How to select Best Car Insurance

Here are some of the Tips while selecting a Car Insurance.


1. Try to get a quote from reputed public sector companies like

1.1National Insurance Co. Ltd
1.2 United India Insurance Co.
1.3 The New India Assurance Co. Ltd
1.4 The Oriental Insurance Co. Ltd.

They have wide networks and their insurance quotes are reasonable too.

Run-In you NEW car

Congratulations, to be a proud owner of the NEW car.

Now get yourself ready to run-in your new car. Here are some of my tips.

1. Read the user manual. The time spend is really worthy. because how you treat your new car engine will definitely affect its performance, efficiency and life.

Pre-Delivery Check list for your NEW car

1. Am i waiting for the NEW car for the last few weeks or months ?
2. Is there anything i should do on the delivery day or even before registration the car

If YES, then this blog is exclusively for you.

As this is the most expensive machine you are buying in your life time, its better to take some precautions before driving away your brand new car. Here are some of the tips.

1. Before Registration:

Once the car is registered in your name, its your liability. So i strongly recommend visiting the dealerships stockyard and inspect your car prior to registration.  Check the car manufacturing month, year, especially when buying in the first quarter of any year. You can ask for the "Form 22" certificate (issued by the manufacturer).

Also check for any repair jobs, body damage. There are always chances for damage to some cars in transit. Also check the tax calculations on the dealership invoice. Many Indian dealerships used to overcharging for RTO lifetime tax.


2. Preparations:

2.1. Fix the date of delivery of your car and better reach the showroom only after the car has been ready. If we have a preference for a particular day / time (for auspicious reasons), inform the sales person.

2.2. Daylight: Its better to accept delivery in daylight, since dents may not be visible in the dark. Also we may not get good service in the evening since dealership agents are in a hurry to wrap the day up.

2.3. Documentation: Take the quotation documents to check whether all accessories that are offered are installed. Also take the advance receipt and remember to deduct that before the final settlement.

2.4. Payments: If any payment formalities are to be completed, take enough cash / credit card.

2.5. Third Person: It’s better to take a relative / friend who owns a similar car for suggestions, observations and comments.

2.6. Memories: Take a camera and remember to take snaps of you big moments.

2.7. Music: Carry a CD to check the working of the stereo.

2.8 Minimum four lemon to put under each the tyre just before the first drive, agarbatti, match box etc.



3. At the Showroom:

3.1 Get a Demo - Its the salesperson's job is to give you a full demo of your brand new car's features and how each one operates. Ask him to demonstrate the car fully, top to bottom, in order to understand how everything works on the vehicle. Get familiarized with switches, wiper operations, AC, Horn, Fuel indications, Hood parts, Stereo, internal lighting, seat adjustments etc

3.2 Visit the Service Department: Meet the Sales Manager and Service manager and also get familiarize with the service center facilities.

4. Final Inspection:

4.1 Inspect the car again: Something can happen between the pre-registration inspection and today. It’s best to walk around the car and confirm that the car is clean. Look for any defects in lights, water in lights, signs of repair work / damage such as paint difference, dents etc. Even the interiors should be super clean.

4.2 Check that all lights and electric accessories are working fine.

4.3 Confirm that all the accessories you are offered/ordered are fitted on the car.

4.4 Check that the spare wheel is fresh. And that all related tools (spanner, jack, jack lever) are present.

4.5 Check Wipers, floor matting, first-aid kit and hazard sign board are present.

4.6. Check the odometer reading. It should be less than 100 km.

4.7. Ensure that there is enough fuel in the car. At least to get you to the nearest petrol pump. Also most showrooms used to give FREE fuel coupon, ask whether they have such an offer.


4.8. If the car is already registered cross check your car's registration number on the R.C. Book, with the number plate.

Documentation:

Read the following paperwork carefully. There are chances for spelling mistakes.

1. Invoice. (Check that the Chassis and Engine number of the car matches with the Invoice).

2. Sales certificate.

3. All payment receipts.

4. Registration book or temporary certificate.

5. Insurance: Mostly they will issue a temporary Insurance if the car is not registered. Ensure that coverage is valid and active.

6. Original Pollution Under Control [PUC] certificate. This is valid for one year.

7. Owners Manual.

8. Duplicate Keys.

9. Original warranty with all relevant dealership stamps.

10. Extended Warranty (If opted for).

11. Warranty of third party items such as battery, tyres etc if available.

12. Roadside assistance Contact details.

13. Business cards of dealership and service personnel.


Don't forget to say Thanks to everyone. Drive Safe. Happy Driving.

