Myths about Car Insurance and the Fact
Updated On Oct 18, 2023
The purchase of a car is intrinsically tied to the purchase of a car insurance policy.
Table of Contents
- Myths About Car Insurance
- Take Away
The purchase of a car is intrinsically tied to the purchase of a car insurance policy. Automobile insurance coverage is now compulsory by Indian law, according to a new law released by the Indian government. As a beginner in the insurance market, you may feel intimidated, and you run the danger of being easily deceived by falsehoods that aren't true at all! Knowing the difference between a myth and a fact is critical, which is why we've compiled a list of the top 5 auto insurance myths you should be aware of.
Myths About Car Insurance
Any first-time vehicle insurance buyer would have received a lot of advice on what kind of insurance to obtain, where to get it, and who to buy it from. Even yet, we are bewildered as to what constitutes a myth and what constitutes truth. Although advice and critique are helpful, nothing beats a personal reality check. The following is a list of common misunderstandings that have been disproved by facts to help you overcome your erroneous beliefs and make an informed decision when obtaining automobile insurance.
Premiums Are Affected By The Colour Of Your Car
This is an urban legend that is neither true nor significant. Premiums are established by the vehicle's configuration, engine capacity, and body; the color of the car has no bearing. As a consequence, even if it means paying a greater price, don't be scared to get a car in your favorite color.
You May Save Money By Reducing Your Insurance Coverage
In contrast, you end up spending more money due to the limited services that come with a lower coverage package. Accidents may occur at any time, and if your insurance coverage is insufficient, you will be liable for the repair expenses. As a result, if you want to get the most out of your insurance, go for a higher-cost plan with greater coverage.
Your Car Insurance Will Take Care Of Everything
Your car insurance, contrary to popular assumptions, only covers a portion of the damage to your vehicle. It has limitations, and you may be asked to pay the first payment in cash before your insurance carrier would cover the rest. This is known as a deductible, and different insurance companies have different amounts for it.
You, Will, Forfeit Your No-Claim Bonus If You Switch Insurance (NCB)
A No Claim Bonus (NCB) is a discount on your vehicle insurance rates that you receive for not making a claim. Many customers fear that transferring from one insurance carrier to another would result in them losing this advantage. This is not the case, though. Your NCB is portable and follows you even if you switch car insurance providers.
Your Premiums Will Increase If You Are Involved In An Accident.
Accidents have no bearing on insurance premiums. People are bewildered since filing a claim on your vehicle insurance policy means losing your No Claim Bonus (NCB). As a result, the no-claims discount you earned on your vehicle insurance is no longer available, but your premium remains the same. It hasn't altered in the slightest.
These are the top five auto insurance myths that many people believe to be true. If you keep these factors in mind, it will be easier for you to invest or obtain insurance coverage. It's essential to protect your car from unforeseeable damage or accidents, so study up on the terms and conditions of car insurance before rushing to purchase one.