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Common Mistakes People Make While Buying Car Insurance
With easily available car loans, buying a car has become really easy in today’s time. However, for you to take your prized possession on the roads, it needs to be insured. Just like health insurance, when you buy car insurance, you must make sure that you and your family are fully protected in case of an accident or if your car is damaged or stolen. It is, therefore, important that you choose your car insurance policy with the utmost care. Although buying four wheeler insurance online has become easy, it is important to take your time to ensure that you are getting the best insurance coverage at the right price. If you are planning to buy four wheeler insurance, here are a few common mistakes to avoid when buying car insurance.
- Buying a policy with the lowest premium: When most people buy car insurance, they search for policies with the lowest premium. However, letting the price decide your choice can cost you dearly later on. A low premium translates into a low cover. This means in case of an accident or any other unfortunate incident, you will receive a low cover. Remember, you buy car insurance not because it’s legally required but because of the benefits you get out of the policy. When you shop around for car insurance, keep benefits as well as after-sales service in mind.
- Buying only third-party insurance: Of all car insurance mistakes, this is one that most people are guilty of making. Since third-party insurance is legally mandatory, many people buy a basic insurance plan. This one mistake of yours can burn holes in your pockets in case your car is involved in an accident or mishap. The policy would compensate the third party while you will have to pay for the damages caused to your car. In case of a comprehensive insurance policy, both the third party as well as you will be compensated for the damages.
- Hiding driver history: Hiding information like the age of the driver, driver history, and safety accessories installed in the car may fetch you a lower premium. However, this car insurance mistake will go against you at the time of claim. Full and honest disclosure is a must at the time of buying car insurance.
- Not reading policy documents carefully: The list of car insurance mistakes to avoid also includes signing the policy up for a policy without reading the terms. Just like any insurance policy document, car insurance policy is also very extensive. It is important that you thoroughly read the document to understand the terms and conditions. This will ensure that you don’t face any troubles at the time of claim settlement. Insured Declared Value, coverage, deductibles are some crucial information that you must be aware of.
- Not renewing your policy on time: A car insurance mistake that can cost you dearly is not renewing the policy on time. Renewing a car insurance policy once it’s lapsed can be quite a tedious job. The car insurance provider will send someone to inspect your vehicle for any pre-existing damage before they renew the policy. This process can be time-consuming. Also, you need to understand that you can’t drive your vehicle without a valid car insurance policy. If you are caught doing so, you will be penalized for it. Moreover, if your policy lapses, you may end up losing benefits like no claims bonus.
So remember these mistakes to avoid when buying car insurance. Drive safely and responsibly!
Disclaimer: The above information is indicative in nature. For more details on the risk factor, terms and conditions, please refer to the Sales Brochure and Policy Wordings carefully before concluding a sale.
