Mistakes to Avoid While Purchasing a Car Insurance

Posted:

05 January,2023

Updated:

03 June,2024

Mistakes to Avoid While Purchasing a Car Insurance

Car Insurance is needed to protect a car and its owner from the hefty expenses that can occur due to unexpected events like road accidents. Good car insurance will help cover the expenses for the damages caused to the vehicle. Choosing the best policy for your car can be tricky as there are many factors to consider.

 

Some of the factors such as installing anti-theft equipment in the vehicle, renewing their auto insurance on time, ensuring the accuracy of the car insurance information and so on will save the policy holder from high repair costs.

 

Shriram Car Insurance offers complete protection for your vehicle, which you can get through a hassle-free online process. An individual wanting to purchase car insurance can get help with detailed plans to select the right one for their vehicle. You can also use an online premium calculator to calculate your car insurance premium. Let’s look at common mistakes that can be avoided while purchasing car insurance.

 

1. Lack of basic research and comparison

Primary research is always necessary when purchasing car insurance because the comparison will help decide the best policy. Purchasing car insurance online will make this process easier, an individual can find many types of insurance online and compare them accordingly. Verifying the authenticity of car insurance is essential and can be done by visiting the insurance company’s official website.

 

2. Aiming for minimalistic coverages to lower the cost of insurance

Low-cost car insurance may look attractive to most, but a person looking for good insurance for their car needs should look into the details to ensure the policy provides the necessary coverage. Affordable car insurance will have fewer coverages. Comprehensive car insurance will have a higher premium than regular Third-Party car insurance.

 

Most people purchase car insurance to have financial backing in case of an emergency. Another important reason for getting Third-Party car insurance is that it is mandatory according to the Motor Vehicles Act, 1988. A car owner can get Third-Party car insurance to cover damages caused to someone else’s car and it won’t provide any assistance with the repair expenses of your car.

 

3. Not installing anti-theft devices

Installing security devices in the car can also help get discounts on most car insurance premiums. To avail the discount, a policy holder must inform the insurer that they have secured a car with an anti-theft device. As this reduces the risk, the insurance company might consider reducing the premium required for the policy.

 

Anti-theft devices are essential to keep the car safe. No one would expect their car to get stolen or vandalised. If a policy holder installs anti-theft devices in their car, then the risk to the car gets lowered.

 

4. Facing IDV imbalance

The cars are insured at a fixed value called the Insured’s Declared Value (IDV). The IDV of a car is an essential element in the comprehensive plan’s premium calculation process. IDV is the present value of the car and it would get depreciated over time. Choosing the IDV will impact the sum insured and the premium.

 

A higher IDV means a higher sum insured and a higher premium. Lower IDV would be the opposite. Striking a good IDV balance can make your chosen insurance a better one.

 

5. Forgetting to renew the policy

If the policy holder forgets to renew the car insurance before expiry, they risk paying a heavy fine along with the expense of damage caused to the car. The owner may face legal implications if a car without valid insurance is involved in an accident with a third-party. To avoid these complications, a policy holder must renew the car insurance before it expires.

 

6. Skipping policy verification

Buying car insurance has become quick, thanks to the easy online process. This can be problematic if the car owner forgets to review and verify the details of the insurance before purchasing it. This is a crucial step in ensuring you get a policy that has all the correct details mentioned according to the chosen plan. An error in the policy could lead to dire consequences like claim rejection.

 

7. Selecting non-essential add-ons

Sometimes a car owner may get excited about the available add-on options and may opt for them. This can make the insurance premium more expensive. Analysing vehicle insurance requirements is an essential step before investing in add-ons.

 

8. Hiding information

When buying car insurance, it is crucial to provide all the correct information about the car owner and the vehicle details to the insurer. Answering all the insurance company’s questions is essential to getting a good policy. Hiding important details like age or driving history to lower the premium on car insurance will lead to many disadvantages.

 

With the correct information on the policy, it may get accepted for claims and the car owner could avoid legal complications. Hence, you must ensure you provide accurate information to the insurer while purchasing a car.

 

Which car insurance should you get?

The car owner should select car insurance by considering all the needs of the vehicle. Research and comparison of policies can be beneficial in choosing the best car insurance policy. According to the requirements, the car owner can choose between Comprehensive car insurance, Own-Damage insurance or Third-Party insurance.

 

Purchase a Shriram Car Insurance to get comprehensive cover and safeguard your vehicle from any insured accidents. You can drive your dream car with peace of mind, thanks to the 24/7 claim notification service. Our representatives are fully attentive and will assist in real-time. All queries put forward by the policy holder will also be answered in due time.

 

Key Highlights:

  • Comparison and analysis of car insurance can help you get the best one available.
  • Installing anti-theft devices in the car protects it and can lower the premium charged on the insurance.
  • Renewing the car insurance before it expires will save the policy holder from penalty charges.
  • Ensure the information on the car insurance is accurate to avoid claim rejection.
 

FAQs

1. Is it better to compare car insurance online?

Yes, comparing car insurance online is a wise option. One can choose the best car insurance policy depending on their needs in no time.

 

2. What are good ways to save on car insurance?

A policy holder can save on car insurance by avoiding unnecessary add-ons. Having too many add-ons can increase the premium of car insurance.

 

3. Can I renew my car insurance early?

Yes, you can renew a car insurance early. This can be done offline or online in the convenience of your home.

Save up-to the 85% off on your car Insurance

Save up-to 85% off on your Car Insurance

Save up-to the 85% off on your car Insurance

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