Driving Prosperity: 7 Essential Car Insurance Tips for Your New Car on Diwali

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Festivities and celebrations are a part of Indian culture. People in India love celebrating various occasions with their families amidst laughter, lavish meals, and fun anecdotes. The festival season in India is here. After the magnificent nine days of Navratri and Dussehra, people are now geared up to welcome Diwali, which is another five days of celebrations.

Diwali is the time of the year that most Indians wait to start new beginnings. Dhanteras is an auspicious occasion when people buy new assets in the form of gold, silver jewelry, utensils made of brass, silver, and copper, as well as any other assets like vehicles and electronic items.

The primary reason to buy a new car on Diwali is that valuable new purchases are considered auspicious to welcome prosperity and good luck. Besides, festival season is when the sale of vehicles is at its peak, and consumers are likely to receive many complimentary offers and discounts.

In this post, we discuss the traditions of buying new vehicles on Diwali while enlightening you with valuable tips on buying car insurance for your new car.

Financial Wisdom in Diwali Celebrations

The Diwali Car-Buying Tradition

Diwali is a grand celebration in India and across the diasporic communities globally. Diwali celebrations last for over five days, with each day having its significance and story behind it. The days are associated with the honoring of different deities. Dhanteras is the first day of the celebration connected to commerce and wealth. It is believed to be a fortunate time to acquire new assets or make new investments. People in the northern regions of India invest in buying jewelry and cars as they believe it to bring them good luck.

Further, the cultural significance of buying new vehicles during Diwali and the associated customs has given rise to an increase in business and car purchases during the festive season. Hence, for vehicle manufacturers, this is the busiest time of the year with increased car sales, which they make full use of by offering lucrative offers and discounts. Buyers also receive complimentary items and car accessories with their new car during Diwali. Hence, it’s a win-win situation for both buyers and sellers.

Choosing the Right Car Insurance for Your New Vehicle

While buying a car is auspicious and beneficial during the Diwali festivities, safeguarding it with the right car insurance is absolutely important. Car insurance is a vital need to drive vehicles on Indian roads. It provides financial protection to your prized possession against any unforeseen accidents and damages. Hence, if you purchase a new car, it is extremely important to obtain insurance or to update the existing coverage to sync with the new vehicle immediately after acquiring it.

Having said that, choosing the right car insurance can be a tricky task as the market is laden with many different insurance providers providing the best plans to entice policyholders. To make things easy, here are some important tips to consider when selecting the right insurance policy for your new car.

1. Compare plans:

Different insurance providers will offer different features and benefits which may or may not suit you. Hence, it is important to compare policies to weigh them in terms of coverage, cost, and features to acquire the best one

2. Avail insurance online:

Buying car insurance online will allow you to get hassle-free insurance with the right price and best discounts

3. Dealer-provided insurance:

You may choose the dealer-provided car insurance for good discounts and lower rates. Compare their rates with the offers online and select the most suitable one

4. NCB:

Don’t forget to transfer your NCB or no-claim bonus points to earn a discount of up to 50% on your car insurance and bring down the cost of a new car insurance policy

5. Add-ons:

Carefully opt for the add-ons on your car as per your requirement. Add-ons can be included only if you purchase a comprehensive car insurance plan. Some add-ons like zero-depreciation and engine protection cover are valuable

Buy insurance from a reliable insurer offering good claim settlement ratios and enhanced cashless claim options with widespread cashless garages.

Comprehensive Coverage for Comprehensive Protection

In India, third-party car insurance coverage is obligatory to drive your four-wheeler car on the roads without getting penalized for breaking the law. However, as you know, a third-party insurance plan for your car will only safeguard the vehicle against third-party liabilities. To protect your insured car against different damages and risks, you need a comprehensive car insurance policy.

A comprehensive plan offers coverage to your vehicle against accidents and damages caused by natural disasters, riots, fire, and theft. It provides adequate compensation for personal accident cover against injuries and disabilities. Moreover, it allows peace of mind for the car owner.

Navigating Add-Ons for Extra Protection

Add-ons are the additional features that enhance the scope of your car insurance policy coverage. They are available at an extra premium and are significant to enhancing the protection of your new car. Your comprehensive car insurance plan gives you security against disasters, accidents, thefts, and other risks, but they may fall short during some situations. In that case, the scope of add-ons fills the gaps in your insurance coverage and protects you under different unforeseen conditions.

Here, we would like to provide some insights on a few popular add-ons that you may consider: 

1. Zero depreciation:

A zero-dep add-on will cover the complete cost of your car repair or car part replacement costs without considering the depreciation of your car. Hence, this add-on saves the insured from bearing any out-of-pocket expenses.

