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Top Automobile Insurance Myths You Need to Avoid

automobile insurance myths

Are you thinking of buying a car insurance policy for yourself? When you are on the verge of purchasing your vehicle's reliable car insurance online, it is crucial to properly understand all the possible aspects affecting the overall premium and longevity of the insurance plan. If you are new to buying a car insurance policy, you are more likely to be confused about the same thing.

Nevertheless, knowing the premium structure and the factors influencing the premium is substantial. But sometimes, it becomes difficult to distinguish between fact and fiction, as the auto insurance sector, like other segments, is also part of myths. Failure to properly understand motor insurance can affect your policy choice or financial interests. Besides, insurance myths, whether it is a car, home, health, play an essential role in putting you in an unsatisfactory state of mind.

To help you, we have listed some of the top automobile insurance myths that you need to avoid to buy the best one:

Myth one:  An old car does not require insurance - Under the Indian Motor Vehicles Act, 1961, it is mandatory to protect your vehicle through an insurance scheme, whether old or new. You may feel that the low replacement value of an old car does not justify a comprehensive insurance plan, although remember that older cars, due to the demand for their parts, have a higher probability of theft. Also, it is easy to steal old cars.

Myth two: Motor insurance covers accidents for which I am not liable - Having a motor insurance policy means that if you have a valid driving license, you will be covered for all types of accidents. With comprehensive auto insurance, in the event of mechanical failure or damage, theft, flood, terrorism, riots, etc., you can get coverage for your vehicle. And, if an incident occurs under the influence of alcohol or drugs, it is not covered. Also, vehicle use must conform to that specified in the policy document. For example, if you use your car for business purposes and an accident occurs, you will not be able to claim damages.

Myth third: Do not transfer my policy to another insurer because if I do, I will lose my NCB - If you are not aware of the fact that the No Claim Bonus (NCB) is a type of incentive given to a policyholder for every claim-free year. That is a significant amount, and if not claimed, it will be collected from year to year. Wherever you go, your NCB follows you. It ensures that even if you change your insurance from one insurer to another, you can transfer to the NCB, as long as it is to be filed within 90 days of the expiration date of your old policy.

Myth forth: If my car is old, then the third-party cover is enough - Third-party car insurance policy involves only third party damages and your car's damages are not paid.

Myth fifth: If I sell my car, my NCB will automatically go to the new owner - NCB is your asset, a reflection that proves your ability to drive. You are the only authority on this. No matter which insurance company you are willing to choose, your NCB follows you and you can avail 100% of it. Yes, it is a lie that when you sell your car, NCB will be transferred.

Myth sixth: Your insurance covers all the losses you have incurred - Generally, but not always, especially if you are convicted of drinking and driving.

Myth seventh: I cannot change the insurer once I buy - Insurance plans are mostly valid for one or two years. And, you cannot change your insurer, this is not the reality. With the full benefit of NCB, you will adjust it at the time of renewal.

Myth eighth: If I have a driver, I have to take a different policy - It is good to add a driver to your coverage and you do not need a separate auto insurance plan for the same thing. Only to be assured that there is a valid license from the driver. If not, in the event of an accident, the insurer will not consider your complaint.

Myth ninth: I have to pay out of my pocket in the event of an accident and then go through a complex claim process - Your claim will be reimbursed whether you pay or not. You should visit a networked garage for online insurance and the insurer directly covers the costs incurred, so no intervention is required. Additionally, if for some reason you are unable to use the garage on the network, you can later claim a refund.

Myth tenth: The claim process is prone to a discrepancy - The auto insurance compensation process is not complicated at all. Just log in to your insurer's website, fill out the claim form by providing relevant information and submitting it. After your statement is registered online, Customer Care can contact you within 24 hours as well as assist you with additional formalities. Often, the insurer takes care of liability if your vehicle is brought into a garage and you do not have to pay a single penny.

Conclusion: Myths of auto insurance and the essential insurance truth of a car owner. Since an auto insurance policy, i.e., at least third party protection is mandated by law, car owners are always searching for the right auto insurance policy. It is necessary to know how to dispel myths and accept this fact. You can have a direct discussion with the insurance agent about your requirement and he can help advise you which insurance policy to buy for the vehicle.