Buying new car to get expensive from September 1; down payment to go up- Check how much more money you will have to pay

Buying new car is going to become more expensive from September 1, 2021. After the decision of the Madras High Court of mandating own damage coverage for cars from the month of September, now you may have to pay Rs 10 to Rs 12,000 more as down payment for a four-wheeler.

While if you are buying a two-wheeler then 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, third party insurance on a new vehicle is necessary for three years for four-wheeler and 2 years for two wheelers.

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As per the information, after the first year, every year the insurance cost will increase by 20 percent.

But after the decision of Madras High Court, bumper to bumper insurance will be mandatory for 5 years on the purchase of new car, meaning you will also have to take own damage insurance policy.

Apart from this, till now personal accident cover was necessary only for the driver or owner of the vehicle, but after the order of the court, personal accident cover will also be made mandatory for 5 years for all the passengers sitting in the vehicle.

What is bumper to bumper insurance?

Bumper-to-bumper insurance is a type of car insurance which provides complete coverage to the vehicle. It can be noted that full coverage will be given under this insurance irrespective of depreciation. Insurance company cannot deduct depreciation during claim.

Also, after the accident, the insurance company will pay full amount for the replacement of parts of the car.