Mistakes to Avoid When Buying Car Policy Online
Updated On Oct 14, 2023
Here are some common mistakes to avoid when buying car insurance, especially as a beginner. Purchasing car insurance is a simple and easy process.
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Purchasing car insurance is a simple and easy process which you can complete effortlessly with the right knowledge. Also, when you are well informed about the process of buying car insurance and about the different features and jargons that are involved in it, the process becomes even easier. Right information helps you avoid unnecessary losses that can result from this lack of knowledge of confusion.
Mistakes to Avoid While Buying or Renewing Car Insurance
Here are some common mistakes to avoid when buying car insurance, especially as a beginner:
1. Avoiding Basic Research
Like you research online before buying a product, similarly, it is recommended to do basic research before buying or renewing car insurance from an online insurer. Under the research, you can verify if the insurance company is a certified entity by browsing the website and looking for the Insurance Regulatory and Development Authority of India (IRDAI) registration number and CIN number. Also, you can check the social media profiles of insurance companies for authenticity, customer reviews, etc.
2. Failing to Compare Different Insurance Plans
It is extremely important to compare the different car insurance companies and their policies when purchasing car insurance. Not only is it essential to compare the different quotes for the premiums that you would have to pay, but more than that, it is also important to compare the different insurance providers and factors such as claim settlement ratio which will help you down the line at the time of raising a claim. The way to ensure you have compared all your options is purchasing car insurance online, so that you may view all the different policies available to you side by side and get the best option for you, be it in terms of premium, coverage, etc.
3. Getting Only Minimal Coverage
In India it is prescribed by law that every car must be insured at least up till third party insurance (also known as Liability Only Insurance). This type of plan would cover any damages occurring to a third party but not to you or your car. It is thus out of the picture if you are in an accident not involving a third party or if your car gets damaged due to natural disaster or calamity. A common mistake is getting insured only up to this level, and failing to purchase comprehensive car insurance which would cover you in all above mentioned scenarios.
4. Failing to Consider Deductibles
Deductibles refer to a certain amount that the policyholder agrees to pay at the time of raising a claim. Deductibles are of two types. Compulsory deductibles are a part of many car insurance policies. Additionally, policyholders can opt for voluntary deductibles. Voluntary deductibles are optional amounts that you agree to pay at the time of raising a claim. While this lets you have a smaller premium when purchasing the insurance policy itself, it can be detrimental at the time of raising a claim as it will increase the amount of money that you need to pay, in addition to the compulsory deductible in the claim amount.
5. Skipping Policy Verification
Buying a car insurance policy is a matter of 5 minutes nowadays but you should give a couple of minutes after receiving your policy document as well to check it and verify the details mentioned in it. Sometimes, there can be an error in the car insurance policy document that can prove costly in the long run as claims can be rejected due to them. Verification of details like name, address, vehicle number, cover, expiry date, and so on. If there are any issues, contact your insurance company and you should get it rectified without wasting any time.
These three common mistakes are important to avoid when purchasing car insurance. As a beginner, it can be easy to get overwhelmed by the magnitude of policy options and jargons in the world of car insurance. However, avoiding these three common mistakes is a step towards ensuring that you make an informed and safe choice.
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Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.