Buying car insurance may not be on your list of priorities. You may also feel that it is an added expense with few benefits. But, you cannot predict that your car will remain accident-free forever. So, a car insurance is crucial to ride over a potential migraine. Here are some car insurance myths busted:
1. Myth: Buying car insurance is a long process
Truth: It is quite easy to get car insurance these days. You only need to fill in some basic details to get a quote for the premium amount. Two more steps and you get yourself a policy.
2. Myth: Transferring the policy may lead to loss of No Claim Bonus (NCB)
Truth: NCB is a benefit you get for keeping your car in good condition. You are eligible for an NCB if you have not filed for any claim during the policy term. Usually, this is a good amount of money. An NCB is transferable from one insurer to another. But, make sure to file for it within 90 days of the expiry of your old insurance policy.
3. Myth: Car insurance only covers accidents
Truth: Car insurance covers losses in the event of natural and man-made disasters. These include earthquakes, floods, landslides, theft, riots, terrorist activity and damage in transit. So, it covers almost everything.
4. Myth: Claiming car insurance is a difficult process
Truth: To claim insurance, you only need to fill a claim form on your insurer’s website. Your insurer will contact you within 24 hours of document submission. The insurer will also assist you at all stages.
5. Myth: I get a claim amount to get a new car if my current one crashes
Truth: The insurer calculates depreciation on the current car. The claim amount depends on its market value. The insurer calculates the amount based on the principle of indemnity. To keep it simple, you will get a claim amount that is the market value of your car at the time of the crash.
6. Myth: My old car does not need insurance
Truth: Under the Indian Motor Vehicle Act, 1961, it is mandatory to insure your car, whether old or new. Even if you feel that the old car is not worth a comprehensive insurance plan, it is wise to opt for one. This is because it is difficult to find spare parts, and quite easy to steal an old car.
7. Myth: I am covered for all kinds of damage to my car
Truth: If you were drinking and driving, you cannot claim insurance. In such instances, the insurance claim is not approved.
8. Myth: I have to pay from my pocket and then claim my car insurance
Truth: You will get a list of garages from your insurance provider. Garages in this list are called ‘networked garages’. If necessary, you can go to one such garage. The insurer will settle the claim directly with the garage. If you pay your bills, you can also claim reimbursement from your insurer later.
To sum up
You can always find an insurer that is willing to answer all your queries about car insurance. Let a few myths not stop you from investing in an insurance policy. Do some research and invest in one that suits you best. Stay safe and protect yourself from disasters.