Busting Common Car Insurance Myths in India

Several car owners in India hold misconceptions about the benefits and features of a car insurance policy. This article is about uncovering the facts behind common myths about car insurance in India to help you purchase the right policy for your car.

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5 Myths About Car Insurance You Should Know

Let us disprove 5 misconceptions associated with buying car insurance in India so you can find the best plan for your car. Take a look:

1. Myth: Older Cars Do Not Require Insurance

   Fact: Many might feel that since older cars have a low market value, they do not require insurance, but they have higher chances of getting stolen due to the high demand for their spare parts. The Indian Motor Vehicles Act requires every vehicle, be it old or new, to be protected at least under a third party insurance policy. Nevertheless, you can opt for a comprehensive insurance policy, which offers broader protection, including coverage for damages to your own vehicle from road accidents, natural disasters, man-made acts, fire, theft, etc.

2. Myth: Color of the Car Determines the Insurance Premium

   Fact: The colour of your car doesn't decide your insurance costs. Several factors, such as the car's make, model, type, engine capacity, age, as well as your driving record and credit history, are taken into consideration by insurers while determining car insurance premiums.

3. Myth: I do not Require Car Insurance Because I drive Safely

   Fact: Irrespective of how carefully & safely you drive, there is no guarantee that the accident will not occur. Driving without a valid car insurance policy puts your life and finances at risk. Moreover, other vehicles and people in them may also get injured in an accident. You can avoid such instances with a car insurance policy.

4. Myth: If I Transfer My Car Insurance, I Lose My NCB

   Fact: The No Claim Bonus in car insurance is a reward given to the policyholder for having a claim-free year. It is an amount that accumulates year after year if no claims are raised. NCB is transferable. Hence, if you change your insurer, your NCB gets transferred to your new insurance policy. Just remember to raise a transfer request within 90 days from your old policy's expiry date.

5. Myth: Online Car Insurance Claims are Confusing

   Fact: The online claim process for car insurance is hassle-free. Simply log on to your insurer's website and fill out the claims form by providing relevant information and submitting it. Soon after your claim is registered online, you'll be contacted by a customer care executive within 24 hours. They will take you through each step of the remaining formalities. If your vehicle sustains any damages, it is taken to a garage directly, and the insurer takes care of the claim settlement from there.

Important Points to Consider While Buying Car Insurance

You must keep in mind the following points before choosing a car insurance policy:

• Carefully review policy's terms and conditions before .
• Provide correct information to the insurer while buying policy.
• To avoid higher insurance premiums, maintain a good driving record.
• Always compare car insurance online to know the premium prices, features, & benefits.
• While choosing a comprehensive car insurance policy, consider add-ons like zero depreciation, roadside assistance, return to invoice, engine protection cover, etc. for enhanced coverage.

Wrapping Up

Car owners in India can better navigate through the challenges of car ownership by uncovering these common car insurance misconceptions. To ensure adequate financial safety, you must thoroughly understand the policy wording, inclusions, exclusions, and claim settlement procedures.