If you’ve just purchased your dream car or are about to get one in the coming days, you must also be searching for the right car insurance. In India, no four-wheeler is allowed to hit the roads without getting insured. If any driver is found guilty of driving an uninsured car, they will have to pay hefty penalties and fines to the concerned authorities.
While every car owner knows the importance of investing in decent car insurance, the availability of too many options makes it challenging to pick the right insurance plan.
Moreover, some car owners make a common mistake in the insurance buying process: proceeding with policies offering a lower premium. If you don’t want to eventually end up with a policy that barely covers your car insurance needs, you should always avoid making the following mistakes.
Top 5 Mistakes You Must Avoid Before Buying A New Car Insurance
- 1 Top 5 Mistakes You Must Avoid Before Buying A New Car Insurance
- 2 Invest In The Right Car Insurance Plans Based On Your Needs
1] Not Comparing Policies Online
The internet has made it easier than ever to find, compare, and pick the best car insurance policies online. But you’re making a significant mistake if you still aren’t comparing multiple policies before investing. Always compare policies online if you want a car insurance policy at reasonable premiums without compromising the coverage requirements. Start by listing your needs and then search for at least three to four policies matching the coverage requirements.
Compare them against the premium charged, inclusions, exclusions, insurer’s reputation, claim settlement ratio of the shortlisted insurer, and other relevant parameters to find the best option. While comparing, never give preference to any policy because of lower premiums because lower premiums often translate to insufficient coverage. You can understand this better in the next point.
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2] Choosing Low Premium At The Cost Of Insufficient Coverage
Some car owners try to save money by searching for cheaper policy options, which backfires in the long run. The point many car owners fail to understand is lower premiums aren’t accompanied by standard coverage, and you will realise it during claim settlement. If you’re all worried about your car’s safety, you should look for a policy offering the required coverage.
By choosing a lower premium policy, you can save money in the short run, but the financial damage can be massive at any future date. While looking for the cheapest policy isn’t the best way to get car insurance within your budget, you can certainly start looking for policies with reasonable premiums. You can use any online premium calculator to help you during the research process.
3] Not Checking The Inclusions & Exclusions
A grave mistake you can make while buying car insurance is buying a policy without fully understanding what it includes and excludes. The market offers multiple car insurance plans that are not designed the same way; different car insurance policies can have additional terms and conditions, inclusions, and exclusions. You must be well-informed of all these clauses to pick the ideal policy.
For example, standard car insurance doesn’t cover consequential damages. If you want your insurer to cover it, you will also haveto buy the engine protection cover. Hence, to avoid unpleasant experiences during claim settlement, always be aware of the inclusions and exclusions before finalising any policy.
4] Providing Wrong Information In The Insurance Application
There are multiple factors, like the car owner’s age, vehicle’s make and type, location, purchase value, etc., that determine the premium rate. Some car owners generally make the mistake of trying to manipulate the insurance premium rate by filling wrong information. It is generally done to get a lower premium rate. Such illicit activities can backfire and result in insurance application rejection.
Insurance companies always double-check the information you provide in the application, so there is no way you can get around providing incorrect information. If you have found the perfect car insurance for your vehicle and want to get it at the earliest, always provide correct details regarding the owner and the car to minimize the rejection rate.
5] Buying Add-Ons You Don’t Need
Not every car insurance policy provides the required coverage in the standard plan. It is where the need to invest in add-ons arises. Add-ons or riders are additional coverage clauses that enhance or upgrade your car insurance coverage. As a car owner, you should never invest in random add-ons because every add-on comes at an additional cost. The only wise option you can choose while buying add-ons is picking the ones you really need.
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For example, zero dep car insurance can be selected if you want the depreciation cost to be borne by the insurer. Besides this add-on, you can also pick engine protection cover, return to invoice cover, roadside assistance cover, etc., depending on your requirements. If you don’t require multiple add-ons, don’t buy them based on FOMO. It will only make you lose money.
Invest In The Right Car Insurance Plans Based On Your Needs
The Indian market has plenty of car insurance plans, but not all will make a cut based on your requirements. As a car owner, your focus should be on finding a policy that covers all your coverage requirements. And you can achieve it by avoiding making the mistakes discussed above. Car insurance is a serious investment, and no one should decide in a hurry. If you avoid making the mistakes covered in this article, you will minimize your chances of picking the wrong car insurance policy. So give the required time to find, compare, and shortlist the best options. It is a decision you’ll never regret in the future.