9 Myths That Don't Let You Make the Most of Your Car Insurance
Published On Jul 19, 2021
Read this article to debunk the top 9 myths surrounding car insurance that hinder you from making the most of it.
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There is a lot of information and perceptions about car insurance out there; some are considered fundamental truths, while others, when examined closely, reveal a deeply embedded myth. The problem with insurance myths is that they can cost us money or influence our decisions, which is why it's time to debunk them.
Debunking Myths Around Car Insurance
While there are a lot of myths around car insurance, it is very important to understand the facts in order to make the best of your insurance policy. Blindly following these myths will hold you back from getting the best facilities and insurance plans for your car. The following are the top 5 myths that don’t let you make the most of your car insurance-
Buying Car Insurance Is Time Consuming
The best part of living in the 21st century is the internet. With technological advancements, you can purchase car insurance online from the comfort of your residence within minutes. All you need is a smartphone, a decent internet connection and necessary documents. While purchasing car insurance requires you to go all the way to the insurance company branch, you can compare thousands of policies and get insurance quotes within minutes today. So, even though purchasing car insurance should be a thoughtfully done process, you can do it without difficulty online as per your convenience and save a lot of time.
The Premium For Older Car Is Very Low
As we are constantly reminded, IDV (Insured Declared Value) is the key to determining car insurance premiums. Thus, as your car ages, the IDV decreases, resulting in a lower car insurance premium. Not all of the time. Your car insurance premium will be determined by a variety of factors, including the type of coverage you have, your driving record, your age, the number of kilometres you drive each year and the reason you drive, your claim history, and No Claim Bonus (NCB). If you make a lot of claims, your premium will not go down and may even go up the following year.
You Will Lose Your NCB If You Switch Insurance Providers
A No Claim Bonus is a reward given by an insurance company to a policyholder who does not file a claim in a given year. The No Claim Bonus is tied to the policyholder and not the vehicle or the insurance policy. The good news is that you can transfer your No Claim Bonus from one insurer to another and still receive the benefits. To keep the NCB, you must get the new policy within 90 days of your old one expiring. The NCB will no longer be valid after 90 days and you will lose the benefit.
You Don’t Need Car Insurance If You Live In Rural Areas
This is one of the riskiest myths that you can come across. Although you may live in a rural area, having at least third party car insurance is mandatory for every car owner according to the Indian Motor Vehicle Act. Car insurance also protects you in the event of non-accidental damage to your vehicles, such as natural disasters such as earthquakes, cyclones, and typhoons. Car insurance also covers you if your car is stolen or damaged as a result of theft, riots, or terrorist activity. A car insurance policy's premium is a small price to pay in comparison to the financial loss you will face if you do not have one.
While car insurance involves many concepts that may not always be easy to comprehend, it is always wise to research and read from reliable sources. Understanding the intricacies of your car insurance policies like its limitations, facilities and benefits will help you to make smarter decisions related to car insurance and keep you on the financially safer side.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.