Here is the risk of being under-insured :-
Loss For Yourself
You won’t receive the entire amount of compensation from the insurance provider in the event of an accident. In reality, if your car is damaged in an accident, you might have to pay more for repairs out of pocket and you might not be fully compensated if it is stolen, totally destroyed by fire, or destroyed in an accident.
When compared to renewing your insurance according to the agreed value, this is far less advantageous.
So What’s The Solution?
The Answer Is: Get Adequate Coverage
Make sure the finest insurance policy has your car protected. If you’re not sure, ask the customer care staff of the insurance provider of your choice for more information. If you decide to renew your insurance at a market value, agreed value, or less than market value, find out the difference. You can then decide which is ideal for your car after that.