5 Common Mistakes in Buying a Car Insurance

A car is one of the most important assets in one’s life. We are more concerned about our vehicles as we have spent our hard earned money in buying one. Hence it becomes quite crucial to keep your car safe and secure and a hassle-free you. One of the important decisions is to choose the right car insurance policy.

But sometimes, unknowingly people end up committing a mistake while buying car insurance. Some of the most common mistakes people make while buying a car insurance are listed below:

#1 Not choosing the correct policy

There are two types of car insurance policies. One is third party liability car insurance plan and the other one is comprehensive car insurance plan. The third-party liability insurance covers only the damages to property, injuries, or death caused to other people in an accident but does not cover the damage to the own vehicle.  A Comprehensive Car Insurance Policy covers third party liability along with the damages done to your car in case of an accident, natural calamity, theft, fire, etc. This type of car insurance policy gives a better coverage and hence is more expensive than the third party liability policy, but it will make sure that the financial burden on you is lesser at the time of an unfortunate accident. Unfortunately, people end up buying a car insurance policy for saving money. . They must look at the larger picture and go for a complete cover if possible.

#2 No research

To make a perfect buy, it is imperative to do a bit of research and comparison. You must know certain know-hows and the meaning of important terms and concepts of insurance before buying a car insurance policy.

To buy the best car insurance policy, you must compare several benefits and enclosures offered by different car insurance providers like:

  • Which company has an easier claim procedure
  • What coverage is included
  • Which car insurance company gives better customer support
  • Whether the company has a cashless facility
  • Which company offers additional benefits along with your car insurance policy,
  • the company that offers a better NCB policy, etc.

Only after considering these, you should go ahead with finalizing your car insurance purchase.

#3 Declaring the wrong Insured Declared Value (IDV)

IDV is the amount that a car insurance company provides you at the time of claim. It is highly recommended to declare the correct IDV to the insurance company. Since a higher IDV means higher premium, people often declare a lesser IDV to save premium and later get disappointed as they do not get the entire amount at the time of claim. This way you can suffer a major financial loss. Hence, in order to save some of your premium amount, do not resort to the lesser declaration of IDV.

#4 Not going through your policy draft

Most of us do not carefully read the policy document. It is important to check the document and ensure that the details mentioned are right. Many times, there are typographical errors in the fields like policyholder’s name, phone number or address. This way the insurance company will never be able to contact you. Sometimes vehicle number is written incorrectly challenging the whole car insurance policy.

#5 Not choosing the right additional benefits

There are many add-ons that are available with the insurance policy with a minimal price, which the buyer must consider buying. A plain insurance policy may have a lesser premium but the add-ons are a great help during emergency. You must go through the add-on offers like NCB protect, roadside assistance, towing facility, hydrostatic cover, engine protector etc. and see if one of them suits your needs.