Last Updated on March 24, 2020 by Gopal Gidwani

It is mandatory for every vehicle owner to buy the basic third-party insurance policy as per the Motor Vehicles Act, 1988. This is a basic plan that does not cover own damage. You must purchase a comprehensive policy if you also want coverage for damages caused to your vehicle. A huge mistake made by many people is that they end up purchasing the wrong coverage, due to which they remain unsatisfied even after having a motor insurance policy.

Here are some of the most common mistakes people make while buying a car insurance plan that must be avoided:

1) Raising claims for small repairs
What most people wouldn’t know is that the insurance company provides you with the benefit of No-Claim Bonus (NCB) if you make zero claims in your policy term. The maximum concession you can receive is up to 50%, i.e. if you don’t make any claims for five consecutive years. Even one small claim can cause loss of NCB. Therefore, avoid making claims for minor repairs that can easily be taken care of and don’t miss out on the benefits of NCB.

2) Not considering the extent of coverage and focusing only on premium
People assume that if they purchase a policy with low premium, it will be beneficial to them. On the contrary, if you do so, you can fall under financial burden. Instead, you must buy a policy that offers you maximum coverage. If you have an insurance policy but it provides insufficient coverage, it is equal to having no policy at all. When you buy a car insurance policy, make sure to consider add-on covers, insured declared value (IDV), claims process, claim settlement ratio of your preferred insurance company, etc.

3) Not purchasing add-on covers
If you go out on a long drive with your friends or family and get stuck somewhere with no garages around you, assistance will be required. The basic car insurance policy won’t be of use in a situation like this. But if you opt for a 24×7 Roadside Assistance add-on cover, you can contact your insurance provider for assistance. Similarly, you can choose other add-ons of your choice as well. There are many options available such as Engine Protector, Lock and Key Replacement, Consumable expenses, and Zero Depreciation cover, etc. Figure out your needs and purchase accordingly.

4) Not purchasing car insurance online
Instead of going through the hassle of visiting your insurance company’s branch office and purchasing an insurance policy, you can simply visit your insurer’s website and buy the policy. This way, you won’t have to pay any middlemen whatsoever. You can do this yourself from the comfort of your home.

5) Not reading policy documents carefully
Some people purchase car insurance plans without going through the policy documents, which can lead to a confusion later. People remain unaware about the inclusions, exclusions, terms and conditions of the insurance policy which causes them trouble later while filing claims. It is very important to understand the coverage offered by the insurer. Other details like your email id, number of add-on covers selected, your name on official papers, make and model of your vehicle, IDV, etc., must also be checked carefully.

If you avoid the above-mentioned mistakes, you can achieve the goal of buying the best car insurance policy. To get the best quotes online, you can calculate the premium online using the car insurance premium calculator. It will be even better if you compare various policies online before selecting one. This will help you understand how various insurance companies are ready to offer the same coverage at better prices.