Buying health insurance is one of the smartest financial decisions you can make - but only if you buy it right.
Many people rush into purchasing a policy based on premium alone, ignoring important factors like coverage limits, co-pay, and hospital networks.
These small oversights can lead to claim rejections or out-of-pocket expenses later.
At PolicyBachat, we see thousands of policies compared daily - and we’ve compiled the 10 most common buying mistakes people make, along with expert advice on how to avoid them in 2025.
Top Health Insurance Buying Mistakes
1. Choosing Only by Premium Price
Problem: The cheapest policy often has limited coverage, hidden co-pays, or long waiting periods.
Fix: Compare total value - coverage, claim ratio, and renewability.
2. Ignoring Pre-Existing Disease Waiting Periods
Problem: Buying late in life means long PED waiting (2-4 years).
Fix: Buy early or choose a plan with PED reduction rider.
3. Not Checking Hospital Network
Problem: Non-network hospitals = no cashless claims.
Fix: Verify nearest hospitals via PolicyBachat’s Cashless Hospital Finder.
4. Overlooking Co-Pay And Sub-Limits
Problem: Hidden co-pay (10-30%) or room-rent caps increase your cost.
Fix: Always prefer “no co-pay” and “no room rent limit” policies.
5. Hiding Health Conditions
Problem: Non-disclosure leads to claim rejection later.
Fix: Disclose all existing medical issues honestly - it builds claim trust.
6. Buying Insufficient Sum Insured
Problem: ₹3L-₹5L cover may not cover a single hospitalization.
Fix: Opt for ₹10L minimum or add a top-up plan.
7. Ignoring Policy Exclusions
Problem: Dental, maternity, or lifestyle diseases may be excluded.
Fix: Read exclusions section clearly or add riders for missing cover.
8. Forgetting Renewal Deadlines
Problem: Missed renewals = loss of waiting period credit and NCB.
Fix: Enable PolicyBachat renewal reminders or auto-pay setup.
9. Not Comparing Multiple Insurers
Problem: One-size-fits-all approach = missed better options.
Fix: Compare 20+ insurers instantly on PolicyBachat before buying.
10. Ignoring Family Needs
Problem: Buying solo plan when dependents need cover too.
Fix: Choose family floater or combine individual and parental plans.
Local Insights For Hyderabad
- Most common buyer mistake: Choosing only by premium price.
- % of buyers comparing fewer than 2 insurers: 41%.
- Avg. preferred coverage (2025): ₹15L.
- Most avoided mistake post-education: Ignoring co-pay and sub-limits.
Bonus Mistake: Buying Too Late
Every year of delay adds 5-10% higher premium and longer waiting periods.
Best Time to Buy: When you’re young, healthy, and claim-free.
How PolicyBachat Helps You Buy Smart
- Compare coverage, claim ratio, and features in one click.
- Transparent pricing with 100% IRDAI-approved insurers.
- AI recommendation engine for right coverage amount.
- Claim Assist included with every purchase.
- Free renewal and document tracking service.
PolicyBachat Tip
“You don’t save money by buying the cheapest policy - you save it by buying the right one.”
Tax Note
Regardless of plan type, premiums qualify for Section 80D deductions (₹25,000-₹75,000 per year).
FAQs
What’s the biggest mistake people make while buying health insurance?
Focusing only on low premiums instead of full coverage.
Should I disclose all health issues before buying?
Yes - transparency ensures smooth claims.
Is ₹5L coverage enough?
Only for individuals in smaller cities; go for ₹10L+ in metros.
Do I need to read all policy documents?
Absolutely - especially exclusions and co-pay clauses.
Can I switch to better insurer later?
Yes, via portability with no loss of waiting credit.
What happens if my policy lapses?
You lose NCB and waiting credit; renew immediately.
Is online buying safe?
100% safe on IRDAI-registered portals like PolicyBachat.
Can I add riders later?
Yes, at renewal or via upgrade request.
Is a family floater better than individual plans?
Yes, for young families - more affordable and flexible.
How does PolicyBachat help new buyers?
By comparing plans, explaining features, and offering claim support post-purchase.
Customer Reviews
- “Avoided 3 big mistakes thanks to this guide.” - Ravi Iyer, Delhi
- “Didn’t realize co-pay could cost so much.” - Sneha Deshmukh, Pune
- “Clear explanation, made my decision easy.” - Vikram Nair, Kochi
- “Bought through PolicyBachat after comparing 6 insurers.” - Ananya Sharma, Mumbai
- “Simple and practical - every buyer should read this.” - Kavya Menon, Bengaluru
- “Best guide for first-time insurance buyers.” - Rajesh Rao, Hyderabad
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