Do you enter a random car showroom and buy a car just like that? Obviously not! You invest so much time and effort in choosing the brand, model, variant, color, etc... Likewise, you need to invest your time and effort while purchasing your car insurance too.
Many car buyers have little knowledge of car insurance and often end up making mistakes while buying a car insurance policy. They do not even realize this until they actually need to file a claim or use the policy. It is only at that point, that many realize they have missed out on something or opted for the wrong plan, causing avoidable pain in dealing with your claim or losing out on a benefit. We understand that this can be frustrating. Read our blog to ensure you never find yourself in that situation.
Here are some of the common mistakes that one should avoid.
Not Doing Research
Finding the right car insurance often takes time. It requires both online and offline research: by browsing various insurance/insurance aggregator websites and checking with friends/colleagues to compare car insurance offerings and premiums. What you need to look for:
- Company’s reputation and financial strength
- Insurance Coverage
- Online facility for buying policies, paying premiums, claims and customer service.
- Claims-Settlement Ratio
- Cashless Garages
- Complaints and Reviews
Buying a Policy With Low Premium
This is a common pitfall that many car buyers fall into. Considering price as a deciding factor is a major mistake in car insurance. A low premium reflects less insurance cover. You might save some money now, but in case of an unfortunate incident, you might need to shell out more from your pocket for repairs due to low cover. It is always advisable to opt for an insurance policy that offers adequate cover.
Choosing a Basic Third-Party Insurance
To save money on premiums, many car owners only opt for third-party insurance. This only covers the damage to the third party and does not cover its own damage. Given the high repair costs or a total loss, it only makes sense to opt for comprehensive car insurance which covers all the risks.
Avoiding The Right Add-ons
Another common mistake made by car owners is avoiding add-ons altogether. Choosing the right add-ons will only strengthen your car cover. Some of the right add-ons are:
- Zero Depreciation
- Roadside Assistance
- Hydrostatic Lock Plus Cover
- EMI Cover
- Consumables Plus Cover
- Vehicle Replacement Advantage Cover
Not Reading The Insurance Document:
A car insurance policy document might look exhaustive with a lot of information. Without realizing how important it is to check certain points in this document and because in our hurry we want to save some time, many car owners skip reading it. Even if one does not read it word to word, it is important to check the following in the document. This will go a long way in helping one avoid problems during a claim:
- Policy holder’s name and contact details
- Vehicle registration number
- Engine and chassis number
- Insured Declared Value (IDV) of your car
- Policy Coverage
- No claim bonus
- Other Terms and conditions
Now that you are aware of the pitfalls, feel free to contact Cholamandalam car insurance for any assistance or queries related to your car insurance.