How to Avoid Common Mistakes While Buying or Renewing Car Insurance

Due to the digital revolution in the recent period, the Indian insurance industry has seen a positive outcome. Now, buying or renewing an insurance plan from digital insurance companies like ACKO General Insurance via acko.com takes only a few minutes.

However, people who have been following the traditional method of insurance purchase often struggle to adapt to digital procedures. Furthermore, people who are not well-versed with smart digital equipment face similar issues and end up making mistakes.

This blog will guide you on how to avoid common mistakes while buying or renewing car insurance.  

Common Mistakes to Avoid While Buying or Renewing a Car Insurance

Buying or renewing a car insurance policy has now become a lot simpler, faster, and easier compared to what it was a few years ago. Repeated physical visits to the insurance office, with too many form-filling and document submissions, are things of the past now.

In the digital-first era, all these procedures have been reduced to simple steps. The following are some common mistakes that you need to avoid while purchasing or renewing a policy online:

1.Ignoring Basic Research

Ignoring basic research is similar to buying an orange when you need an apple. Insurance is an extremely private matter, and it is purchased to serve individual purposes. That is why understanding your specific requirements and conducting thorough research based on them is crucial to getting adequate results.

2.Insufficient Coverage

It is normal to want to save more whenever possible. But, during an emergency, finding that your policy does not have the coverage you are looking for will lead to an excessive financial burden. Therefore, choosing a policy that is budget-friendly and has wide coverage should be your goal.

3.Avoiding Comparison

Comparing different policies before purchasing is the most ideal way. This will give you an idea of the premium amount and coverage offered by different insurers for the same premium. If you avoid comparison, you will miss out on the best insurance plan at the best price.

4.Imbalance in Add-ons

Add-ons help to upgrade your policy with enhanced coverage, but certainly, with an extra payment. But this will only make sense if it applies to you. If you do not analyse your add-on requirements properly, you might end up paying more for your premium than you actually need.

5.Buying a Policy Without Understanding Its Terms and Conditions

Avoiding policy fine print is another mistake policy seekers make. This creates a ton of confusion and miscommunication, especially during claim settlement. As a consequence, you will not be able to avail yourself of all the insurance benefits.

6.Delayed Renewal

Delaying policy renewal might damage your chances of getting the NCB (no claim bonus). Most insurance companies start to send notifications one week before the renewal date. Do not ignore these notifications. Try to keep a reminder on your mobile device to renew your policy on time.

7.Skipping Policy Verification

Purchasing policy online has now become child's play. It barely takes a few minutes. But while hurrying, if you skip the verification step, it will be a huge loss. Since the chances of errors in the policy documents remain if you purchase a policy without verifying. This could lead to a claim rejection in the future.

8.Changing Insurers Abruptly

If you want to change your existing insurer, then it is ideal to do it while your car is still insured. Your car remains uninsured during the interim period when you are changing your insurer. If an unforeseen event occurs during this time, you will neither be able to claim from your existing insurer nor the new insurer.   

9.Overlooking the IDV (Insured Declared Value)

In a comprehensive car insurance plan, the IDV plays a significant role. It refers to the car's value in the present, not the resale or the invoice value. The IDV of a car considers the depreciation of your vehicle, and based on that, the claim amount gets settled. So, overlooking the IDV is a huge mistake.

10.Dodging Anti-theft Devices

No one expects their car to get stolen, but this disaster can happen anytime, anywhere. So, dodging anti-theft devices could cost you dearly. Installing an Anti-Theft Device (ATD) that has ARAI certification not only makes the job of a thief difficult but also lowers the premium price.

Final Words

We hope this guide assists you in avoiding these common mistakes while buying or renewing car insurance. The main idea is to purchase a reliable policy cost-effectively, with maximum coverage. If you are purchasing or renewing a car insurance policy for the first time, ask for assistance from your preferred insurer or someone who knows. It will help you identify the perfect coverage suitable for your requirements.