2. Engine protection:

An engine can be damaged for many reasons, and the repairing costs of engines are too high. Hence, to avoid these out-of-pocket expenses on engine repairs, you must go for an engine protection add-on.

3. 24/7 Roadside assistance:

This is a valuable add-on cover to protect the policyholder during car breakdowns or any electrical/mechanical vehicle failure at odd hours and locations.

4. NCB protection:

With NCB protection, you can secure your NCB points to avail of discounts during the next car insurance renewal. However, you have to be mindful of the number of claims defined under the cover and must continue with the same insurer to get the benefits.

5. Consumable replacement cover:

Consumable items require frequent and periodic replacements, and these are not normally covered under regular car insurance plans. Hence, you may opt for a consumable replacement add-on.

Tips for Lowering Premiums

Car insurance premium plays an important role in selecting policies. A lower premium price covering most of the insurance coverage needs is what everyone wants. Certain strategies can be applied by new car owners to manage insurance premiums effectively.

1. Access voluntary deductibles:

The amount required to be paid by the insured in case of an accident from their pocket is known as voluntary deductible. A lower voluntary deductible means your insurance provider pays the maximum claim amount in case of an accident. However, it calls for a higher premium rate for the policyholder. Likewise, a higher voluntary deductible fetches lesser claim amounts but charges a lower premium price to the insured. Hence, it requires good reasoning and careful assessment to ensure an affordable deductible and premium.

2. NCB advantage:

NCB is the discount received by a policyholder in the form of a lower premium price at the time of renewal. You can claim an NCB discount if you haven’t raised a claim during the previous policy year. The more your claim-free years, the greater the discount on the car insurance price you receive. This reduces your premium significantly by avoiding minor claims and availing of NCB points.

3. Buy plans online:

Buying car insurance plans online gives you several discounts, and allows you to compare plans for necessary features and benefits. This way, you can obtain the best plan at the best premium to cover your car.

4. Go for Pay-as-you-drive insurance:

The new plan entering the Indian insurance market is the pay-as-you-drive insurance policy, which is a usage-based coverage. Here, the policyholder is charged for the number of kilometres the car has covered. This is usually pre-fixed at the time of buying the policy and is an excellent plan to cut down on the premiums, especially for those who drive occasionally.

5. Install security devices:

By installing security devices like anti-theft alarms, car steering wheel and brake locks, and other devices approved by ARAI, you can lower the car insurance premiums.

Section 6: Safe Driving Practices for a Prosperous Journey

Festivals like Diwali are times when people visit family and friends. Many of them travel to distant locations in the wee hours of the night. It is very important to take care of your driving habits, especially during such times, to ensure safety on the road. This will help in avoiding accidents and maintaining a clean driving record to help you negotiate car premiums at renewals.

Here are some do’s and don’ts while driving during Diwali: 

  • Diwali is marked by extensive bursting of firecrackers. Hence, carrying a portable extinguisher can avoid the threat of accidents caused by fire
  • Always drive with your car windows rolled up to avoid the noise and smoke of firecrackers
  • A first aid box is another must-have in your car not only during Diwali but all year round
  • Never drink and drive, or never drive while you are under the influence of alcohol
  • Maintain speed limits under control, especially during the night when there is low visibility
  • Maintain distance if you see crowds lighting firecrackers on the road
  • Plan journeys to avoid the heavy rush of festival traffic. Navigate roads that are less crowded to avoid collision

Section 7: Emergency Preparedness and Claim Process

Despite your efforts to avoid an unforeseen situation, if any mishap occurs, it is necessary to inform the insurer immediately about the accident and the damage. Also, get an FIR lodged at the nearest police station to report the incident. Don’t forget to record details of the vehicle, the driver, and the witnesses to the incident.

The next important thing is to raise an online claim with your insurance provider. You may need to submit a copy of the FIR and other documents like insurance policy, DL, car registration, and PUC. A surveyor will assess the damage followed by the repairs as per your cashless or reimbursement car insurance policy.

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Conclusion:

As discussed, to ensure driving prosperity and a prosperous Diwali, it is important to maintain discipline with your new car. By following rules and practical measures, you can avoid mishaps to enjoy the arrival of your new asset during Diwali. Vehicle Insurance is the basic and the most essential aspect of car driving. It secures the insured car and the third party plying on the road. Follow the tips above to ensure a prosperous and secure journey with your new vehicle as you visit your close ones to share happiness, laughter, gifts, and love, this Diwali.

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Oct 31, 2023
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PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.

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