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Driving the new car

Don’t let the festive season celebrations cloud your vision on important aspect of insuring your new car adequately
By Narayan Krishnamurthy | October 24, 2017

We are in the midst of the festive season, which is not just about having a good time but also going berserk on a buying spree because everything seems to be attractively priced or available at a discount you can’t do without. A lot of people plan important purchases to coincide with this auspicious phase, especially when it comes to buying a car or property. To make the car sale attractive, dealers go out of their way to offer attractive discounts and freebies.

However, it becomes important to not let the festive frenzy delay your decision of insuring your new car adequately. Incessant rains can cause considerable trouble to even your car parked outside your house. The flooding caused due to rain can impact not only the interiors, but also damage the car due to falling trees and other such possibilities. While the standard motor insurance which includes third party liability cover is a must as much is the own damage component of motor insurance, use the opportunity to add-on covers that address risks beyond these two.

Risk proofing the car

Your new car will be equipped with all the latest technological advancements, but it will still be susceptible to risks such as accidents, which will be covered by the own damage part of your motor insurance. With vehicles being exposed to new form of risks such as engine blockage due to water logging or damage to interiors owing to bad weather, insurers have come up with ways to address these issues, which are outside what a standard motor insurance policy covers. Some aspects that you should know and keep in mind when taking insurance are listed so that your prized wheels are protected against all forms of vagaries.

Return to invoice: The Return to Invoice (RTI) is an add-on option which covers the gap between the insured’s declared value and the invoice value of the car. It’s an option that will fetch you the entire amount of loss that you incur in case of an accident leading to replacement of parts.

Engine protection cover: Automakers mention that it is unwise to crank up the car when it is stuck in water because it can damage the car engine. This add-on cover can be used to cover such instances along with the repairing cost of electrical circuit failure at a nominal additional cost.

Zero depreciation: This additional cover gives you the legal right to claim the complete replacement cost of the parts damaged in case of an accident which the policy covers. This is useful, especially in case of plastic parts. The concept of part replacement over repairs with new age cars means you stand to benefit by adding this cover.

In case you are upgrading your car, make sure that you transfer your existing motor insurance to the new car and claim the no claim bonus that is accumulated with your earlier car. The no claim bonus (NCB) is the discount that you get on the premiums you pay for each year you don’t raise a claim. Use all or a combination of these additions to make your car robust.

 

nk@outlookindia.com

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