04 Things You Should Know When Buying Car Insurance Policy

Precaution is better than cure; a quote that fits perfectly when it comes to insurance. You might have researched a lot about life insurance and health insurance policies, but have you ever thought about important things before investing into a car insurance policy? It is as important as any other insurance. 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. Previously, an insurance provider could make you purchase insurance that benefits them more than you. However, now there are several resources that are easily accessible, which help you understand the significance of insurance. This in turn will help you understand which insurance works better for you. This is one of those brief guides to give you quick info about car insurance, coverage, car insurance rates , etc. However, some aspects need to be taken care of when buying a car insurance policy.

4 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:

1. 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.
2. 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.
3. 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.
4. 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.

Some of the things you need to remember

1. Be aware of your state's insurance guidelines: Every state has its own specific policies along with the general ones. These specific guidelines are what you need to take into consideration before choosing your car insurance.
2. Know the Insurance: In some cases you might only need to opt for a 3rd party car insurance which covers the third party liability in case of any mishaps. But if you drive a heavy vehicle, such as driving your vehicle over a long route or for longer times, then it is best to go with a more comprehensive insurance as the risk is more. In this case, you will need to opt for more coverage to avoid any issues in future. Also, find out car insurance prices to make an informed decision, compare car insurance policies online.
3. Know the coverage: There are several insurance options, each one of them offers different coverage and at different levels. You need to understand these factors carefully before applying for the insurance of your choice.
4. Select the optimal insurance: Ask the auto insurance provider to give you insurance that has maximum cover. Look for affordable premiums and policies that have all the required coverage suitable for you.
5. Research: Last but not the least, take time out to research insurance providers and their car insurance prices. Look into their issuance process and their claim process, to ensure that you are dealing with the best service providers.

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. *Standard T&C apply Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.