While purchasing your favourite car, you always ensure it has the finest safety features. Car insurance is one additional layer of safety that can protect your car when you are in extreme financial distress. Hence, purchasing the right insurance for the car is an ultimate necessity. The ideal car insurance for you should provide maximum protection based on your budget with the best services.
Affordability is certainly an important factor while considering the purchase of car insurance. However, it should not compromise on basic needs. Therefore, you should not fall for cheap car insurance considering the affordability aspect alone.
Here are five reasons why you should not buy cheap car insurance:
- Inadequate coverage: Car insurance should provide sufficient coverage to help you handle your car repairs and other associated expenses in case of an unexpected accident. Basic insurance for a car will provide third-party liability coverage, which is a legal requirement. However, it will not cover the damages that might occur to your car in an accident.
A comprehensive policy based on your budget can provide overall protection apart from third party liability. Cheap car insurance may not be comprehensive and ensure sufficient coverage. You might end up paying more from your end in an unexpected scenario, and that should not be the result especially when you have decided to purchase car insurance!
- Compromise on essential benefits: Car insurance will ensure a good combination of coverage and benefits. When you buy cheap car insurance online for a lower premium, the policy might compromise on the essential benefits and may not provide them.
For example, car insurance should cover damage that occurred to your car due to various reasons and not necessarily an unexpected accident. An essential benefit should not cost higher with an add on option. It should be a part of the affordable car insurance policy.
- Inferior customer service: Efficient customer service is the responsibility of the insurer. In the event of an unexpected accident, the policyholder should be able to file the claim and work on the proceedings with the best customer service. Cheap car insurance can delay your settlement due to providing preferences to policyholders who insure their car for a higher insurance premium. Not giving prompt responses on calls or delay responding to emails can also occur on a policy that the insurer provides at a lower premium rate.
Insurance companies for cars provide various online features assisted by responsive customer service. TATA AIG car insurance renewal online is one of the best features provided by the insurer that ensures quick user access and process with efficient customer service at a reasonable premium rate.
- Higher deductibles: Any car insurance policy will have certain costs that have to be borne by the policyholder. These expenses are referred to as deductibles and will not be covered by the insurance policy. However, these deductibles should be limited by the insurer to a certain percentage. These out-of-pocket expenses should not drain your funds.
Stay cautious about the possibility of high deductibles when you purchase car insurance. Focus on them during the procedures associated with car renewal insurance as well. It will help you take the necessary actions for ensuring maximum protection.
- Restrict cashless claims: When your car has been met with an unexpected accident, your insurer will allow for cashless claims by paying for the repairs done in a garage. The insurer will provide a network of garages that the insurer will accept. However, if you choose to get your car repaired in a non-network garage, you may have to go for a reimbursement claim.
With a reimbursement claim, you will pay for the expenses from your pocket and later claim for the amount by submitting the bills. It will indirectly facilitate cashless claims. It will help you if you are in a remote location and do not have access to a garage associated with the insurer.
A cheap car insurance policy can restrict these cashless claims or even provide none. The insurer may not discuss these aspects during policy inception. It is your responsibility to check these provisions with your car insurance advisor before purchasing one.
Conclusion
Car insurance is one of the most important aspects to consider while purchasing your favourite car. And, the cost is certainly a significant factor. However, you should ensure that it should not compromise on providing the basic needs. We have seen how a cheap car insurance policy can affect coverage and restrict essential benefits and cashless claims. It can also include higher deductibles and provide inferior customer service. Hence, purchasing car insurance at a cheaper rate may not be the best idea.
Car insurance is enduring protection for your car. So, ensure to buy it at the best price for maximum protection with a reliable service provider!
