5 Myths About Buying Car Insurance Busted!

The lack of proper knowledge about an insurance plan often makes people confused. Especially, when it comes to car insurance. Sometimes, it becomes challenging to understand what is true, because myths play a major role in puzzling one’s state of mind. In this article, we have tried to bust the most common myths about car insurance to help people select the plan which best suits their requirements.

Myth 1: You Cannot Change Your Insurance Company After Buying A Plan

Like all insurance plans, car insurance also comes with a validity period, after the expiry of which it needs to be renewed. There is a misconception that once you have purchased motor insurance, you cannot change the insurance company during the lifetime of the car. This is not true. At the time of renewal, rather than going for the same insurer, it is better to compare plans from different insurance companies and choose the best one.

Myth 2: You Always Lose NCB

NCB is a kind of reward which you get for not making a claim during the policy period. There is a myth that policyholders lose their NCB (No Claim Bonus) at the time of transferring their policy from one insurer to another. However, this is not true. Your NCB can be transferred from one insurer to another. The only thing you need to ensure is to get the new policy before it expires. In case your policy has already expired, make sure to get the new policy within the grace period of 90 days. However, in the grace period, you will need to get your car inspected again. You can read about car inspection here in detail.

Myth 3: Experience Needs No Car Insurance Policy

Overconfidence often leads a person to make poor choices. Often while buying a car insurance plan, some people think they are an experienced driver thus there is no need to make the car insured. This is a wrong perception. You can make sure you are the safest of drivers but you do not have any guarantee about the conduct of other drivers. If your car meets an accident without being insured, you will be fully liable to give all the expenses caused to third party as well as for the damages to your own car. Moreover, in India, it is mandatory to have at least a third party car insurance policy. Thus, you may have experience in driving but it is always advised to buy a car insurance plan according to your requirements.

Myth 4: Insurance Company Can Terminate Your Insurance Anytime

Another misconception regarding motor insurance is that the insurance company can terminate your policy anytime. This is absolutely wrong. The insurance company has no right to terminate your car insurance policy if you have not made any false declarations. Termination can happen if you have hidden any important information, not paid premiums or not renewed your plan after validity ends.

Myth 5: Claim Settlement is a Difficult Process

Last but not least, there is a misconception about the insurance claiming process. People often think that in case of any unfortunate incident, one needs to run pillar to post to get the claim. This is not true. In reality, it is actually a pretty straight forward process. Moreover, in the era of technology, you can claim your insurance in just a few clicks. What you need to do is to log on to the insurer’s website and fill up the claim form. If the claim is registered successfully, within 24 hours you will be requested for document submission. Moreover, you will be assisted at every stage while filing the claim. If the contents of the website do not answer all of your queries, you can call the customer care executive.

Alternatively, if you had purchased a policy from us, you can visit our website and get complete assistance for your claim settlement.InsuranceDekho has a robust and dedicated customer support team which assists its customers at all stages of a claim settlement. Our executives will not only guide you about the claim process but will also help you complete it in time.

The Bottom Line

Since it is mandatory to have a car insurance policy in India, you must know how to differentiate between the myths and truths about it. Before buying a plan, you should have proper knowledge about car insurance policies and must know to identify which plan you need to buy. You can refer to a checklist specifying the DOs and DON’Ts which you must practice at the time of buying a car insurance policy.

For further reading:

All About Car Insurance Renewal

Disclaimer: This article is issued in 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.