Must Avoid Mistakes While Buying A Motor Insurance
Today, a number of insurance companies are offering insurance and the online procedure is making things simpler to get your motor insured. If you too, are looking for a vehicle insurance, you might need to give a thought to the mistakes you could be making that could lead to spending more money and even loss of claim.
The Cheaper, the Better
Well, not always. Only considering the cost of the premium for your motor insurance is not the right deciding factor. You need to consider the reliability of the company offering it, the coverage being offered by the insurance plan and also the procedure to claim the insurance and even the claim settlement ratio. If the cover is less or if certain claims are not supported, your car is as good as uninsured in the hour of need.
Only Opting the Third-Party Insurance
Third party insurance being mandated by the government, most people only opt for the third-party insurance, and don’t consider insuring the vehicle itself.
In case of any mishap, if your vehicle incurred any damage, you will have to pay for the repair of the vehicle, that can burn a hole in your pocket. Always consider a vehicle insurance policy that covers both your vehicle and the third party.
Not Considering the Discounts Applicable
Yes, a lot of companies offer discounts to existing insurance holders on renewing then within a stipulated time. There is also a No Claim Bonus (NCB) applicable if you didn’t claim your insurance in the past year. This usually ranges from 20% to 50%.
It’s always better to ask your insurance company for discounts, especially the NCB if applicable. Consider the depreciation value of the car, the premium amount and then ask for discounts on your car insurance.
Preferring Smaller Deductibles
Most people opt for paying smaller deductibles, that makes the insurance company pay for small motor repairs. And also reduces the premium amount. [S1] The deductible amount is to be paid by the policyholder to receive a claim. Policy plans with lower deductibles often lead to higher premiums.
Deductibles logic: Higher the deductible lower the premium. In case of claim the policyholder must pay the deductible amount and insurer pays the remaining amount.
Providing misleading information
While getting your car insured, there are certain details of the car and the driver to be provided. This includes the driver’s age, health condition and the vehicle’s safety accessories. While getting a motor insurance online, these things aren’t being physically checked, so people tend to give false or misleading information. This might reduce the premium for the time being, but causes a problem in the longer run. [S2]
When it comes to claims, a thorough check is taken. When the insurance company finds out you have had taken insurance under false pretences, they may lapse your policy and even report you.
Not Choosing the Right Add-Ons
A regular car insurance policy doesn’t cover everything. It’s often recommended to choose add-ons to the policy. Here is where you need to be careful and consider the cost of the add-ons, the part covered and the probability of that part facing any damage.
Here are some add-ons to consider:
- Road Side Assistance
- Engine Protection
- Personal Accident cover
- Zero Depreciation
- No Claim Bonus Same Slab
- Consumables Cover
- Key Replacement
Tyre Cover Not reading your policy documents carefully
This is what the person in the insurance ads says really fast. Reading the policy document carefully, word to word is important to know your car insurance policy. Any exceptions are often mentioned in the fine print, that could later affect your claim.
For some people the offline insurance policies are safer. But this only adds the fee of the agent and also the time to process the documents. Getting a car insurance online makes the process smooth and easy. You can always browse through multiple options in less amount of time and also there are portals to answer your questions. It also leads to better premium rates because the person opting for online insurance is considered to be educated and well versed with the policy.
Your vehicle is your asset. Not choosing the right insurance policy can make it a liability.
Be wise while opting for your car insurance. Or you will have to run errands and suffer losses when the time comes to claim the cover.