India is undergoing a digital revolution, fuelled by the convenient mix of low-cost cell phones and widespread internet access. This has had a good impact on several industries, including the insurance industry.
When compared to a decade ago, the process of purchasing/renewing vehicle insurance is now much faster, easier, and simpler. Simple buying experiences and fast policy issuance have replaced time-consuming form-filling and document submission.
However, some aspects need to be taken care of when buying a car insurance policy.
04 Blunders to Avoid When Buying Car Insurance Policy
Let us understand some blunders that can jeopardize your goal of finding a cost-effective car insurance policy:
- Not Conducting Proper Research: When purchasing car insurance online check whether the company is authorized or not. This can be done by visiting the Insurance Regulatory and Development Authority of India (IRDAI) website, look for the registration number and CIN number. You can also look for the insurer's social media pages to see if they're genuine, learn about their business ethos, and read client reviews. It's also a good idea to see if any complaints or enforcement proceedings have been filed against the company you're considering. Do not rush into buying a car insurance policy.
- Less/More Insurance Coverage: The goal of insurance is to provide financial security in case of any adversity. When it comes to car insurance policy, there's another reason to buy it: the requirement to follow the law. You must cover your four-wheeler with at least a Third-Party Liability Policy if you possess one (TLP). This plan provides a more basic level of coverage and, as a result, is less expensive than the comprehensive plan. One of the most typical blunders that drivers make is foregoing adequate coverage in exchange for that allegedly low price, which ends in disaster when drivers are left unprotected. If you choose third-party coverage, for example, you will be protected against losses, damages, or deaths caused by third parties. However, because the insurer would not compensate you for your car, you will be responsible for your damages and losses. In other words, you are responsible for the damages to your vehicle, which can be substantial. The idea is to strike a balance between buying too much and too little insurance.
- Selecting Add-on Riders: Add-ons provide more coverage and come at an extra nominal cost. Add-ons can improve your claim pay-out, increase your convenience quotient. Purchasing too many add-ons might significantly raise your premium. On the other side, if you don't opt for any, you can end up with insufficient coverage. This is where there is an imbalance in the add-ons. You must first assess your insurance requirements before making a decision. If you drive your car every day and are concerned about what to do if it breaks down in the middle of nowhere, a Roadside Assistance Add-on is necessary.
- Incorrect Information: You should never lie in any circumstance. Whether seeking a quotation or filing a claim, don't lie to your car insurance provider because it will only bring you more harm than good. In the event of an accident, you may be ruled ineligible for coverage, and your insurer may be obliged to terminate your policy. It also jeopardizes your ability to obtain coverage in the future. When it comes to the application process or filing a claim, be truthful and straightforward. Provide all relevant information, such as the car's age, claim history, previous accidents, engine modifications, and so on. The goal is to avoid providing the insurance company with a justification to deny any claims.
Over to You
If any of the content stated in the policy confuses you, you can contact the insurer's support service and ask them your questions. Leave no questions unanswered. When purchasing a car insurance policy, it is critical to make an informed decision, especially if you are unfamiliar with it.