Buying a new car will become more expensive from September 1, 2021. After the Madras High Court decision to require damage coverage for cars from September, you may need to now paying Rs 10 to Rs 12,000 for a lower and lower payment for a four wheeled vehicle.
Whereas if you buy a two-wheeler you will have to pay up to Rs 1,000 more. With this, the cost of insurance on a new vehicle will increase significantly for 5 years because according to the rules, liability insurance on a new vehicle is required for three years for four wheels and 2 years for two wheels.
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According to information, after the first year, each year the cost of insurance will increase by 20 percent.
But after the Madras District Court ruling, bumper-to-bumper insurance will be compulsory for 5 years when buying a new car, which means you will also need to take out a car insurance policy. damage insurance.
Apart from this, until now, the individual accident cover was only necessary for the driver or the owner of the vehicle, but after court order, the individual accident cover will also be made compulsory for 5 years for all seated passengers. in the vehicle.
What is bumper-to-bumper insurance?
Bumper-to-bumper insurance is a type of auto insurance that provides comprehensive vehicle coverage. It should be noted that full coverage will be given under this insurance regardless of depreciation. The insurance company cannot deduct depreciation during the claim.
In addition, after the accident, the insurance company will pay the full amount for the replacement of parts of the car.