Bursting The Myths About Car Insurance

Even after the Indian Government making it mandatory to insure your two-wheelers and four-wheelers, many people still have doubts whether they should buy a car insurance policy. There are people who think Car Insurance is merely an unwanted expense, and will not lend you hands at the needed time. There are many more myths and misconceptions on the working, claim, and renewal of car insurance policy. Here we have tried to burst the maximum possible myths among people with appropriate explanation. Go ahead and understand the exact truth behind car insurance

  • Third party Coverage is more than enough!

This is the first misconception among most of the car users and owners we would like to address. They simply buy a third-party liability cover because it is mandatory as per Indian law and do not even try to understand the benefits of a comprehensive cover or add-ons available in the market. A third-party liability funds you only for the damage or injury caused to the opposite driver when the mistake is yours. It is not going to protect you, your vehicle, your family, or your belongings. It is obvious that both the vehicles might get damaged during a collision or an accident. The other party may get covered, but you will not be covered if you have only a third party car insurance. This proves that third-party liability alone will not be enough during an emergency. Know the benefits of the comprehensive policy and various add-ons. Choose them wisely to stay relaxed. 

  • Insurance is useless for old cars!

Though it is an old car or a new car, you will require the insurance documents while driving on road. Getting caught by traffic police without a proper insurance document will result in various consequences like paying a fine amount of 2000/- INR or a temporary imprisonment. OId cars can easily be damaged, met with accidents if not maintained properly, and theft at any time. So, getting your old vehicles insured must become a priority rather than thinking them as useless. 

  • Renew it even before your insurance policy expires to avail the NCB!

It is not always necessary that you should renew on time to avail of the No-claim Bonus. To have a clarity on No Claim Bonus (NCB), it is a discount the insurer provides to the insured (or probably you) for not making any claims the previous year. It is associated with you and your driving history and not with the insurance provider. Generally, insurance companies give a grace period of 90 days to renew your policies. Do renew them within the grace period to avail of the NCB benefit and don’t be in a hurry. 

  • One car insurance is sufficient for everything!

This is the biggest point of attraction most of the insurance providers tell you while purchasing a car insurance policy. Understand the fact behind the working of car insurance. It is true that you get more benefits under a comprehensive policy rather than a third-party liability insurance cover. Even though, not all expenses related to the car can be covered under that. There are various add-ons available in the market which you will have to purchase to enjoy more benefits that that are provided in a comprehensive cover. Apart from buying a car insurance cover, do drive safe to avoid the physical difficulties involved in an accident. 

  • Buy Insurance Only From One Insurer Throughout!

It is not a hard rule for you to stick only to one insurance provider throughout the life of your vehicle. If you get across some new policies introduced, discounts, better deals from other insurance providers, you can change your insurer once your policy expires. The average life of any policy is between 1-2 year. Post the expiry of your insurance policy, you can change them if you are not satisfied. You will not have to worry about the No-claim bonus. It is your asset and your reward for driving safely. Have the proof that you haven’t made any claims, and keep enjoying the no-claim benefit. 

Final Advice:

Do not barely believe everything you hear. Do your own research to understand the various aspects of a car insurance before you actually invest your money. It is the right and mightiest way to buy anything. Your insurance premium depends on various factors. Have a detailed discussion with your insurance provider or take help from online insurance aggregators to get complete details about the car insurance price. Also, do not exclude the car insurance cost in the vehicle amount.