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 and their implications, it is easy to know what approach will work for you.
It comes with the facility to buy car insurance online in present times. Online buying has made it convenient and simplifies the arduous task of comparing and finalizing the purchase. However, when scouting for a suitable policy, you must avoid certain red flags. 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.
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, 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. It becomes easy for you to determine which approach is suitable based on your requirements with adequate research. Whether you are looking for third-party car insurance or a comprehensive cover, knowing the available alternative helps select a fair policy.
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 there are various policies to choose from, let price not be the sole determinant of selecting a particular procedure. Alongside price, the policy features, its IDV or Insured Declared Value, and the claim process is essential factors to look at. When comparing plans, a car insurance calculator can come in 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 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 requirement. Selecting unnecessary add-ons increases the premium and provides 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 submit claims for minor repairs. If you do the same, you no longer can take advantage of the subsidized 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 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.