Mistakes To Avoid While Opting For Car Insurance First time

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Insurance has become a crucial part of our lives. Insurance is prevention from a possible risk in the future. And with the ever-increase in road accidents and road rage, it is imperative that one must have car insurance as soon as they buy a vehicle. Car insurance has also been made mandatory in some countries. It provides people a fail-safe and saves people from unanticipated financial crises. There are many types of car insurance plans being sold in the market. Hence, to avoid overspending, there are many things that you must keep in mind while opting for such a policy.

Buying low premium Car Insurance

Buying low premium car insurance and buying it from the right source are two things that go hand in hand. Many people run after companies that provide low premiums on car insurance. However, they often end up trusting a fraudulent company and lose their hard-earned money.

Opt for car insurance only from legitimate sources. One such legitimate way is to opt for a dollar a day insurance when you want to get the best deal. You may buy a low premium car insurance, but it won’t be of any use if it does not cover major financial expenses. You would still be caught in a debt trap.

Insurance Declared Value

Insurance Declared Value or IDV is the maximum amount one can claim in case of an accident or theft of the vehicle. IDV is relative with time.  As the car gets older, the value of IDV decreases. IDV is used to determine the worth of vehicles.

Many people do not know the IDV of their cars. So, insurance companies take advantage of their oblivious behavior and offer them less than the credit for their vehicle. It is therefore beneficial to update yourselves with the current market value of your car.

Buying Insurance without considering the age of the Driver

Buying Insurance without accordance with the age of the driver is the biggest blunder one can make. Accidents can happen to anyone. But, a newbie who has recently learned to drive is more prone to accidents than an experienced driver.

The driver’s history is deemed as the most important factor while deciding the type of insurance to opt for. Comprehensive insurance is advised for people who are new to driving, which covers all the bases.

Overspending by buying unnecessary riders

Riders are miscellaneous things that are included in one’s car insurance plan. These riders are always payable. Riders may range from tire damages to co-passenger accident coverage. Often, the insurance company automatically adds these extra riders to your plan. They will lure you into buying these riders, but they are not always necessary.

You need to be very specific with the inclusions and exclusions of your plan. Pay for only what is required. Apart from this, it is also important that you go through the terms and conditions very thoroughly to avoid overspending.

Buying Car Insurance Offline

Car insurance is either bought online or offline. Buying car insurance online is always preferred as it provides more discounts and offers, which may or may not be provided offline. Opting for an insurance policy online saves time and can be done at the ease of your home.

You can compare insurance plans provided by many companies at the click of your mouse. You can easily customize your plan without coming under the influence of a  salesperson. The risk of losing important documents is minimized. You will only find legitimate sources online, verified by the IRDAI- Insurance Regulatory and Development Authority of India. Overall, it’s a win-win situation for the buyer.