Published On: Mon, Oct 8th, 2018

5 Myths About Buying Car Insurance Busted

In a country like India, which is over populated; people have different mindsets and they prefer to believe what they want to. With globalization trending, the insurance market is also growing rapidly, especially the car industry. People are being more considerate for their belongings and thus they are trying their best to enhance the safety level.

But with different people come different assumptions! Same is the case with the car insurance market. The more the people study about what car insurance is and how it needs to be done, the more myths start turning up. Some people who are neither fully aware of what exactly the concept of vehicle insurance online is, nor are fully unaware of the same, pre-assume a lot many things, and create trouble for others. And the news spread like wildfire!

These are the type of people who create a lot of confusion and make things complicated. And, unfortunately, these people rule the insurance market!

photo supplied, courtesy of guest blogging network

But there is not much to worry about. Every problem has its solution.  You just need to follow the right direction and things will automatically fall in to place.

Below mentioned are few of the myths related to car insurance world. Remember, these are the myths and are not to be believed at any cost. You may find them convincing, but this is far from what happens in the reality.

Myth 1: Buying a car insurance is an irritating and a time consuming process

Many people in India do not consider buying car insurance as a wise investment because they are of the view point that it is a cumbersome process and takes a lot of time. Well, this is a huge misconception!

Nowadays, with so much advancement in technology and internet being the major source of communication, vehicle insurance online has become way too easy.

All that the best car insurance companies require is you filling up the form which includes basic details of your vehicle. After doing this, you will be provided with the information regarding your premium costs and you are done. After this, everything else needs to be done by the insurance company.

What can be easier than this?

Companies, nowadays, have started using ‘Photo Quote Option’. Just click and share a picture of your existing policy papers. You will immediately receive a quote to renew the policy.

If you think you cannot visit your insurance agents on a regular basis or you cannot handle the paper work, which of course is not much, you can opt for buying the insurance online. Just a click and you are done with all the formalities!

Just get away with this false belief as soon as possible and make a profitable investment right away! You will enjoy a sense of security rather than being irritated, once you know there is someone to take care of you.

Myth 2: The older your vehicle is, the less premium you need to pay!

As we all know, stats never lie; according to a recent survey, more than 60 percent of the people who have bought car insurance are in favor of the above mentioned myth.

Well, if you are relying only on the concept of Insured Declared Value (IDV), you are wrong. Your premium payments depend on many things which consist of your coverage, your age, your travelling schedule, No Claim Bonus (NCB) etc. One cannot ignore these things together.

Think of a situation where you have higher claims. In such a case, your premiums will not be less and may even rise in the next year. Don’t be surprised if such a situation occurs.

Therefore, the age of your vehicle is only one factor out of the many that affects your premium cost.

You cannot make your decision on just one factor and suffer the rest of your life. Owning a car is not so normal in India, where majority of the population lies below the poverty line and in the middle class. Just get your vehicle insured by buying the Best Car Insurance Policy.

Myth 3: Buying an insurance is only important for people living in metropolitan cities

People living in cities other than the metropolitans think that having car insurance is of no use to them. This is because, there is not much traffic in these places and hence there are minimal chances of any mishappening.

As per the Motor Vehicles Act 1988, it is mandatory to have a valid car insurance policy for your vehicle, no matter where you live.

Buying the Best Car Insurance Policy in India not only protects you from accidents, but also in events of natural calamities such as landslides and earthquakes.

You can also ask for coverage in case your vehicle gets stolen or gets damaged in some riot etc.

Hence, not buying the car insurance just because you do not live in Delhi makes no sense at all. Be wise enough to think what is good for you and what not and then act accordingly. The location that you live at is obviously a great point of concern, but whether you live in a metro city or hardly makes any difference.

Image/Ada County Sheriff’s Department

Myth 4: You receive a claim exactly equal to the amount of a new car, in case of damage.

This is a huge myth which almost everyone believes very easily because it works in the favor of the customers and not the insurance company.

But the truth is far away from all this.

This is not how it really works! Make sure you are very clear about all this, before you sign your final documents.

The insurance amount is governed by the principle of indemnity. Basically, when you receive your claim, the company makes sure that you stand to the same financial position that you were at before the damage. But it also keeps in mind, that you do not make any profit in such situations. Hence, the cost of depreciation is taken into account while calculating the insurance amount.

This may seem unfair at times, but this is the process that is followed by the insurance companies. If you are unable to understand the complex insurance market language it is better you consult a good insurance agent you will guide you in a proper direction.

Just get over this myth so that you have no regrets later.

Myth 5: There is no need to buy a new policy for your new car, if you already have paid the insurance

This is completely false. No matter how many vehicle insurance you own, whenever you buy a new car, you need to buy a fresh insurance policy and complete all the necessary formalities. It may happen that you discontinue your old policy for some reason, for example, if you are not driving that car anymore, but for your newly bought vehicle there needs to be a separate insurance.

Many people avoid vehicle insurance online because of this reason. They are in the hope of buying a new vehicle and getting it insured once and for all rather than insuring the current owned vehicle.  This is not the correct approach. You should opt for an insurance policy for the vehicle that you have at present, rather than thinking about the future.

There are many more such myths that make people reluctant from opting an insurance policy. Some of them are mentioned below:

  • Insurance Rates for the females will be higher.
  • Premium cost for red cars is the highest.
  • It is more expensive to insure a 2-door car rather than insuring a 4-door car.
  • Parking tickets count against insurance.
  • You and your neighborswill have the same rates.

And the list continues.

It is better to stop accepting everything that anyone says. Just listen to what the other person has to speak, but do not rely on it blindly. Do your own research and find valid proofs or incidents before you decide on something.

There are people in the outside world who are ready to help you out. All you need to do is approach them and have a learning attitude.

Everyone wants to buy the Best Car Insurance Policy, but no one wants to make any efforts for it. This is not how things work! You need to gather the entire information at your own level and get a clear idea of what the actual process is and how it really works. Depending on other people and just listening to their thoughts and ideas will do no good to you. There is a high probability you end up making a wrong decision in such a case.

Choosing a wrong insurance policy which does not match to your requirements, makes no sense. It is just a waste of money attached with a feeling of fear.  Anything can happen to you or your family member or your vehicle and your insurance policy will not be able to protect you to the extent it could have. Thus, avoid this situation as much as possible.

Author: Umakant Sharma

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