If you live in an Indian city and if you have recently purchased a car, you should have also availed a car insurance policy, right?
It is mandatory for all car owners to get a car insurance policy for their vehicles so that it protects from them financial issues arising out of damages and accidents.
As per the norms of the Motor Vehicles Act, 1988, you are obliged to buy a car insurance online or from a physical service provider. However, being a must, it does not mean that the car insurance policy needs to be expensive.
Nonetheless, if you think that you are paying a higher premium, you need to see what’s wrong!
Yes, there are ways you can bring your car insurance policy’s premium down. If your premiums are running on the higher side, you may be making some mistakes.
Let’s know some of the common mistakes that you should avoid if you don’t want your car insurance policy to become expensive.
- You may not have compared many offers
One of the most common mistakes that car owners often make is not comparing their policies with others on the offer. Nowadays, you can find many third-party websites where so many car insurance offers may be listed. You can compare all as per the coverage that you may want, the premiums and other aspects. Thus, always compare deals before buying the best option and not poking your pockets.
- Not choosing a policy that covers your needs
Since car insurance policies come with liability only and comprehensive plans, you need to know which will suit your requirements. People often don’t analyze their needs and opt for a wrong policy which is of no use when they go asking for claims. Hence, the entire purpose of availing a car insurance policy gets discarded.
- When you opt for unwanted add-ons
Add-ons are awesome facilities to help you get special coverage for paying more which is attached to your car insurance policies. However, some car owners don’t gauge the purpose of add-ons and just because their friends got one, even they get it. Over a period of time, when they are unable to make use of the add-ons, they think them as waste. But by the time they realize that they were unwanted, they already have given enough money for availing the same, making the policies expensive.
- Not using the gained No Claim Bonus or NCB
Did you know that your car insurance policy entitles you an NCB rebate in case you don’t make a claim in policy in one year? Yes, you can avail the discount and reduce the cost of the car insurance premium by analyzing if the applicable No Claim Bonus is applicable to the renewal of the premium or not.
- Not renewing your policy in time
Car insurance schemes are to be renewed annually. If you don’t do that before the due date, it will elevate your risk during an accident as you won’t get coverage and have to pay out of your pockets. What’s more, anyone doing the subsequent renewals for a car insurance policy after the due date will also have to pay more. It can lead to higher premiums which you can easily keep off.
The Bottom Line
You are now aware of the common mistakes that car owners often do which automatically increases the cost of policies, and make it expensive.
Thus, ensure to avoid all the discussed pitfalls if you don’t want to pay more for having a car insurance policy! All the best!