Car Insurance expired in Lockdown Period? Avoid These Common Mistakes while Renewing Car Insurance Online
A lot of first-time insurance buyers tend to rush into renewing car insurance and in the bargain, commit a few silly mistakes, which in the long-run can prove costly. Read on to know more about the common mistakes you must avoid while renewing car insurance.
Today, as most insurance companies in India offer online services, buying and renewing car insurance has become easier than ever before. In the purview of the prevalent lockdown across the country, it is not possible to visit the insurance company to buy or renew your policy. But, that does not mean to stay without an insurance; you can renew your policy online.
When you renew your policy online, you must take your time to research and find the best plan to suit your needs at the best price. Here are a few common mistakes that you must avoid.
● Not exploring other options
It is the general notion among people that you must renew the policy from the same insurer. However, when you renew the policy, you can choose a different insurance company. So, don't hesitate to explore different options; compare the plans from different insurers, and you may find a policy that offers better coverage than your current plan, and with an affordable premium.
● Buying a policy with the cheapest premium
Most first-time car insurance buyers in India tend to make their purchase decision based on the premium price alone. Considering the cost as the deciding factor is a big mistake. When you compare car insurance online, apart from the price, you must also take into account the coverage offered, claim process, etc. Additionally, low premium often means less cover. Underinsuring your car can prove by paying a low premium to be costly in the long run.
● Buying third-party insurance
As per the Motor Vehicles Act, all car owners in India must have valid third-party insurance, and many people buy this policy only to comply with the law. But, this can be a costly mistake if your car suffers damage due to an accident. A third-party insurance policy provides coverage only for the damages caused to the third-party.
If any damage occurs to your car or if you get injured in an accident, you must bear the repair and treatment expenses from your pocket. Hence, experts recommend buying a comprehensive policy as it covers both third-party liabilities as well as damages to your car.
If you have a third-party only insurance, you can switch to a comprehensive policy at the time of renewal to get wider coverage and reduce your financial liability.
Not reading the policy documents
Research suggests that nearly 89% of the insurance buyers buy car insurance online without reading the terms and conditions. The car insurance policy documents can be extensive, and most people do not have the patience to read through the pages. This can be a big mistake, as it is paramount that you understand each term mentioned in the document so that you do not face any legal issues during claim settlement. You must know about the IDV, deductibles, vehicle details, coverage mentioned in the policy documents.
Not buying the right add-ons
A lot of first-time car insurance buyers under-estimate the importance of add-ons. Add-ons are additional coverage options that you can purchase to widen the scope of your regular insurance policy. While the add-ons may increase the premium price, it would come handy during the claim settlement process, as it helps in reducing the financial liability. Some of the most popular types of add-ons that you can consider buying, include - Zero-depreciation cover, Roadside Assistance cover, Engine Protection Cover, Personal Accident Cover, etc.
When you renew your policy, you can either purchase new add-ons or remove the ones that you purchased before as per your needs.
Now that you are aware of the common mistakes that people commit, make sure that you avoid these mistakes while you renew your car insurance policy online.