7 Mistakes To Avoid When Buying Car/Motor Insurance

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Having right insurance along with necessary riders is very important when it comes to insuring your car. The mistake when buying an insurance made may cost you heavily if your claim gets rejected for the small error you have made.

Here are 7 common mistakes to avoid when buying motor insurance:

Deciding insurance on premium rates

Vehicle owners should not choose the policy depending on the lower premium considering it is cheap. Most of the premium rates are decided based on the insurance cover and riders included.

Select the cover based on the requirement and need so that your claim is covered at the time of need.

Not comparing online

Many individual just renew their existing policy without even comparing. By doing this, they will be losing some discounts and cover which was available at the same premium amount with other policy provider.

Also read how to calculate car insurance

Not providing correct information

Some individuals do not bother to giving correct information on vehicle or driver details. One should mention correct information on the date of purchase, engine number, Class of vehicle, cubic capacity, seating capacity, etc.

Buying Offline

Buy insurance policy online to avoid any further cost involved with an agent. Generally, insurance policies are offered a lower premiums when opted for online mode.

Transfer of Vehicle

If you have bought a vehicle from another person, don't forget to transfer and register the vehicle in your name. Else you will not be eligible for any claim in future.

Misleading information

If the vehicle is used for the business purpose or for public and in insurance cover the information is made as private.

Not buying enough cover

Many individuals fail to find the right amount for the vehicle. Many times minimum insurance cover which is mandatory will not be of great help at the time of need. In such cases, you have shed more from your pocket.

Story first published: Friday, July 15, 2016, 11:16 [IST]
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