Common Myths Relating to Motor Insurance
There are many myths relating to car insurance. Here is a list of a few common myths which needs to be busted.
Myth: An old four-wheeler does not require insurance.
Fact: The Indian Motor Vehicles Act of 1961 makes it mandatory for young as well as old cars to have third-party car insurance. It is your duty to safeguard your vehicle even if you hold an opinion that the replacement value of your old car is low. You need to remember that old cars are easy to steal from. Moreover, their parts are more in demand so the chances of thefts taking place are higher. It is always vital that you purchase online four-wheeler insurance, regardless of whether your vehicle is brand new or very old.
Myth: Purchasing car insurance is time-consuming and tiresome.
Fact: In today’s times, finding and purchasing the best car insurance for you is not at all cumbersome. In fact, it has only become easier. All you have to do is fill up some standard details about your vehicle. After this, you obtain a standard quote regarding the amount of the premium and how much it will cost you. After a few more easy steps, you have successfully purchased the best car insurance online in India within your budget.
Myth: If there is an accident, I have to first pay from my own pocket. After this, I have t go through the rigmarole and problems associated with claim processing.
Fact: In reality, you do not have to go through this trauma. You are given a choice, either you do not pay at all or pay and then receive reimbursement afterward. In the world of online insurance, when you visit a networked garage, your insurer directly takes care of the amount with the garage. This ensures you do not have to go through the tiring process of paying for the expenses yourself. If you cannot take help from a networked garage owing to certain reasons, you can also claim reimbursement from the insurer later on.
Myth: It is not possible to shift my insurance policy from one insurer to the other as my No Claim Bonus will become inapplicable.
Fact: Your No Claim Bonus does not leave your side, even if you shift to another insurer. For the uninitiated, a No Claim Bonus is basically a reward you obtain for every claim-free year. It acts as an incentive for handling your vehicle properly. It is a payment you obtain if you have not filed for insurance during the entire length of the policy. The percentage increases for every claim-free year. If you want to change your insurer, you can do so without ruining your No Claim Bonus record. It is transferable from one insurance company to the other. However, you have to make sure that you file it within 90 days of the expiry of your old insurance plan. To do this, it is important that you undertake your car insurance renewal on time.
Myth: Four-wheeler insurance only has your back when the accident you are in is not your doing.
Fact: Motor insurance does not only cover the accidents where you are not at fault. As long as you have a valid driving license, owning a good policy ensures you are well protected against all kinds of accidents and mishaps. Having a comprehensive insurance plan ensures you are covered against mechanical faults, riots, theft, terrorism, damages as well as floods. You are, however, not covered, if you are driving under the influence of drugs or alcohol. You also need to make sure you are using the vehicle in a manner that is put forth in the insurance policy document.
Myth: It is hard or impossible to change your insurer after you have bought a policy from one.
Fact: You can change an insurer once you purchase a policy. You just have to wait until your existing policy expires. Insurance policies are generally valid for one or two years. This does not take into consideration multi-year plans. You can change your insurer at the time of car insurance renewal and still obtain the entire benefit attached to NCB that you have earned from the previous insurer.
Myth: The claiming procedure is detailed and filled with inconsistencies.
Fact: It is not at all tedious to file a claim. Simply log onto your insurer’s website, fill in the required details mentioned in the claim form and submit the application. After your claim is registered online, customer care will contact you within 24 hours. They will then begin to help you out with other necessary formalities. So also, if your four-wheeler is taken to a garage, the insurer handles the car insurance claim directly. In this way, you do not have to pay a single penny from your own pocket.
Myth: In a car crash, the car insurance claim amount that is equal to the amount of a new car is provided.
Fact: This is not true at all. New car insurance amount depends greatly on the principle of indemnity. According to this principle, after you obtain a claim, you go back to the same financial position that you previously were in, prior to the occurrence of the damage. You cannot improve upon that position. Depreciation is deducted on your existing four-wheeler after calculating the value of your loss. This also holds true when calculating the vehicle’s market value.
Myth: Third-party car insurance is more than sufficient if my car is old
Fact: You need to remember that third party car insurance only looks into the damages that occur to a third party. It does not offer coverage for the damages that end up on your four-wheeler. Even if your car is old, the damage will need to be paid from your pocket. This is why it is important to go in for a plan after taking into account the age and condition of your vehicle.
Although you may be uncertain when it comes to purchasing a comprehensive online four-wheeler insurance plan, uncovering these myths is sure to help you clear your doubts about the same in a successful manner.