Common Myths About Buying Car Insurance
Updated On Oct 15, 2023
The lack of adequate knowledge of insurance plans leaves policy buyers confused. Particularly when it comes to insurance for your car. Often, understanding what is true becomes elusive, as myths play a significant role in confusing one's state of mind.
In deciding your car insurance, there are several factors that play an important role. The lack of proper understanding of car insurance affects your policy choice and hinders your financial interests. It is crucial to know about the things that determine the price of your car insurance at the time of buying insurance coverage, and it is equally important to distinguish between facts and myths.
Myths About Buying Car Insurance
There are many myths relating to car insurance. Here is a list of a few common myths which need to be busted.
Myth 1: Buying Car Insurance is a Cumbersome Process:
This is far away from the truth. The procedure includes filling in some simple information about your vehicle, after that you get an immediate quote on the rate of premium it is going to cost you. You can get your car insurance in order in a few hours, following these formalities.
Myth 2: You Cannot Change Your Insurance Company After Buying A Plan
There is a misunderstanding that you cannot change the insurance provider during the lifespan of the car after you have acquired car insurance. It is easier to review policies from multiple insurance providers and pick the right one at the time of renewal, instead of going to the same provider.
Myth 3: Experience Needs No Car Insurance Policy
Some people believe they are a seasoned driver and so there is no reason to insure the car. When your car meets with an accident, without being insured, you will be entirely responsible for all the losses sustained by a third party, as well as for the damage to your car. Therefore, you might have driving experience, but it is still advisable that you purchase a car insurance plan according to the needs.
Myth 4: Insurance Company Can Terminate Your Insurance Anytime
Another myth about car insurance is that the contract can be cancelled at any moment by the insurance provider. If you haven't made any false declarations, the insurance provider has no right to cancel your car insurance policy.
Myth 5: Claim Settlement is a Difficult Process
There is a misunderstanding about the method of claiming benefits. People also believe that in the event of some unfortunate occurrence, to get the claim, one needs to run pillar to post. This is not true and in fact, it is a fairly clear operation. Most claims are settled within 2-3 days.
Myth 6: You Will Lose Your No-Claim Bonus (NCB) If You Transfer Your Policy
NCB is a kind of bonus that you get for not claiming within the policy era. There is a misconception that policyholders forfeit their NCB (No Claim Bonus) at the time of changing their policy from one insurer to another. From one insurer to another, the NCB can be transferred. Before it is transferred, the only thing you need to ensure is to have the latest policy.
Getting a car insurance policy in India is mandatory; however, you need to know how to discern between myths/misconceptions and truths about it. You should have proper information about car insurance policies before purchasing a plan and must know to recognise which plan you require to purchase.
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.