Posted by 
Buying car insurance online looks fast and simple—at first. But then you find small things you missed or better deals passed by. With health insurance, too, going too fast or missing key things may cost you a lot later. If you’re getting your first policy or just updating yours, not making usual errors can save your money, time, and lower your stress. Here, we’ll show you mistakes many make when they look for car insurance on the web—and tips to dodge them so you can make wise and safe choices in insurance.
1. Only Paying Attention to Premium Prices:
Cheap Isn’t Always Joyful—Examine More Than Just Monthly Expenses:
Sure, a good deal sounds great. But picking the cheapest option can be a mistake when you need to use it. A very cheap plan might not cover key needs, set high extra charges, or not pay for some kinds of harm. Instead, work out the Total Cost of Ownership (TCO): yearly price plus added charges, extra fees, and possible rising costs after small claims.
Pro‑Tip:
- Try out the Premium Comparison Tool to check what you get for different prices—this way, “₹5,000/year” really means something.
- Give Premium Comparison Tools available online a go, and make sure you’re comparing things that match, not things that differ.
2. Disregarding the Ratio of Claim Settlement:
The Significance of Ratios in Settlement Success:
Ever heard of Claim Settlement Ratio (CSR)? It shows how good an insurer is at paying claims—what share they paid out last year. Policies with CSRs under 90% may look cheap at the start, but they might turn down real claims later. Go for a CSR of at least 95% from trusted firms like ICICI Lombard or Bajaj Allianz.
Pro‑Tip:
- Look at the Latest IRDAI Report for new CSRs before you hit “Buy”. A 2% shift when you renew can mean lots of rupees lost in claims.
- Look up Insurer Claim Ratios on the IRDAI site to make your choice with facts.
3. Ignoring Important Add-On Covers:
Make Sure You Have the Necessary Riders and Don’t Underinsure:
By law, you must have basic third-party cover, but thefts, tyre pops, or engine failures from water can happen often. These issues call for extra cover. The top add-ons people pick are:
- Zero Depreciation Cover (no cut for old parts)
- Engine Protection (fixes engine breaks)
- Roadside Assistance (helps with towing, quick fixes)
- Return to Invoice (payout equals purchase price)
Pro‑Tip:
- If your car is under 5 years old, zero depreciation and return to invoice are must-haves. They push up your cost a bit, but can save a lot of money if something bad happens.
- Look at Top Add‑On Cover Options and shape your policy for real‑world risks.
4. Neglecting No-Claim Bonus Advantages:
Maximise NCB Savings and Reward Safe Driving:
Your No‑Claim Bonus (NCB) is valuable. Get 20–50% off costs each year you don’t claim, for up to five straight years. Some folks lose this by changing insurers too soon or making small claims for tiny fixes. Plan smart: pay for little bumps yourself to keep your NCB and talk about lower rates when renewing.
Pro‑Tip:
- If your insurer has NCB Protection as an extra, buy it—it costs less than what you’d lose if your bonus drops after one small claim.
- Find Out Your NCB Value to see how much you save each year with no claims.
5. Misinterpreting the Terms and Exclusions of the Policy:
Avoid Surprises at Claim Time by Reading the Fine Print:
Many folks get blindsided by not knowing the small details in their policy until they need to use it. A few areas often missed are:
- Driving while intoxicated
- Unauthorized changes
- Repairs for wear and tear
- Mishaps related to Narcotics
- Exclusions from the warranty term for electronics
Take five minutes to look through the exclusions part—if anything seems tough, use the word list or call for help.
Pro‑Tip: Get out the Policy Terms Glossary of your insurer to understand insurance terms fast—words like “IDV” (Insured Declared Value) and “NCB” should be very clear.
6. Neglecting to Update Modifications to the Vehicle:
Modifications Are Important—Inform Insurers:
Did you add cool alloy wheels? Put in a new music system or a race car exhaust? These changes up your car’s worth and risk. Not telling can mean a no to your claim. Always fix your policy 30 days after any change—some insurers let you do it online mid-term.
Pro‑Tip:
- Take pics of your changes and upload them when you refresh your plan—proof makes the process quick and easy.
- Update Your Policy Details fast through your insurer’s site.
7. Ignoring the Settings for the Renewal Reminder:
Avoid Failures—Auto-Renew vs. Manual Renewal:
If a policy runs out, you’re not safe, and you might pay fines. Set renewal alerts by text, email, and app notes at 30, 15, and 5 days before it ends. Think if auto-renewal fits you—it’s easy for steady cover, but tough if you like to check prices each year.
Pro‑Tip:
- Put your renewal date in your phone calendar as a yearly event—an extra guard against lapses.
- Set Up Renewal Alerts now and say bye to policy lapses.
8. Ignoring Ratings and Reviews from Customers:
Genuine Input—Why You Should Be Affected by Peer Reviews:
User thoughts show things no CSR or price list can. Look for signs: do many people talk about “easy claims” or “secret terms”? Sites like PolicyBazaar and PolicyGhar have real opinions. Listen to how they sound—the number scores alone won’t tell you how good the service feels.
Pro‑Tip:
- Look for reviews under “under ₹10,000 claims” to check how insurers deal with small claims, the kind we make more often.
- Check out User Ratings & Reviews to measure true action.
9. Not Making Annual Insurance Comparisons:
Changes in the Market—Shop Around Each Year:
Insurance keeps changing—new groups jump in, costs change, and rules get tweaked. Keeping the same insurer without checking again means you might miss out on deals or better plans. Do this every year: look at prices three months before your plan renews, talk with your current insurer, then make your choice.
Pro‑Tip: Set up a Yearly Comparison Reminder in an app or on your calendar—make it for early January when many insurers roll out fresh deals.
FAQs:
1. Can I transfer to a less expensive insurer in the middle of my policy?
Yes, but watch out for changes in fees and the risk of losing your NCB. Look at your current policy’s rules for stopping it mid-term and make sure the new insurer keeps your earned NCB.
2. How is the insured declared value, or IDV, determined?
IDV is the present price of your car. It starts with the price set by the maker and goes down over time. This value is the most you can get if your car is stolen or wrecked beyond fixing.
3. Are add-on covers required?
No, but extras like no-cost repairs and motor safety fill in where basic or full plans might not cover. Think about what risks matter to you to pick the best extras.