Car insurance purchase is often regarded as a perplexing process. With many insurance plans, deciding which policy is the right fit for you can become confusing. However, with adequate knowledge about car insurance terms and their implications, knowing what approach will work for you is easy.
It comes with the facility to buy car insurance online in the present times. Online buying has made it convenient and simplifies the arduous task of comparing and finalizing the purchase. However, you must avoid certain red flags when scouting for a suitable policy. They can have a bad experience and not be of much use. So, let’s look at certain oversights to avoid when buying a car insurance policy.
Research
The most common oversight that tends to happen is a lack of research. Be it a new mobile phone or any other thing. Research forms the starting point of your purchase journey. Similarly, research should be the first step when buying an insurance policy. Do not skim on research, as it can be a reason for insufficient insurance coverage. With adequate research, it becomes easy for you to determine which approach is suitable based on your requirements. Whether you are looking for third-party car insurance or a comprehensive cover, knowing the available alternatives helps you select a fair policy.
Comparison
The next step followed by research is to compare the available options. Once you’ve shortlisted the different plans that cut, it comes to finalizing a policy that checks all the right boxes. Comparing all the shortlisted policies helps to arrive at this decision. While various policies exist, price should not be the sole determinant of selecting a particular procedure. Alongside price, the policy features, IDV or Insured Declared Value, and the claim process areare essential factors. When comparing plans, a car insurance calculator can come in handy that not only aids in comparison but also helps to pick a policy within your budget.
Overload of add-ons
With a comprehensive policy, you can customize the coverage using add-ons. Add-ons are additional policy features that enhance your policy’s scope. Insurance companies offer many different add-ons; however, not all add-ons might suit your requirements. Selecting unnecessary add-ons increases the premium and provides no real advantage. So, be prudent to pick those add-ons that add significant value to your policy coverage.
No-claim bonus
Another crucial area where there is slippage is managing the no-claim bonus. A no-claim bonus is a facility where insurance companies offer a renewal concession in premium for not raising a claim during the policy tenure. Most buyers make a mistake in submitting claims for minor repairs. You can no longer take advantage of the subsidized renewal premiums if you do the same. Thus, always compare the repair costs vis-à-vis the no-claim benefits to decide whether to raise a claim.
With these nifty tips in mind, you can ensure a hassle-free buying process and provide comprehensive coverage for your car. 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.
