10 Common mistakes people make while buying new car insurance
Mumbai, Maharashtra, India: Zurich Kotak General Insurance, an insurer highlights 10 common mistakes people make while buying new car insurance in India. As per Motor Vehicles Act, 1988, third-party car insurance is mandatory. However, a comprehensive car insurance offers protection financially against accidents, thefts and natural calamities as well as covers third-party liability. Choosing the right coverage requires careful consideration while many people make mistakes while buying car insurance. Common mistakes while buying car insurance Here are some of the common mistakes people make while buying car insurance in India: Mistake 1: Inaccurate information Providing incorrect details about your car can have severe consequences. Inaccurate information can lead to claim rejection or policy cancellation. Make sure you provide accurate and up-to-date information to avoid future complications. Mistake 2: Ignoring add-on covers Overlooking essential add-on covers, such as Depreciation cover, Roadside Assistance cover or Engine Protect cover, can leave you vulnerable to unexpected expenses. These add-on covers provide additional coverage with comprehensive car insurance, ensuring you're adequately protected. Mistake 3: Not understanding deductibles Failing to understand deductible amounts can lead to surprise expenses. It is important to understand the deductible amount and how it affects your premium. Mistake 4: Overlooking No-claim bonus Ensure you understand the no-claim bonus structure and eligibility criteria for claim-free years. This bonus can significantly reduce the car insurance premiums. Mistake 5: Ignoring policy exclusions Not understanding excluded conditions can lead to denied claims in the event of emergency. Carefully review policy exclusions to avoid unpleasant surprises. Mistake 6: Not reading policy documents Failing to understand the terms and conditions of car insurance coverage can lead to misunderstandings. Read policy documents carefully to ensure you're aware of coverage, exclusions and deductibles. Mistake 7: Not disclosing existing conditions Failing to disclose pre-existing car conditions can lead to claim rejection. Provide accurate information about your car's condition to avoid future complications. Mistake 8: Not considering driver information Ensure you provide accurate information/details about the driver, including license status and driving history. Not providing accurate driver information can increase premiums. Mistake 9: Not checking policy renewal process Understand the renewal process and timeline to avoid gaps in coverage. Negligence in ensuring hassle-free policy renewal can lead to lapsed policies. Mistake 10: Not evaluating Insured Declared Value Determine the correct Insured Declared Value to ensure adequate coverage. Not understanding Insured Declared Value’s impact on premiums can lead to inaccurate premiums. Conclusion Buying a car insurance requires careful consideration and by avoiding these common mistakes, policyholders can choose the right coverage for car. Don’t let the mistakes cost you, instead be informed and make the correct decision while buying car insurance. About Zurich Kotak General Insurance Company (India) Limited (Formerly known as Kotak Mahindra General Insurance Company Limited) Zurich Kotak General Insurance Company (India) Limited is a 70:30 joint venture between Zurich Insurance Group and Kotak Mahindra Bank. The Company got its new name ‘’Zurich Kotak General Insurance Company (India) Limited’’ in the month of August 2024, following Zurich Insurance Group’s 70% acquisition in Kotak Mahindra General Insurance Company Limited. It is the youngest and one of the fastest growing non-life insurance franchises in India. Kotak General Insurance was established in 2015 to service the growing non-life insurance segment in India. The company aims to cater to a wide range of customer segments & geographies offering an array of non-life insurance products like Motor, Health, Home etc. As a practice, the company seeks to provide a differentiated value proposition through customized products and services leveraging state of art technology and digital infrastructure.
Mumbai, Maharashtra, India: Zurich Kotak General Insurance, an insurer highlights 10 common mistakes people make while buying new car insurance in India. As per Motor Vehicles Act, 1988, third-party car insurance is mandatory. However, a comprehensive car insurance offers protection financially against accidents, thefts and natural calamities as well as covers third-party liability. Choosing the right coverage requires careful consideration while many people make mistakes while buying car insurance.
Common mistakes while buying car insurance
Here are some of the common mistakes people make while buying car insurance in India:
Mistake 1: Inaccurate information
Providing incorrect details about your car can have severe consequences. Inaccurate information can lead to claim rejection or policy cancellation. Make sure you provide accurate and up-to-date information to avoid future complications.
Mistake 2: Ignoring add-on covers
Overlooking essential add-on covers, such as Depreciation cover, Roadside Assistance cover or Engine Protect cover, can leave you vulnerable to unexpected expenses. These add-on covers provide additional coverage with comprehensive car insurance, ensuring you're adequately protected.
Mistake 3: Not understanding deductibles
Failing to understand deductible amounts can lead to surprise expenses. It is important to understand the deductible amount and how it affects your premium.
Mistake 4: Overlooking No-claim bonus
Ensure you understand the no-claim bonus structure and eligibility criteria for claim-free years. This bonus can significantly reduce the car insurance premiums.
Mistake 5: Ignoring policy exclusions
Not understanding excluded conditions can lead to denied claims in the event of emergency. Carefully review policy exclusions to avoid unpleasant surprises.
Mistake 6: Not reading policy documents
Failing to understand the terms and conditions of car insurance coverage can lead to misunderstandings. Read policy documents carefully to ensure you're aware of coverage, exclusions and deductibles.
Mistake 7: Not disclosing existing conditions
Failing to disclose pre-existing car conditions can lead to claim rejection. Provide accurate information about your car's condition to avoid future complications.
Mistake 8: Not considering driver information
Ensure you provide accurate information/details about the driver, including license status and driving history. Not providing accurate driver information can increase premiums.
Mistake 9: Not checking policy renewal process
Understand the renewal process and timeline to avoid gaps in coverage. Negligence in ensuring hassle-free policy renewal can lead to lapsed policies.
Mistake 10: Not evaluating Insured Declared Value
Determine the correct Insured Declared Value to ensure adequate coverage. Not understanding Insured Declared Value’s impact on premiums can lead to inaccurate premiums.
Conclusion
Buying a car insurance requires careful consideration and by avoiding these common mistakes, policyholders can choose the right coverage for car. Don’t let the mistakes cost you, instead be informed and make the correct decision while buying car insurance.
About Zurich Kotak General Insurance Company (India) Limited (Formerly known as Kotak Mahindra General Insurance Company Limited)
Zurich Kotak General Insurance Company (India) Limited is a 70:30 joint venture between Zurich Insurance Group and Kotak Mahindra Bank. The Company got its new name ‘’Zurich Kotak General Insurance Company (India) Limited’’ in the month of August 2024, following Zurich Insurance Group’s 70% acquisition in Kotak Mahindra General Insurance Company Limited. It is the youngest and one of the fastest growing non-life insurance franchises in India.
Kotak General Insurance was established in 2015 to service the growing non-life insurance segment in India. The company aims to cater to a wide range of customer segments & geographies offering an array of non-life insurance products like Motor, Health, Home etc. As a practice, the company seeks to provide a differentiated value proposition through customized products and services leveraging state of art technology and digital infrastructure.
