Top 7 Motor Insurance Tips Every New Car Owner Should Follow
Jessica Henderson Buying a new car is an exciting milestone, but it also comes with responsibilities—one of the most important being securing the right motor insurance. Whether you are a first-time buyer or upgrading to a newer model, understanding how insurance works can help you protect your vehicle and save money in the long run.
This blog highlights the essential motor insurance tips every new car owner should know to make informed decisions and keep their car well-protected.
Why Motor Insurance Matters
Motor insurance is not only a legal requirement in India, but it is also a vital financial safeguard. Accidents, theft, natural disasters, and unexpected repairs can result in costly bills. With the right motor insurance, you get financial protection and peace of mind while driving on busy Indian roads. Knowing how to choose and maintain your policy effectively can make all the difference.
1. Understand the Types of Motor Insurance
One of the first steps is understanding the two primary types of policies:
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Third-Party Insurance: This is mandatory by law and covers damages caused to another person's vehicle, property, or injury. However, it does not cover damage to your own car.
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Comprehensive Insurance: This is the ideal choice for new car owners. It covers third-party liabilities as well as damages to your own vehicle due to accidents, fire, theft, natural disasters, and more.
2. Choose the Right Add-On Covers
Add-ons enhance your base policy and provide customised protection. Some valuable add-ons include:
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Zero Depreciation Cover: Prevents depreciation from reducing your claim amount.
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Engine Protect Cover: Essential for flood-prone areas where engine damage is a common occurrence.
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Roadside Assistance: Offers support during emergencies, such as flat tyres or breakdowns.
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Return to Invoice Cover: Helps you recover the original invoice price in the event of total loss or theft.
Choosing the right add-ons ensures maximum safety and financial security.
3. Compare Motor Insurance Plans Before Buying
Never settle for the first policy you come across. Comparing plans helps you evaluate premium costs, coverage features, exclusions, and claim benefits more effectively. Look for insurers with a strong reputation, digital claim support, and high settlement ratios.
When searching for the best motor insurance, always review at least three to five plans before finalising.
4. Know Your Policy’s Inclusions and Exclusions
Understanding what your policy covers—and what it does not—is crucial. Standard inclusions include accidental damage, third-party liability, theft, and natural calamities. Exclusions may include drunk driving, regular wear and tear, electrical breakdowns, or unauthorised modifications. Reading the policy document carefully helps avoid confusion at claim time.
5. Drive Safely to Avoid Premium Hikes
Insurance premiums often depend on your driving behaviour. Safe driving practices help you avoid accidents and maintain a clean claim record. This also makes you eligible for the No Claim Bonus (NCB), which can significantly reduce your premium.
Simple habits—such as following traffic rules, avoiding overspeeding, and using seat belts—can have a positive impact on your long-term insurance costs.
6. Renew Your Policy on Time
Timely renewal of your motor insurance is essential to avoid a policy lapse. Missing renewal dates can result in:
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Loss of NCB benefits
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Additional inspection requirements
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Higher premiums
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Legal complications if caught driving uninsured
Setting reminders or opting for long-term policies can help ensure continuous protection.
7. Opt for Cashless Network Garages
Most insurers offer a network of cashless garages where repairs can be done without upfront payments. This feature is highly convenient during emergencies, as the insurer settles the bill directly with the garage.
Before buying a policy, check the availability and reach of network garages in your city to ensure seamless repair services.
Conclusion
Owning a new car is a significant investment, and protecting it with the right insurance is essential. By following these motor insurance tips, you can ensure better coverage, smoother claim experiences, and long-term financial savings. Universal Sompo is known for offering some of the best motor insurance options, making it easier for you to choose reliable protection. Whether you are selecting add-ons, comparing plans, or renewing your policy, staying informed is the key to making smart decisions.
Investing in the best motor insurance gives you the confidence to drive stress-free, knowing that your vehicle and finances are well safeguarded.
