7 Mistakes You Should Always Avoid While Purchasing a Car Insurance Policy
If you own a vehicle in India, you must be aware that it is illegal to drive an uninsured car on Indian roads. Getting caught can make you liable to hefty fines and penalties by the concerned authorities, and repeat offenders can face severe consequences.
If vehicle owners want to drive without this fear of penalty, they should get their vehicles insured under a good insurance policy at the earliest.
The wide range of options can sure confuse many, but we’ve got your back in this scenario. To help four-wheeler owners like you, we’ve curated an epic list highlighting the factors you should not miss while assessing and finalizing a car insurance policy for your vehicle. These factors have been picked after extensive research and talking to various insurance experts. So let’s head straight to the points shared below.
- Not Choosing the Apt Coverage
A common mistake many people make is picking a policy with limited coverage and regretting later. If you’re new to car insurance, there are primarily two types of insurance available, i.e., third-party and comprehensive insurance. The former offers third-party financial liability to third-party individuals and properties.
The only downside of this policy is it doesn’t cover own damages caused to the driver-vehicle owner and own car. This downside is covered by comprehensive car insurance, as it covers both third-party and own damages. If you value your car more than premiums, you should pick comprehensive insurance over third-party insurance for the best coverage.
- Not Comparing the Policies Online
Once you’ve decided whether you want to proceed with comprehensive or third-party insurance, you should start looking for relevant options available online. A mistake you would not want to make is not comparing policies online. Comparing similar policies will allow you to pick the best and most cost-effective car insurance for yourself.
A tip you should follow while comparing policies is to make logical comparisons. Don’t just compare the policies by premium prices, but also check what all is covered in the coverage at a given premium price. The more options you identify and compare, the better your chances of finding the ideal policy.
- Providing Incorrect Information to Insurer
Some people tend to fill incorrect information while filling out the insurance application form to get lower premium estimates, but this trick always backfires. Details like vehicle’s age, attachments added, vehicle type, etc., are some of the factors that insurers consider to calculate the premium. If you tend to manipulate the details, the company will identify them during their inspection, and your application can get rejected.
Even if the form somehow gets accepted, you may face troubles and chances of claim disapproval during claim settlement. If you don’t want any of it to happen, always be truthful with the insurer and fill in the correct vehicle and own details.
- Ignoring Deductibles
Deductibles are costs the insured agrees to pay while raising the claim. Once the deductibles are covered by the insured, the insurer pays the amount above it. The insurer will pay the remaining amount of the claim incurring over and above the deductibles. For example, if your car insurance has deductibles of Rs.15, 000, you will have to bear this much amount from your own pocket while filing a claim above this amount.
As the insurance premium and deductibles have an inversely proportional relation, you should pay special attention to them - higher the deductibles, lower the premium, and vice-versa. If you pick higher deductibles to get a lesser premium, you will have to pay higher out-of-pocket expenses during claim settlement. So don’t opt for high deductibles until and unless it is necessary.
- Picking Irrelevant Add-ons
Riders or add-ons are an additional benefit that enhances the policy coverage. If you’re not satisfied with the standard coverage that comes with the policy, you can purchase additional coverage depending on your needs. Since every add-on performs a specific function and comes at an additional cost, you should be careful while adding the add-ons to your policy. Every insurer offers a different set of add-ons, so always ask the insurer about the available options.
Generally, the top insurance companies in India offer consumable cover, return to invoice cover, engine protection cover, zero depreciation cover, tyre protection cover, roadside assistance, passenger cover, and engine protection cover. Of all the covers mentioned, zero depreciation is the most important one. Since the four-wheeler tends to depreciate with time, the vehicle owner has to bear the depreciation cost and replacement of spare part cost. If you want this expense to be borne by the insurer, you should look for zero depreciation car insurance. It will fix the problem.
- Not Checking the List of Inclusions & Exclusions
Inclusions and exclusions are at the heart of a policy. You will be vulnerable to unpleasant experiences during the claim settlement stage if you ignore these two while finalizing your car insurance policy. Assumption never works in the insurance sector, so never assume a particular insurer offers specific coverage just because another insurer does.
For example, check if the cost of spare part replacement costs, repair costs, etc., are covered in the policy or not. You can ask the insurer for the policy documents wherein the inclusions and exclusions are mentioned for your ease. The more careful and precise you are with the inclusions and exclusions of a policy, the better your experience will be.
- Ignoring Doing the Necessary Research on Insurer
The last thing you would ever want to do is get stuck with an insurer that least bothers about its customers. Doing enough research about the policy is essential, but doing research about the company issuing the insurance is even more critical. Before you finalize any car insurance policy, join various online groups, forums, and communities created around insurance and check what reputation the selected insurer has.
If all you see is positive reviews from real insurance holders, consider it as a green signal, and vice-versa. You should assess the insurance company on the basis of claim settlement, customer support, etc. The more you research, the more pleasant your overall experience will be.
Secure Your Car in a Hassle-free Way
Getting the right car insurance is the first step towards secure driving, and making timely premium payments is the second. Depending on the car insurance you choose, it will protect you against third-party liabilities and secure you against your own damages. Now that we’ve made picking the right insurance easier, you shouldn’t face challenges during your insurance purchase journey. Take time, research enough, compare and then take the final decision.