Buying a NEW Car ?

The customer is King.

The automobile industry is getting more competitive day by day and now we can get all the international brand cars in a showrooms near by. Now if we just start thinking about buying car, we can expect a call from a car dealer. As this is the second most expensive purchase that most of us going to do in our life, let me just list some of the forethoughts and road map that we take while doing a car purchase.

1. Mind Work

1.1 Budget.
 Do some research about every brands value depreciation by looking at used car value in our city. Also try to collect information about fuel efficiency, service costs and insurance premiums. Also understand the terms EMI, Auto Loan, things needed for an auto loan, Banks with lowest interest rate, Floating Vs Fixed interest rate etc.

As per financial experts one can set the car budget equivalent to ones annual salary. Also its better to plan and save enough money say 50% or more as down payment before buying a car. Keep in mind CAR is a liability, 25% of its value will be reduced on the next day of the delivery. Another 10-20% will be reduced every year.

1.2 The right car:
Once the budget is ready we need to decide what sort of car best meets our needs. If our family is of four members there is no need to buy a large MUV like the Toyota Innova. Also consider how long we plan to keep our car and how our needs may change with time, kids can make a big difference here. Its always better to keep a new car for atleast for 8 to 10 years. So analyze our needs before we decide on a car.

1.3 Diesel or petrol:
This can be decide based on our future running per day. If we are doing more than 70 km per day diesel engine will be suitable and other wise chose only petrol engine. This is because Diesel engines are usually 1 lakh + more costly than petrol engine. Considering this and the difference in petrol and diesel price can be compensated in 3-4 years if the daily running of the car is more than 70 km.

2. Test Drive

2.1 Do it yourself:
Never buy a car jsut on our relatives opinion, even if it is that of an automotive expert. What is right for someone else may not be right for us; check details like the comfort of the driving position, engine responsiveness, boot space. A one-kilometer test drive may not be enough, go for a comprehensive test drive in traffic, on open roads and up and down hills.

Check turning radius, visibility and cornering efficiency etc. Even if you are not inclined toward any other choices, just do a test drive so that you may not regret in future.
  
2.2 Take a second opinion:
It can be valuable to bring a friend who own any car [better a different brand car] with you on the test drive. They can offer unbiased comments or opinions that will help you in making the right decision.

2.3 Everything in writing:
It’s a common practice that the dealers marketing agent to promise discounts, free accessories etc, but not deliver on the delivery day. Make certain that every commitment made by the dealer is written down and signed on their letter-head. The agent usually have a quota for free accessories for each customer. If we are smart we can get the maximum discount and accessories.

Its better to make then write the cost of all free accessories and ask for that much cash discount. With that discount you can select better accessories from a good accessories shop.

3. Fix the Deal

3.1 Shop around:
For the best deal, nothing can replace comparing one offer against another. Do research on dealers discounts, manufacturer price cuts, free accessories etc. You should also consider calling Sales Agents from different dealers for a quote, they work in a close collaboration with dealerships and survive on fringe margins.

3.2 Buy insurance ourself:
Dealerships got fat commissions on every insurance policy sold. Don't buy insurance coverage from the showroom, instead, shop around and take quotes from 3 - 4 insurance companies / agents. You stand to save anywhere between 20 - 40% on insurance by shopping yourself and bypassing the dealer here.

3.3 No Claim Bonus (NCB):
The NCB of our old car can be utilized while taking insurance for the new car. The old car must be sold or transferred to make this possible, this will save thousands on insurance premium. We can use the NCB even for any succeeding insurance premium but only once. So don't rush to sell your old car at a lower price to claim this benefit.

3.4  Exchange Bonus:
Once you have sell or exchanged your old car, just keep a copy of old RC book and New RC book and apply for exchange bonus. You can get this benefit within 6 months from the purchase of the new car. This will also save few thousands.

3.5 Check before registration:
You must do a pre-delivery checking before sending you car the Regional Transport Authority for registration. Always check for any dents, scratches, overall working etc and also note down the engine number. Once it is registered its your liability. Also its better to make the dealer to complete the registration formalities as doing that ourself will be a big headache. You can see a detailed Pre delivery check list at http://mytipstowardswealthy.blogspot.com/2010/09/pre-delivery-check-list-for-your-new.html

3.6 Accessories:
If you are buying accessories from showroom always compare prices between the showroom and accessories shop. Some dealerships used to charge 2-3 time more prices. Also verify the quality and brand of accessories.