Having a car insurance policy gives you complete peace of mind. You do not have to worry about the financial difficulties in case of any loss or damage to your vehicle or to third parties. There are plenty of benefits of car insurance, it saves from the financial and emotional burden of covering damages caused by an accident.
Saving money is something that everyone wants to do. And to save money you may be tempted to opt for the most affordable car insurance plan. But is that always the right choice?
5 reasons why you should be careful before buying a lower car insurance
Table of Contents
Impacts the Policy Coverage
The financial coverage level will differ from one policy to another. The cost of a car insurance policy depends on the level of coverage it offers. Usually a lower premium in car insurance means lower policy coverage. It is affordable only because it may offer basic coverage i.e. third-party insurance. Since third party insurance covers you only for third party liabilities, you may incur major financial losses if a misfortune event leads to loss or damages to your car. Your car can get better protection only with a comprehensive insurance policy, which will come for a higher car insurance premium.
May Not Provide Cashless Claims
Lower car insurance will have a higher chance of not providing cashless claims.
Cashless claims allow you to get your car repaired at a network garage of the insurer without being required to pay any money towards the repair as the bill. It is directly paid by your insurance provider. This saves you from shelling out my money from your pockets.
Poor Customer Service
When you are going through a tough time, you should not have to go through the hassles of poor customer service. You would want your settlement process to be smooth and trouble-free. A more expensive car insurance policy comes with comprehensive coverage, more benefits and efficient customer service but a lower-cost car insurance policy will offer just minimal coverage, poor customer support, and fewer benefits. You might not get roadside assistance services such as towing, flat tyre change, etc with an affordable policy.
Another drawback of buying the lower car insurance is that it may come with higher deductibles. Deductible is a share of the claim amount paid by the car owner or policyholder during the claim settlement. You must first pay the deductible amount, and then the car insurance company will pay their share of the claim. While the lower premium rate can save you money initially, the higher deductible will make your affordable policy expensive. Thus, it is crucial to check the deductible amount that you will be required to pay before buying an affordable car insurance policy.
May Not Provide Crucial Benefits
The insurer lowers the car insurance premium by reducing the coverage benefits. You should be careful about the crucial coverage benefits while you select the policy. If a comprehensive insurance policy provides you with essential coverage for an affordable price, you should not think twice before buying it. However, if the lowest priced car insurance policy does not cover you for a minor accident, it might not be useful for you and may cause major financial losses. It is always better to cushion your car with adequate coverage to ensure the financial protection of your car.
Low-cost car insurance does not always mean low cost, you might end up paying more and go through a lot of emotional stress to get the actual benefits out of it. Although a minimum level of car insurance is mandated by the law, it is better to stay safe with comprehensive car insurance. There is no point in buying insurance which would not come to your rescue in the event of an adversity. After all, a car is one of the most expensive purchases, so go ahead, give your car the protection it needs.
Car insurance provides you with peace of mind in the event that your vehicle is stolen or damaged. A lower-cost car insurance policy will provide only minimal coverage, poor customer service, and fewer benefits. The insurer reduces the coverage benefits to lower the car insurance premium.
Ensure that you choose the right car insurance that works for you. At Chola MS General Insurance, protecting your car is made simple and hassle-free. You can now rest assured with a car insurance policy that has a large network of cashless garages.