It’s fine to make mistakes if you are learning from them, however, the same can’t be said about important things like car insurance. Your one mistake while choosing a car insurance can lead to a situation where you would have a car insurance cover, but it is not sufficient to deal with your loss or damage. Or, the situation where you are paying more than what you actually require.
To help you avoid such situations, we have listed below some of the car insurance mistakes which you might be making and thus, they can prove costly to you.
In case you don’t have a car insurance policy, learn from the mistakes of the other people and pledge not to repeat them=
- Going with the cheapest option= It is human tendency to get attracted towards cheap deals unless you are not a millionaire. The same thing happens with a motor insurance as well. After all, a car insurance helps only when there is an accident, and you are the best driver in the world (or at least you think so!) who has been blessed with superpowers that make you accident-proof. So, it makes complete sense to go with the cheapest car insurance policy because you would never require the policy.
But what is the point of taking a car insurance if, at the time of claim, the insurer refuses to settle or pays only a meagre amount? A car insurance can help you only if it is sufficient.
Moreover, even if it is not your fault, many times, accidents happen because of the other person or driver act recklessly on the road. The true measure of price is not about how much you have saved by opting for a cheap insurance premium, but it’s all about how much you will save in the long run. So, do a favour and compare all the features, like network garage, customer support, claim settlement ratio, etc.; before saying yes to the one car insurance policy.
By the way, Harry Potter had so many superpowers, but still, he fell so many times from his vehicle, i.e., the broom!
- Choosing the deductible which is either too high or low= In the insurance sector, the deductible is the amount that you would have to pay from your pocket at the time of claim. By opting for a high deductible limit, you can lower your car insurance premium rates and vice versa.
Most car insurance policyholders go with the wrong deductible limit due to which they face issues with their premium. For instance, if a policyholder settles for a very low deductible even if he/she is considerably a safe driver, he/she would have to pay high charges.
On the other hand, too high deductible means, he/she would have to pay a substantial amount at the time of claim, and only a meager amount would be settled by the insurer. Both the situations are dangerous.
Too high or too low deductible would only harm you financially in the long run, and therefore, choose the right deductible limit by critically analysing your driving skills. Being overconfidence is as bad as under confidence!
- Being shy away from asking discounts= Okay, we know you don’t believe in bragging about yourself, but when it comes to saving money on your insurance policy, why not? You can ask for discounts from a car insurance company if any of your family members have also bought their policy from them. Similarly, if you are the member of any of the Automobile Associations of India, you can get discounted premium rates. Mainly, these are the following four automobile associations whose members get discounts from car insurance companies=
- Automobile Association of Upper India
- Western India Automobile Association
- Automobile Association of Eastern India
- Automobile Association of Southern India
Then if you have installed anti-theft devices in your vehicle, you can become eligible for low premium rates. As these devices will make your car less susceptible to theft, car insurance companies would be happy to reward you with easy car insurance premium rates.
There is no strict rule that these car insurance companies will surely reward you. However, there is no harm in trying your luck.
- Ignoring research before buying= All the car insurance policies look same on their face value, so why should you waste your time in comparing them? However, just like there are good apples and bad apples, there are different car insurance policies with various features.
So, instead of buying the very first insurance policy, you come across, make a systematic comparison among all the available options and choose the one that suits you best.
It’s time to change your herd mentality and make your own way. Your car insurance requirements are different from your friend!
- Thinking that car insurance will cover anything= It is one of the common mistakes which is made by most of the car insurance policyholders. However, the reality is that no single insurance policy covers In most of the car insurance policies, there is a deductible clause which is exercised, i.e., a part of the claim is borne by the policyholder.
Further, unless you have a zero depreciation cover, the insurer will settle the cover after deducting depreciation. The best thing is to talk to your car insurance company and seek clarification on this.
Ignorance is bliss, but it is certainly not in the case of car insurance.
- Buying offline= In today’s internet driven world, when everything from apparels, medicines, to shoes, jewellery and grocery, can by bought online in a few clicks of the mouse, it is hard to understand why most of the people prefer the offline mode over the online mode.
You can save on your insurance premium if you buy your car insurance online, which is both the cheapest and convenient option. Without the involvement of the agent and intermediary, you can directly approach your car insurance company. Further, every car insurer has its customer support where you can contact and take the ‘offline’ route to seek clarification in case of doubts.
Consider car insurance as a ‘necessity’ and not any other accessory which is attached to your car! Choose wisely, stay (drive) happily!