Steer Clear of These Car Insurance Myths for the Right Insurance Policy
Car insurance is one of the few things you must have as a car owner. It is a mandatory requirement in addition to getting your car registered with an RTO as well as seeking a PUC certificate. The Motor Vehicles Act of 1988 lays down this requirement and non-compliance with the law attracts fines. So, it is essential you ensure legal compliance. But in addition to legal compliance, car insurance plans also help provide a financial backup for damages to your car. However, the protection and insurance plan offer depend on the type of policy.
When buying an insurance plan, there can be various myths you might believe to be true. This article demystifies some of them for you to simplify your car insurance purchase.
- Buying an insurance policy is often a tiring process
The reality of modern-day insurance plans is far from the myth you have heard. An online shift in insurance policies ensures any hurdles, related to documentation as well as procedures are smoothened out. Buying an online car insurance policy is simpler with policies to choose from at the convenience of your home without having to visit different insurance companies. In terms of documents required for applying for one, all you need is a soft copy of the vehicle’s registration document along with a few personal identification documents. This helps reduce the time lag for availing of the insurance cover.
Further, renewal is also a breeze with most details already with the insurer. All you must do is select the choice of policy, its upgrades and make the payment to get the necessary coverage. *
- Changing the insurance company leads to loss of no-claim bonus
No-claim bonus or NCB is a markdown in renewal premiums offered by insurance companies for not raising a claim. Thus, it helps to lower the burden of insurance premiums at the time of renewal. While it is a common misconception that changing your insurance company leads to a loss of no-claim benefits, it isn’t the truth. You as a policyholder are free to change your insurance company. In addition, these accrued policy benefits on your comprehensive car insurance policy can be transferred to a different insurance company too. All you must do is obtain an NCB transfer certificate and submit it to your new insurer. This way, any accumulated benefits are available with the new insurer too. You can visit the official website of IRDAI for further details. *
- Safe drivers do not require a car insurance policy
Being a safe driver does not exempt anyone from having a car insurance policy. As the law states, it is mandatory to have at least third party car insurance. Having a third-party cover helps to safeguard yourself against legal liabilities arising due to an accident injuring a third-person or property damage. Thus, do not believe in the misconception of safe and experienced drivers do not need a car insurance plan. *
- Older cars have lower insurance premiums
The misconception that older cars have a lower premium is based on the decreasing IDV each year. While IDV accounts for depreciation on the car and reduces each year, it isn’t the sole factor that determines car insurance prices. Previous claim history, driving records, type of insurance cover, NCB benefits, etc. are some other factors that impact the premium calculation. Thus, do not believe that older cars have a lower premium. It is based on the individual case. *
* Standard T&C Apply
With the myths surrounding car insurance debunked, you can make a smart choice in selecting a car insurance plan that not only provides legal coverage but also financial cover. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.