Avoid These Mistakes When Buying a National India Car Insurance Policy

When it comes to choosing four-wheeler insurance, we blindly trust the insurance agent and purchase the one that offers the lowest premium. By doing so, we may sometimes end up purchasing a policy that doesn’t fit our needs. Thus, it is essential to do your research before buying a motor insurance policy. Here are some common mistakes that you should avoid while buying a New India Assurance car insurance policy.

Read more

Avoid Mistakes During Buying a New India Car Insurance Policy

Purchasing four-wheeler insurance is similar to purchasing any other online product or service for yourself. If you make even one small mistake, you can end up purchasing a policy that doesn’t offer what you need. However, you can prevent that from happening if you avoid making common mistakes that people usually make while buying an insurance policy for their four-wheeler. To get the right and affordable policy from the New India Assurance Company, you should avoid the below-mentioned mistakes while buying New India Assurance car insurance:

1. Not Comparing Policies

One basic mistake that a car owner makes is not comparing insurance policies online before buying. Not comparing various car policy's quotes, inclusions, and benefits can result in inadequate coverage. Moreover, you should never pick a car insurance policy just because it has a lower premium, since the coverage and benefits of such a policy may be not adequate.

Therefore, you must spend some time comparing the motor insurance policies of different insurance companies on websites like Policybazaar.com so that you get the best deal possible.

2. Not Getting Enough Coverage

Opting for at least a third-party insurance cover is a mandatory requirement for every car owner in India. This cover financially protects the car owner against any third party accidental liability arising out of third party property damage, injury or death by the insured car. However, this coverage is not enough to meet all your insurance needs as it will only cover third-party liabilities and not the damages to the insured car.

Therefore, it is beneficial to go for the comprehensive insurance policy as it will offer you wider coverage. Although comprehensive cover will be more expensive than third party cover, it will fulfil your primary motive i.e. covering the damages incurred by your car.

3. Not Considering Deductibles

Voluntary deductibles refer to the expenses that a car owner agrees to pay from his/her pocket during claim settlement. When purchasing a motor insurance policy, choosing voluntary deductibles leads to a lower rate of premium. If you go for a higher voluntary deductible, your insurer will further reduce the premium of the policy.

However, you need to be cautious while opting for the voluntary deductible. Going for a higher deductible just to reduce your premium may lead to a lower claim pay-out, which may not be adequate at the time of claim settlement.

4. Choosing Non-essential Add-Ons

Undoubtedly, add-on covers offer enhanced coverage in addition to your basic car policy cover but they can also drain a lot of money. This usually happens when you do not put much thought into buying add-ons with a comprehensive policy. Investing in unwanted add-ons can increase your premium whereas not opting for one may lead to inadequate coverage.

Thus, you need to analyse your vehicle insurance requirements before investing in add-on covers. For eg, buying a passenger add-on cover is unnecessary if you drive solo. Avoid such mistakes by not investing in add-ons that you don't need.

5. Not Renewing Policy Before Expiry

Failure to renew New India Assurance car insurance policy before the expiry date may result in policy lapse and your insurer will cease to insure you against any own damages the moment it expires. Besides, if you are caught with an invalid motor insurance policy by the traffic police, you may have to pay a heavy fine. Moreover, if your uninsured car is involved in an accident with a third party, you may face legal complications and even imprisonment.

Therefore, make sure to renew your policy before the expiry date. Whenever your insurance company informs you about your upcoming renewal, do it at the earliest date possible.

6. Not Understanding Policy Conditions

A car insurance contract contains the terms and conditions that every car owner should read before renewing/buying a policy. These terms play an important role at the time of raising a claim, such as details regarding the insured declared amount (IDV), inclusions, exclusions and more.

Therefore, you must go through every detail of the policy beforehand. If you find any detail confusing, ask your insurer and clear your doubts. Do not make the mistake of not reading terms and conditions as this may lead to claim rejection by the insurer.

7. Purchasing the Policy Offline

The internet has opened a lot of avenues in terms of shopping for motor insurance online. However, many car owners are still apprehensive about buying car insurance online and choose the offline mode instead. In an offline mode, you not only lose the chances of detailed comparison but also get involved in unwanted costs of an insurance agent.

Moreover, there are several merits of online purchasing such as anytime, anywhere purchase and no paperwork. Online purchases also prove to be more convenient and affordable as compared to offline purchases. Thus, purchase your New India Assurance car insurance online.

8. Hiding Information

When buying a New India Assurance car insurance policy, it is crucial for every car owner to share accurate information about themselves and the vehicle with the insurer. You should also truthfully answer any questions asked by the insurance company at the time of claim. Sometimes people hide major details, such as their age and driving history, to fetch a lower premium or more money during claim settlement. Doing so can prove to be disadvantageous as your policy may get rejected and you may also face legal complications.

Thus, it is essential to provide full and accurate information at the time of the four-wheeler insurance purchase.

Wrapping Up!

All in all, you must read all the terms and conditions carefully and clear any doubts with the insurer before purchasing insurance for your car. You should also make your purchasing decision only after comparing car policies online. For getting the best coverage for your car, it is essential to avoid these mistakes while buying a New India Assurance car insurance policy.