Car insurance is purchased with the main intention of covering expenses in case of an accident to ensure you can repair or replace your vehicle.
However, there are pitfalls in the process of buying insurance which could result in you buying insurance that is not suitable for your needs and sometimes lead to complications when you need to claim in the future.
iWYZE shares their tips on what consumers should be aware of when buying insurance.
Not comparing your insurance quotes
There are many insurance providers, but consumers often settle for the first offer they receive without comparing quotes.
Shopping around will allow you to weigh up options of offers, deals and benefits that are suitable to your requirements that are available in the industry.
Going for the cheapest offer
Consumers are constantly looking for better premiums to fit their budgets; however, cheap insurance is not always the answer to cover your most valuable assets.
The trick is to not be blinded by the cheapest offer and to ensure you are sufficiently covered which is the purpose of insurance.
The financial consequences can be devastating if you have insufficient insurance cover and need to pay for the repairs or replacement out of your pocket.
Dishonesty to your insurer
An insurance policy is a legal agreement between two parties: the insurance provider and the policyholder.
It is a contract between them that if the policy holder pays their premiums, the provider will cover them accordingly in the event of loss or damage.
Both parties need to be honest for the agreement to be valid.
Your quotation is offered based on the information you provide to the insurer to help them assess the risks involved in covering you. If you omit information – this could impact you at claim stage.
As a legal contract, lying to your insurer will result in your claim being rejected.
Insisting on lower premiums
Most people want lower premiums and do not realise to get cover of the same value at lower premiums, it may mean a higher excess fee.
It is advisable to select a lower excess as accidents are unplanned.
If the excess is too high, it will be hard to raise the required funds immediately.
Most mistakes made when buying insurance are done to reduce costs but this ends up costing you more than you realise.