5 Common Mistakes to Avoid While Buying Car Insurance

Posted on Posted in Auto & Motor, top automotive companies

 

Buying a car is something that people are particularly excited about and rightly so, it’s a big step and every person shares a specific bond with his car. While choosing a car might be easy, going through the hassle of insurance and finding the right insurance is where a lot of people make mistakes. Insurance isn’t ‘fit-for-all’ product and buyer needs to be careful about their needs from this investment in case they might need to avail the benefits. One needs to be sure that their insurance will cover maximum damage in case of an accident and help your life make easier in tough times.

Many people are not familiar with types and terminologies of car insurances, which lead them to make certain common mistakes. They don’t consider buying car insurance online despite many perks being attached with it, or buy without comparing car insurance quotes from different insurance policy providers. These mistakes can be costly and create problems later. Here are the top common mistakes that should be avoided before you buy insurance for your car.

Cheap is not the best

Insurance covers for cars are costly but that doesn’t mean you should be hunting for the cheapest possible insurance that you might find. Remember that the cheapest insurance does not guarantee to cover you completely in case of any accident. One needs to note down their particular requirements and go through various policies before making a final decision. Choose the one that gives you maximum protection instead of saving a few bucks.

Check the Valuation of Your Vehicle

One needs to check the maximum coverage value of their vehicle because this is the maximum amount that can be covered in case of any accident. You should do the valuation of your car depending on market value and see if the insurance company quotes the amount around that value only. Ask to change the amount if you feel that it’s low. Keep in mind that value of your vehicle can also affect your premium amount.

Does it cover the passengers?

Another important aspect of car insurances is the coverage of passengers. Check if your insurance covers the driver and other passengers in case of any accident and if yes then what kind of coverage is involved.  Medical bill after any accident can prove to be costlier than you can imagine and it’s good to be covered in such cases. Also, you need to make sure what are the terms and conditions of the coverage of passengers in case of an accident. Talk to your insurance provider in case something is not clear in policy documents.

Not Comparing Different Policies

A buyer should always hunt for the best insurance deals and one of the good places to start looking is comparison websites on the internet.  Buying insurance online can be cheaper than buying it offline and can provide same or better coverage. It is quite possible that you get exact same coverage and benefits for half of the price.

Is it Cashless?

Know before buying if your insurance is cashless or you need to pay cash at the time of accident. Some companies provide reimbursement to customers a few weeks after the insurance and usually, you will need to pay from your own pocket at the time of accident. While this model has its own perks, you might not have that much cash available in hand. If that’s the case, you should look for the policy that will help you avail the services without paying any cash. A cashless insurance policy can be worth investing in such cases.

Apart from these there are many other factors that you should consider before buying a car insurance, like checking if your local RTO has some specific guidelines for insurances of vehicle and make sure they are met, what are long term benefits of joining a particular policy and if your policy provider is giving you additional benefits if your history has been clean of any accidents. You as a customer can also ask for discounts in such cases, especially if you are renewing your insurance from the same provider. Apart from the above points, there are many smaller terms and conditions that anyone, especially the driver should know in case of an accident. For example, some insurance provider might not cover same insurance in one geographical area than the other.

Try to avoid these above listed common mistakes while buying car insurance and always know your rights and options in case of any accident as that can be proved costly if right steps are not taken. Read all the policy documents carefully and know who to contact in case of you are met with an accident. Don’t be afraid to ask questions to your policy provider and ask for inclusions if something specific has been missing from your premium. These small things might save you a lot of trouble at the time of need.