Make Note of These Slip-Ups That You Can Avoid When Buying a Car Insurance Policy

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Travelling is an inevitable part of our lives and what better than a car. Not only does it offer convenience, but also comfort and luxury of a 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 where the concept of car insurance comes into the picture.

Car Insurance Policy

The Motor Vehicles Act of 1988 lays down the requirement for all car owners to buy an insurance cover. There are myriad policies among which you can buy car insurance online. While some may buy a policy to just have compliance 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 which you must avoid. This article talks about a few of them helping you get better at selecting the coverage that is best for your car.

Only opting for the minimum cover—third-party plans

As stated above, the Motor Vehicles Act requires all vehicle owners to have an insurance cover. However, the law only mandates for a third-party policy. With such 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 to not opt for the minimum mandate coverage as it tends to ignore the other benefits of a car insurance policy that is on offer. However, in times when finances are strained, one can opt for such third-party coverage that ensures legal compliance.

Not keeping a track of what you’re 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 help 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 to reassess the risk that it has to undertake in protecting your car. It may even result in 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 which pertains to you.

Not understanding the jargons

This is a very common mistake that can land you in either inadequate coverage or an event that is not covered by your insurer. There are various jargons that may seem confusing, but you need to understand them, so you 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 you want before finalising a plan so that you are well aware of all the policy terms.

These are some slips-ups that can be avoided when buying a car insurance cover. When comparing many plans and shortlisting them, a car insurance calculator can come handy. Also remember that insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.