Topmost Car Insurance Myths – Busted

Do you know everything about the car insurance your broker or insurance company is offering you? You probably don’t!

Like in driving, where most of us are in misconceptions such as “I am perfect in driving and accident will never happen to me” or “that animal (dog or cow) will not jump in front of my vehicle” abound, the car insurance also has many myths.

This topic enlightens to the people looking for car insurance and having many myths. Read below these myths and misconceptions busted:

• Myth: Buying Car Insurance is a clumsy and complex process

Reality: Buying best policy plan or renewing car insurance has never been easier.

The process has become easy with internet technology. Through filling some basic information, customer will get an instant quote of premium plan and can get policy at their place by following few steps.

In case of policy renewal, some insurance companies follow advance technology such as Photo Quote option, wherein customers only need to upload photo of the existing policy. After that, they will receive a quick quote to renew their policy.

• Myth: If I will change my insurance company to another, I will fail to get my NCB (No Claim Bonus)

Reality: Customer will get their NCB bonus whether they change their insurer

Customers will get NCB benefits if they don’t file any claim during the policy period. This benefit will be added as a discount to the premium for next year renewal. And, yes definitely NCB is transferable to other insurer. Customers should make sure the transferable period while purchasing the policy. Some insurers provide this till the expiry date and some other consider within 90 days of expiry.

• Myth: Car Insurance Policy gives protection against accidents only

Reality: Insurance is not only covers accidents. It also covers against man-made and natural disasters.

Car insurance also provides protection against the losses/damages incurred by the natural disasters such as earthquake, flood, storm, hurricanes, landslide etc. and man-made disasters such as terrorist activity, theft, riots etc.

• Myth: If an accident incurred, the only way is to pay from pocket first and then follow many difficult claim process

Reality: Either the customers need not to pay or if pay, they will get reimbursed afterwards.

Customers can find a list of networked garages in their area online i.e. the one associated with the insurers in their list. In this case, insurer will directly settle the expanse with the garage without any issue.

In case, if the customers are unable to visit a networked garage for some reason, they can claim reimbursement and insurer will pay them directly.

• Myth: If my car has been damaged /lost, I can claim a total sum that will be equivalent to the price of a new one.

Reality: This is not the true logic.

The real fact is that if a customer files a claim, he/she will get the financial support of the condition of the vehicle, which was in before the damage occurred. The true value is calculated on the basis of the current value and depreciation rate of the car.

Also Read

List of IRDA Approved General Insurers

IRDA circular about Rejection of Claims