Image via Flickr user Bob Barely Time

Our instinct to get the maximum bang from the buck is particularly visible when it comes to buying car insurance, because if one does not make a claim, one does not get any value for the premium paid.

Naturally, we negotiate hard. However, motor insurance buyers need to be cautious, particularly when the insurer agrees to the discount you are seeking.

Has your car’s value been lowered?Misselling happens when you buy a policy via an insurance agent. “If you negotiate hard with an agent, he may lower the value of your car, hence lower your insured declared value (IDV),” says Deepak Yohannan of MyInsuranceclub.com. Say your car is valued at Rs 7 lakh and you are asked to pay a premium of Rs 22,000.

Has voluntary deductible been increased?

When monetary loss is borne by the insured, it is called deductible. It can be compulsory or voluntary. For a policy where a car’s IDV is around Rs 6.50 lakh and an insurer offers a lower premium of Rs 18,930, you are also offered a voluntary deductible component of around Rs 5,000.

Incorrect claim history?

If you want to shift to another insurer, and you do not disclose that you had made a claim with your previous insurer, you may get a discounted premium from your new insurer. The problem arises when you make a claim with your new insurer.

Have add-on covers been removed?

“At times, premiums are lowered after removing add-on covers from the base policy,” says Divya Gandhi, Head, General Insurance and Principal Officer, Emkay Insurance Brokers. So, first the agent will show a quote with the cost of add-on covers factored in.

Standard cover pitched as special offer?

Often agents sell a policy by bloating its price and then offering you a 20-30% discount on the premium and project it as a special deal for you. Or, they include an add-on cover and say that despite an additional benefit they have been able to keep the premium unchanged.