If you own a vehicle in India, you should know that it is illegal to drive an uninsured car on Indian roads. Getting caught can subject you to hefty fines and penalties from the relevant authorities, and repeat offenders can face serious consequences.
If vehicle owners want to drive without this fear of penalty, they should get their vehicles insured under a good insurance policy at the earliest.
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The wide range of options can certainly confuse many, but we have your back in this scenario. To help four-wheeler owners like you, we’ve put together an epic list highlighting the factors to look out for when evaluating and finalizing an auto insurance policy for your vehicle. These factors were selected after extensive research and interviews with various insurance experts. So let’s jump right into the points shared below.
- Not Choosing Apt Coverage
A common mistake that many people make is choosing a policy with limited coverage and regretting it later. If you are new to car insurance, there are mainly two types of insurance available, namely liability insurance and comprehensive insurance. The first provides financial responsibility to third party people and property.
The only drawback of this policy is that it does not cover damage to the driver-owner of the vehicle and his own car. This disadvantage is covered by comprehensive car insurance, as it covers both damage caused to third parties and own damage. If you value your car more than premiums, you should choose comprehensive insurance over liability insurance for the best coverage.
- Not comparing policies online
Once you have decided whether you want to proceed with comprehensive or liability insurance, you should start researching the relevant options available online. One mistake you wouldn’t want to make is not comparing policies online. Comparing similar policies will allow you to choose the best and most cost-effective car insurance for yourself.
One tip you should follow when comparing policies is to make comparisons logical. Don’t just compare policies based on premium prices, but also check what is covered by the cover at a given premium price. The more options you identify and compare, the better your chances of finding the perfect font.
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- Providing incorrect information to the insurer
Some people tend to fill in incorrect information when filling out the insurance application form to get lower premium estimates, but this trick always backfires. Details such as the age of the vehicle, attachments added, type of vehicle, etc., are some of the factors insurers consider when calculating the premium. If you tend to manipulate the details, the company will identify them during their inspection and your application may be rejected.
Even if the form is somehow accepted, you may face issues and risk of claim denial when settling the claim. If you don’t want this to happen, always be honest with the insurer and fill in the correct vehicle and your own details.
- Ignore deductibles
The deductibles are the costs that the insured undertakes to pay when the claim is declared. Once the deductibles have been covered by the insured, the insurer pays the amount that exceeds it. The insurer will pay the remaining amount of the incurred claim beyond the deductibles. For example, if your car insurance has deductibles of Rs.15,000, you will have to bear this amount out of your own pocket when filing a claim above this amount.
Since the insurance premium and deductibles have an inverse relationship, you should pay special attention to them – the higher the deductibles, the lower the premium and vice versa. If you choose higher deductibles to obtain a lower premium, you will have to pay higher costs when settling the claim. So don’t go for high deductibles until necessary.
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- Choose irrelevant add-ons
Riders or add-ons are an added benefit that enhances policy coverage. If you are not satisfied with the standard coverage provided with the policy, you can purchase additional coverage according to your needs. Since each add-on performs a specific function and incurs an additional cost, you should be careful when adding add-ons to your policy. Each insurer offers a different set of add-ons, so always check with the insurer about the options available.
Generally, major insurance companies in India offer consumables cover, return on invoice cover, engine protection cover, zero depreciation cover, tire protection cover, roadside assistance, a passenger cover and an engine protection cover. Of all the hedges mentioned, zero depreciation is the most important. Since the four-wheeled vehicle tends to depreciate over time, the owner of the vehicle has to bear the depreciation cost and the replacement cost of the spare parts. If you want this expense to be borne by the insurer, you must find zero amortization auto insurance. This will solve the problem.
- Not checking the list of inclusions and exclusions
Inclusions and exclusions are at the heart of a policy. You will be vulnerable to unpleasant experiences during the claims settlement stage if you ignore these two items when finalizing your auto insurance policy. Assumption never works in the insurance industry, so never assume that a particular insurer offers specific coverage just because another insurer does.
For example, check whether the cost of replacement spare parts, repair costs, etc. whether or not they are covered by the policy. You can ask the insurer for the policy documents in which the inclusions and exclusions are mentioned for your convenience. The more careful and specific you are with a policy’s inclusions and exclusions, the better your experience will be.
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- Skipping to do the necessary research on the insurer
The last thing you want to do is end up with an insurer that cares the least about its customers. Doing enough research on the policy is essential, but researching the issuing insurance company is even more critical. Before finalizing an auto insurance policy, join various online groups, forums and communities created around insurance and check the reputation of the selected insurer.
If you only see positive reviews from real policyholders, consider that a green signal, and vice versa. You should rate the insurance company on the basis of claims settlement, customer support, etc. The more research you do, the better your overall experience will be.
Secure your car with ease
Getting the right auto insurance is the first step to safe driving, and paying premiums on time is the second. Depending on the car insurance you choose, it will protect you against civil liability and guarantee you against your own damages. Now that we’ve made it easy to choose the right insurance, you should have no more difficulties on your insurance buying journey. Take the time, do enough research, compare, and then make the final decision.
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