It’s a known fact that purchasing a new car also requires an individual to get a car insurance policy. A car insurance policy is important; it protects not only the car but also the insured person in case of an unforeseen accident or damage. Despite being a necessary step, there is a lot of misinformation floating around. They are misleading and not true.
Hence, to help you understand this better, it’s important to debunk these myths that some people believe in. Let’s go through some of the common car insurance myths that are far from being true.
Myth 1: Changing the Insurance Providing Company will Cause the No Claim Bonus to be Forfeited
This statement is far from being true. Do you know what NCB is? It’s a no-claim bonus that people obtain for not claiming their insurance coverages during their policy period. Some people think that if they transfer the car insurance policy to another insurance providing company, they can no longer enjoy NCB. But in reality, NCB can also be transferred from one insurer to another to continue getting the no claim bonus benefits.
However, make sure to renew your car insurance within 90 days of the expiration of the previous one. Otherwise, the NCB becomes invalid, and you would no longer be able to claim your benefit.
Myth 2: The Insurance Premium Amount is lower for Older Cars
It’s said that the insured declared value of cars is the prime factor that affects the car insurance premium. According to this, if a car is old, its insurance premium value would be less too.
However, this isn’t always the case. Besides considering the idv, insurance companies consider several other factors before determining your car’s insurance premium, for instance, previous driving history, if any, your NCB, what kind of coverage has been purchased, etc. If you have made numerous claims throughout the policy period in the previous year, the premium for the current year would be high.
Myth 3: Getting a new Car Insurance Policy is a tiring Process
Technological advancements in recent times have made the process quick. Nowadays, not only purchasing but also renewing your car insurance policy can be done online, sitting back at home! Isn’t that wonderful?
You simply need to enter the correct details and attach the required documents asked. That’s all! After submitting, a digital copy of your car insurance would be in your mailbox. Hence, it’s evident that purchasing or renewing car insurance is cheap and quick.
Myth 4: If you are a Professional Driver, you don’t need Car Insurance
This is another serious misconception of ignorant people. While you can be sure of your conduct on the road, you cannot protect your car from callous or inefficient drivers on the road or poor road conditions.
If any day your car meets with an accident and you don’t have a car insurance policy registered, whatever damages occur to the third party car, you would have to take full responsibility and help the other party with cash. Not just that, if your car gets damaged, you have to pay charges for its repair from your pocket. But, if your car is insured, the entire situation would have been reported to your insurer, and they would have looked into the matter accordingly.
Myth 5: Claim Settlement is an Extremely tedious Process
Another car insurance myth prevalent to date is this. Sometimes people think that in case of an accident, they would have to go through a lot of hassle to claim their insurance coverage. This thought isn’t true in present times.
Nowadays, claim settlement processes have become extremely convenient and easy. They can be done online too! You just have to fill up the claim form on the insurance company’s website. If your claim is found genuine, you would have to submit related documents afterwards. If you feel the need to scrutinize the entire procedure, you can contact a customer care representative and know the updates from time to time.
Above mentioned are some common misinterpretations that you must have heard before. If you are planning to buy a new car, you must be aware of the myths and the realities associated with them and make an informed decision.
Also, while you proceed to buy a car insurance policy, make sure to compare the charges online. Choose an insurance company that caters to your requirements and delivers maximum coverage with a nominal premium.