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Insurance Article

Common Car Insurance Myths and Misconceptions Busted

April 15 2015

Your car faces multiple risks both while on the road and even when off it. Car insurance safeguards you from the financial repercussions of these risks. However, car insurance is riddled with some misconceptions. Read more to get answers to some common questions about car insurance.

Myth 1:  Getting car insurance is a cumbersome process and requires loads of formalities.

Reality: Buying or renewing car insurance was never easier. You can buy online car insurance in a simple and hassle-free manner. Once you fill in a few basic details about your vehicle, you receive an instant online quote for the premium. Within a few steps, you can complete the formalities and make a payment online.

Some insurance companies have also introduced a Photo Quote option - whereby you only need to share a click and share a photo of your existing policy and you receive a renewal quote instantly.

Myth 2: I want to transfer my policy from one insurer to another. However, I fear that the No Claim Bonus will be lost.

Reality: You can buy car insurance from any source without losing the No Claim Bonus as it can be transferred from one insurer to another. However, NCB is transferable only if you renew your policy within a particular period.

Myth 3: Car insurance only covers accidents.

Reality: Apart from accidents, car insurance also covers losses due to natural calamities like lightning, earthquake, flood, landslide, etc., as well as and man-made eventualities like burglary, theft, riots, terrorist activity, damage in transit, etc.

Myth 4: Car insurance claiming process is lengthy and riddled with inconsistencies.

Reality:Registering a car insurance claim is very easy. You just need to log on to the insurance provider's website and fill up a claim form. You can also track its progress online. Once the claim is registered, you will be contacted within 24 hours so that the formalities like document submission can be completed.

Myth 5: In case of an accident, I have to pay from my pocket and then go through the hassles of claim processing.

Reality:With online insurance, you can get a quick cashless claims settlement facility when you visit a networked garage. The insurance company directly settles the amount with the garage and you do not have to bear the inconvenience.

However, in case the vehicle is serviced at a garage outside the purview of the insurance provider's network, you can claim reimbursement for the same.

Myth 6:In case of a car crash, I will get a claim amount equivalent to the amount of a new car.

Reality: An insurance company pays a claim amount in accordance with the terms of the insurance policy. The principle of indemnity governs insurance. This means that you get back to the same financial position that existed before the damage occurred. You cannot better your existing position. Hence, depreciation is deducted on your existing car while calculating the value of your loss.

Buy a comprehensive insurance cover to enjoy a peaceful ride free of worries. Click here to calculate your car insurance premium and to buy your car insurance policy online.

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