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Mistakes To Avoid While Purchasing A Car Insurance Policy

Wish

Written by Amit Jain

Updated Oct 18, 2023

Mistakes To Avoid While Purchasing A Car Insurance Policy

With the appropriate information, buying auto insurance is a straightforward and quick procedure that you can accomplish with ease. Additionally, the procedure is made much simpler when you are knowledgeable about the benefits and lingo associated with purchasing auto insurance. A lack of understanding or uncertainty can lead to avoidable losses, which can be avoided with the right information.

Mistakes To Avoid While Purchasing A Car Insurance Policy

Avoid These Blunders When Purchasing Or Renewing Car Insurance

Here are some frequent blunders to stay away from while purchasing auto insurance, especially if you're a novice:

Absence of Basic Research

Before purchasing or renewing automobile insurance from an online insurer, it is advised to conduct some basic research similar to what you would do before purchasing a product online. By searching the website for the Insurance Regulatory and Development Authority of India (IRDAI) registration number and CIN number, you may determine from the research if the insurance firm is a certified entity. Additionally, you may examine insurance firms' social media pages for legitimacy, client feedback, etc.

Not Comparing Various Insurance Plans

When buying auto insurance, it is crucial to compare the various auto insurance providers' policies. Comparing different insurance providers and characteristics like claim settlement ratio, which will be helpful to you later on when filing a claim, is just as crucial as comparing the various estimates for the premiums that you would have to pay. Buying auto insurance online allows you to compare all the different plans you have available to you side by side and choose the best choice for you, whether it is in terms of premium, coverage, etc. This is the ideal method to make sure you have considered all your alternatives.

Receiving Only Slight Coverage

Every automobile in India is required by law to have third-party insurance at the very least (also known as Liability Only Insurance). This kind of policy wouldn't cover harm to you or your vehicle, just harm to a third party. Thus, it is irrelevant if you are involved in a collision without the involvement of a third party or if your automobile sustains damage as a result of a catastrophe or natural event. Making the error of merely purchasing coverage at this level rather than comprehensive auto insurance, which would protect you in all of the aforementioned situations, is typical.

Underestimating Deductibles

Deductibles are an agreed-upon sum that the policyholder must pay when filing a claim. There are two sorts of deductibles. Many auto insurance plans include mandatory deductibles. Policyholders also have the option of choosing voluntary deductibles. A voluntary deductible is a sum of money that you choose to fork over when filing a claim. While doing so enables you to pay a lower premium while obtaining the insurance policy, it may be problematic when it comes time to file a claim since it will raise the amount of money you will have to pay on top of the required deductible.

Leaving out the policy verification

Nowadays, purchasing a vehicle insurance policy just takes five minutes, but you should set aside a few minutes once you have your policy paperwork to review it and double-check the information it contains. There may occasionally be a typo in the vehicle insurance policy form, which might end up costing you money down the road if your claims are denied. Verification of information such as name, address, vehicle number, cover, expiration date, and other facts. If there are any problems, get in touch with your insurance provider, and you should get them resolved right away.

Take Away

When buying auto insurance, it's crucial to avoid these three frequent blunders. The sheer number of coverage options and jargons in the world of auto insurance may easily confound a novice. Making sure you stay clear of these three typical errors, however, is a start in the right direction.

Also read: Explore The Different Types Of Car Insurance Policies Available In India

How Can Car Modification Impact Your Car Insurance Policy?

Wish

Written by Amit Jain

Amit is an upcoming name in the motor industry be it new cars/ bikes or used ones. Amit in his last stint worked as a consultant for major Fortune 500 companies across the globe.&Read More

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.

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