Purchasing a brand-new car is a dream come true and an important milestone for most people. But in the excitement of purchasing a new car, one cannot forget the range of responsibilities that come with it. One is buying the right car insurance, for which you must research and compare car insurance online. While looking for suitable car insurance options, you may come across bundled car insurance.
As the name suggests, bundling indicates multiple; thus, bundled motor policies are those policies that are designed to offer multiple or comprehensive benefits with both own damage cover and third-party liability cover. This is why they are also known as a bundled comprehensive policy.
So, in this article, let us go deeper into the concept of bundled insurance, its benefits, and the factors to consider while buying it.
What is a Bundled Car Insurance Policy?
A bundled car insurance policy is designed to satisfy legal requirements and cater to car owners’ needs by seamlessly combining third-party and own damage coverage.
With most insurers, this unique car insurance policy covers you for 1 year for own damage and 3 years for third-party coverage, offering comprehensive benefits and shielding against escalating third-party premiums.
Moreover, it offers the essential built-in coverages and liberates you from renewal date recollections, ensuring a worry-free driving experience for your new vehicle.
Here are some add-on covers that you can opt for with a bundled car insurance policy for the additional coverage:
|Depreciation Reimbursement||Key Replacement|
|Daily Allowance||Courtesy/Hire Car|
|Return to Invoice (RTI)||Engine Secure|
|No Claim Bonus Protection||Repair of Glass, Fibre, Plastic, and Rubber Parts|
|Tyre Secure||Consumable Expenses|
|Loss of Personal Belongings||Roadside Assistance|
|Emergency Transport & Hotel Expenses||Daily Allowance Plus|
What is Covered Under a Bundled Insurance Policy?
- Loss/Damages: Covers damages caused by perils such as fire, accidents, burglary, floods, earthquakes, and malicious damages.
- Liability: Provides legal liability coverage for death, bodily injury, and property damage up to a prescribed limit.
- Personal Accident: Includes coverage for personal accidents for the owner-driver if the vehicle is registered in an individual’s name with a valid driving license.
- Miscellaneous: Any other covered events, as mentioned in the policy document.
What is Not Covered Under a Bundled Insurance Policy?
- Use of the vehicle for hire, reward, racing, speed testing, and reliability trials.
- Vehicle use outside India.
- Consequential loss, wear and tear, mechanical and electrical breakdown.
- Nuclear perils, war, and war-like operations.
Benefits of Bundled Car Insurance Policy for New Cars
Bundled insurance provides convenience to new car owners as they do not have to put effort into finding and evaluating different coverages and policies. Buying this policy will help to get the essential coverages in a single policy and in a few clicks.
2. Potential Cost Savings
A bundled policy is designed carefully to cater to all your essential needs under one policy. The premiums are generally lesser than if you buy different policies or even the comprehensive policies with different additional coverages individually.
3. Built-In and Enhanced Coverages
Bundled insurance offers comprehensive built-in coverages, and you can also customise your policy by adding other riders to your policy. It is one of the beneficial features for new car owners looking for extensive and comprehensive protection for their cars.
4. No Need for Annual Renewal
Arranging insurance for your private car annually can be tedious and stressful. And if you forget to renew your policy, it leads to legal violations and potential financial losses in case of an accident. However, with a bundled car insurance policy, you do not need to worry about the annual renewal of the policy.
Factors to Consider While Buying Bundled Insurance for a Car
- Coverage Types and Limits: Thoroughly understand the included coverage and appropriate limits.
- Deductibles: Opt for the deductibles for cost-sharing during claims. Ensure you can easily afford them when an unexpected issue arises. Also, check the compulsory deductibles from the insurer.
- Provider Reputation: Thoroughly research the provider’s reputation and financial stability. Ensure that you buy insurance only from reputed insurance companies like Tata AIG.
- Customer Service: Check for 24/7 quality customer support and superior claim handling services from the insurer.
- Add-Ons and Riders: Check for optional coverage you can add to a bundled insurance plan to ensure adequate coverage in different circumstances.
- Cost Comparison: Look at different policy prices and compare the total cost with standalone policies.
- New Car Depreciation: Inquire about coverage against new car depreciation.
Bundled car insurance for brand-new cars is an excellent option, providing various benefits from cost savings to comprehensive coverage. However, one must always research the pros and cons of the different policies as these decisions significantly impact your finances.
So, evaluate your needs first, then thoroughly research different providers and compare the plans before choosing the bundled insurance. By doing this, you can make a wise decision and ensure that your brand-new car will get adequate and timely coverage when needed.