Common Car Insurance Myths And Their Facts

The purchase of an automobile and the purchase of a car insurance policy are inextricably linked. According to a new law issued by the Indian government, purchasing automobile insurance coverage is now required. Entering the insurance industry as a newcomer might be intimidating, and there's a risk of being easily misled by falsehoods that aren't true at all! It's crucial to know the difference between a myth and a truth, which is why we've put together this list of the top 5 auto insurance misconceptions you should be aware of.

Common Car Insurance Myths

Any first-time auto insurance buyer would have gotten a lot of dos and don'ts of advice on what sort of insurance to purchase, where to get it, and who to buy it from. Even yet, we become perplexed as to what is a myth and what is truth. Advice and feedback are valuable, but they pale in comparison to a personal reality check. The following is a collection of misconceptions debunked by facts that can dispel your erroneous ideas and assist you in making an informed decision when purchasing vehicle insurance.

1. The Color of Your Car Affects Premium

This is a myth that is neither factual nor relevant. Premiums are determined by the configuration, engine capacity, and body of the vehicle; whether it is red or white has no influence. As a result, don't be afraid to acquire an automobile in your favourite colour, even if it means paying a higher price.

2. Lowering your insurance coverage saves you money

In contrast, because of the limited services that come with a smaller coverage plan, you wind up spending more money. Accidents can happen at any moment, and if you have inadequate coverage, you will be responsible for the repair costs. As a result, if you want to get the most out of your insurance, choose a plan with more coverage and a higher cost.

3. Your automobile insurance will cover everything

Contrary to common belief, your automobile insurance only covers a percentage of the damages to your vehicle. It comes with exclusions, and you may be required to pay the first sum out of cash, with your insurance provider covering the remainder. A deductible is what this is called, and different insurance companies have varying amounts for it.

4. If you change insurers, you will lose your no-claim bonus (NCB)

A No Claim Bonus (NCB) is a discount on the rates that you receive for not filing a claim on your auto insurance policy. Many consumers believe that if they transfer from one insurance carrier to another, they would lose this benefit. This, however, is not the case. Your NCB is transferable and stays with you even if you change vehicle insurance companies.

5. In the event of an accident, your premiums will rise

Accidents have no bearing on premium amounts. People are perplexed since making a claim on your automobile insurance coverage results in the loss of your No Claim Bonus (NCB). As a result, the discount you received for not filing a claim on your auto insurance is no longer accessible, but your premium stays unchanged. It hasn't changed in any manner.

Take Away

These are the top five auto insurance misconceptions that many think to be real. It will be easier for you to invest or get an insurance policy if you keep these points in mind. Securing your automobile from any type of unanticipated damage or accident is essential, so read up on the terms and conditions of car insurance before rushing to get one.

Also Read: 

How To Lower Premium of Your Car Insurance?

Top Factors That Determine The Premium of Your Car Insurance Plan

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.