12 December 2017 Business Sponsored Feature

5 reasons why you shouldn’t opt for the cheapest car insurance

When it comes to buying car insurance online, most people spend a significant amount of time searching for the best quotes available. Price is one of the biggest factors that people consider when they  opt for car insurance. Usually any insurance product - be it car, life, or health insurance with the cheapest price tag always grabs the attention of most people. 

While there is nothing wrong in saving a few bucks, it is not always the best idea to opt for the cheapest car insurance in the market.There is a big difference between cheap car insurance and affordable car insurance. An affordable car insurance is one that takes care of all your requirements within your allocated budget. When buying car insurance, make sure that the coverage is adequate and the service quality is good. If you overlook these factors, you might end up spending a lot more than what you saved through cheap car insurance.

The following reasons will justify why cheap car insurance is not always the best choice.

1. Inadequate coverage

This is not to say that all low-cost insurance products offer poor coverage. When buying insurance, the focus must be on the range of coverage offered, not just the price. If a low-cost insurance product offers sufficient cover, you must go for it. However, in most cases, the cheapest product in the market do not cover all damages. In India, third-party liability coverages are the cheapest and they qualify for the minimum legal requirement. Without a comprehensive coverage, you might end up spending a huge amount on repairing a vehicle after an unexpected accident. Remember the cost of inadequate coverage before you choose the cheapest coverage.

2. Quality of service

Most often, the cheapest car insurance in the market may not provide the quality of service you desire. There is a reason why certain insurance products are cheap. With a premium product, you can demand better service from the service provider. When the service quality is poor, you may have to wait longer than usual for filing a claim or getting a response. While this does not cost you any money directly, repeated service mishaps are likely to make you get frustrated. Timely service and response is a key factor when it comes to accident claims. Check the reviews for service quality before making the purchase decision.

3. Poor security features

In the recent days, most car owners preferonline car insurance renewal over offline modes. During this process, they provide a lot of personal information in the company’s website. Most insurance companies store private customer information and credit card information in their database. A cheap service provider may not often allocate sufficient funds for website security and data protection. If by any chance an insurer’s website gets breached, a customer has a lot to lose. It is never a good idea to choose a service where the security features are inadequate. Make sure that your personal information is well protected when you choose a car insurance product.

4. Possibility of high deductibles

In certain cases, an insurance product with high deductibles will be disguised as a low-cost product. Deductible refers to the mandatory out-of-pocket expenses that you might incur in case of an accident. Deductibles are quite common in insurance products. However, it must be within your affordable range. Car insurance covers with high deductibles will drain out your funds and make you spend a huge sum every time there is an accident. In most covers with deductible options, there is a certain limit of money you must spend first before you even think of making a claim. Those covers often come with a cheap price tag, but they will not provide you the coverage you desire.

5. Untrustworthy insurer

The reputation of the insurer is a big factor to be considered while choosing an insurance policy. There is a possibility that fake companies might be masquerading as cheap car insurance service providers. Even if the company is genuine, make sure that the stability of the service provider is not at risk. The main purpose of a car insurance is to mitigate the risks of unexpected accidents and damages. If the stability of the insurer is in question, it is not a good idea to opt for that cover no matter how cheap it is.

When it comes to purchase insurance - be it life insurance car insurance or health insurance products, it’s important to do  proper research to find out the best product suitable for your needs.  It is never a good idea to compromise on coverage and service quality in order to save a few bucks. Also, do not purchase insurance just because it is mandated by the government. An insurance cover taken just for the sake of having a cover will end up costing you more rather than managing your risks.  There is an overwhelming number of insurance products available in the market right now. Finding an affordable car insurance plan that fits within your budget is no longer difficult. Choose the best, affordable car insurance that provides adequate coverage against all kinds of damages.

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