Which Mistakes should a Beginner Avoid when Buying Car Insurance?

With so many choices in the market, many people find it difficult to choose their first car. Similar is the case when they have to buy a car insurance policy.

First-time car insurance buyers usually make the following mistakes and end up paying more for car insurance premiums & getting minimal services in return.

• Not Opting for Comprehensive Car Insurance : In order to avoid paying a higher premium amount, many people choose to buy only third party liability insurance. But, this increases their out of pocket expenses when their car gets damaged in an accident or gets stolen. Thus, it is best advised that people should opt for a comprehensive car insurance policy.
• Not Doing Car Insurance Comparison : Most of the people are not aware of the different insurance companies offering car insurance. Hence, they buy the car insurance policy as suggested by their car dealer or their friend. While this is a good option and the car dealer or the friend has no ill intention, it is worth-while spending some time doing research about various car insurance providers and comparing the features, benefits, coverages, services and premium rates online.
• Not Using Car Insurance Calculator : At Bajaj Allianz, people can enter just a few details about themselves and their car to get the best car insurance quote for their car using car insurance calculator. The quote can be generated for free and retrieved later at their leisure.
• Not Knowing Car Insurance Terms : With a number of options to choose from, it is very important to know the terms used by the insurance companies in describing their insurance policies. It is important to have knowledge about the following terms:
  • IDV (Insured's Declared Value)
  • NCB (No Claim Bonus)
  • Premium amount
  • Different add-on covers
  • Network garages
• Avoiding Add-on Covers : People often get confused about which add-on covers to opt for along with their base insurance policy. One should opt for only those add-on covers which are required by them. For example zero depreciation cover, 24 * 7 spot assistance cover, accident shield and lock & key replacement cover are a few add-on covers that can help the policyholder enhance the coverage of their base car insurance plan.
• Ignoring List of Network Garages : It is essential that the first time car insurance buyers should know everything about cashless claim settlement as well as the network garages. Having knowledge about these things is useful during claim settlement.

We hope that new car buyers will avoid the mistakes mentioned above and choose the most suitable car insurance policy for their valued possession - their car.

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