It goes unsaid that in India having car insurance is not a luxury but rather a necessity. Unlike previous times, these days the process to buy or even renew car insurance is a lot easier and faster, thanks to the digital revolution. The exhaustive paperwork has been replaced by convenient points and clicks online. People are more aware these days and have the convenience to compare different insurance plans and choose the one with maximum benefits with reasonable premiums.
Common blunders to avoid when buying car insurance:
Listing below are some common mistakes that you can avoid to further improve your overall car insurance buying experience.
Mistake #1: Lack of Research: A lot of us simply rely on age-old information that we have about car insurance, and base our buying decision on it. Like other products that you shop for, even car insurance buying requires you to do some basic research about the insurance company, their registration, authenticity, claim settlement ratio, etc. to make an informed decision. Buying car insurance shouldn’t be a rushed decision, rather you should take some time out to understand how the insurance plan works, what is included, what’s excluded so that you get the best deal.
Also Read – How To File A Car Insurance Claim Via App
Mistake #2 Not Comparing Insurance policies – : Apply the basic principle of shopping even while purchasing car insurance, and that rule is – compare and then decide. Just because a specific insurance company has been in the market for a decade, doesn’t mean they will always provide the best policy. A lot of us make the mistake of choosing a policy just based on the premium amount. A lower premium amount necessarily doesn’t mean the best coverage, on the contrary, it could mean that the insurance company may be offering a lower Insured Declared Value (IDV), and fewer features. The best way is to compare the different policies of varied insurance companies in terms of inclusions, coverage extent, and the premium amount.
Mistake #3 – Opting for Minimal Coverage: The whole purpose of buying insurance is to help you with the financial stress that an unforeseen event like a car accident can bring on. So, if you just choose the basic third-party liability plan that’s mandatory as per Indian law, then you are putting yourself at a greater risk. This is because a third-party insurance plan offers assistance to the third party when your vehicle damages their car, but not when your car is damaged. Opting for comprehensive car insurance where your vehicle is covered against damage makes better sense for peace of mind.
Also Read – How Can Add-On Covers in Car Insurance Make Your Life Simpler?
Mistake #4 – Not Exploring Add-ons: Add-ons are a great way to further boost comprehensive car insurance coverage. Not checking out these add-ons can leave you and your car vulnerable in many ways. For example, a zero depreciation add-on removes the stress of depreciation deduction while claim settlement. Similarly, adding a roadside assistance add-on also is very beneficial so that you get immediate help if you are in car stalls in the middle of nowhere. While add-ons come at an additional cost, they are totally worth the additional layer of protection they provide.
Mistake #5 – Not Managing NCB: No claim bonus in car insurance is a renewal bonus that an insurance company provides to an insurer for not filing an insurance claim during the policy period. It’s like a discount given on your annual premium when you renew the policy. Lot of people ignore this factor, and raise minor claims and lose the greater discount that they could have got for their next premium, because NCB works on incremental principle.
Mistake #6 – Not Sharing Precise Information: Trust is the key factor between the insurer and the insurance company. It’s really crucial that you are being truthful about the information that you share with the insurance company while filling out the paperwork as well as while filing a claim. A lot of people mislead or hide information with the insurance company in order to get a higher claim amount, this is against law, and you can be imposed with legal proceedings.
Also Read – Buy Affordable Insurance Plan For Your Commercial Vehicle With many features
Mistake #7 – Choosing the Wrong Deductible Amount: Deductible is a mutual understanding between the insurance company and the insurer on the cost-sharing arrangement in case of claim settlement. Many times, people choose higher deductibles, so that they can save on the policy premium amount, however, this also means in case your car gets damaged due to an accident, you will end up paying a higher amount from your pocket as your share.
Mistake #8 – Not looking at online insurance: There is still a sect of people who are averse to purchasing policy online, and rigidly want to stick to the age-old process of going offline through an agent. However, purchasing policy online has several perks like easy ways to compare different policies, hassle free enrollment without any major paperwork and sometimes you even get policy discounts. So for those who are a little skeptical about purchasing a car insurance policy online, we say you should try it once, and we are sure you will be amazed how easy and swift the process is.
Mistake #9 – Not Asking Appropriate Questions: Many of us shy away from asking questions and seeking information or clarification, out of the fear of being judged. Always remember it’s your right to know and understand your car insurance policy well before you make the buying decision. Enhancing your knowledge about the coverage inclusions, claim settlement procedure can help you make the right decision.
We hope the above pointers will help you make a smart buying decision for a suitable car insurance policy.