Buying car or bike insurance might seem simple - but one wrong step can leave you under protected or paying more than necessary. With so many insurers, plans, and add-ons in the market, it’s easy to fall into common traps. In this blog, we highlight the biggest mistakes people make while buying motor insurance - and how to avoid them.
Choosing the Cheapest Policy Without Comparing Coverage
Low premium = low protection. Many buyers look only at price, ignoring what's covered.
Example:
Aakash chose the cheapest policy online, only to realize during a claim that damages to his own car weren’t covered - it was a third-party-only plan.
Avoid It: Always compare coverage benefits, not just premiums. A slightly higher price may offer much better protection.
Not Understanding the Policy Type
Some buyers don’t know whether they’ve bought third-party, comprehensive, or standalone own-damage coverage.
Avoid It: Know the difference:
- Third-Party: Legal minimum, covers only others
- Comprehensive: Covers both third-party and your own vehicle
- Standalone Own-Damage: Only for own vehicle (when third-party already bought)
Underinsuring Your Vehicle by Reducing IDV
Lowering your Insured Declared Value (IDV) reduces premiums, but also reduces your claim amount in case of total loss or theft.
Avoid It: Always opt for a realistic IDV close to your vehicle’s current market value.
Ignoring Useful Add-ons
Skipping add-ons like zero depreciation, engine protection, or roadside assistance might save money upfront, but it can cost more later.
Use Case:
Meera declined roadside assistance. When stranded on a highway at night, she had to arrange a tow truck herself at double the normal rate.
Avoid It: Review add-ons based on your vehicle's age, usage, and region.
Not Checking the Claim Settlement Ratio (CSR)
A low premium from an insurer with a poor CSR could result in denied or delayed claims.
Avoid It: Look for insurers with a CSR above 95%, and check online reviews.
Giving Incorrect Vehicle or Personal Info
Mistakes in name, registration number, or engine/chassis details can cause claim rejections.
Avoid It: Double-check all details before making the payment. Save your final policy and receipt.
Not Comparing Policies Across Insurers
Many people just renew with the same insurer every year without checking better options.
Avoid It: Use tools like PolicyBachat to compare plans, switch insurers, and still retain your NCB.
Conclusion
Motor insurance is more than just a compliance step - it’s about smart financial protection. Avoid these mistakes, and take your time to evaluate plans, features, and insurer credibility. It’ll save you from future headaches and out-of-pocket expenses.