Any first-time purchaser of car insurance would have gotten a lot of dos and don’ts regarding the type of insurance to get, as well as where and from whom. But even then, we frequently fail to distinguish between myth and reality. While suggestions and opinions are helpful, nothing beats a reality check from within. Before obtaining car insurance, you should ask yourself several questions, such as how car insurance works, how the premium is determined, what kind of coverage you need, etc.
Here are some car insurance misconceptions and realities:
|Neither used nor pre-owned vehicles require car insurance.
|Under the Motor Vehicle Act of 1989, purchasing car insurance is required for all vehicles, new or secondhand. Long-term protection for the vehicle can be obtained by insuring it with a comprehensive policy that only includes a few essential, optional covers. The likelihood of theft or mechanical issues is higher in older vehicles. As a result, proper car insurance is unquestionably required. *
|The No-Claim Bonus cannot be transferred. *
|A no-claim bonus is a reduction that the insurer offers if the policy is not used during that year. The no-claim incentive can be transferred without restriction if you switch insurers. The new insurer will also be able to use it. Only if you are transferring to someone other than the insurer is NCB non-transferable. *
|Only accidents are covered by car insurance.
|If you purchased comprehensive coverage, it is important to understand what it also covers. No automobile insurance just covers accidents involving you or a third party; it also offers protection from a variety of other risks, such as theft, robbery, natural disasters, and man-made disasters, including terrorist attacks, riots, and damage while in transit. If you have merely purchased third-party liability insurance, it will pay for any harm or losses you or the covered vehicle may cause to a third party. *
|Car insurance shopping is a laborious procedure.
|The procedure of buying automobile insurance is no longer difficult thanks to the internet and different third-party companies you can now check car insurance online. It is simple and quick, and it saves both time and money. Additionally, you will receive the materials promptly and via email. ##
|Your car insurance will pay for any harm you cause.
|Every policy has some limitations and exclusions, and so does car insurance. There are some exclusions like driving while intoxicated, normal wear and tear, consequential losses, depreciation, etc., which are not covered in the policy.
|Once purchased by them, an insurer cannot be changed.
|You might not be pleased with your insurer for a variety of reasons. In such circumstances, switching insurers is a real possibility. Simply give your current insurer a week’s notice and ensure the old car policy has been replaced with the new one. The cancelling process won’t be finished until then. Additionally, you can request that the insurance transfer your NCB to the new insurer. *
|Claiming process involves a lot of chaos
|If the insurer offers a default cashless claim option, or if you have chosen to use it, you won’t be responsible for paying any hospital bills or damages. Once you have informed the insurer and taken all the necessary actions, the insurance provider will handle all payments. If you have already paid for the repairs and damages, you only need to complete a few claim forms, attach all of your receipts, and provide pertinent information about the incident. The insurance will reimburse your claim amount following a thorough examination of the incident and verification of all the bills.
The insurance company values your life and your car considerably higher than you do. Therefore, before you sign the document, please read it carefully and comprehend it.
* Standard T&C Apply
## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.