Knowledge Centre

Mistakes to Avoid When Buying Car Policy Online

The Motor Vehicles Act, 1988 makes it mandatory for vehicle owners to buy a third-party insurance policy. Another type of car insurance policy one can opt for is comprehensive cover. Unlike third-party insurance, under a comprehensive cover, the policyholder gets coverage for damages caused to the car as well as the third party person or property. Many times, people end up opting for a wrong car insurance coverage due to which they are left disappointed at the time of making a claim.  So here we help you with a list of mistakes you should avoid making to ensure you make the right car insurance purchase.

Few common mistakes to avoid when buying car insurance

Opting for a car insurance policy with a low premium rate: If you are very calculative and feel that buying a policy with a low premium amount will benefit you, then you are wrong. By buying cheap car insurance for your car, you might increase your financial burden in the future. Opt for a policy that offers you maximum coverage and benefits. While buying a car insurance policy, consider the IDV, add-on covers, claims service offered by the insurance company.

Buying the policy offline:If you think buying car insurance offline would be a wise thing to do, then you are wrong. You can get discounts of up to 70% on purchasing car insurance online or offline. Plus, you can buy the policy online from the comfort of your home and can get the documents in just a few minutes.

Not going through the policy documents: Many times, policyholders do not care to go through the policy documents and this often leads to claim rejection in the future as they know nothing about inclusions and exclusions of the policy. Thus, it is important that as soon as you get the policy documents, you go through them carefully to understand the coverage offered by the insurer. In the documents, it is also significant that you check other details such as your name, email ID, no claim bonus, add-on cover details, vehicle make and model details, IDV and other such information about your policy.

Making claims for minor repairs: By making claim for small repairs, you miss out on the no claim bonus that can help you get a discount on your car insurance renewal premium. Remember, insurance companies offer you no claim bonus i.e. a reward of up to 50% for no claim for five consecutive years. Hence, even registering a single claim in one year can make you miss out on the no claim bonus that can help you decrease the premium.

Not opting for add-on covers: comprehensive car insurance does not guarantee you 100% coverage at the time of claims as it takes into account the value of depreciated parts. However, if you opt for zero depreciation cover then the insurance company offers you full compensation without factoring in the depreciation. Not just this, you can also opt for add-on covers like NCB protector, Key replacement cover, Engine and Gearbox Protector and others. Remember, add-on covers offer you additional coverage at a minimum premium.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.


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