Mistakes to Avoid When Buying Car Insurance

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Looking for the right car insurance is a little bit of work but given that it insures your vehicle against costly damage expenses, the work put in to find the right policy is worth it. Be careful of the following points to ensure that you make an informed decision.

Overly affordable premiums shouldn’t be your first criteria:

Cheap car insurance policies may save you some money in the interim, but that doesn’t mean it serves the purpose. It is always better to compare the following points to be sure that you choose the right policy and not just the right premium.

  • Type of damage and amount for the damage covered
  • Insured Declared Value (IDV) of the car
  • Add-ons available on the comprehensive policy
  • Cover for you and the injured
  • Cover for damage and injury to third-party

Skipping on the T&C of the policy:

The terms and conditions on the policy determine whether your claim will be processed without hiccups such as the 48-hour timeframe for you to inform the insurer of the accident.

  • Policy Holder’s Name and Contact Details
  • Vehicle Number
  • Engine and Chassis Number
  • Insured Declared Value (IDV) of your car
  • No Claim Bonus %
  • Features of the policy
  • The term of the policy
  • Other details of your car such as make and model

Choosing the wrong insurance company:

Ensure you are not choosing the wrong insurance company that will not match your personal needs of a motor insurance policy. In order to choose the right insurance partner, consider the following parameters:

  • An in-house network of garages: A good insurance company will have an entire network of garages across the country, where you may repair your car and not have to pay any cash.
  • Claim Settlement Ratio: This is the insurance company’s track record in being able to successfully process and settle claims.
  • Online presence: A digitally established insurer will have provisions to settle claims online, provide round-the-clock customer care and possibly even have an app to keep you updated on your policy.

Buying unnecessary add-ons:

While it is not recommended to simply stick to the base plan, buying too many or incorrect add-ons will only end in higher premiums. Based on your traveling frequency, you may consider choosing from the following list.

  • Road Side Assistance
  • Zero Depreciation
  • No Claim Bonus Same Slab
  • Hydrostatic Lock Cover
  • Personal Accident Cover
  • Engine Protector
  • Consumables Cover (covers damages to consumables such as clutch box oil, gearbox oil, and coolants)

Policy documents not handy:

It is illegal to be behind the wheel without your driver’s license, registration papers for your vehicle, and your auto insurance documents. Depending on your offense, you may either be fined heavily or may end up having your driver’s license canceled for good.

These do’s and don’ts have a major impact in determining your car insurance policy investment and for detailed assistance, you may contact our experts at PL-India Motor Insurance and we shall revert at the soonest. Alternatively, do email us at insurance@plindia.com

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