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5 mistakes people make while buying car insurance

Published on December 6, 2019, EST READ TIME: 3 MIN

When you buy car insurance, you want to make sure you get the best possible policy that will ensure the protection of both you and your car. It is necessary that you do proper research before you settle on one policy since this isn’t something you buy frequently. The best way to decide which policy suits you the best is to compare a couple of options and check which one provides the best overall coverage, costs the lowest and is the most suitable for the kind of car you own.

Importance of car insurance

  • Car insurance will help in providing cover for the expenses incurred in case of any injuries or damage caused to a third-party vehicle or the driver. In simple words, it helps in reducing your liabilities.

  • Car insurance helps in providing cover for expenses incurred in repair of your car due to any damages caused during an accident or due to theft.

  • It covers the medical expenses incurred for your treatment in case of an accident.

  • It helps in providing benefits to the survivors i.e. your family, if your death occurs due to a car accident.

  • As per Supreme Court order, all thecars that have been bought on or after September 1, 2018 needs to have third party insurance policy of a duration of 3 years.

Mistakes people make while purchasing car insurance

  • Purchasing cheap car insurance will also provide low cover for your car in case of an accident.

  • Hiding details or being dishonest about factors like age of the driver, his history of driving, the safety accessories used in the car, etc. may help you in getting car insurance at a low premium but will be a cause of trouble during an insurance claim.

  • Purchasing only a third-party insurance policy for your car may not be beneficial for you.A comprehensive car insurance policy would help you in providing all-round coverage for your car.

  • Many people choose car insurance policies which have smaller deductible i.e. a particular amount which is paid by you before you receive the claim and the maximum amount is paid by the insurance provider. When you select a car insurance policy with a low deductible, you will have to pay a high premium.

  • Buying car insurance policy offline involves paying certain costs to the insurance agents and a lot of other inconveniences. You should avoid purchasing car insurance offline and avail the benefits of car insurance purchase online.

What is the right approach?

  • You should compare car insurance policies online and then choose the right one which provides adequate cover to your car.

  • You should look out for discounts related to car insurance and try to add up certain factors like safety equipment, anti-theft system, etc.

  • You should include add-ons into your car insurance policy and should not decrease the IDV of your car for reducing the premium.


Hence, your car is valuable for you and you would always want to ensure its safety. A comprehensive car insurance policy purchased after online comparison is the best option by which you can ensure the safety of your valuable car.

S. Gopalakrishnan | Motor Insurance Expert | 40+ years of experience in insurance industry

A veteran in insurance industry. S. Gopalakrishnan is a name to reckon with in the field of reinsurance, he has headed the Reinsurance department and has rich experience in other fields of motor insurance. He loves to share his opinion on latest topics in the insurance industry and how he can help people in safeguarding their assets using insurance products.

Mr.S. Gopalakrishnan recommends "HDFC ERGO for your vehicle insurance needs, it has always put customer’s interest at the forefront, with round the clock assistance to deal with emergency breakdown issues and hassle free claims process. You can be assured of complete and reliable guidance through the whole process." 

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