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Four Common Mistakes People Make While Buying Car Insurance

By Finserv MARKETS - Feb 11,2019
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Given the availability of car insurance online, buying insurance has become a simple task. Although things have become much simpler and quicker, it’s important to take your time to do some research and find the best insurance coverage at the right price. If you are planning to buy a car insurance policy, here are some common mistakes you must avoid: –

Cheaper is better

When it’s time to buy a car insurance, most people end up searching for policies with the lowest insurance premium. Keeping the price as the deciding factor while choosing a policy is a major mistake. Reliability of the insurance company and the coverage it offers, are more important factors when making such a decision. More often than not, a low premium translates to less cover, when the need arises. Hence it’s important to ensure that your policy covers all major risks that your vehicle is exposed to. Underinsuring your vehicle by paying a low premium is as good as no insurance.

Taking up only third-party insurance

Since having a third party insurance has been mandated by law, many people choose to stick with it as a comprehensive car insurance policy comes at a higher cost. This mistake can cost you dearly in case your car suffers any damage in the event of a mishap. A third-party insurance policy only compensates for the damages caused to a third party. Whereas, a comprehensive insurance policy will compensate for the damages caused to the third party as well as your own vehicle.

Not reading the policy documents carefully

A car insurance policy document can be quite extensive. Hence, many people don’t have the patience to scrutinize the entire document. This can be a big mistake, as it’s very important to understand the terms and conditions of the policy so that you don’t face any problems at the time of claim settlement. It is critical that you review all important information like IDV, coverage, vehicle details, deductibles mentioned in your policy.

Hiding details to retain a low premium

At times factors like age of the driver, driving history, safety accessories etc. are taken into consideration while determining the insurance premium. Being dishonest about any of these or hiding details in a bid to enjoy a lower premium will certainly backfire at the time of making a claim. Full and honest disclosure is a must at the time of buying car insurance.

With Finserv MARKETS, the process of buying a car insurance policy is quick, easy and hassle-free. What’s more? The entire process is online and completely transparent. So why wait? Get your car insured with us, today!

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Bajaj Finserv Direct Limited ("BFDL"), erstwhile Bajaj Financial Holdings Limited is a registered corporate agent of Bajaj Allianz Life Insurance Company Limited and Bajaj Allianz General Insurance Company Limited under the IRDAI composite registration number CA0551 valid till 10-Apr-2021. BFDL also renders services to Bajaj Finance Limited (‘BFL’) and Bajaj Housing Finance Limited (‘BHFL’) (referred hereinafter as ‘Lending Partner’) in sourcing of customers, providing preliminary credit support activities, fulfilment services and post-acquisition customer services related to lending business. Registered Office: Bajaj Auto Limited Complex, Mumbai – Pune Road, Akurdi, Pune – 411 035 CIN: U65923PN2014PLC150522