Car Insurance: Do's and Donts

Irrespective of the current slowdown in the Indian auto sector, owing and driving a four wheeler remains a need more than want. Moreover, in India it is compulsory to have a car insurance atleast a third party. It is always advised to have your car insurance, as it helps to protect you and your assets. When you are about to renew your policy, make sure you follow these dos and don’ts.

Do get quote from several insurance companies: This will help you to evaluate different options so that you can chose the best. Most of the time, since you get insurance from a single company it is always connivance for us to go with such insurer, which may be charging you more than what you can get from others.

Ask for discounts: Most of us may shy away from asking discounts from the insurance companies but it is better to ask than regret later. Often you can get the discounts for being a good driver or if you are taking a comprehensive insurance plan.

The most important part while taking insurance is that current policy should match your current needs.

Do not go for the minimum amount. While minimum coverage will cost less upfront, you may have to pay from your own pocket if the damage is beyond what the coverage includes. Hence, go for a comprehensive insurance policy; as in the event of an accident, your car and the third party’s car are fully covered.

Do not be afraid to switch the insurer company, if you find a better deal with other company.

Do not let your car insurance expire. There are two reasons. Firstly, it is against the law and secondly, if you’re driving around in a car with an expired insurance, any damage to your vehicle will have to be borne by you.

These do’s and don’ts are generic but should not be ignored. If you prefer to remain ignorant then that may lead to financial ruin.