Apart from life insurance, any other insurance product that you buy comes under the umbrella of general insurance. Common examples of general insurance products would include car insurance, health insurance, personal accident insurance, travel insurance, and home insurance, among others.
Buying insurance is one of the most important financial decisions you will ever make. Afterall, this coverage will have your back when things go awry. It is for this reason that you need to be careful and try to avoid certain common mistakes while buying your policy. These blunders might seem quite passable at the time of policy purchase, but will generally cost you heavy during a claim. So, if you are new to buying insurance, don’t worry as this article will help you out. Read on to discover 5 mistakes that you must steer clear off when buying general insurance.
Only buying third-party motor insurance
Now, we understand that third-party motor insurance is the most basic coverage you need before legally plying your vehicle on the roads. However, this coverage won’t secure you for own damages which will also cost you heavy during an accident. So, make sure to go beyond the basic third-party policy by opting in for comprehensive motor insurance which will secure you against third-party liabilities, own damages, natural and man-made calamities, and theft.
Not buying travel insurance before a trip
Many people view travel insurance as an unnecessary expense and tend to opt out of this coverage when heading on a trip. Yet, your travel insurance provides the ultimate coverage for many things that can possibly go wrong when you are away from home. The policy generally covers you against medical emergencies, personal liabilities, expenses due to loss of passport, loss of checked-in baggage, and more when you are away from home. So, it is really worth every rupee in premium paid.
Forgetting to purchase home insurance as a tenant
It is a common misconception that home insurance can only be purchased by a homeowner. However, even as a tenant, you have much to gain from this coverage. You can benefit from proper coverage for all the contents of your home including your electrical appliances and furniture. You also get covered in case you owe the owner something for any damages to the property structure within the purview of the policy.
Hiding medical history when buying health insurance
It is extremely important to be completely honest with your insurer when buying health insurance. Never make the mistake of hiding any pre-existing diseases from your insurer in an effort to skip the waiting period. Keeping important medical records as a secret can lead to claims getting rejected.
Choosing the cheapest insurance plan
When buying any general insurance plan, always make sure to read the complete details of the coverage before making your purchase. Do not simply buy a plan because it is the cheapest one out there. Remember that plans which offer very low pricing might often lack sufficient coverage for your needs. Always try to strike a balance between adequate coverage and affordable pricing.
We hope that this article will help you steer clear of the errors people commonly make when buying insurance.