Purchasing a new vehicle, whether a bike or a car, is always exciting. However, it's easy to overlook important considerations like insurance in the thrill of your shiny new ride. Choosing the wrong insurance coverage or provider can lead to massive out-of-pocket expenses if anything happens to your prized possession.
To help you avoid making some common and costly mistakes when insuring your new wheels, here are the top 7 insurance mistakes to steer clear of:
1. Not Choosing the Right Insured Declared Value (IDV)
The Insured Declared Value (IDV) is the highest amount the insurance company will pay out in the event of extensive damage, total loss or theft of the vehicle. Underestimating the IDV to reduce premiums might seem smart in the short run but will leave you severely under-covered in case a disaster strikes.
2. Avoiding Basic Research
Not researching properly before choosing an insurer or vehicle insurance policy is another common and costly mistake. Settling for the first nice-sounding deal or going with the same old insurer without comparing features and claim settlement records can leave you with sub-par coverage or poor service.
3. Not Comparing Policies
Along with researching insurers, you must also compare policies. Unthinkingly opting for the default offering or cheapest premium policy often means missing important add-ons. Take time to review various options in terms of coverage inclusions, limitations, deductibles, etc., before deciding.
Paying slightly more upfront for a more comprehensive policy can save you money and hassle in the long run. Don't make the mistake of focusing solely on premium prices when choosing coverage.
4. Not Utilising the No-Claim Bonus (NCB)
The No-Claim Bonus (NCB) offers lucrative discounts on premiums to reward careful driving and claim-free years. However, many people switch insurers ever so often and fail to transfer or utilise their NCB.
This leaves savings on the table and resetting the NCB clock each time. Always port your NCB when switching providers to enjoy maximum savings on your car or bike insurance premiums. Maintaining claim-free years with your NCB can reduce your long-term costs significantly.
5. Avoiding Anti-Theft Devices
As vehicle thefts rise, having full anti-theft devices provides immense financial protection. However, some people avoid installing these due to laziness or to save on upfront costs. It is a huge mistake that can leave you severely vulnerable.
Always install recommended security devices like GPS trackers, engine immobilisers, gear locks, etc. Not only can this prevent theft of your prized asset, but it also scores you attractive discounts on premiums. So, it's a win-win proposition that's foolish to ignore.
6. Not Considering Voluntary Deductibles
A voluntary deductible is the amount you opt to bear yourself in the event of a claim, over and above the compulsory deductible set by the insurer. Agreeing to pay a higher voluntary deductible reduces your policy premiums.
However, many steer clear of this option to avoid out-of-pocket expenses later on. It is silly when voluntary deductible amounts are usually quite reasonable. Opting for sensible voluntary excess lets you enjoy lower premiums without much-added risk.
7. Not Sharing Accurate Information
Finally, a common and disastrous slip-up people make is failing to share correct details with their insurer. Concealing pre-existing damages, vehicle modifications, medical history of riders, etc., may seem harmless but can jeopardise claims.
Conclusion
Steering clear of common mistakes ensures you enjoy seamless coverage and maximum financial protection when insuring your precious new vehicle. Focus on aspects like realistic IDV calculation, policy research and comparison, utilising NCB discounts, installing safety devices, opting for voluntary excess, and absolute transparency.
Paying attention to these details goes a long way in saving you money while safeguarding your prized ride for years to come! So go ahead and pursue your vehicle dreams without worry by following these handy insurance tips that help you avoid costly errors. Happy and hassle-free riding ahead!
