Mistakes to avoid when buying a car insurance policy

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Mistakes to avoid when buying a car insurance policy   12th Feb 2020

So much deliberation goes into buying a car, but car insurances? Not so much. This is one of the most concerning problems as these trivial mistakes are overlooked and more importantly can even be done away with if one is cautious enough.

Car insurance is almost mandatory in times like now but keeping relevant information from your insurance provides is often misleading than not. Here are mistakes to avoid when you're buying a car insurance policy -

  • Not comparing prices- Many people who instantly go for insurances provided by someone they know or the insurances their acquaintances have applied for. Although the reliability factor is higher here, you can't be sure that they'd have made the right decision or looked up the new car insurance rates and updated offers in the market. For this one reason at least, compare the prices of different insurance policies till you're totally convinced about a single policy over the other. This will also give you the additional satisfaction of having researched well enough and made a wise choice.
  • Cheap insurance policies- Cheaper insurances come with the obvious hazard that there's something flawed or even shady the company is trying to keep from you. Sometimes, companies manage to go about selling these without some key features which you may happen to overlook. Most people usually opt for the cheapest or the insurance policy with the lowest premium, and that doesn't assure the same type of safety as good reliable insurance will offer. Do not make hasty and flippant choices, as it's obvious that a lower premium also means a lower cover is provided when necessary.
  • Buying it offline- Even if you know someone who may provide insurance services from a reliable company, there are a lot of unnecessary hidden costs that you'd not know. Rather than going for a cheaper unreliable premium, you can just opt for a good and reliable premium from a reputable company that also gives cheaper options. This is usually overlooked because people still choose or prefer the offline modes of application and payment. However, it is always more beneficial to find the online versions as not only does it come with a greater variety of options and plans, but it will also remove all the hidden costs for the job.
  • Low deductibles- This is like choosing for cheap premium except here, deductibles are the charges paid by a customer before receiving the claim. If you're going to focus on this factor, then you'd be missing out on a balanced plan with a good premium as well. Usually, lower deductible plans come with higher premiums. Either way, you'd have to pay that said amount so why not choose a more profitable variation. If you opt for a policy that requires a higher deductible, then you can also attain the no claims bonus. This 'No Claim Bonus' or NCB is when an insurance company pays you if you do not file a claim for a stipulated amount of time. This could be an additional profit you will not be able to enjoy if you pay a lower deductible and a higher insurance premium.
  • Driver details and history- Usually, the factors considered for the insurance premium include the details of the driver, including the age and other details like safety equipment installed, driving style. These may increase or decrease your premium accordingly. But because of that, if you choose to hide certain details for a lower premium thinking you've made a smart choice, it's misleading and doesn't assure you the certainty of your insurance. If an insurance provider finds out about the hidden details, they hold the authority to dissolve your policy as an invalid one. So, don't make a mistake like this just to save a few hundred rupees.
  • Acquainting yourself with the new car insurance rates, terms and conditions, and other essential aspects of the insurance policy is essential to help you maximize the benefits on offer.