Car insurance is a must-have financial product for any vehicle owner. Apart from being mandated by law, it most-definitely has your back in situations that see your vehicle involved in a mishap. Paying for automobile damages can truly burn a hole in the bank – this is definitely not a situation you want to be in.
Now, while it is important to have your car insured, it is just as important to get the right car insurance. We spend months and weeks deciding on which car or SUV we want to buy – the same amount of effort is required when selecting a car insurance plan: whether long-term or short term car insurance plan. A hasty, last-minute coverage selection can see you underinsured when it comes to making a claim.
So, to help you out, here are 5 common mistakes to avoid when you buy car insurance.
- Choosing the cheapest premium
While there’s no harm in looking for discounts, a cheap deal should not be the reason you opt for a particular plan. Remember that low premium policies may often fail to provide adequate coverage for your vehicle. Look for car insurance in nova scotia plans that truly offer good protection, have great customer service, and give you the best insured declared value (IDV) on your vehicle. Saving on your pennies now can cost you heavy later on.
- Failing to compare providers
Hastily picking up the first insurance plan you come across is a huge mistake. You could miss out on a better offer for the same premium cost through another insurance company. Always make sure to review the policies of 3 to 4 insurance companies before you select the one you want to buy. You can use online aggregators to help you make this comparison easily.
- Forgetting about add-ons
Remember that your base insurance plan may not suffice when it comes to offering complete coverage. So, it is imperative that you supplement your policy with add-ons. There are certain add-ons that can prove to be beneficial to all car owners. These include engine protector, roadside assistance, and zero depreciation. Make sure to go through the entire list of add-ons and select the appropriate ones when you buy car insurance.
- Opting for small deductibles
The deductible is an amount that you need to pay before the insurance company honours your claim. Most insurance buyers feel that a lower deductible is the way to go. However, the truth is that a higher deductible is actually the better option in the long run as it saves you money paid in premiums over the years.
- Not reading the policy documents
Finally, when you do get a copy of your insurance policy, make sure to read it carefully before filing it away. This will help you understand and clarify any doubts you may have. It is important to clear any questions in your mind as soon as you buy car insurance and not only when you need to make a claim. Additionally, do check to ensure that the policy has no errors with regards to your name, vehicle model and chassis number, policy add-ons, etc. If there are any mistakes please get them rectified immediately.
Having the right car insurance policy will truly make a huge difference if and when you need to raise a claim. At that point, you would not want to be left in the lurch with an inadequate policy that leaves you needing to dip into your savings. So, take your time and choose a car insurance policy wisely. Keep these mistakes in mind to ensure you avoid them. We hope this article has been helpful.