5 Mistakes to Avoid When Buying Car Insurance

Buying a car is one of the most important decisions that we make. We take months to decide the best brand, the right model and the perfect color while choosing a car. However, while choosing insurance for the car, we tend to blindly trust the agent or opting for the insurance with the lowest premium, instead of researching the best cover for the car. This means that you end up with insufficient coverage for your car during an accident. In this article, we list some of the key  mistakes that people make while buying a car insurance policy.

Here Are 5 Common Car Insurance Mistakes You Need to Avoid

1. Choosing a Policy with Lowest Premium and Higher Premium

While shopping for car insurance, there are many people who focus solely on premiums. While it might feel great to save a few extra bucks while choosing the car insurance policy with the lowest premium, the cover might not be adequate for you at the time of claims. Do not choose a plan just because it is cheap. Understand the coverage, and use a car insurance premium calculator to select a plan that is optimum for your needs as well as your budget. Deductible is the amount that the policyholder must pay at the time of claims. There are many policies which choosing a higher deductible might reduce the premium. However, at the time of claims you would have to pay more out of your pocket.

2. Not Getting Enough Coverage

In India, it is mandatory to buy car insurance. However, just getting the minimum coverage to save money can haunt you at the time of claims. It is best to thoroughly assess your needs before buying the car insurance policy.

3. Not Shopping Around

There is no one-size-fits-all car insurance policy and similarly not all insurance companies may be equal. Some may offer good service while others may offer a lower premium. It is important to explore your options and compare car insurance before choosing a cover. Read the fine print and make a note of the out-of-pocket expenses that will cost you more at the time of the claims.

4. Avoiding Add-on Covers

Add-on covers with your car insurance offer enhanced protection for the car. For example, a zero depreciation add-on cover makes sure that one receives a full claim on the value of parts that are replaced after an accident. Avoiding these add-on covers can cost you a lot at the time of claims. In the effort to save a few bucks, don’t just choose any cover with the bare minimum of coverage. Instead take the time to find one that suits you the best.

5. Missing Your Car Insurance Renewal Deadline

Letting your car insurance renewal slip past the due date can lead to significant problems. Without active coverage, you’re exposed to legal risks, including penalties for driving uninsured. Additionally, a missed renewal could result in the loss of any no-claim bonuses you've earned. To avoid these issues, set up reminders ahead of time and start the renewal process well before your policy expires.

Conclusion

Buying car insurance is a key decision that protects both your vehicle and your finances. By avoiding common mistakes, you can select the coverage that best meets your needs. The right policy not only offers peace of mind but also helps you save money over time. Choose Bajaj Allianz Car Insurance to safeguard your vehicle against unexpected damage and loss.