Common Mistakes Made While Renewing Motor Insurance Policies

There are a few common mistakes that people make when it comes to motor insurance renewal online. These include:

  • Selecting minimum coverage.

  • Fail to compare quotes.

  • Payments for premiums are delayed.

  • Selecting avoidable add-ons.

Selecting Minimum Coverage

Going for the “less is more” approach is one of the most common mistakes people make when it comes to the renewal of vehicle insurance online. It is because motor insurance is meant to serve as a backup plan if things go south due to the theft of a vehicle or an accident.

For this reason, it is mandatory by law for all vehicle owners to have a third-party insurance plan. Policyholders must keep in mind the premium amount to be paid as well as repairs and other expenses related to the vehicle. Once policyholders work out the math, investing in a comprehensive motor vehicle insurance plan or even motor insurance renewal then it seems like a good idea.

Fail to Compare Quotes

Another mistake that policyholders make is that they fail to compare quotes and they don’t have an idea about the current rates that are being charged or the coverage plans offered. While selecting an insurance policy might fulfill the minimum requirement by law, the policyholders miss out on the benefits they could have received by selecting a better insurance plan.

Also, most vehicle owners take for granted the fact that the terms and conditions or the perks associated with a particular cover remain the same. However, this is not true as the policy might change with time, and the policyholders neglect to review the condition of the vehicle as well since it plays an integral part in the premium paid towards the policy.

Payments for Premium are Delayed

An aspect that policyholders often fail to realize is that delays in payment in the premium of an insurance policy could cause a number of problems. To begin with, any delay would reflect in the premium amount to be paid. For this reason, policyholders should select a relevant coverage plan that covers all their needs. At the same time, ensure that the plan fits the budget as well or else it will mitigate any of the benefits that were offered before.

Selecting Avoidable Add-Ons

Policyholders sometimes go overboard by selecting add-ons that may not be essential in their case. For instance, roadside assistance might not be required by someone who doesn't use the vehicle often. It is good to be cautious, but being over-cautious can cost the policyholder an unnecessarily higher premium each year.

Know more about the Importance of Motor Insurance