Mistakes to Avoid when Buying Car Insurance Online
The stress of being involved in a car accident can be massive. To top that, it can be a big blow if you are denied the expected coverage because of an error made while buying the car insurance policy.
Not being familiar with the terms and conditions of the insurance policy is very common among insurance buyers. The lack of knowledge of the little nuances and legal aspects of car insurance can complicate the entire process of buying an insurance policy that meets all your requirements without the fine print misleading you.
However, things have changed over the past few years and now anyone can easily understand policy details and buy the most suitable insurance policy online. Also, most private insurance companies run 24*7 helplines where you can speak to an agent and understand the terms of the policy in detail before you purchase it.
Common Pitfalls to Avoid at the Time of Buying a Car Insurance Policy
Searching Policy with Minimum Cost
Price is a very important criterion while buying an insurance policy but make sure that is not the only factor you consider. The cheapest policy may not always be the best policy for you. If the cheapest policy provides a maximum coverage which is less than half the price of the vehicle, it may not cover your vehicle against heavy damages. Always opt for a policy that offers you maximum coverage and benefits. Consider factors like the price of the vehicle, age, insured declared value (IDV), add-on covers, as well as claims service offered by the insurance company.
Getting Lured in By the Discount Offered by Agents
Many people think that buying car insurance offline will give them a better discount rate because of the big-talks of the agent. However, in reality, insurance companies offer discounts of up to 70% on purchasing car insurance online. In an online purchase, you are saving on the cost of middle-man so the deal is definitely better. In addition, you can buy the policy from the comfort of your home with just a few clicks.
Preferring Small Deductibles to Save Money
Many people opt for small deductibles in policy over bigger ones. It is a misconception that small deductibles will help you in saving costs. In reality, car insurance with higher deductibleswill prove to be more cost-effective in the long run.
Buying First Policy You Come Across Without Doing Any Research
Most people underestimate the importance of doing research before buying a car insurance policy. Never buy a policy in a haste. You should always invest some time in studying the features and offerings of a policy. Do a comparative study of the different policies, their prices and benefits offered before making a final decision. A lot of times, the main difference lies in the finer details. Also, do not forget to read about the company’s track record in claim settlement before buying car insurance from them.
Not Taking Policy Documents Seriously
A small mistake in the policy documents can prove to be cumbersome in the future. Therefore, as soon as you receive your policy documents go through them carefully to understand the exclusions and inclusions of the policy. Do not forget to check your personal details such as your name, email ID, vehicle model, vehicle number, no claim bonus, add-on cover details, IDV and other such information about your policy.
If there is any mistake, immediately contact the insurance company and get the necessary details rectified.
Making Claims for Minor Repairs
Making claims for every small repair on your vehicle might seem like your right but that will not really help you in the long run. This is because by making such claims, you will be missing out on the no claim bonus which can get you a discount of as high as 50% for making no claims for five consecutive years. The discount you receive in this case will be higher than small claims for sure.
Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales
This blog has been written by
S. Gopala Krishnan | Motor Insurance Expert | 40+ years of experience in insurance industry
A veteran in insurance industry. S. Gopala Krishnan 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. Gopala Krishnan 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."