Tips To Avoid Purchasing Fake Car Insurance

Counterfeit or fake goods have plagued the global marketplace for ages. Con artists haven’t restricted their foul play to just goods but have also extended it to services, especially the cash-strapped financial services industry.

Although the regulators, and product and service providers keep educating people about being vigilant while transacting online, there are people who fall prey to cleverly-camouflaged fakes. The car insurance industry is also susceptible to such make-belief motor car insurance interfaces that sell fake motor car insurance policies. Read ahead to know car insurance basics and an overview about how to avoid purchasing fake car insurance.

Why is Car Insurance Mandatory?

Insuring your car is a good way to avoid financial losses in case of car-induced damages. Car insurance is mandatory because you are liable to pay for the injuries caused to other people and their property if they are affected by your car. Such people are termed as third parties and their property is referred to as third-party property. The Motor Vehicles Act, 1988 makes it mandatory for car owners to insure their vehicle with at least a Third-party Liability insurance policy before driving on Indian roads.

What are the types of insurance policies available in the market?

Primarily, there are two types of car insurance policies. Namely, Third-party Liability and Comprehensive. A Comprehensive plan includes the mandatory Third-party coverage stated by the law and also provides an own damage cover. This means that not only is your car insured against damages to others, it is also insured in case of damages to itself. You can bolster your Comprehensive Plan’s coverage with suitable Add-ons as well. Zero Depreciation, Roadside Assistance, and Return To Invoice are some of the popular car insurance Add-ons.

Ways To Purchase Car Insurance And Possibility Of Being Conned

  • From An Agent

Usually, first-time car owners purchase a car insurance policy that is suggested by their car dealer. If not from a dealer, they can purchase it directly from an agent. Here, the possibility of a fake car insurance can arise if the agent is a con artist. Thus, you need to verify the agent’s credentials before purchasing a car insurance policy.

You need to go through the documentation thoroughly as it can be manipulated. The car dealers might also be oblivious to such scams as selling insurance is not their primary domain. You can ask for a license to confirm the authenticity of the agent.

  • From Car Insurance Company

Con artists have been around for ages. In today’s digital age, they have updated their skill sets and have emerged stronger than ever. Financial services is a thriving field for such scamsters. People in India have slowly adapted to purchasing products and services online. It has become the new marketplace. Thus, it is vulnerable to hackers and other technologically-advanced con artists.

You can purchase car insurance online directly from your preferred insurance company’s website or offline from their branch office. Purchasing the policy from their branch office is probably scam-free but inconvenient. Purchasing car insurance online is extremely easy and convenient. However, you need to make sure you are purchasing it from the official website. You can call the company’s official customer care number to ensure you are purchasing the policy from an authentic website.

  • From Online Web Aggregators

You can purchase a car insurance policy from an online web aggregator as well. Such websites help you to compare car insurance. Visiting such websites can give you an idea about various policies that meet your requirements. However, make sure to compare car insurance not just on the basis of price but also on the basis of coverage. While purchasing such policies, make sure you are not redirected to unofficial or fake websites.  

Make an Informed Choice

Irrespective from where you purchase your car insurance policy, it is necessary to make an informed choice. Read the policy’s inclusions and exclusions thoroughly. Get your doubts cleared regarding the exceptions stated by the policy before purchasing it.