Five Common Mistakes Everyone Makes While Buying Car Insurance

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Five Common Mistakes Everyone Makes While Buying Car Insurance    26th March 2020

Almost everyone today owns a car, which means they would most probably either already have a car insurance policy or would be looking to buy one soon.

For those who plan to buy one, there are many things to consider. Since the policy would provide financial cover in the event of an accident, either for the repairs/ any bodily harm, or both, hence, you must do all the necessary research. One should choose an insurance policy that not only suits your needs the best but also offers maximum coverage.

Here are five mistakes that most people tend to make when buying car insurance: -

  • Opting for a low premium: The premium is the amount you regularly pay to the insurance company towards the policy, and often, many people choose a policy that comes with a lower premium.
  • Comparing policies only based on price: Car insurance prices in India vary from company to company, and while paying a low premium might seem easy on the pocket, but you may not get a lot of benefits or the needed coverage out of it. Before you pay any amount, make sure to go over different policies, compare them, and then choose the one which offers maximum coverage.
  • Not registering the vehicle: As a car owner, you must register the car or transfer the ownership to yourself since that is the only way to make the insurance claims when needed. While many forget to do so, others purposefully avoid it, to not pay the taxes, and end up not benefiting from the insurance policy.
  • Not doing enough research: While asking friends and family or the car dealership about suitable car insurance is always a good idea, it would be stupid not to do the research yourself. You must make sure to go over different car insurance policies and compare their terms and benefits before you choose the one that suits you best. If you do not do so, you might end up paying higher than necessary or might opt for a policy that does not offer optimum coverage.
  • Not reading the policy: Whether you are yet to select a car insurance policy or are about to sign on one, one of the worst mistake that you can commit is not reading the terms, conditions, and coverage of the policy. Unless you read it thoroughly, you will not know what it does and doesn’t cover, how much you need to pay, when and how much you would need to pay out of your pocket in some cases, etc.
  • Not updating the policy: There are always changes in your everyday life, which in turn influence the kind of car insurance you would need (it could be related to where you live or work, where you drive most often, the rate of theft around your area, etc.). When you choose an insurance policy, you will go with the one whose terms and coverage align with your lifestyle, and thus, it makes sense to update your policy if there are any changes in your everyday life.
  • Keep in mind that the car insurance prices in India will differ everywhere, as will the terms, thus making it very important to research thoroughly before buying such a policy.