10 Myths Associated With Buying Car Insurance

Car insurance purchase is often riddled with so much confusion that a vehicle owner ends up making a wrong purchase. Hence, it is important to debunk certain myths associated with car insurance. Read this article to understand the myths that have been stopping you from buying the right car insurance cover.

1. Car Insurance Premium Lowers as the Car Ages

Car insurance premium is influenced due to a variety of factors such as age of the insured, claims history, driving record of the vehicle owner, kilometers of the car, etc. Though the insured declared value decrease, it is not certain the premium would decrease too.

2. You lose your no claim bonus if you change the insurer

NCB can be easily transferred from one insurer to another. It is the reward that you earn for having a claim free year. If you are changing your insurer, then you can always ask your old car insurer to provide you with a NCB certificate. However, it is important to note that the NCB discount is valid only for 90 days after the policy expiry.

3. Good drivers do not need car insurance

You have to insure your vehicle with a third party car insurance policy, no matter what. Purchasing a third party insurance is mandatory as per the law as it covers damages caused by your vehicle to third person or property. The premium of third party insurance is fixed by the IRDA and also depends on the age of your vehicle. Insuring your vehicle with a comprehensive insurance is your choice as it provides own damage cover as well as third party and is always considered an ideal option. The financial loss that you would bear would be more than the premium you would have to pay for insuring your vehicle. 

4. Purchasing car insurance is a tedious and time-consuming process

You can now purchase car insurance policy online in a hassle free way. Many insurance companies today have made it easy for customers to purchase the policy instantly by providing online documentation and payment service. On payment, the vehicle owner receives the policy in the mailbox in just a few minutes.

5. Comprehensive car insurance covers all types of damages caused by you

A comprehensive car insurance policy comes with its list of inclusions and exclusions that you need to go through carefully before making a purchase. Comprehensive car insurance will not cover the cost of the damages done by you when driving under the influence of alcohol, driving without valid driving license, damages caused due to consequential loss, etc. 

6. Purchasing third party insurance is enough for an old car

It is important to note that a third party car insurance provides coverage against damages caused to third person and property; it does not cover damages caused to your vehicle. Hence, it is important that you insure your car with a comprehensive cover, as there are probabilities that your old car too can meet with an accident. Thus, having a comprehensive cover is essential.

7. You have to renew your car insurance from the same company

There is no such rule in insurance that states that you have to renew your car insurance from the same company. You can easily opt for an insurer that best suits your budget and requirement. Also, you can transfer your NCB from one insurer to other.

8. If you sell your car, no claim bonus is transferred to the new vehicle owner

No claim bonus is not transferable from one person to another. You will be the sole person who would be eligible to receive the NCB discount on the purchase of insurance for your new car.

9. Car insurance only covers accidents

Comprehensive car insurance provides coverage against accidents and also man-made and natural calamities. so if your car is damaged due to theft, landslide, riots, terror attacks, etc. then you can be rest assured as the company will provide you coverage against all these acts. 

10. Making a car insurance claim is a tedious process

You don't have to fill out any forms or go through a documentation process, if you have opted for cashless claim facility. Cashless claim facility comes as a part of the basic coverage offered by insurance company and it allows you to get your car serviced or repaired without having to pay anything from your pocket. In case you have not got the car repaired from a network garage of the insurer, then you will have to make a claim for the same and will have to submit the related bills of the same. If the cat is involved in a major accident, then you can easily file a claim online also by dropping an email or calling the customer care of the insurance company. On successful registration of your claim, you will receive a call from the insurer.