Price is an important factor when buying a car insurance policy. However, is it the only thing you should be looking at? Of course not! This is because a cheap policy can leave you exposed to several risks, both on and off the road. So, before you finalize on a plan simply because it is light on your pocket, remember to keep these things in mind as well:
- You might be uninsured.
A cheap car insurance plan will help you save money on your annual insurance outgo. However, it might not provide the protection you require in case of a road mishap. For instance, many individuals choose affordability instead of protection and purchase third-party insurance for their vehicles.
While these plans meet the legal insurance requirement, they do not provide any coverage for your vehicle. Therefore, in case of an accident, your vehicle could be damaged, and you would have to pay out of your own pocket to fix it. In such a scenario, paying a little more money, and having a comprehensive policy will help you save a lot on repair costs!
- Sub-standard insurance company.
To lure more customers, some insurance companies will lower their premium rates significantly. However, these insurers usually compromise on protection levels or after-sales services to make up for costs. That’s why it is important to first do a thorough analysis of the insurance company before buying a plan.
Look at the reviews of an insurance company – this will give you a fair idea of what to expect after you buy a plan. You should also look at the claim settlement of the insurance company. A higher claim settlement ratio will mean that your claim is more likely to be settled. Therefore, it is advised to look for a plan that has a CSR of 90% or more.
- Fewer cashless garages.
Cheap car insurance plans & providers usually have fewer cashless garages. This means that in case of any repairs, you might have to go hunting for a network garage. Fewer network garages could also mean traveling long distances to get access to cashless claims.
- Higher deductibles or lower IDV.
Some plans offer lower premiums but make up for it by transferring higher amounts of risk to the policyholder. They might charge you higher deductibles or lower IDV in case of a claim. So, if you find a plan that’s offering an extremely low premium, remember to look into these 2 aspects before finalizing.
- Are they trustworthy?
You can never be too careful these days! Sometimes, if an insurance company is offering unusually low premiums, there is a chance they will disappear after you make the payment, especially if you are buying the plan online. To avoid this, just ensure the insurance provider you are buying the plan from is IRDAI certified.
We hope you consider these 5 points before you settle on a cheap car insurance policy. Remember that it always better safe than sorry, even it means paying a slightly higher premium amount.