Car insurance renewal can end up seeming like a daunting task if you don’t do your research properly. You could end up losing out on a better plan, or you could end up choosing a mediocre plan that does not cover your purpose with the vehicle. Hence, here are five mistakes you should avoid when renewing your car insurance.
According to a recent report by a major news publication, more than 2.5 million people end up lying on their insurance policy papers. They give dishonest details and credentials about themselves in an attempt to save some money. But this ends up biting them in the back at the time of filing a claim. You should avoid making such mistakes as these could seriously affect your policy claims in the future. Here is a list of some other mistakes that you can avoid to get the most out of your car insurance policy:
- Selecting the lowest premium: Most insurance policies that offer the lowest premium end up cutting their costs from the consumer’s end itself. You should be wary of such policies as they do not provide adequate cover when you file a claim as they will have cut their costs by offering you less cover from mishaps and accidents. You should select the policy with the best cover to ensure pay off in the future, in case something goes wrong.
- Concealing Facts and other Vehicle History: Many important factors dictate the price of your premium like the fuel type of the vehicle. While this could drive up the premium slightly, it will ensure there are no hassles later if and when you need to file claims. On the other hand, if you decide to declare false facts and the company finds about it later during the filing of your claim, then your insurance policy would be simply dissolved without providing you with any cover for the damages incurred by you.
- Avoid filing claims for small deductions: Insurance companies cover minor repairs and other low-cost damages in an attempt to drive the cost of your premium up. If you end up filing claims for minor damages, then the company will start increasing your premium after the first or second claim. This could end up driving the costs up on your end when you renew car insurance. You should file for only bigger damages and try to get an NCB (no claim bonus) if possible. This way you can save money and get cover for greater damages in the future.
- Avoid Agents: Insurance agents often drive the costs of insurances up as they need to make their commission from sales too. This will result in you having to pay higher premiums when compared to policies directly from the company. Hence, you should buy your policies directly from the company using online services saving a lot as it excludes the cost of intermediaries and the agency.
- Do not forget to compare different policies: Lastly, you should shortlist all the desired insurance policies and compare them side by side to get a better idea of each one’s advantages and disadvantages. This will also help you to analyse the key features of each policy together and make an informed decision on your final choice.
So, to avoid driving up the premium cost and making yourself deprive of your insurance claims in the future, avoid the above-stated mistakes. Following proper procedure will help you get the best out of your insurance policy at the time of filing your claim.