With a regulatory mandate to purchase car insurance, it is a compliance for all car owners. It is one of the few things that you need to do as so as you get yourself a new car. Selection of a policy among the myriad plans can be confusing. This is where it leads to lot of misinformation being circulated eventually leading to myths. This article demystifies these myths around car insurance to help you make a smart choice in selecting your car insurance policy. Read further to know more.
Myth 1: Buying insurance policy is a tiresome process
While the myth may suggest buying car insurance is a tedious process, the reality is far from it. With an online shift in the entire process, it has smoothened any hurdles that otherwise increased the time lag. Now you can purchase a car insurance policy from the convenience of your home without having to visit many different insurance companies. Moreover, the documentation required has become minimal. For a new car, details about the car, its model, manufacture year and the like are required. On the other hand, when it comes to renewing your policy, you simply need to provide details of your previous insurance policy and most of the information is collected from that. Buying car insurance online ensures seamless and fast delivery of the policy to your mailbox.
Myth 2: You lose the No-Claim Bonus when you change your insurance company
No-claim bonus (NCB) is a form of reward offered by the insurance company for not raising any claim during the policy tenure. The insurance company allows a concession in the own-damage component of your car insurance renewal premium. While it is just a myth that the no-claim bonus cannot be transferred, it can easily be carried over to a different insurance company. All you have to do is obtain an NCB certificate from your existing insurance company and present it to the new insurer. Moreover, if your policy has expired, to retain this bonus, you need to purchase a fresh insurance policy within 30 days.
Myth 3: Safe drivers do not require car insurance policy.
You might be a safe driver, but that does not exempt you from buying a car insurance policy. The Motor Vehicles Act of 1988 lays down the requirement that all vehicle registered in the country must have a valid copy of insurance policy. The law requires you to have at least third-party insurance coverage. This helps to protect yourself against the liabilities that might arise in the event of accident injuring a person or damaging property.
Myth 4: Old cars have lower insurance premiums
The common assumption for such misconception is based on IDV of your car. As the car gets older, the IDV also decreases. Thus, the premiums tend to become cheaper for older cars. But IDV is not the only factor responsible for your car insurance premium. The previous claim history, your driving records, type of car insurance policy, NCB benefits, etc also impact the premium. Thus, it is recommended to use a car insurance premium calculator to estimate the impact of these factors on your car insurance premium.
Avoid believing these myths and take a note of the reality of them. This will not leave any ambiguity in decision making as to which car insurance policy is right for you. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.
