| Today there are a number of automobile | | | | happens many a times the policy being cheap would |
| manufacturers in the market. With the boom in the | | | | only cover certain things and exclude the rest. For |
| number of companies there is also the need for the | | | | example the tyres may not be covered as part of |
| growth in other allied services. And with competition | | | | the policy. Or the plastic parts would be only given |
| is the pressure to sell more. And this results in cheap | | | | 50% reimbursement in case of damage. |
| pricing and brings about very cheap insurance for | | | | A customer takes insures the car trying to cover for |
| cars. | | | | future expected damages. Even though the |
| A common way to attract a customer is to offer | | | | probability of an accident is low but he/she considers |
| discounts. And since one cannot lessen the cost of | | | | to important to insure the car to cover for the |
| the car, other add on things are made cheaper. This | | | | expected damages. Cheap insurance policies might |
| results in cheap insurance. But this has a catch in it. | | | | not cover damages due to natural calamities, thereby |
| Though it may look very enticing for a customer, it | | | | reducing the liability of the insurance company. |
| can also have its own problems. Many a time's | | | | Overall the lure of a cheap insurance is way too |
| customers do not bother to read the entire details of | | | | difficult for a customer to control. And taking the |
| the insurance policy. | | | | policy is also backed up by the fact that the individual |
| The policy has details like the rules of reimbursement | | | | always thinks that the chances of him/her meeting |
| of damages, the criterias of ascertaining damages, | | | | with an accident is so low. And such low probability is |
| also the causes of damages which are covered. It so | | | | best covered by a cheap insurance. |