One of the most expensive mistakes that many of us make – and only learn about the hard way – is our ignorance about car insurance.

You see, buying, owning and driving a car is the stuff of dreams for most of us, but maintaining it is something that we realise only after the initial honeymoon is over. And some of the most common mistakes that one can make regarding car ownership is buying the wrong insurance policy, valuing their vehicle incorrectly, or horror of horrors, forgetting to renew it. So, to help you avoid making any of these mistakes, here’s a handy guide about what to look out for when buying insurance for your car or bike.

Check your IDV (Insurance declared value): A common mistake is to compare different insurance policies based solely on the premium one is paying for it. But, that can be quite misleading at times, as insurance vendors will often undervalue the car to reduce the premium of the policy in a bid to secure the customer’s business.