9 Myths that Don't Let You Make the Most of Your Car Insurance

Almost every car owner understands the significance of having comprehensive car insurance. But sadly, understanding the legal mumbo-jumbo associated with car insurance policies remains a daunting task, for many.

Read more



Stay home & renew car insurance in 2 minutes

No documents required
Get Car Insurance starting at only
₹2072/year*
Processing
Other options
Get Car Insurance starting
@ only 2072/year*
  • Save up to 85%* Lowest Car Premiums

  • 20+ Insurers To Choose From

  • 25 Lakh+ vehicles insured

*TP price for less than 1000 CC cars. All savings are provided by insurers as per IRDAI approved insurance plan. Standard T&C apply.

The myths and misconceptions around car insurance policies further add to the confusion. You would need to understand what’s just a myth and what’s the fact in order to make the most of your car insurance policy.

We’re sure you’re wondering:

“How do I get to separate the most common car insurance myths from facts?”

Well, today I’m going to make it easy for you by busting 9 common car insurance myths.

So, let’s get started! Shall we?

Myth 1 –Only Car Dealers Give the Best Car Insurance Deals

Many people are under the impression that when buying a car from a particular dealer, purchasing car insurance from the same dealer helps get a better deal. Not true - car dealers usually pitch those insurers with whom they have tie-ups or those who pay them higher commissions. To ensure you get the best deal, it helps to compare quotes from various sources and compare them with what the dealer offers. Compare car insurance quotes online also helps get good deals. Finally, before zeroing in on the insurer, check the offered add-ons, claim settlement ratios, etc.

Myth 2 - Minimum Coverage is Profitable

Getting only as much coverage as would be required to pay a low minimum premium is a wrong decision. It might save some money in the short term, but it is not helpful in the long run. For instance, opting for a high deductible policy might lower your premiums, but it would also mean that you will have to pay a higher out-of-pocket amount in case of a claim.

Myth 3 - Number of Drivers Does Not Matter

A vehicle driven by multiple drivers increases risks for insurance companies, and they therefore charge higher premiums. On the contrary, car insurance companies consider single-driver driven vehicles safer, better maintained and driven within applicable rules and regulations. It is, therefore, better to ensure that only one person drives the vehicle.

Myth 4–No Claim Bonus (NCB) Lapses in Case of Delay in Policy Renewal/NCB is Lost If the Car Insurance Policy is transferred from One Insurer to Another

You have been a careful driver and steered clear of accidents, and therefore accumulated a sizable NCB for over three years. However, your car insurance policy lapses, and for some reason, you are unable to renew the policy on time. Nevertheless, there is no reason to worry about losing your accumulated NCB - a 90-day period from the policy expiry date is permitted, within which you can renew your car insurance policy and carry forward the entire NCB.

Also, your No Claim Bonus follows where you go. Therefore, even if you switch insurers, you can transfer the entire accumulated bonus amount without any losses.

Myth 5 - Installing an Anti-Theft Device has No Bearing on the Premium, Nor Does Being a Teetotaler

Insurance companies offer discounts on premiums if car owners install an anti-theft device in their vehicle. Installing an ARAI-approved anti-theft device allows an even higher discount on premiums. Since this practice lowers the number of claims made, it benefits the insurance company as well.

Further, if you are a teetotaler, you can ask for the abstainer discount.

Myth 6 – All Add-ons the Dealer Proposes are Essential

The add-ons you wish to purchase with your car insurance policy will depend on your specific requirements. Often, dealers’ hard sell add-ons you may not even need just to earn better commissions. However, you should only get those add-ons that are most essential for you. For instance, the zero depreciation cover is beneficial for new drivers.

Myth 7 - Buying Car Insurance from Dealers Comes with a Range of Extra Benefits/Free Services

Free servicing for a certain number of years, free car wash, Teflon coating, etc. are value added services that dealers must provide without the condition of purchasing the car insurance policy from them. Further, important offerings like cashless claim settlements, genuine part usage, quality assurance, quick survey, etc. are offered by the insurance company and are not tied to buying insurance from the car dealer.

Myth 8 – One’s Occupation has nothing to do with the Car Insurance Premium

In fact, quite the opposite is true. Occupation plays a key role when a car insurance policy is purchased - it determines the quantum of car insurance discount you will qualify for. For instance, doctors, teachers, engineers and the likes are considered to be more careful drivers.

