Traveling is an inevitable part of our lives and what better than a car. Not only does it offer convenience, but also the comfort and luxury of safe travel. Moreover, a car holds a special place for many, next to your home considering the investment required. So, no compromises can be made for ensuring its protection—this is where the concept of car insurance comes into the picture.
The Motor Vehicles Act of 1988 lays down the requirement for all car owners to buy an insurance cover. There are various policies among which you can buy car insurance online. While some may accept a policy to comply with the law, i.e., a third-party plan, a few others may prefer the benefits of a comprehensive cover. However, there can be a few slip-ups that you must avoid. This article talks about a few of them helping you get better at selecting the best coverage for your car.
They are only opting for the minimum cover—third-party plans.
As stated above, the Motor Vehicles Act requires all vehicle owners to have insurance cover. However, the law only mandates a third-party policy. With such a third-party plan, only legal liabilities due to third parties are covered. This leaves you and your car without any coverage despite having an insurance plan. Thus, it is advisable not to opt for the minimum mandate coverage as it tends to ignore the other benefits of a car insurance policy that is on offer. However, when finances are strained, one can opt for such third-party coverage that ensures legal compliance.
I was not keeping track of what you were buying.
When buying a policy, it is crucial to know what you are buying; the policy features, inclusion, list of exclusions and coverage, etc., help make a careful assessment of what falls within the purview of your insurance cover. Simply buying a policy recommended by your friend or colleague may not fit right for you. Instead, it may not prove to be of any use. In addition, knowing your policy features also helps to justify the car insurance prices. You can compare different offerings to select the best policy that not only fits your budget but also checks the right boxes.
Missing on updating your insurance company
During a policy tenure, if you modify your car in any way, it is crucial to inform your insurance company. This helps the insurer reassess the risk it has to undertake in protecting your vehicle. It may even result in an increased premium. Skipping this step can lead to a rejection of your application at the time of claim. Not only vehicle-related information needs to be updated, but also that information that pertains to you.
I do not understand the jargon.
This is a widespread mistake that can land you in inadequate coverage or an event that your insurer does not cover. Various jargon may seem confusing, but you need to understand them to know the policy terms in full. If you overlook these terms, the understanding of the policy may not be correct and can lead to misinterpretations. Hence, make sure you ask as many questions as you want before finalizing a plan to be well aware of all the policy terms.
Some slips-ups can be avoided when buying a car insurance cover. When comparing many plans and shortlisting them, a car insurance calculator can come in handy. Also, remember that insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.