5 Popular Mistakes When Buying Car Insurance

by IndianAuto Team | 05/02/2019
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You should read the policy carefully to avoid basic errors while purchasing car insurance. Here are most five common mistakes when buying car insurance.

Shoppers looking to buy their dream vehicle tend to use car loan because it is a fast and economical way to acquire new as well as used autos. In India, most banks offer car loans at alluring interest rates. Now you have owned your dream car, how about insurance? Like medical coverage, vehicle insurance isn't an extravagance yet a need in India because of the rising number of street accidents in India.

According to Section 146 of the Motor Vehicles Act, 1988, all vehicles on public roads ought to have engine insurance in order to cover third-party damage. However, there are few phrasings in car insurance that are not familiar to normal people. These phrasings make the wording of the policy hard to comprehend and also confuse the clients. In many circumstances, individuals purchase the wrong car insurance when the buyer isn’t equipped with adequate knowledge about the insurance policy. In fact, there are also legal requirements for engine insurance, which makes purchasing insurance more complicated.

car pen paper document file

Avoid making mistakes when buying car insurance

1. Absence of Research

Clients purchasing car insurance out of the blue neglect to do investigate and explore different alternatives properly. In case you need to buy one, always ensure you complete legitimate research before making the final buying decision. Always ensure you complete research on the advantages and premiums of various car insurance accessible in the car market, which may assist you in finding similar advantages at a considerably more reasonable premium rate. Furthermore, you can likewise discover the client review related to the organization notoriety and the policy, which will assist you with buying the most suitable policy on the insurance market.

2. Searching for less expensive policy

Cost is unquestionably the cause of worry for many people, particularly with the insurance policy offering different advantages and coverage. You should search for reasonable car insurance, however, don't make it as the sole factor. The policy with the lowest premium will not always be the best alternative for you because these policies don’t offer coverage against enormous misfortunes or harms to your car. Thus, you should focus on purchasing an auto insurance policy which has an adequate cover.

3. Choosing Small Deductibles

A certain amount (deductible) has to be paid by the insured member before they can receive claims. Not only does a higher deductible lower insurance premium but also help the insured person to receive No-Claim Bonus for claim-free years. Numerous people pick little deductibles in their policy when purchasing car insurance on the web because they think that the little deductible sums are more useful. Actually, more beneficial policies include things which last longer than normal one-year car insurance.

4. Refusing the No Claim Bonus

car crash and claim form

If you haven’t made any claims, check for No-Claim Bonus

In the event that the buyer doesn't have any claims in the policy term, he/she is qualified to get a No-Claim Bonus at the season of purchasing another policy or reestablishing the current one. In fact, the No-Claim reward is known as a discount which is offered by an insurance agent to the policyholder for the following year on the premium payable. Thus, remember this when renewing the car insurance.

5. Not checking the policy’s terms and conditions

This is a standout amongst the most well-known mistakes people make while purchasing car insurance. In this way, ensure you comprehend the policy and don't overlook the policy’s exclusion list, which might include the most critical sort of coverage or advantage you are looking for. Prior to settling on any choice, do read the endorsed terms and conditions completely.

two people checking a car insurance policy

You should double-check all terms and conditions of the car insurance policy

In conclusion, you should stay away from these mix-ups and mistakes while buying car insurance. To detect the most suitable insurance policy for your car, ensure you research all available policies on the web, based on the benefits, coverage and premium amounts related to each of them. Furthermore, always remember to choose the suitable car insurance add-on covers for you.

Also Read:

How to file an insurance claim after car theft in India?

How to claim insurance for car accident in india

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