9 Car Insurance Buying Tips that Help You Avoid being Fooled!

The fact that every year approximately 1.25 million people die in road accidents is alarming and desolating. And this makes it imperative to buy a car insurance policy to be in the safer side. Moreover, in India, third party car insurance is a legal mandate. But are you aware of the fact that you might get a policy that doesn’t meets your requirement?

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What if you spend a huge chunk of your hard-earned money and find your car insurance policy insufficient at the later stage?

Undoubtedly, you will be with no options left right?

Having said that let’s consider the below 9 tips of buying comprehensive or third party car insurance in India, without being fooled by the agent.

Statistics Say!

Besides the advantages of having a car insurance policy, there are fake companies that may provide with fake insurance policies just to make money. The rise in the number of fraudulent insurance cases has become a subject of much concern for the stakeholders.

In a report by the Indian Forensic Centre for Studies, the frauds roughly calculated in the insurance, sector is to be over Rs.30,000 crore annually.

If in case, one buys a fake car insurance policy, any claim against the equivalent will not be entertained. As a responsible consumer, one needs to be aware of how to observe a fake car insurance policy from a genuine one.

Let us take you through some easy ways through which, one can check if the car insurance policy is fake.

  • Avoid Buying Insurance Policy from an Agent: It is a common sight of people buying insurance policies through agents. If one is not sure about the veracity of the services, being offered by the agent it is recommended not to buy the insurance policy from the agent as the agent may run away with the hard-earned money. Moreover, some people who are pro in dealing with situations and may easily produce fake insurance papers and convince an individual to buy car insurance. It is advisable not to fall for it and be aware of such documents.
  • Avoid Cash Payment: Living in the digital era, it is highly recommended to make a digital payment rather than making a traditional cash payment. Moreover, technological advancement has been a boon in the way as it becomes easy to keep a track upon the criminals and fetch them easily. Moreover, in this way, if the criminal is caught it will also help down to help the victims of the past. Digital payment will also help the one in future to produce proof to substantiate the loss in front of the legal authorities.
  • Double Check with the Insurance Provider: While buying a car insurance policy, do not decide in a hurry. Invest time and look for various insurance providers online offering car insurance policy. This will help to get instant quotes and depending on the requirements, one can customize the policy accordingly and then make an informed and wise decision of buying the car insurance policy. Moreover, if one is buying a policy through an agent it is advisable to buy make a call to the company that the agent claims he is a part. One may do the same by making a call on the toll-free number and confirm the agent’s veracity or one can also visit the nearest branch of the insurance provider.
  • Inspect Before You Sign on the Dotted Line: Most of the people while buying a car insurance policy do not read the fine print of the policy schedule and simply sign the policy. The customers must understand that insurance policies do have hidden terms and conditions that most people are unaware of. Do not sign the papers in a rush and take time to understand the policy. Look for all the important information in the form. Moreover, fill the form carefully, provide correct information, and refrain from hassle while filing a claim.
  • Look for the Authenticity of the Agent: People prefer buying a car insurance policy from an agent to avoid stress and not getting into the hassles of paperwork. Envision a scenario wherein one is looking for an agent who is on run with the hard-earned money. This is more disturbing than investing one’s time in the policy. It is better to check the identity card of the agent and possibly visit the branch office of the insurance provider from where one is intending to buy the policy. There is nothing wrong in conducting a background check on the agent. Doing this will give peace of mind and confidence in the agent and buying the car insurance policy.
  • Buy Policy from a Reliable Provider: Make it of utmost importance that the car insurance policy is bought from a recognized car insurance provider. Do not go with an insurance provider just because it is offering low premium rates.
  • Ask for a Receipt of Premium Payment: It is advisable to ask for a receipt after making a premium payment. This is necessary specifically under a circumstance wherein the payment is done with the cash. Moreover, check if the details mentioned in the receipt are accurate. The receipt must contain details like cheque number, date of payment, the premium amount paid, and so on.
  • Click on the Policy Verification Link: While buying a car insurance policy do not forget to click on the link of the policy verification. This is one way, which will help you to check whether the car insurance policy bought is valid or not as the fraudulent people do not have the facility to validate the policy on their website.
  • Check for IDV, NCB and Deductibles: Once the policy is bought, make it a point of checking the insured declared value, no claim bonus and the deductibles to be assured that the policy received is genuine enough. It may sound like a minor thing but in the long run, this helps; specifically if not checked it would create havoc at the time of making a claim.

Wrapping it Up

It is true that fraudulent cases have been rising and insurance sector is no exception. To safeguard the consumers from fraudulent car insurance providers, IRDA has made it a mandate to print the QR code in all the policy documents sold after December 2015. Scanning the QR code in the policy document will give you details like the status of the policy and relevant information related to your insured vehicle.

Moreover, staying observant and sharp-eyed will protect from unwanted fiscal cost and stress-free from fraudulent car insurance schemes. Take care of the simple measures and be aware of the red flags, which will help you to know whether the policy is fake, or not.

The purpose of any insurance policy is to protect the ones from uncertain losses. Take care of the above-mentioned pointers while buying a car insurance policy and remain hassle-free when driving on the road.a

Written By: PolicyBazaar - Updated: 14 March 2022
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