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Pros & Cons of Cheap Car Insurance Policy 

When purchasing a car, opting for car insurance is a must. Nowadays, with the vast influx of insurance policies available online, you must be cautious and read the terms and conditions offered carefully. While, on the face of it, cheap insurance quotes offered by various insurers may seem lucrative, not all of such policies will necessarily benefit you. While you may opine that cheap car insurance will help you save money, do not necessarily be lured in by such offers. Cheap full coverage car insurance is often characterised by lower coverage, poor clientele assistance, and much higher deductibles.

Importance of Cheap Car Insurance Policy 

When you purchase a car in India, it is mandatory, as per the Motor Vehicles Act, to opt for third-party insurance. In addition to this, you can also secure yourself and your vehicle with a comprehensive insurance policy. Let us now have a look at the benefits of opting for car insurance:

  • Damage/Loss to the Vehicle

When you opt for an insurance policy, it protects you from damage or loss to your car by accident, self-ignition, fire, burglary, theft, riots, strikes and so on. Additionally, it also offers protection against damage owing to transit via rail, air, road, waterways, and lift.

  • Personal Accident Cover

In the event of an accident that leads to disability or death, the insurance policy offers a predetermined amount as compensation. 

  • Third Party Liabilities

If you opt for car insurance, you can avail of compensation when an accident causes harm to a third party. Additionally, your insurance policy will also protect you against any legal liabilities you may have to face. 

When you opt for a  very cheap car insurance policy, you may not stand to benefit from all the features of a regular car insurance policy. However, certain basic components as mentioned above stand to be covered.

Advantages of Cheap Car Insurance Policy 

When you opt for an affordable car insurance policy, you stand to gain from the following:

  • Helps Save Money: When you opt for very cheap car insurance, you can save a lot of money - provided you are a safe driver, who hardly ever gets into accidents or accumulates tickets. 

 

  • Smaller Companies May Offer Better Service: Generally, when a new car insurance company enters the market, they may offer cheaper premiums, to remain competitive and establish a niche for themselves. Given that such companies strive to establish goodwill in the market, they will go out of their way to offer you the best service possible.

Disadvantages of Cheap Car Insurance Policy 

When you opt for a very cheap car insurance policy, you stand to lose from the following:

  • Cheaper Service: If you are paying a significantly lesser amount as a premium on your car insurance, you may stand to lose by way of cheaper service. This is because the company may try to cut corners and saves costs, in return for offering cheaper premiums.

 

  • Company May Dissolve: Companies offering a cheaper insurance premium may renegade on their promise to fulfil your insurance claims. Additionally, in the long run, such companies also stand the risk of insolvency and premature closure.

Advantages & Disadvantages of Cheap Car Insurance Policy

The advantages and disadvantages of a cheap car insurance policy are as listed below:

Advantages

Disadvantages

Helps save money

Cheaper/poorer service

May offer better service

Company may dissolve

Conclusion

Now that you are better acquainted with the hassles associated with cheap car insurance, make sure you study the terms and conditions carefully, before investing. To check out the full list of the best cheap car insurance plans available for cars, visit the Bajaj Markets website today!

Check Out Car Insurance Plans Available at Bajaj MARKETS

FAQs on Cheap Car Insurance

  • ✔️Why should I avoid buying a cheap car insurance plan?

    You should avoid buying a cheap car insurance plan as they may charge higher deductibles and not offer total coverage.

  • ✔️What are the major drawbacks of a cheap car insurance plan?

    The major drawbacks of a cheap car insurance plan are poor customer service, lack of adequate coverage, and higher deductibles.

  • ✔️What are the advantages of comprehensive car insurance?

    If you opt for comprehensive car insurance, damages incurred to your own car, as well as the third party, are covered.

  • ✔️Can I get a discount on my car insurance plan?

    Yes, different insurance companies offer different discounts on affordable car insurance plans.

  • ✔️With a third-party insurance plan, can I also opt for add-on covers?

    No, you cannot opt for add-on covers on a third-party insurance plan.

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