Is Cheap Car Insurance a Good Idea? Here’s Why it’s Not!

When you are buying a new car, you should be getting car insurance as well as mandated by Indian law. However, you should not hurry the decision and take just any car insurance that comes your way. Don’t settle for low quality insurance. A low-priced insurance is generally not good as it gives significantly less coverage and presents a number of risks.

Here are all the reasons why now to fall for cheap car insurance traps.

1. Affordable and cheap car insurance
   When it comes to car insurance, the cost of the insurance indicates the service or coverage which you’ll be getting from the insurer in case of an accident or damage. One thing you need to understand is that there is a gulf of difference between affordable and cheap car insurance. The cheap ones offer much less coverage, which means it may not be of much use. The affordable plans give you more than adequate coverage. Thus, it is important to compare the insurance policy rates and coverage.

2. Disadvantages of getting the cheapest auto insurance
   Few people can resist the temptations of a low price tag. However, don’t let that deter you know getting the plan most suitable for you. Here are the drawbacks coming from cheapest car insurance
   - Insufficient coverage
   -  Poor customer service
   - You’ll have to pay a part of accident expenses despite giving high deductibles

3. How to select a good car insurance policy
   Here are a few ways to help you find the best car insurance at affordable cost.
   - Compare insurance between different providers.
   - Compare their add-on covers specific to your needs.
   - Negotiate price with the auto insurance company reasonably.
   - study the claim settlement history of the insurance provider, and look for a success ratio of 85%
   - Make sure that the insurer has a wide network of cashless garages and auto repair shops. With this, you can make sure that you can get problem-free claim settlement without the requirement of paying upfront damage repair fees.
   - Check the cost to feature ratio. For all the cost you are giving, are the features enough? Be especially attentive to the Exclusions under the insurance plan to know in which circumstances the company won’t help you.
   - Buy car insurance online. By doing this, you get discounts on premium without damaging the coverage. When they sell insurance online, insurance companies save significantly. There are no middlemen in the process, which saves distribution and processing costs. Insurers can therefore pass on these savings to the customer through premium discounts.
   - There are various other discounts as well you get from insurance companies when buying a good product online. For instance, if you already have anti-theft measures installed, you have higher chances of getting lower cost. You also get discounts and loyalty discounts depending on your profession and on your length of being their customer. Always check with insurance companies whether you are eligible to get any of such benefits to save premium.

To conclude, you do have to keep a minimum level of car insurance according to law. It is better to stick with comprehensive car insurances rather than with cheaper alternatives. Always protect your car with the maximum insurance cover.