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Wish to buy car insurance? Know the mistakes to avoid
With so many insurance companies offering a variety of deals on insurance policies there is no reason to go for the first available one that comes your way. Also, one must make a carefully considered decision otherwise it could result in mistakes that would prove expensive. From getting you less than hoped for compensation to total rejection of the claim are some of the risks you face. What are the mistakes people make while buying car insurance?
Buying from the first available company or from the car dealer
If you buy car insurance from the first available company that comes to your mind or from a car dealer you could be losing out on some good offers. You could also end up paying higher premium while getting so much less in return. For instance you could end up with a cover that excludes cashless repairs.
One of the most common car insurance mistakes people make when they buy car insurance is to go for the lowest premium without checking what they are actually getting or the extent of the coverage offered. For many people, since insurance is mandatory, it is an attitude of buy the cheapest and get it over with. It is only when you file a claim you realize the folly of buying cheap car insurance.
Hiding details or not making full disclosure
When you buy car insurance one of the mistakes to avoid is to not disclose full details such as details of the driver, his age, profession and usage pattern. It is also a mistake to not disclose the safety accessories you have installed in the car that could get you a lower premium. You may save on premium today but tomorrow, if you have to file a claim, it may be rejected if the company finds you have hidden something or that you have not made full disclosure. If you install a CNG/LPG kit and do not disclose it to the company, your policy becomes null and void.
IDV on older cars
When it is time to renew your policy and you buy car insurance by declaring a higher IDV value in the assumption that when you file a claim the amount you have mentioned will form the basis for compensation, then you are mistaken. The insurance company knows about each car, its market value, depreciation and the actual IDV applicable according to age and condition. They will take that amount as the basis. You only end up paying higher premium on higher declared IDV.
Not checking the exclusions
It may seem like too much trouble to read the fine print and check the exclusions but you are doing yourself a disservice. While most terms may be standard among companies, it is the exclusions where they may vary. Exclusions commonly include engine, common wear and tear of parts, rubber parts, plastic parts, accessories, glass and electricals. You could consider paying a higher premium or opting for an add-on to cover these items.
When so many companies are offering car insurance online and that too at a much lower premium it makes no sense to buy it from an agent and bear his commission charges.
This article is written by Moupee Deb Roy, content writer for Turtlemint.com. She is a content enthusiast and is determined to encourage people to be informed and
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