When is the right time to buy car insurance?

When is the right time to buy car insurance?

The purchase of a car is one of the biggest financial purchases you will make in your life. It is only normal that you would plan out your budget and check out all the cars available as per your preferences. But what about car insurance? A lot of people downplay the importance of selecting a good car insurance policy.

Car insurance protects you and your car from financial risks and damage. This policy is a contract between the car insurance provider (the insurer)and the car owner (the insured or the policyholder), which provides on-road protection against any type of damage that arises because of an accident.

Car Insurance
Car Insurance

If you are a bit hesitant about going outside and visiting insurance companies, then worry not. With the new age of digitalization, you can buy online car insurance without any problems. You will just have to visit the website of your insurance company and select the deal that best suits your requirements. However, you should research thoroughly before buying the insurance policy.

Reasons why you should purchase car insurance:

  1. It will take care of your hospitalization bills in the case of an accident.
  2. You can complement the insurance policy with add-on benefits like roadside assistance and zero depreciation, which reduce significant expenses.
  3. It will shelter you from the legal and financial damages which arise because of an accident that damaged or injures a third party.
  4. It also pays for the car damage that was the result of a collision, death, accident or natural disasters which would otherwise be paid from your own pocket.
  5. It pays a lump-sum sum assured if your car is stolen or has been completely damaged beyond repairs.

Getting car insurance is not just a necessity; it’s also a legal requirement. However, there are some things you should not forget before purchasing an automobile insurance policy like the quote for car insurance, policy coverage, the best time to buy the policy etc. Procrastinating this decision will only harm you in the long run. A failure to select the correct policy at the right time may eat into your savings.

The best time for buying car insurance:

  1. Before the existing policy expires :

In case you are not satisfied with your existing car insurance policy, you can choose not to renew it when it expires. However, be sure to buy a new car insurance policy soon. In fact, it is advisable to buy the new policy a little before the expiry of the current one, so it does not get automatically renewed.

Some people cancel the existing car insurance policy soon after purchasing the new one if there are only a few days left until its expiry. That way, they need not worry about auto-renewal. Also, when an old policy expires, there is a small time-frame of a few days after which the policy lapses. If the policy is not cancelled before it lapses, you will not be able to carry over the No Claim Bonus discount to your new policy.

Make sure you plan your new insurance policy well ahead of time so that you have time to find new providers, compare the premium costs etc. If you decide to buy car insurance online in India, comparing costs becomes easy. You can list out the pros and cons of different policies on a single device. If you have found a new insurance provider, the process of shifting insurance companies becomes easy. If you decide to not leave your current insurance provider, you may be eligible to get loyalty discounts. So, even if you do have car insurance, it is always better to check if you can get a low car insurance price.

  1. Before you buy the car:

If you have decided to buy a car, the best time to buy car insurance for the car is before the purchase. An essential thing to remember is that different cars have different car insurance amounts. If you are confused between two cars, you must look at how affordable the insurance is to make the decision easy.

Comparing the rates provided by different insurers will not only help you save money but also get the best coverage. Depending on the premium you choose, the amount that you’ll save may increase as well. Hence, after you have decided on the car you are going to buy, you need to look at the different insurance options available.

Thus, it is important to get car insurance when buying a car.  Take time to consider your needs, the add-ons, the risks as well your budget when you buy car insurance. Depending on the time you choose, you may either save a lot of money or overspend. The trick is to time your insurance purchase well.