4 Common Myths About Car Insurance Busted
When you buy car insurance online, it is important to understand the different factors that affect your policy costs and coverage. Lack of understanding can create confusion and may also hinder your financial interests. You need to ask yourself several questions before choosing the right policy. While trying to answer these questions, you may come across some common beliefs about motor insurance, which are nothing but myths. We are here to break down some of the most common myths about car insurance.
Myth 1: I do not need car insurance if my car is old
Reality: As per the Motor Vehicle Act of 1989, it is mandatory to keep your car insured, regardless of how old it is. In case of an old car, you can opt-in for a third-party liability insurance as it is more affordable in terms of car insurance premium when compared to comprehensive covers. As old cars too can meet with an accident and get damaged, it is recommended to keep your car covered against own damage. Also, the probability of old cars being stolen is high and hence a suitable motor insurance is a must. If the car is old or not in regular use, occasional drivers and senior citizens can take benefit of certain discounts made available to them and keep their car insured.
Myth 2: My insurance will cover me in case my car is stolen, vandalized, or damaged in natural calamities.
Reality: Every car insurance policy has a set of limitations and exclusions, such as consequential losses, normal wear, and tear, etc. While the insurance provider will deduct some amount for depreciation, your claim would be turned down straight away in case of drinking and driving. Only when you opt for both, comprehensive and collision coverage, you are eligible for getting covered against damages or losses caused by theft, vandalism, and damage due to natural calamities.
Myth 3: I cannot transfer my policy from one insurer to another because I will lose my No Claim Bonus (NCB)
Reality: No claim bonus is a kind of special reward that you receive from insurance companies for making no claims during the policy term. Since it is a cumulative discount, it keeps on increasing after each claim-free year and the discount is applicable to the policyholder and not to the vehicle. Hence, even if you purchase a new car or wish to change your insurance company, your accumulated no claim bonus will be transferred with the policy.
Myth 4: The process of claiming car insurance is riddled with inconsistencies.
People often think that in case of an emergency, claim settlement can become a daunting task. On the contrary, it is a straightforward process as you can claim your insurance in just a few clicks. All you need to do is log on to the insurer’s or brokers website and fill up the details in the claim form. After the claim has been registered online, you will get a call from the customer care within 24 hours and they will assist you. If the car is repaired at a network garage, the insurer takes care of the car insurance claim directly. At PINC Insurance, we have a well-designed claim settlement process keeping the suitability and convenience of the insured in mind.
Conclusion: Now that you know the most widespread and common misconceptions about car insurance in India, you need to stay clear of them and buy the best car insurance policy as per your budget and needs. Do not forget to read the policy documents carefully before you sign on it. For any insurance-related assistance, we at PINC Insurance are always happy to help you.