Myth 9 - Insurers cannot be Switched

There is no hard and fast rule that you need to stick to the same insurance company. If another insurer is offering a better deal, a switch is only wise. However, this has to be done well before expiry of the current policy. If you delay premium payments, policy renewals, or switching insurers, you fall into the high-risk customer category and will therefore be charged higher premiums.

The Bottom Line

Remember, it may look too daunting to read through the fine prints of your car insurance policy, but it will help you understand facts from myths, which is vital if you want to make the most of your car insurance policy.

Written By: PolicyBazaar - Updated: 27 August 2021
You May Also Like
  • Transferring Car Insurance from One Person to Another

    Transferring Car Insurance from One Person to Another In the current economic climate that encourages consumers to “reduce, reuse and recycle”, it is becoming increasingly common for people to purchase second-hand...

    read more
  • 9 Secrets That Your Motor Insurance Provider Won’t Tell You

    9 Secrets That Your Motor Insurance Provider Won’t Tell You Due to the dangerous driving conditions, it is compulsory to have third party insurance for every vehicle plying on Indian roads. It ensures the overall saf...

    read more
  • Money Saving Advice for All Car Owners

    Money Saving Advice for All Car Owners After a dream home, a dream car is your second-largest purchase that you make in your lifetime. But the expense does not cease when you drive off the car dealer's lot. Read mor...

    read more
  • Difference Between Comprehensive Insurance and Third Party Insurance

    Difference Between Comprehensive Insurance and Third Party Insurance Comprehensive insurance is insurance coverage that pays for the repair or replacement of vehicle damages resulting from an incident. Comprehensive ca...

    read more
  • Types of Motor Insurance

    Types of Motor Insurance The word Motor broadly covers a lot of classes of vehicles plying on the roads. These may be two-wheelers like scooters and motorbikes, three-wheelers or four wheelers like private cars, jeeps, ...

    read more
Search
Car insurance save up to 85
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
Calculate your car IDV
IDV of your vehicle
Calculate IDV
Calculate Again

Note: This is your car’s recommended IDV as per IRDAI’s depreciation guidelines.asdfsad However, insurance companies allow you to modify this IDV within a certain range (this range varies from insurer to insurer). Higher the IDV, higher the premium you pay.

Policybazaar lets you compare premium prices from 20+ Insurers!
Compare Prices

Why buy from Policybazaar?

  • 24x7 Claims Assistance
    NEW
  • Cashless Assurance
  • 3-Day Repair Assurance
  • Free Pickup & Drop
  • Self Video Claims
  • Windshield Claims At Home
Know more

Car insurance articles

Recent Articles
Popular Articles
Best Cars Under 15 Lakh

07 Dec 2021

Car companies manufacture different cars in different price range...
Read more
How to Get a Car Pollution Certificate Online?

03 Dec 2021

Despite modernisation in India, air pollution continues to harm...
Read more
Driver and Passenger Cover in Car Insurance

29 Nov 2021

While driving, it is easy to get distracted, especially, during...
Read more
Cashless Car Insurance - What is Cashless Car Insurance Policy?

24 Nov 2021

Cashless car insurance is one such advanced feature that motor...
Read more
Things to Know About Total Loss Car Insurance Claim Process

22 Nov 2021

Imagine you have raised a claim after your car gets damaged in an...
Read more
Getting Your Duplicate Car Insurance Policy is Easy-Here’s How!
Insurance offers much-needed financial protection in case of a crisis. When vehicle insurance is mandatory in India...
Read more
Transferring Car Insurance from One Person to Another
In the current economic climate that encourages consumers to “reduce, reuse and recycle”, it is becoming...
Read more
How to Check Car Insurance Status Online on Parivahan Sewa/ RTO?
In India, buying car insurance is a compulsion for every car owner. It doesn’t matter if you are an excellent...
Read more
Multiple Ways To Check Your Car Insurance Status Online
Keeping a check on your car insurance policy is as important as purchasing a comprehensive insurance policy for...
Read more
Difference Between Comprehensive Insurance and Third Party Insurance
Difference Between Comprehensive Insurance and Third Party Insurance Comprehensive insurance is insurance coverage...
Read more