The pitfalls of buying cheap car insurance
When you started driving, you must have received a lot of advice; one of the most common being to be careful and to look out for the obstacles on the road.
Now, as you look out to buy a Cheap Car Insurance Policy, here are the common pitfalls you may encounter and must avoid.
While packing for a vacation, what’s the first thing you do? Look up a packing essential list online for that location, right? But we bet you don’t stop at that. You pack along things that may not be on the list but are essential to you personally. Whether that’s your medication or a book you’re currently reading.
With the internet providing solutions for any query almost instantly, all it takes is a few clicks and a little research to get a generalized solution. However, that might not be the best for your specific needs.
While buying a Cheap Online Car Insurance Policy that’s light on your pocket momentarily might seem like a good solution that is confirmed by various blogs on the internet, in the long run it’s only going to cost you more.
Buying a Cheap Car Insurance Policy doesn’t provide you the actual coverage your car needs. Realising this at the time of making a claim is too late and you are left with no option but to pay from your own pocket for the damages suffered.
Lack of Add-on Covers
What’s the basic purpose of a mobile phone? To communicate, of course! And while even a basic phone, costing a little over Rs 1,000 provides this facility, you will not necessarily opt for it, will you?
That’s because a mobile phone serves a lot more purposes than communication like entertainment, work and navigation. However, buying a phone with these premium features will cost more.
The same stands true for Car Insurance. While a Cheap Car Insurance Policy may provide your car basic coverage, it will lack add-on covers. These add-on covers come in handy in various situations like when you need road side assistance and to make up for depreciation.
Add-on covers like engine cover, No Claim Bonus (NCB) retention and fuel assistance equip your car with comprehensive coverage.
A common feature of Cheap Car Insurance is a high deductible. A widely used term in Health Insurance, deductible refers to the amount you need to pay from your own pocket before the benefits of the policy zoom in.
In case you and your prized asset suffer major damages in an accident, a high deductible can be a double whammy. In such a scenario, you have to bear large a large chunk of the expenses from your own pocket. So, opting for a high deductible to save money on Car Insurance premium is almost like a trap.
Poor Customer Service and Claims Process
When it comes to insurance, the moment of truth is always at the time of making a claim. A Cheap Car Insurance Policy won’t just make you shell out money from your own pocket but will also fail to meet your expectations when it comes to customer service and the claims process.
The emotional setback due to damages suffered by your car will only further compound with poor customer service and claims process.
It’s essential that your insurer provides assistance 24×7, even on holidays, whether it’s claims assistance or any other. The claim settlement process should be quick, seamless and hassle-free. After all, that’s why you get Car Insurance in the first place, right? To get the required support in times of need.
WANT TO LOWER YOUR CAR INSURANCE PREMIUM RATES? LOOK THIS WAY
How easy would life be if we had a GPS to help us navigate through all life’s problems? While that may still be the work of science fiction for now, the list we have compiled below will help you navigate the basics of lowering Car Insurance premiums that will help you get a good deal on a Car Insurance Policy.
- Opt Out of Coverages That You Don’t NeedWhen you want to eke out some extra space in your house, what’s the most effective option? Of course, it’s de-cluttering. Removing things that you don’t need not only makes your house tidy, but also makes room for fitting things which you need.Similarly, opting out for coverages which you don’t need may lower the insurance premium. Add-on covers obviously benefit your car but you need to be aware of the ones you really need and ignore the rest.
- Avoid Making Minor ClaimsWhile visiting a physician in case of a major ailment is a wise decision, is it essential to book an appointment for minor cough and cold? Certainly not! The body has its own immune system to resist against illness and it’s essential to allow it to work before popping up medicines prescribed by the physician.On similar grounds, it’s important not to use your Car Insurance Policy for making minor claims. This will help you retain the NCB on your policy and lower premiums on policy renewals.On some occasions, such as repairing of a broken tail light, the charges of getting your car repaired are miniscule. In such a scenario, it pays dividends to approach a local mechanic and avoid making a claim and preserve the NCB. Preserving the NCB can lower own damage premiums as much as 50%.
- Install Safety Features in Your CarWhile we will certainly lookout for your car in case of an unfortunate incident, it only helps if you too do everything in your power to prevent it from landing in such a situation.Safety systems such as anti-theft alarms, locks for steering wheel and air bags not only protect your car from thefts and other mishaps but also position you as a responsible owner who cares for their vehicle. You stand a great chance of lowering your Car Insurance premiums on installing these devices in your vehicle.
- Stay Away from Making Car ModificationsModifications such as alloy wheels and spoilers can uplift the look of your car by several notches, yes, but they do the same for the premium as well. Installing gadgets such as ultrasonic sensors and automotive night vision can easily add a few thousand rupees to your Car Insurance premium.This is because replacing these kinds of gadgets in case of an accident or mishap is a costly affair. As the Insurer covers more risk in such cases, the same pushes up the premium amount.It’s vital to inform your Insurer about any such modifications / installations, to avoid your claim from being invalidated.
- Choose a Deductible That You Can Pay EasilyDeductible refers to the amount that you need to pay from your own pocket before the benefits of your policy kick in. It’s a double-edged sword that requires treading with caution.The higher the deductible you choose, the lower will be your premium. Sounds great, right? Not really, because opting for a high deductible defeats the very purpose of getting a Car Insurance Policy in the first place. It’s therefore advisable to choose an amount that you can pay comfortably.