6 of the Most Common Car Insurance Myths
Shopping for a car and car insurance has to go hand-in-hand. Mandated by the law, having car insurance is a must to drive your car on road. Shopping for car insurance can sometimes be as complicated as selecting a car; it requires a fair amount of research. When shopping for car insurance, it is important to understand the terms and conditions well, and also the factors that determine the premium and cover of your car. Being well aware of everything while buying insurance helps you make a better choice and also helps you stay away from the fictions!
Knowing the difference between fact and fiction is necessary, as any false information can result in you taking the wrong decision, which might also be cumbersome at the time of making car insurance claims. Read on to steer clear of the most common car insurance myths and make wise decisions while shopping for car insurance.
Some Common Myths with their Lesser known FACTS:
Myth: The Car Color Decides your Insurance Cost
Fact: Car color and Insurance Premiums have no Connection with Each Other
Don’t let premiums stop you from buying your favorite color. A famous myth doing the rounds is that if you buy a car of a particular color, for instance red, your car insurance premium might be higher as compared to others! Insurers are not partial when it comes to the color of the car.
However, they are more interested in your car’s model and make, engine’s cubic capacity and the car’s body type while determining the premium of your car insurance.
Myth: Going for Minimum Cover Saves your Money
Fact: Maybe it does, but not in the Longer Run
Going for the least-possible cover that is mandated by the law may look profitable to you when you first buy insurance. But, while you are happy saving a little on your premiums, you can actually end up spending a lot more than that if you get into an accident.
Accidents can occur at any time; having minimum cover means you are likely to pay more out-of-pocket for accidental damages, and those expenses are most likely to be on the expensive side. Therefore, getting only the mandate coverage is not a wise decision to make. Rather, opt for a comprehensive cover that ticks all the boxes.
Myth: You Lose on your No Claim Bonus (NCB) if you Delay in Policy Renewal or Switch from One Insurer to Another
Fact: NCB is Attached to your Car and is not Lost in Such Cases
NCB is a discount that you get on your insurance premiums if you do not make claims in the past year. If you switch from one insurer to another or tend to delay your insurance premium payment, your NCB is not taken away from you. A grace period of 90-days from the policy expiry date is allowable, within which you can renew your car insurance policy and carry forward your NCB.
Myth: Your Car Insurance Policy will Pay for Everything
Fact: Read the Fine Print
While it is always recommended to go for comprehensive car insurance, every insurance policy has its own inclusions and exclusions. To make your car insurance more exhaustive, you can always take add-ons over your comprehensive coverage at an additional cost, which will take care of a number of concerns.
Myth: If your Friend Borrows your Car and gets into an Accident, then his Insurance will Pay for the Damages
Fact: No, Car and Insurance go Along with Each Other
When you lend your car to someone, you are also lending your car insurance to him. So, if he gets into an accident, then you would also be held liable for the damages and injuries caused.
Myth: Your Premiums will go up if you get into an Accident
Fact: That Happens Because NCB is Lost
As soon as you make a claim on your car insurance policy following an accident, the No Claim Bonus (NCB) is lost. Due to that, the premium increases, something which gets reflected at the time of renewal of the car insurance policy.
Many of these myths have no plausible basis to them. Therefore, when you purchase a car insurance policy, make sure you understand all that it offers, and what it doesn’t. Knowing the workings of car insurance can go a long way in steering clear of such myths.
**To understand exactly about the policy coverage, exclusions etc. read the Policy Wordings carefully.**