Why the cheapest car insurance may not be the best for your car

Life would be so much simpler if getting cheap car insurance was as easy as watching.

All you had to do was enter the details on the price comparison sites and zero in on the cheapest car insurance company that offers the least premium. However, getting cheap car insurance is not that easy. Unfortunately, things are not that simple.

While saving money in any way that we can is great, it is also important to understand that cheapest car insurance may not be the best for your car.

Our car is one of our most valuable assets. In case your car is involved in an accident and your insurance does not provide sufficient coverage you would need to shell out a lot of money from your own pocket.

Watch Out for the Cheapest Car insurance!

You Get What You Pay For

Cheap car insurance may ensure lower premium but does it provide adequate coverage? When you shop around for the best car insurance, you compare different car insurance quotes. This is obviously the best thing to do. However, while comparing policies ensure that you are comparing like-for-like cover. Some policies may seem cheaper but when you make the claim, you realize that you may have not the same level of cover. Sometimes the cheapest policy may mean far lower coverage than you actually require. Don't we all wish to buy cheapest car insurance?

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Note: This premium quote considers the full NCB (No Claim Bonus) and system generated IDV. It is valid only for policies bought online.

Absence of Add-on Covers

Don’t get the cheapest car insurance if it does not have essential add-on covers. Consider a scenario where your new car, insured with a basic policy, meets with an accident and you are stranded in a lonely stretch of road. At that point, would you not want the benefit of fuel assistance, taxi and accommodation benefits? Cheapest car insurance should contain value-added features such as depreciation cover, coverage of electrical and non-electrical accessories, NCB retention, road side assistance and engine cover may add to your premium amount but in times of need you may be thankful that you opted for these covers. Cheap car insurance with basic coverage will not provide such useful add-on covers.

The Downside of High Deductible

Cheap car insurance also refers to enhancing your deductibles. Increasing your deductible can reduce your premiums. But should you really set your deductible that high? What would happen when you meet an accident and want to actually use the policy? If the repair costs are extensive then high deductible would mean you would have to pay a significant amount of money from your own pocket. It is always important to understand the pros and cons of high deductible while taking the motor insurance policy.

Check the Claim Process and Customer Service

When referring to cheap car insurance, be careful of poor customer service. Even if you have to pay higher premium, you need to ensure that the car insurance provider provides good customer service. This is helpful when you need to enquire about any doubts about the policy or when you want to file a claim during stressful times. Also while searching for cheap car insurance, ensure that your insurance provider provides 24*7 telephonic service for claims support and other assistance, even on holidays. The claim settlement process should be simple and hassle free. Before choosing the car insurance, check their claim settlement process and their reviews. You can also talk it over from someone who has a policy with the same company. Car insurance is a serious investment for your car so compare policies properly and don't just fall for the lure of cheap car insurance.