Clipped from: https://www.financialexpress.com/auto/car-news/5-ways-to-avoid-being-scammed-buying-car-insurance/3464704/
Choosing the right car insurance is very important but knowing how to avoid being scammed while buying a car insurance is equally important.
car insurance scams (Image: Freepik)
In one of our earlier articles we discussed what a car insurance scam is and the different types of frauds prevalent in the car insurance industry. It is equally important to discuss how to avoid these scams while buying or claiming a car insurance. Most of these scams are negligence on part of consumers while buying an insurance policy.
In this story, we list out five ways for prospective car insurance buyers to avoid being scammed by insurance companies, dealerships and middle men.
Scan though policy documents
Always read through the policy documents carefully before making the payment. The buyer must be aware of all the provisions and exclusions of the policy bought. All details are readily available nowadays on the companyтАЩs official website. Moreover, every genuine insurance company has a call-back process to evaluate whether the buyer has completely understood the terms and conditions of the policy. This itself is a stamp of ingenuity from the insurance company.
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Get receipt of insurance premium
Whenever youтАЩre buying the insurance or paying its annual/quarterly/monthly premium, it is always advisable to always obtain the payment receipt or invoice, either in physical form or a digital copy. This receipt also services as a proof of investment which the buyer can use to avail tax benefits.
Skip agents and intermediaries
It is always advisable to buy insurance directly from the companies listed under IRDAI either online or offline. Buyers should ideally avoid buying insurance from agents and other intermediaries who usually have vested interest attached to the transaction.
Choose payment modes wisely
It is always advisable for the buyers to make the payment either digitally (though credit/debit cards, internet banking, or UPI) or through cheque where there is physical or electronic record of the payment done.
Never sign blank documents
Whenever a car comes for repair, the executives at the workshop are always in pursuit of extracting more money out of a job. Therefore, the service men extend the damage, and the car owner unknowingly signs a bunch of blank documents which the workshop uses to to fill up all the manipulative damage caused to the vehicle. Such scams usually hurt the insurance companies more but if the malpractices are caught then the car owners have to pay for the entire sum of the extended damage caused.
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