You must be knowing that as per the Indian law, it is mandatory to buy a car insurance policy while purchasing a new car. Car inurance policies in this aspect, has been designed to offer protection to not only the car itself but also the person driving the vehicle in the event of any accident or damage.
Although these are some well known facts to all, there are many misinformation circling around related to car insurance plans. As a result, such fake information leads to misconceptions among vehicle owners.
That is why today I feel the urge to debunk some of the popular myths hovering around CAR INSURANCE plans so that vehicle owners can make an informed decision at the time of making a purchase.
Myth 1: Buying a car insurance policy is a tedious process
Fact: The reality of the fact is NO.
The process of buying or renewing car insurance is not a tedious anymore. All thanks to the technological advancements that have made the whole process easy, quick and hassle-free. Today You can renew or purchase car insurance policies online as per your convenience with minimum documentation.
You will be required only to fill some of the basic details related with your car and previous policy, compare different car insurance plans online, and thereafter you can make an informed decision. You will recieve your car insurance policy in your mailbox within some time. The entire process is comparatively cheaper and very efficient.
Myth 2: The No Claim Bonus (NCB) is lost when you transfer the car insurance policy from one insurance provider to another
Fact: NCB or No Calim Bonus is basically a reward offered by insurance companies for not making any claim during your policy period. It is a complete myth that you might lose your NCB while you are transferring your policy from one insurer to another. As aatter of fact, the true reality of this myth is that you can easily transfer your NCB from one insurance provider to another and obtain its benefits whithout having to face any hassle.
In order to retain the NCB, you will have to get your new car insurance policy within 90 days after the expiry of your old policy. Keep in mind that your NCB would become invalid after 90 days and you will no longer be able to avail the benefits from the same.
Myth 3: If you drive safely, you do not require car insurance
Fact: So you think you are a safe and experienced driver and hence you do not need to buy car Insurance?
You might be a safe driver but you should know that your careful driving skillsets do not guarantee that you do not fall victim to a road accident. You cannot control the condition of the road and neither can you be sure of other drivers' handling of a car while driving.
Under these circumstances, if your car meets an accident, you will have to pay for the damage costs since your car is not insured. You will have to pay for the third-party damage costs as well as your own damage.
Moreover, it is mandatory for all vehicle owners to have at least the third-party policy before they can become legally eligible to drive the vehicle on the Indian roads, as per the Motor Vehicles Act 1988.
So there's no chance of you driving a car without a valid motor insurance.
Myth 4: If your car is old, your insurance premium would be lower
Fact: Generally, people think that the older the car the lower they will have to pay for the car insurance premium. It is considered that the Insured Declared Value (IDV) of the car is the major facort in terms of determining the car insurance premium.
So basically, if the car gets old, the IDV of the car will also lower and as a result, you would be able to get car insurance at a cheaper cost. But this is not true all the time. Apart from the IDV of your car, there are various other factors as well, which determine car insurance premium.
Other important factors like, your previous driving records, your claim history, the distance you have travelled, the type of car insurance plan you are purchasing, your NCB, etc. If you have made numerous claims with the insurer in the previous year, your car insurance premium for the current year would be high.
Myth 5: Settlement of claims is a very hectic and painful procedure
Fact: There's no denying the fact that this is by far, one of the most common myths associated with car insurance. You might think that in the event of an incident involving your car, you might have to go through a lot of pain to get a CLAIM from your insurance provider.
However, this is not an issue anymore. Today, the process of claim settlement is quite easy. It can done one online as per your convenience. all you have to do is simply visit the official website of the insurance company and fill up the claim form.
After the successful registration of claim, you would be asked for submitting your documents. In case of any problems faced, you can get help anytime during the claim procedure. You can instantly get connected with the customer care representatives. You may also refer to the FAQ section regarding claims on the company website. It's that simple.
So, these are some of the most common myths about car insurance across vehicle owners in India. In this case, what you need to understand is the differences between myths and the realities. This way you will be able to completely appreciate the car insurance plan that you own.
As an advice, do make sure that you compare different car insurance policies online and then purchase the ones that best suit your requirements and budget.