Purchasing a car insurance policy is not an option but is a necessity according to the Motor Vehicles Act 1988, and the Motor Vehicles Amendment Act, 2019. Your vehicle must be insured, but it is also extremely beneficial to have an insurance policy. You receive payment for the damage incurred or caused in an accident. Any kind of legal liabilities arising as a result of accidents is taken care of. More, importantly you receive coverage for the medical expenses if any, under a car insurance policy.
Myths about Car Insurance
People tend to believe most of the things that they hear from their close friends, family, colleagues, etc. However, it is always wise to do a little research of your own and verify from some trustworthy sources as well whether the information you’re receiving is true or false. Given below are a few commonly believed myths about the car insurance policy. Let’s take a look and learn some facts:
- Any damage caused to the car is covered under an insurance policy
- Car insurance indeed provides coverage for damages caused to your car, but this statement is not entirely correct, as it also leaves out a few scenarios. If you happen to meet with a road accident with your insured car but are caught driving under the influence of alcohol, drugs, etc. then the policy will not cover the damages caused. Therefore, it is essential that you go through the policy document and check the exclusions, so you don’t face problems while filing a claim.
- People residing outside of cities do not require a car insurance policy
- Many car owners firmly believe that insurance policies are only useful for people residing in a city. Because the traffic situation in towns and rural areas is much better than that of cities, people feel that buying an insurance policy is a waste of money. However, this is not true, as it is mandatory for every vehicle plying on the Indian roads to have at least a third party car insurance policy, as per the law, no matter where you reside.
The second type of cover available that is the Comprehensive Insurance, is not mandatory but is recommended as it offers a wide coverage as compared to a third-party liability policy which covers only the damages caused to the third-party property or injuries caused to a person.
- As your car ages, the premium amount decreases
- The policy premium is decided based on a few factors by the insurance companies. The Insured Declared Value (IDV) of the car, plays an important role and reduces with time, which brings down the premium amount. However, if you choose to include add-on covers to your policy then your premiums are bound to go up.
- Purchasing car insurance is a long and tedious process
- This statement is false because times have changed and you no longer have to depend or interact with an insurance agent to carry forward the process or get quotes, etc. to buy an insurance policy. Today, this can easily be done online by visiting your insurance company’s website and purchase the policy. All you need to do is provide a few important details, make the payment and receive the policy in your inbox.
Now that you are clear on the facts, do not believe in myths that run around. Also, remember that switching to a cheap policy during car insurance renewal will not always be the best one. Check the policy’s features and coverage it offers instead of just the money factor. Analyze your requirements and make an informed decision.