7 Mistakes You Should Avoid When Buying Car Insurance Plan In India

As per the government norms, it is compulsory for every car owner to have insurance for their vehicle. Different companies offer different plans that can safeguard the car from various unwanted conditions, such as theft, accident, and many unforeseen incidents that can damage the car to a considerable extent and maybe total loss. In such a case, only insurance with proper coverage can help one save from huge damage. 

The insurance companies know the requirements and hence also offer comprehensive plans which prove much useful to the car owners. However, the car owners, when buying an insurance plan, make some mistakes that can harm them at the time of claim settlement as well as purchasing the policy. 

Here are a few such mistakes that a buyer needs to be aware of.

  • Not preparing well for the new insurance plan: Car insurance is something that one has to buy. Hence the moment one comes to know about the ending date of the policy, he needs to prepare the documents and try checking the same if some of the papers are not available. One needs to check his present policy first and see if he had any claim. Accordingly, he can search for the new plan. To buy a new policy for Car Insurance, one needs to prepare in advance else he may have to hurry and does not find much time to research, which can lead him to pay a high price and to buy a policy that may not be fitting his needs.
  • Less or no research: It is much necessary on the part of a policyholder to have sufficient research before going for any insurance company. He needs to check various features, IDV, benefits, coverage, premium, and NCB rates as well as other deductibles before going for the plan from any company. He also needs to check the premium from the current service provider and compare the same as well as features offered by other service providers in the market. Such research and comparison can help one find the right policy in less time also. In this era, one can find all such details on various sites, including the websites of multiple companies as well as a third-party platform. Hence in a couple of hours also one can buy a good plan, but it is possible only if one has gone for research.
  • Underestimating the needs:  Many times, the buyers do not know what they need from an insurance policy. They keep on searching on various platforms, but when it comes to features, they hardly pay any attention. If one does not know what he needs, he may take the help of an expert and get the right policy. The moment one needs to buy insurance, he needs to check the coverage, IDV, facilities offered, other terms and conditions as well as premium amount. The same things he needs to check with different service providers so that he can have the best policy with essential features at the lowest cost.  
  • Count on useless deductibles: Insurance companies offer various deductibles, but to implement them, they also add some charges. If one wants to keep the premium low, he needs to stay away from such useless deductibles. They can make the deal simple and pay low premium. Even one can know what all is covered and what he will get in case of any claim.
  • Not checking different companies: This is the biggest mistake many buyers commit. They stick to the company that had given the policy to them last year. However, if one checks with other service providers, he may come to know about various added features and low premium than what the previous service provider may have offered. A little research at this stage can help one get the best deal.
  • Relying on an agent or other resources: In many cases, people rely on the agent as well as executive of the concerned insurance company. In many cases, one may find that their faith is taken for granted, and in return to the same, they end up with getting a policy that is costlier than others in the market. People believe that an agent can help them much in case of any claim, which is again not right as every company has a set process of claim which cannot be influenced by an agent or any third-party platform.  
  • False information: To keep the premium low, sometimes buyers give incorrect information to the insurance service provider. Insurance is basically a contract based on mutual trust, and hence as soon as the company finds such false information, it may reject the claim also which can harm the buyer only. Hence, one must give correct information only.
Johnson Alex

Alex, a seasoned automotive journalist, uses his blog to share his in-depth knowledge about the latest car models. His detailed reviews and technical analysis are valuable resources for auto enthusiasts and potential car buyers.

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