How do I select motor insurance coverage coverage for a brand new automotive?

I’ve just lately purchased a brand new automotive & need to purchase a complete motor insurance coverage for a similar. What are the should have add-ons I ought to take a look at shopping for aside from the common qwn harm (OD) and third-party (TP) insurance coverage?

– Pornima

It is sweet that you’re not sticking to a fundamental OD+TP coverage however need to purchase complete safety on your new automotive. Insurers supply a variety of non-obligatory add-ons that give further cowl to your automotive together with the bottom motor insurance coverage coverage. It is noteworthy to look underneath the hood of those further covers to know their supply and the way they work. Some of those covers are helpful and don’t value an excessive amount of. Also, when somebody opts for complete insurance coverage protection, it doesn’t present full protection for a number of totally different levels of damages. One ought to search so as to add on covers vis-a-vis the danger publicity.

Return to Invoice: This ensures that the insurance coverage firm receives the unique worth of the automotive as per the bill, ex-showroom automotive worth on the time of buy & the registration & street tax paid. In a nutshell, the ROI add-on bridges the hole between the automotive’s bill Value & the insured declared worth. This add-on shouldn’t be used to file a declare for minor repairs or damages. It is majorly used to get better the monetary lack of a stolen automotive or to guard towards a state of affairs of irreparable harm.

Zero Depreciation Cover: Zero depreciation is often known as bumper-to-bumper or nil-depreciation cowl & it’s extremely advisable for brand spanking new vehicles. It helps cut back the depreciation value utilized to changed components reminiscent of plastic/rubber, fiber, steel, and paint. It leaves out the depreciation issue from the protection, supplying you with the entire cowl.

Roadside Assistance: The Roadside Assistance add-on was created with such conditions in thoughts, the place the insurer involves your rescue straight away. Situations like tyre puncture, even if you happen to unintentionally lock your automotive doorways with out taking out the important thing. One of essentially the most very important features to think about on this add-on is that it’s handled as a service & will not be counted towards your declare no matter what number of instances you might use it.

Engine Protector Cover: Any normal automotive insurance coverage plan covers harm to a automotive engine brought on by accident. However, if the engine and/or its youngster components maintain harm because of water ingression and oil leakage, an ordinary complete coverage won’t cowl it. Because engine repairs are costly, starting from ₹20,000 to ₹50,000 for a medium-sized automotive, one ought to contemplate buying an engine safety add-on designed particularly for engine harm brought on by water ingression and oil leaks.

The question is answered by Sanjiv Bajaj, joint chairman & MD, Bajaj Capital Ltd.

Catch all of the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint.
Download The Mint News App to get Daily Market Updates.

More
Less

Subscribe to Mint Newsletters

* Enter a sound e mail

* Thank you for subscribing to our e-newsletter.