Do’s and Dont’s while buying a car insurance


Generally, car owners buy car insurance as a formality, so they avoid doing their homework and go for the coverage that is offered to them. By doing this, they often overlook the details that their insurance agent has included in it, which results in having the cover features that they may not need while increasing the cost of their purchase. However, one needs to consider several things while buying car insurance like the roadside support feature, the IDV, if any add-ons are offered and if the insurance policy offers a zero-depreciation benefit, etc. Thus one needs to know about the do’s and don’ts while buying car insurance.

Here are the things you should do while buying a car insurance

Get a third party insurance

As per the Indian Motor Vehicles Act, it is mandatory to buy a third party car insurance. Hence, you need to get a third party insurance policy before driving it on the roads. This policy can be typically provided by your dealer, and the premium costs are factored with your car’s price.

Look for options

It is not necessary to settle for the car insurance that is offered by your dealer while buying the car. There are many authorised insurance companies who may provide you with better options. So don’t buy an insurance cover before comparing the features and quotes offered by multiple insurance companies.

Do your homework

Don’t depend on your agent to fill up the details or forms for you. Your insurance should include the things that you require at the moment. You need to go through all your insurance forms, analyze all the sections so that you don’t miss out any details. And, always keep a copy of all the insurance forms, including the completed proposals.

Here are the things you shouldn’t do while buying a car insurance

Don’t get the policy that offers the lowest premium

First thing you need to remember that you should buy car insurance for the benefits that you will get in the long run, not just because it is cheap. It is essential to buy car insurance from a reliable company because the companies who offer insurance at the lowest premium rates may not be very reliable to sustain. Even if you are buying an insurance cover at a low price, then you should know what is being offered to you. It is evident that if you are getting a low premium, then you may get low coverage in case of an accident. So, go for an insurance that offers adequate coverage to receive the maximum benefit out of your car insurance.

Don’t opt for smaller deductibles

A deductible is an amount that you pay before receiving a claim. In that case, a certain amount is paid by you and the rest is paid by the insurance company. Thus, if an insurance policy offers lower deductibles, that means you need to pay a higher premium. You should always opt for a policy that asks for higher deductibles so that you can pay lower premiums as well as get NCB or no claim bonus. NCB is paid by the insurance company if you don’t file any claim within a specific period.

Don’t buy a policy offline

Purchasing a policy offline and online is just the same. Instead, the online method may help you save unwanted costs. Also, the offline mode involves the costs of an agent which is not necessary if you buy an insurance policy online.

Don’t buy car insurance just for the sake of it. Car insurance can prove to be very beneficial in case you meet an unfortunate accident. All the points, mentioned above, are very crucial and you should consider them before buying car insurance.