General insurance can protect you and your valuables from the many uncertainties of life. Common examples of the general insurance plans you normally would buy include health insurance, two wheeler insurance and home insurance. Given the importance of the coverage you get, you need to ensure that you purchase your plan carefully. To help you out, we have listed down 6 mistakes that you must avoid when buying general insurance.
- Forgetting to compare insurance plans
There are many different insurance companies out there and each one offers attractive coverage. However, you need to compare the plans to ensure that you are getting the best deal. For instance, if you are buying comprehensive two wheeler insurance, try to compare plans across at least 3 to 4 insurance companies to see which one gets you the most coverage at the best price. This way, you will know that you are getting a great deal.
- Not familiarising yourself with insurance jargon
When comparing insurance plans, you will come across various technical terms used to describe your policy. It is important to look into the meaning of these terms so as to fully understand the product you are buying. For example, if you are buying critical illness insurance, you might want to take time to understand the difference between ‘waiting period’ and ‘survival period’ in your policy so that you do not face any confusion when raising a claim.
- Not exploring plans online
These days, you can easily get the best general insurance plans online. You can use either aggregator websites or the insurance company’s own website to research and buy coverage. Buying general insurance online can prove to be cheaper and more convenient than traditional methods.
- Taking the most basic plan available
When buying insurance, you might feel tempted to opt for the most basic plan available. However, doing that could prove to be a huge mistake. You need to look at what coverage you really require. Do not simply select the cheapest plan to save money.
- Buying the same plan as a neighbour or friend
While it is alright to ask for suggestions, you need to make your own decision. Remember that the general insurance plan which works for your friend may not work for you. For instance, your friend may need a health insurance plan with coverage of just Rs 3 lakhs; however, you may require a higher sum insured with add-ons too. So, make sure to explore your unique needs when buying coverage.
- Not switching providers
You do not need to stick with the same insurance company if you are unhappy with their service. Simply compare other providers in the market and make a switch. Switching between providers will not affect any bonuses you have accumulated such as the ‘no-claim bonus’ or NCB.
We hope that the information in this article has proven helpful for you today. Make sure to do your research carefully before selecting a general insurance plan.
All the best!