Once you invest in your dream vehicle, you will have to focus on getting a proper insurance policy for it. If you drive an uninsured vehicle on the road, you will face legal implications. But buying car insurance can get a little intimidating with numerous policies and companies to choose from. Check out this essential checklist to be mindful of the mistakes to avoid during vehicle insurance purchase.
Table of Contents
- 1. Don’t Choose Basic Coverage
- 2. Don’t Overlook Anti-Theft Devices
- 3. Don’t Invest in Unnecessary Add-ons
- 4. Don’t Be Against Online Policies
- 5. Don’t Purchase the Policy Without Understanding the Terms
- 6. Don’t Forget to Consider Deductibles
- 7. Don’t Hide Information
- 8. Don’t Avoid the IDV
- 9. Don’t Skip Policy Verification
- 10. Don’t Ignore Claim Settlement Ratio Check
- Final Words
Several car owners make the mistake of purchasing car insurance only to fulfill the legal requirement. Therefore, a lot of vehicle owners only purchase third-party insurance or the most basic cover available. But affordability shouldn’t be your primary consideration while investing in car insurance. You will have to understand the needs of your dream car and pick a comprehensive policy accordingly.
Your car getting stolen is one of the worst things that can happen to you. An anti-theft device in your vehicle will offer additional protection and make it difficult for thieves to run away with your car. But another benefit of getting anti-theft devices is lower insurance premiums.
You will want the maximum safety for your vehicle, and you can get it with various add-on covers. But remember that add-on covers can significantly increase your premiums. While it might be tempting to invest in multiple add-ons, you must only pick the ones you need. For instance, a passenger add-on cover is of no use if you drive solo.
Nowadays, you have the convenience of purchasing vehicle insurance policies online. Therefore, you won’t have to rush to the insurer’s office multiple times for all the documents. However, some people prefer to buy insurance the traditional way over the convenient online mode because of safety concerns. But you will be fine as long as you check the legitimacy of an online insurance provider.
If you don’t read the lengthy terms of your vehicle insurance policy, you are making a huge mistake. It should be your duty to read all the terms and conditions to understand the amount and circumstances of insurance coverage. If you are confused regarding any specific term, you must immediately raise a query.
While purchasing vehicle insurance, you can opt for voluntary deductibles to reduce the premium. But you will have to pay the voluntary deductibles from your pocket. So, choose the amount according to how much you can afford.
You must present accurate information while getting vehicle insurance. For instance, you shouldn’t make any mistake in offering details about the vehicle model and number.
The IDV is determined as per the present value of your vehicle in the market. Choosing the right IDV is essential for getting the right sum insured. Your premium will be significantly influenced by the IDV.
Purchasing vehicle insurance online has become a matter of a few minutes. However, after purchasing the policy and receiving the documents, you must remember to verify all the details. In case of any mistakes on the policy document, get it rectified immediately.
10. Don’t Ignore Claim Settlement Ratio Check
Before purchasing a car insurance policy, you must evaluate the claim settlement ratio of the insurer. It will help you assess how easily your claims will be settled.
Remember to choose a reliable car insurance provider as per the needs of your vehicle. Never rush into buying your vehicle insurance policy without comparing multiple options.