Buying car insurance can be a challenging task, especially for first-time car owners. With so many options available in the Indian market, it’s easy to get overwhelmed and make mistakes that can cost you dearly in the long run. In this article, let’s understand the 10 common mistakes people make while buying new car insurance and get valuable tips to avoid them.
10 common mistakes people make while buying new car insurance
Here are top 10 common mistakes people make while buying new car insurance in India:
Mistake 1: Not researching enough
One of the most common mistakes people make while buying car insurance is not researching enough. Take the time to read reviews, ask for referrals and check the insurer’s reputation before buying a car insurance.
Mistake 2: Not disclosing accurate information
It’s essential to disclose accurate information about your car, driving history and personal details while buying car insurance. Failing to disclose accurate information can lead to your claim rejection or your policy being cancelled. Make sure to provide all the necessary documents and information to your insurer to avoid any discrepancies in the future.
Mistake 3: Not choosing the right coverage
Choosing the right coverage is important while buying car insurance. Many people opt for the minimum coverage required by the Motor Vehicles Act, 1988, which may not be enough to cover the costs of repairs or medical expenses in the event of an accident for own damages. Consider opting for comprehensive coverage for utmost protection.
Mistake 4: Not considering the deductible
The deductible is the amount you pay out of pocket while making a claim. Many people make the mistake of not considering the deductible when buying car insurance. Choose a deductible that you can afford and that aligns with your financial goals.
Mistake 5: Not checking the insurer’s claim settlement ratio
The claim settlement ratio is the percentage of claims settled by the insurer. A high claim settlement ratio indicates that the insurer is reliable and efficient in settling claims. Make sure to check the insurer’s claim settlement ratio before buying a car insurance policy.
Mistake 6: Not reading the policy document carefully
Policyholders make the mistake of not reading the policy document carefully before buying car insurance. The policy document outlines the terms and conditions, including the coverage, exclusions and limitations of the policy. Take the time to read the policy document carefully to avoid any surprises or disputes while making a claim.
Mistake 7: Not considering add-on covers
Add-on covers, such as Depreciation cover, Engine Protect cover and Roadside Assistance cover, can provide extra protection and benefits. However, many policyholders make the mistake of not considering these add-on covers while buying car insurance. Consider opting for add-on covers that align with your needs and budget.
Mistake 8: Not checking the insurer’s network of garages
The insurer’s network of garages can affect the quality of service and repairs. Many people make the mistake of not checking the insurer’s network of garages before buying a policy. Make sure to check the insurer’s network of garages to ensure that you have access to reliable and efficient repair services.
Mistake 9: Not considering the no claim bonus
The no-claim bonus is a discount offered to policyholders who do not make any claims during the policy period. Many people make the mistake of not considering the no claim bonus and claiming for minor dents in a policy period.
Mistake 10: Not considering the policy’s exclusions and limitations
The policy’s exclusions and limitations can affect the coverage and benefits. Many people make the mistake of not considering the policy’s exclusions and limitations while buying car insurance. Take the time to read the policy document carefully to understand the exclusions and limitations and ensure that you’re aware of what is and isn’t covered.
To conclude
Buying car insurance can be a complex and overwhelming process, but by avoiding these common mistakes, you can ensure that you get the right policy for your needs and budget. So, don’t forget about these valuable tips while buying your car insurance. To know more about car insurance, visit Zurich Kotak General Insurance.