9 Common Mistakes Made While Applying for Car Insurance

A car owner may often prefer the ease of applying for online car insurance as compared to physically visiting an insurance company branch. However, it's important to be aware of the common mistakes people make during the process of applying for these plans as they can have costly consequences. Car insurance is an important investment and it's crucial to ensure one has the right coverage that meets their needs.
 

This blog post from Shriram General Insurance highlights the common errors made while applying for car insurance and provides the knowledge one needs to make an informed decision.

 

Common Mistakes While Applying for Car Insurance

While applying for car insurance one should avoid these mistakes:

Not Comparison of Policies

One of the biggest mistakes made while applying for car insurance is not comparing policies  This can result in inadequate coverage and financial protection. It is important to take the time to compare policy quotes and inclusions to get a good deal.

 

Low-cost policies doesn't necessarily mean they’re a great choice. It's important that they have a comprehensive study on the coverage associated with each policy to get the ideal protection at an affordable rate from providers such as Shriram General Insurance.

 

Settling for Basic Coverage

It's imperative to first consider the purpose of the coverage, which is to have financial backing in case of an unfortunate event.

 

While a third-party liability policy (TLP) may be cheaper than a comprehensive plan, it only provides specific coverage and may not provide the financial support one needs if their car is damaged.

 

In contrast, Shriram General Insurance's comprehensive plan comes with a higher level of coverage and is a better option for much-needed protection.

 

Ignoring the Convenience of Online Insurance

Online policies offer more convenience than offline policies. People make a common error while applying for car insurance by not considering online options.

 

With online plans, there is also the added benefit of purchasing insurance anytime and anywhere without paperwork. If one is still facing issues with buying insurance online, they can reach out to the insurer's customer support team. 

 

Shriram General Insurance's support team is always available to help policy holders with all processes and documentation. So, buy insurance online with us today and get much-needed coverage.

 

Not Balancing Add-Ons

Add-ons are available from reputed insurers such as Shriram General Insurance and they enhance insurance coverage and services; the insured vehicle owner will just need to pay extra for this enhanced protection. However, buying too many add-ons can increase the premium significantly, while not buying any can result in inadequate coverage. Hence, it is essential to analyse one’s insurance needs before purchasing add-ons.

 

Underestimating the No Claim Bonus

 Disregarding the power of the No Claim Bonus is one of the mistakes made while applying for car insurance. This is a benefit provided by insurers such as Shriram General Insurance to policy holders who remain claim-free during the policy period.

 

If one does not raise a claim for five consecutive years, they can receive NCB of up to 50% on the own damage component of the policy. Hence, one should consider not raising claims for minor damages as it can affect the No Claim Bonus.

 

Providing the Wrong Details

People make a common mistake when applying for car insurance when they are not completely honest with the information they give. Hiding or providing misleading information can be detrimental and even against the law. Some examples of providing the wrong details include filing a claim for a previously damaged part. They also include not sharing the right information about claim history and hiding information related to car modifications.

 

Neglecting Policy Renewal

One of the many mistakes made while applying for car insurance is failing to renew the policy before the expiry date. Insurance companies inform policy holders about their upcoming renewal date up to a month in advance. It is crucial to renew the policy at the earliest or at least note it as a reminder. Failure to do so will result in the termination of coverage and can lead to monetary penalties or even jail time if one's uninsured car is involved in an accident involving a third-party.

 

Neglecting Policy Details

One of the common errors while applying for car insurance is not studying the policy details carefully. Policy documents can be lengthy and time-consuming to review in detail, but it is crucial to understand the terms and conditions to prevent any issues during the car insurance claims process.

 

Reviewing all of the important information mentioned in the policy's fine print, such as coverage, deductibles and exclusions, can help ensure that policy holders are fully informed and prepared in case of any unexpected event.

 

Stay Informed

 Buying four-wheeler insurance is a crucial decision that requires careful consideration and understanding of the terms and conditions. By being aware of the common mistakes made while applying for car insurance, one can make an informed decision. One can also select a policy that fits one's needs. So don't wait anymore. Look at the comprehensive four-wheeler insurance policies available online today and insure now with Shriram General Insurance. 

 

Key Highlights

• Failure to compare motor insurance policies is a common error while applying for car insurance and can result in inadequate coverage.
• Buying an inexpensive four-wheeler insurance policy is generally not an ideal idea if you are looking for comprehensive coverage.
• Online four-wheeler insurance policies from insurers such as Shriram General Insurance are often more affordable and convenient than offline policies.
• Always go through the terms and conditions of an insurance policy before purchasing.

 

FAQs

1. Which factor affects four-wheeler insurance premium?

Vehicle type and usage: The type of vehicle one drives and how one uses it can also impact the premium. For instance, high-end luxury vehicles, sports cars and cars used for commercial purposes typically have higher premium rates.

 

2. What are some tips for buying four-wheeler insurance online?

When buying four-wheeler insurance online, it is important to follow a few tips to ensure one gets the optimum coverage at an affordable price:

 

Shop around: Do not just purchase insurance from the first company one comes across online, which is one of the common errors made while applying for car insurance. Instead, compare quotes from multiple providers to ensure the best deal.

 

Know the coverage needs: Determine the type of coverage needed by assessing the car's value and driving habits and personal circumstances. This will help one select the right policy and ensure they are not overpaying for coverage they don't require.

 

Read reviews: Look for reviews from policy holders who purchased insurance from the same company. This will give one a better idea of the insurer's customer service and claims processing level. Shriram General Insurance provides super-fast claims processing and 24/7 customer support and we have received overwhelming positive reviews from our policy holders.

 

3. Why are some car insurance claims rejected?

Here are some reasons why an insurer such as Shriram General Insurance may reject a claim:

• False or exaggerated damage descriptions
• The accident was caused by careless driving
• The accident was caused by driving under the influence of intoxicants
• The vehicle was repaired before a damage assessment could be conducted
• The policy has expired.