Myths You Should Know about Car Insurance in India

Buying car insurance can be tricky if you are not certain about its terms and legalities. Here are busted the 4 common myths associated with car insurance in India. You must identify them to buy the best policy for your vehicle.

Every car owner knows the importance of covering the risk of the vehicle when it is running on the road. However, there are many people who buy the insurance as a legal obligation without analyzing the significant benefits it offers to them. It’s true that it can be really intimidating to understand the legal terms written in the small words. Due to this, people develop many misconceptions regarding the car insurance and it creates more confusion among the insured beneficiaries as well. You must understand the real facts to get the most out of your policy. Here are discussed the myths that you are confronted with when looking to buying a cheap insurance for car in India:

Myth 1: Car Dealers Provide the Best Insurance:

When buying a new car, buyers often consider that insurance provided by dealer is the best. But, this is the biggest myth. It is needless to say that dealers showcase it as the cheapest car insurance, but the fact is that they compromise on your risk and safety by reducing its coverage clauses. In this regard, it is advisable to compare the premium, features, and advantages of all top-notch insurance companies and select the most appropriate one. Many dealers commit to offering you the best service in any sort of claim, but it is not necessary that your car will get wedged into that showroom only. Actually, dealers have tie-ups with insurance companies and they pursue their personal interest by insisting upon you to buy insurance that pays them a high commission.

Myth 2: Deducting IDV or Coverage is Profitable:

While buying a cheap insurance for car in India, people emphasize on reducing the premium by lessening IDV or other coverage. It might save money initially, but in the case of claims, you need to pay large amount or share for the repairs. Instead of lowering IDV, try to compare the insurance policies of all major companies with the set preferences and coverage. Within minutes, you will find a reduced insurance premium without compromising on benefits and the risk cover.

Myth 3: No Claim Bonus Lapses after expiry:

A lot of No claim bonus gets accumulated if you drive a car for three years without any accident or making a claim. In such cases, you can renew your insurance within 90 days to get the full benefit of NCB. Within this period, you can carry forward the entire no claim bonus benefit and get a relief on the premium incurred. Also, you can transfer your NCB in the case of switching the insurer.

Myth 4: Anti-Theft Device has no benefit on insurance premium:

Many insurers offer discounts on premiums if your car is installed with an anti-theft device or an enhanced security system. The premium is directly proportionate to risk. Hence, when risk is less, companies provide lesser premiums and you get a cheap insurance through the installation of such accessories.

Never believe in these myths if you wish to buy a cheap insurance for car in India.

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