5 Mistakes To Avoid While Purchasing A Motor Vehicle Insurance Policy

5 Mistakes To Avoid While Purchasing A Motor Vehicle Insurance Policy

Today, a number of insurance companies are offering insurance, and the online procedure is making motor insurance relatively easy to obtain. If you are looking to buy a car insurance, make sure that you do not commit mistakes that could lead to spending more money and even getting the claim rejected. 

Below are some of the mistakes you must avoid while purchasing car insurance:

Cheap is not always the best

If you are choosing a motor insurance policy based on cost of the premium, then have not considered the right deciding factor. You need to consider the reliability of the company offering it, the coverage offered by the insurance plan, the procedure to claim the policy and even the claim settlement ratio. If your cover is cheap but does not cover your car properly then it is as good as uninsured in the hour of need.

Only Opting for Third-Party Coverage

Most people only opt for third-party insurance, but their own vehicle is not covered in this scenario. If your vehicle incurs any damage in case of a mishap, you would have to pay for the repair of the vehicle and that can burn a hole in your pocket. Always consider a commercial vehicle insurance policy that covers both your vehicle and the third party.

Providing misleading information

While getting car insurance, there are certain details of the car and the driver to be provided. This includes the driver’s age, health condition and the vehicle’s safety accessories. Physical verification of these things is absent while getting motor insurance online, so people tend to give false or misleading information. This might reduce the premium for the time being but causes a problem in the longer run as your claim might get rejected.

When it comes to claims, a thorough check is taken. When the insurance company finds out you have had taken insurance under false pretenses, they may lapse your policy and even report you. 

Not Choosing the Right Add-Ons

A regular car insurance policy does not cover everything. In that case, you can choose add-ons to the policy. Here is where you need to be careful and consider the cost of the add-ons, the parts covered and the probability of that part facing any damage.

Here are some add-ons to consider:

  • Road Side Assistance
  • Engine Protection
  • Personal Accident cover
  • Zero Depreciation
  • No Claim Bonus Same Slab
  • Consumables Cover
  • Key Replacement

Going Online

For some people, offline insurance policies are safer. But this only adds the fee of the agent and also the time to process the documents. Getting car insurance online makes the process smooth and easy. You can always browse through multiple options in less amount of time and also there are portals to answer your questions. It also leads to better premium rates because the person opting for online insurance can compare policies and go through the policy documents to be well versed with its contents. 

So be wise while opting for your car insurance. Or you will have to run errands and suffer losses when the time comes to claim the cover.

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