Not being honest about one’s driving credentials and other important details is a widespread tendency in individuals opting for motor insurance. Close to 2.5 million lie about their details every year throughout the world, states The Telegraph.This, however, could result in huge issues when you file for a claim. There are several such mistakes that you could make at any stage of buying your motor insurance policy.
What Motor Insurance Mistakes You Should Avoid Making
While much has been said about what to do when buying motor insurance for your vehicle, here are a few mistakes that you cannot afford to make:
Deciding on a motor insurance plan with the lowest premium
You should not buy a plan merely because it is cheap. Ensure that you know why the plan is cheap. This is just as important as ensuring that you are getting the auto insurance policy from a reputed company. A lower premium could translate to an inadequate insurance cover at the time of an unfortunate event. Select the optimum policy for your vehicle, so that you get the best cover at a reasonable premium.
Concealing facts about driving and credit history
Important facts that decide the premium on motor insurance are the age of the driver, the track record of driving, safety devices installed in the vehicle and how extensively the vehicle is going to be used. Moreover, revealing all facts may actually help you lower the premium. Should the company find outthe discrepancy, your policy may be dissolved or your claim declared invalid.
Giving precedence to smaller deductibles
Opting for smaller deductibles is a ubiquitous mistake. This is for the reason that minor repairs are covered by motor insurance. Doing that, you may be missing out on a chance to lower your premium. Opting for larger deductibles may help in getting the no claims bonus.
Not buying online
There are a lot of costs involved when you buy your motor insurance through an agent, resulting in you having to pay higher premiums. However, if you buy online, you benefit from the cost cutting that comes with eliminating the intermediaries as well as agency costs. Insurers tend to offer lower premiums when selling policies online also because the online purchaser is perceived as well-to-do, educated, and thus carrying lower risk.
The biggest mistake however could be, not knowing your motor insurance policy. Read the policy document carefully and scan the fine print to know any exclusion that there may be. You also need to make sure that the claims process of your insurer is smooth and quick. This could be done by reviewing the claim settlement ratios of a few companies that you have shortlisted.
Cholamandalam MS, a General Insurance Company in India, offers a wide range of insurance policies for individuals as well as corporates. For individuals, there are products like Car Insurance, Two Wheeler Insurance, Travel Insurance, Health Insurance, Personal Accident Insurance, Home Insurance and Crop Insurance. For SMEs and Corporate Insurance clients, Chola MS offers customized insurance solutions encompassing insurance and risk consulting services such as Engineering Projects, Engineering Operations, Liability Insurance, Marine Insurance, Fire Insurance and Miscellaneous Insurance.