Gone are the days, when people used to go to insurance companies to buy an insurance policy. Now, all it takes is one click from the comfort of your home to buy an insurance policy or pay your premium online.
When it comes to buying car insurance, you need to have a clear understanding of how an online car insurance plan can benefit you. How is it better from the traditional method of meeting an insurance agent? To begin with, online insurance companies offer lower premiums on insurance policies because of lesser operational costs. Secondly, to convince more people to buy insurance online many insurers offer profitable discounts and offers. Last but not least, you can explore multiple options from the comfort of your home.
Undoubtedly, an insurance policy purchased online has many perks. However, a single mistake can see you lose out on benefits. So, to help you out, here are five mistakes you must watch out for when buying online car insurance.
Not focusing on your needs
When you consult an insurance agent in person, you have an expert to talk to and clarify your doubts. But when people opt for online insurance plans, they fail to do thorough research and often end up buying the least suitable insurance plan with the maximum premium amount. Even though buying online insurance offers numerous benefits, one must always understand their needs and preferences before buying.
Purchasing a low premium car insurance policy
A cheap insurance policy is not always the right insurance policy. If a low premium online car insurance provides coverage, which is half the price of your car, then there is a high probability that the insurance amount might not cover extensive damages incurred by your car. Therefore, while purchasing an insurance policy for your car look for maximum benefits and coverage details and offers. Also, look for the claim service, IDV, and add-on covers offered by an insurance company.
Not opting for additional covers
Basically, add-ons are the extra cover added to your basic insurance policy to extend the coverage. If you do not opt for add-on, then you are covered only for limited damages occurred to your vehicle after an accident. Hence, it is recommended to opt for additional covers while buying online car insurance. There are several thousands of add-ons from which you can choose as per your preferences and requirements. For instance, some of them include Key Replacement Cover, NCB Protector, Engine and Gearbox Protector, Zero Depreciation Cover, and so on.
Neglecting policy documents
This is one of the most common mistakes that most policyholders make while purchasing online car insurance. They don’t consider it necessary to read the policy documents thoroughly and thereby end up making silly mistakes as they lack knowledge of inclusions and exclusions of the policy. Hence, it becomes necessary for every policyholder to read the documents carefully for a better understanding. You must read details of the vehicle, make and model, additional coverage details, IDV details, No Claim Bonus, and so on.
Forgetting to compare policies
Most people buy an insurance policy online based on suggestions from their friends or family. This can lead them to selecting the wrong one. They go ahead and buy a plan without comparing others which is a huge mistake. Today, the internet offers a wide range of options to help you easily compare different policies while understanding the costs incurred and other important parameters. Hence, it is always advised to compare plans before buying one.
We hope this article was able to answer your queries regarding the online purchase of car insurance. Before you make a decision, research well as the requirements of online car insurance may vary from one insurer to the other.
