Car insurance is a must for every car driven on India's roads. The Motor Vehicles Act, 1988, makes it mandatory. Besides the fact that driving an insured car is mandatory, motor insurance policies like car and bike insurance provide several benefits that make the expense worth it.
There may be several reasons people fail to buy proper car insurance, but one of the main reasons is the several myths they carry about car insurance. They develop these myths from their peers who may not know much about car insurance. Some can carry the notion that car insurance premiums are high and circulate the same among their peers. Such a notion makes many vehicles uninsured against unforeseen events one could face while driving. The premiums depend on various factors such as the age of the car, its brand, date and location of registration, etc. You could grab an exciting car insurance premium deal by researching, comparing and choosing the right alternative. But to ensure the same, you must do away with the myths. Let's clear the myths surrounding car insurance.
Myths About Car Insurance
This article contains popular myths and the truth, so you can make an informed decision the next time you get vehicle insurance.
Myth 1: Car Insurance is not Required if the Vehicle is Old
Reality: Having a car insurance policy is mandatory by the law for all vehicles.
No matter how old your automobile is, obtaining third-party car insurance coverage is still required to drive legally on Indian roads. Although third-party car insurance plans are inexpensive, you can choose a comprehensive car insurance policy if you want complete coverage.
Myth 2: When I Transfer My Car Insurance Policy, I Will Lose My No-claim Bonus
Reality: In this case, you will not lose your no-claim bonus.
No-claim bonus is a reward given by your insurance carrier for driving cautiously and not filing any claims throughout the policy year. If you are unhappy with your current vehicle insurance carrier and wish to switch to a better one, you will not lose your NCB or no-claim bonus. However, timely renewal is critical in this instance because benefits will not be transmitted if the policy lapses.
Myth 3: Car Insurance Claim Procedure is Riddled with Inconsistencies
Reality: The process of filing a car insurance claim online is straightforward.
People frequently think that handling claims in an emergency will be challenging. The process is straightforward because you may quickly and easily claim your insurance. You can fill in the claim form on the website of the insurer and get the latter intimated about the claim.
You will get a call from customer support within 24 hours after claiming online, and they will help you. The provider ensures a cashless car insurance claim if the vehicle is fixed at one of the authorized garages. At other garages, you will need to pay first and then get reimbursed by the car insurance company.
Myth 4: Car Insurance Only Covers Accidents
Reality: A comprehensive automobile insurance policy will provide a variety of coverages that are not restricted to accidents. This coverage expands to many risks, such as natural disasters, theft, fire, man-made disasters, and so on. You can also supplement the coverage with car insurance add-ons like zero depreciation, return to invoice cover, emergency roadside assistance protection, etc.
Myth 5: In the Event of Total Damage, the Claim Amount Will be the Same as the Cost of a New Car
Reality: Every automobile insurance policy includes an IDV, which is the maximum value insured that an insurer will pay out in the event of total loss, theft, or damage beyond repair. As the car ages, the IDV is calculated based on the market price at the time, taking depreciation into account. So, if your car sustains entire damage, you will be compensated based on the prevailing IDV of your car prior to the damage. However, if you buy a return to invoice add-on, you will get compensated for the invoice price you pay to buy a car.
Read more - Does It Make Sense To Increase Your Car’s IDV?
Myth 6: Purchasing Car Insurance is Costly
Reality: When you get vehicle insurance online, you can easily get discounts that can help you save money on your coverage. Online vehicle insurance coverage is typically less expensive than its offline counterparts. You can also get discounts by installing an anti-theft device or becoming a member of a noted automobile association, among other things. Driving properly and not filing a claim can get you the highest discount on auto insurance. If you do not file a claim for five years in a row, you will be eligible for a no-claim bonus of up to 50% off your premium.
Myth 7: Rural Residents Don't Need Car Insurance
Reality: According to the Motor Vehicles Act, 1988, every automobile owner must get car insurance when driving in India. Whether you live in cities or villages, you will need car insurance.
Myth 8: One Can't Switch insurers
Reality: After you obtain insurance, you can change insurers.
It's not true that it is impossible to switch insurers. Most policies are renewed after one or two years. At that time, you can switch to a new insurer. Moreover, you can also keep the NCB bonus from your previous policy. But you don't need to wait till renewal to switch. You can switch even during the policy term.
Read more - Let's Check the Benefits of No-claim Bonus Protection Add-on Cover in Car Insurance
Conclusion
While purchasing a bike insurance policy, you should read its terms and conditions thoroughly and not believe in prevalent myths. Carefully choose the plan that suits you.
Contrary to popular belief, purchasing an automobile insurance policy, whether a third-party or comprehensive, is not a complex process. You must go to the vehicle insurance section, enter your information, and choose the best plan from the possibilities on your screen. Remember to read the policy materials before signing thoroughly.
