Any first-time auto insurance purchaser would have gotten a lot of dos and don’ts regarding the type of insurance to get, as well as where and from whom. But even then, we frequently need to distinguish between myth and reality. Before obtaining car insurance online, you should ask yourself several questions, such as how car insurance works, how the premium is determined, what kind of coverage you need, etc.
| Myths | Facts |
| Buying car insurance is tiresome | The procedure of buying automobile insurance is no longer difficult. It is simple and quick.* |
| Only accidents are covered by car insurance. | Read your policy thoroughly before buying to know what is covered in car insurance. Comprehensive coverage offers protection from a variety of risks, such as theft, robbery, natural disasters, man-made disasters, and damage while in transit. Third-party liability insurance can pay for any harm or losses you or the covered vehicle may cause to a third party.* |
| Neither used nor pre-owned vehicles require auto insurance. | Under the Motor Vehicle Act of 1989, purchasing auto insurance is required for all vehicles, new or secondhand. |
| Third-party policy cover is adequate | You and the car are not protected by third-party insurance. Only harm to a third party’s person or property is covered. You may be responsible for paying the full cost of the loss or repair if your car is damaged in an accident, collides with another object, or is stolen.* |
| Your auto insurance can pay for any harm you cause. | Every policy has various restrictions and exclusions, and auto insurance is no different. There are various exclusions in the policy that may not be covered, like drunk driving, ordinary wear and tear, incidental losses, depreciation, etc.* |
| No-claim bonus is non-transferable | The no-claim incentive can be transferred without restriction if you switch insurers. The new insurer can also use it. Only if you are transferring to someone other than the insurer is NCB non-transferable.* |
| If one sells their car, the NO-claim Bonus can automatically be passed to the new owner. | No-claim bonus is a reward given to you and your driving record. It belongs to you and solely you. It is non-transferable to another person.* |
| Insurer cannot be changed once bought by them | Switching insurers is possible. Simply give your current insurer a week’s notice and make sure the old policy has been replaced with the new one. The cancelling process won’t be finished until then. Additionally, you can request that the insurance transfer your NCB to the new insurer.* |
| The insurance can give you the car’s original purchase price back if it crashes. | You may only be refunded the purchase price of the car if you have return to Invoice add-on coverage. If not, the claim amount may be reimbursed to you after depreciation, IDV, and other considerations have been made.* |
| Claiming process is chaotic | If the insurer offers a default cashless claim option, or if you have chosen to use it, you won’t be responsible for paying any hospital bills or damages. Once you have informed the insurer and taken all the necessary actions, the insurance provider can handle all payments. * If you previously paid for the damages and repairs, all that is left to do is complete a few claim forms. Include all the invoices and include pertinent information about the situation. The insurance can reimburse your claim amount following a thorough examination of the incident and verification of all the bills.* |
The insurance company values your life and your car considerably higher than you do. Therefore, before you sign the document, please read it over carefully and comprehend it. Learn how to claim car insurance. Please get in touch with the insurer and request clarification if you don’t understand any of the clauses in the contract.
*Standard T&C apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
