A comprehensive car insurance policy that you can easily buy online comes in a complete end-to-end package for your benefit. It offers the basic coverage which is against any losses incurred by accident, theft, fire, vandalism, etc. But it also comes pre-packed with third-party insurance so that you are not legally liable for any losses incurred by the damage of someone else’s vehicle. This type of insurance policy offers you the most benefits. Apart from these, you can choose to include add-on benefits such as coverage of accessories, zero depreciation cover, medical expenses, engine cover and more. These are just a few reasons why you should choose a car insurance policy. But when choosing one, here are a few common mistakes that you must avoid:
Not Choosing the Right Policy Type:
If you are looking to buy a brand-new cover, first understand that motor insurance is divided into four categories. You have comprehensive plans and third-party plans. Understand what each type of four-wheeler insurance policy offers and then choose the right kind of cover. The type you choose will determine the features, coverage, and price of the insurance policy, so make your choice wisely. While third-party insurance is mandatory by the government of India, a comprehensive policy covers all your expenses. So, choose the right policy that covers all your bases.
Not Choosing the Right IDV
Several insurers offer some of the cheapest premiums for four-wheeler insurance. However, the Insured Declared Value (IDV) of the vehicle is something that you might have overlooked. IDV is the maximum sum insured offered by the insurer for your vehicle. This is the amount you’ll receive in case of total loss or theft of your vehicle. Indeed, a higher IDV comes with a higher premium; however, vice versa can be true as well. It’s essential to choose the accurate IDV so that you’re covered in case of a total loss or theft.
Not choosing the correct policy period
Did you know that car insurance is available for not just one year but also four and three years? Yes, that is right. You can buy long term vehicle insurance cover and stay protected for a longer time. Many people commit the mistake of not exploring the options as they are unaware of them. Therefore, you should explore all the options in front of you and then choose the correct policy period that suits your requirements.
Not buying the right riders
Car insurance riders are available aplenty. It would be best if you got a few riders with your primary auto insurance coverage. However, you should not make the mistake of choosing the incorrect pool of riders. Evaluate the different riders and match them against your requirements. You will then find the most suitable option, and your car insurance cover will indeed become tailor-made for you.
Not calculating the NCB
The no-claim bonus is a very crucial vehicle insurance element. You can get handy discounts on car insurance quotes with your accumulated NCB. Make sure the NCB is calculated and deducted correctly before you buy a four-wheeler insurance plan in India.
Not Doing Enough Research
By not researching enough about various policies in the market, you could end up buying an expensive one. By exploring the market and analyzing the policies available, you’ll be aware of different types of insurers’ plans and get the most-suitable car insurance policy in the market. The variety of plans available in the market might confuse you to a great extent. Hence, many policy aggregator platforms offer you the option of comparing car insurance online. Through these websites, you can choose 3-4 policies which suit your needs. Once shortlisted, you can compare them on the platform itself. Their ‘compare’ feature allows you to see a comprehensive table comparing each policy’s benefits and drawbacks. You can easily compare car insurance policy and choose the best one for yourself.
Lastly, you should ensure you fill in all your details correctly. See whether the spelling of your name, your age, your address, etc., are mentioned correctly. If you notice any errors, make the change right away.