Car insurance purchase is often regarded as a perplexing process. With a plethora of insurance plans to choose from, it can become confusing to decide which policy is the right fit for you. However, with adequate knowledge about car insurance terms along with its implications, it is easy to know what policy will work for you.
In present times, it comes with the facility to buy car insurance online. Not only has online buying made it convenient, but also simplifies the arduous task of comparing and finalising the purchase. However, when you are scouting for a suitable policy, you must avoid certain red flags. They can not only have a bad experience but also not be of much use. So, let’s look at certain oversights to avoid when buying a car insurance policy.
The most common oversight that tends to happen is lack of research. Be it a new mobile phone or any other thing, research forms the starting point of your purchase journey. Similarly, when buying an insurance policy, research should be the first step. Do not skim on research as it can be a reason for unsatisfactory insurance coverage. With adequate research, it becomes easy for you to determine which policy is suitable based on your requirements. Whether you are looking for a third party car insurance or a comprehensive cover, knowing about the available alternative helps to select a suitable policy.
The next step followed by research is to compare the available options. Once you’ve shortlisted the different plans that make the cut, it comes to finalising a policy that checks all the right boxes. Comparing all the shortlisted policies helps to arrive at this decision. While there are various policies to choose from, let price not be the sole determinant of selecting a particular policy. Along side price, the policy features, its IDV or Insured Declared Value, the claim process are some factors that are essential to look at. When comparing plans, a car insurance calculator can come handy that not only aids in comparison, but also help to pick a policy within your budget
Overload of add-ons
With a comprehensive policy, you have the option to customise the coverage using add-ons. Add-ons are additional policy features that enhance your policy’s scope. There are many different add-ons that are offered by insurance companies, however not all add-ons might suit your requirement. Selecting unnecessary add-on not only increases the premium, but also offers no real advantage. So, be prudent to pick those add-ons that add a significant value to your policy coverage.
Another crucial area where there is slippage is managing the no-claim bonus. No-claim bonus is the facility where insurance companies offer a renewal concession in premium for not raising a claim during the policy tenure. Where most buyers make a mistake is to raise claim for small repairs. If you do the same, you no longer can take advantage of the subsidised renewal premiums. Thus, always compare the repair costs vis-à-vis the no-claim benefits to decide whether to raise a claim or not.
With these nifty tips in mind, you can ensure the buying process is hassle-free and ensure a comprehensive coverage for your car. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.