The Do’s and Don’ts of Buying Car Insurance
Buying an auto insurance need a lot of understanding into car insurance industry and how it works. At one hand car insurance saves millions of rupees annually to car owners but at the same time millions also go waste because people are either ill-informed and do not take time out to evaluate their need before walking into an auto insurance office. This is so true particularly in the case of new car buyers or who are buying car insurance for the first time. They do understand the importance of car insurance but are not well informed as to what are the focal areas that must be addressed while buying an auto insurance and at the same time what is not necessary.
The following paragraphs sheds light on what are the Do’s and Don’ts when a person plans to buy a car insurance in Pakistan.
- It is imperative that you have thoroughly explored all the major car insurance companies of your region. Although the basics of auto insurance companies are somewhat similar, but the finer details make a huge difference. Now, these finer details need to be inspected by visiting their websites and making a personal visit. Unless you have not tailored your auto insurance plan the whole exercise can go waste when you face an eventuality.
- The most important part of any insurance is the claim process and how long the company will take to settle your claim. You must find out this particular aspect before you write a cheque and signing the car insurance policy
- You must go for a comprehensive car insurance plan. Saving money for a third-party auto insurance is not a good idea. If possible have your life and limb covered in the same insurance plan. This option is available in almost all insurance packages by several car insurance companies in Pakistan
- If you have an expensive car make sure all accessories are also included in the list or in your car insurance policy. The rear-view mirrors cost whooping 65,000 rupees for some of Mercedes, Audi and BMW. Similarly, some Toyota and Honda models’ accessories are also exorbitantly expensive. If you plan to add after market accessories have these installed before finalizing the policy details. If left out these will be out of your car insurance coverage
- If your car will be driven by a chauffeur or anyone else in the family have this clause included in your auto insurance plan. Likewise, if you intend to rent it out such as to Uber or Careem, this must also be informed beforehand to the car insurance company in Pakistan. Failing to do so will jeopardize your claim and the auto insurance will deny any settlement
- Do not rely on car dealership for auto insurance. Take time out and involve yourself in negotiating with the car insurance company to get the best price and the type of auto insurance that suits you best. The dealership has the tendency to buy insurance at hefty prices for their commissions and favor a friend
- Do not drive your car home from the dealership unless you have physically received the car insurance policy. This is a precaution you must take to avoid complexities arising in case you meet an accident or the car is snatched at gun point
- Do not forget the expiry date of your insurance policy. Keep the record at a place where it can be referred occasionally
- Do not keep insurance policy at a place where it is hard to find. It is advised to keep photocopies at separate places so that they can be presented to insurance company when needed.