Comprehensive Insurance: This type provides your car protection from artificial as well as natural circumstances along with the third-party cover.

Calculation of Premium

It is the amount you will pay during an initial period of insurance to secure your car. Use online calculators to know the premium of your car insurance online. If you need more understanding about factors influencing car insurance premium, check our article on factors that determine the premium for car insurance.

Insured Declared Value

This is calculated from age and current market value of the same model of your car.

Car's AgePercentage
Not more than 6 months5%
​6 months to 1 year15%
1 Year to 2 Years20%
2 Years to 3 Years30%
3 Years to 4 Years40%
4 Years to 5 Years50%
More Than 5 YearsAgreed value of the vehicle between insurance company an the insured


Additional Benefits

These are also called as "add-on features". They are additional covers you can have by paying more premium. They are designed to protect your car from the scenarios that are excluded from your core car insurance. The common add-ons people go for are a voluntary deductible cover, no-claim-bonus, loss of baggage and a few more.

Deductible

It is a fixed part of the claim amount the buyer has to pay which needs to be declared at the time of buying the policy.

Network of Garages

Just like certain hospitals fall under the network of insurers providing health insurance​, car insurance companies also have garages under the network. Make a list of garages that fall under the network of your insurer.  

Claim Settlement Ratio

It is the ratio between claims accepted by the insurer against total claims submitted annually. The high ratio is a sign that the insurance company chosen by you accepts claims of their customers.