Common Mistakes to Avoid When Buying Car Insurance Online in India

Buying car insurance online in India is now quick and convenient, thanks to digital platforms. However, there are some errors people often make while purchasing a policy that can result in claim rejections, causing policyholders to pay for repairs out of pocket. In this article, we explore some common mistakes to avoid while buying online car insurance to ensure you get the adequate coverage at the right price.Read more

Avoid These Mistakes When Buying Car Insurance Online

When buying car insurance online, it is important to first understand the policy features and avoid the following mistakes:

1. Buying a Family/Friends Recommended Policy: Many car owners prefer to buy a car insurance policy that their friends or family members recommend. However, this is not the right approach, as the coverage needs vary from one person to another, depending on the type of car and driving style.
2. Not Comparing with Different Insurance Providers: It is essential to compare car insurance policies offered by various insurance providers to choose the best one that fits your budget and meets your coverage expectations. Before buying one online, you can visit different websites to understand and compare various car insurance policies. Review the claim settlement ratios and number of garages of insurers, prices of add-on covers, policy exclusions, and the claim settlement times.
3. Opting for a Policy that Offers the Lowest Premium: As a car owner, you must refrain from choosing a car insurance policy solely based on its premium cost. Choosing a policy that offers the required financial coverage you need is essential.
4. Misinformation About the Vehicle or Driver: Car owners must disclose the complete details about their car while buying an insurance policy. The insurance provider must be notified of any modifications or extra accessories, as misinformation may lead to claim rejection or policy cancellation. Similarly, withholding driver information such as the driver's age, past records, etc., may also result in the policy cancellation.
5. Not Reviewing Policy's Terms and Conditions: Before you buy car insurance online, it is essential to read the policy terms & conditions thoroughly. Understanding the coverage, deductibles, and insured declared value (IDV) is crucial in ensuring you will not face any trouble during claim processing or settlement.
6. Buying Only Third-Party Insurance: Many car owners prefer third-party car insurance instead of a comprehensive one, as it is cheaper and mandatory by law. However, you should understand that if you buy third-party insurance, then you have to bear the financial expenses for your injuries and own car damage in the event of an accident. The third-party insurance only offers financial coverage for the other vehicle and its owner, and is generally beneficial for older cars.
7. Making Claims for Minor Repairs: Many car owners who buy their insurance online miss out on their No Claim Bonus (NCB) discounts as they make claims for minor repairs. This happens because they do not read the policy documents carefully before signing. The NCB in car insurance can offer a discount of up to 50% on the premium at the time of renewal.
8. Choosing a Higher Deductible: A deductible is an amount that the policyholder must pay before receiving the claim amount from the insurance provider. Some car owners opt for a higher deductible amount when buying car insurance to lower their premium amount. However, they end-up paying more in case of a claim. However, it is advised that always select a deductible with the right balance between budget and coverage.

Why Should You Buy Your Car Insurance Policy Online?

Obtaining car insurance online offers several benefits to vehicle owners. Have a look:

1. To Avoid Extra Expenses: Many car owners buy their car insurance policies offline and pay more due to extra charges, such as an agent fee. To avoid additional costs, you should buy your car insurance online from the comfort of your home.
2. For Online Discounts: Many insurance providers offer discounts and other financial incentives on their websites to attract potential customers. These discounts are usually not provided offline, making the online car insurance purchase a lucrative option.
3. Convenience: Customers can easily buy a car insurance policy from the comfort of their home without going to the insurance provider's office.
4. Comparison: When buying car insurance online, you can compare different add-on covers and check the premium rates for different policies instantly.

Conclusion

Buying car insurance online is an ideal option as it allows you to compare multiple plans, save on premium, and get the best coverage as per your need. By avoiding these mistakes and carefully understanding the policy features and terms, you can ensure adequate coverage and hassle-free claim settlement.