- Auto Insurance Myths
- Myth 1: I don’t need auto insurance as I have an old vehicle
- Myth 2: Motor insurance only covers the accidents where I am not at fault
- Myth 4: Third-party insurance is enough for an old car
- Myth 5: MY NCB will transfer to the new owner if I sell out my car
- Myth 6: Your insurance covers you for all damages created by you
- Myth 7: I can’t switch the insurer once I buy one
- Myth 8: I need to take a separate policy for my driver
- Myth 9: In an accident, I will have to first pay from my pocket then go through the complex claim process
When you buy auto insurance, it is necessary to understand the factors affecting your premium. Sometimes, it becomes difficult to vary among facts and fiction. As any field can have, this sector also has its set of auto insurance myths. This happens due to a lack of proper understanding of motor insurance. It may also affect your choice of policy or obstruct financial interests. In this article, we’ve discussed some popular auto insurance myths, which may help you find the correct plan for your vehicle.
Auto Insurance Myths
The following are some of the auto insurance myths-
Myth 1: I don’t need auto insurance as I have an old vehicle
Truth: it is stated as mandatory by the law of Motor Tribunal to protect your vehicle through an insurance plan. Whether it is old or new. You can also create this thinking in your mind that the low replacement value of an old car doesn’t justify a comprehensive insurance plan. But remember, old cars have a higher possibility of theft, because of the demand for their parts. Moreover, old cars are easy to steal as they have fewer security features.
Myth 2: Motor insurance only covers the accidents where I am not at fault
Truth: if you have an insurance policy for your vehicle, it means you are covered for all types of threats, provided you have your valid driving license. Comprehensive auto insurance covers your vehicle in case of mechanical faults or damages, theft, flood, etc. However, it will not be the same if you are found driving under the influence of alcohol or drugs. Also, your vehicle use should be the same as what is mentioned in the policy. Like if you are using your personal car for commercial goods transportation and meet with an accident, then you can’t apply for a claim.
Myth 4: Third-party insurance is enough for an old car
Truth: this is also an auto insurance myth. A third-party auto insurance policy covers the damage caused to the third party and will not bear the damages to your car. It is, therefore, suggested to purchase a plan keeping in mind the condition of your car than its age.
Myth 5: MY NCB will transfer to the new owner if I sell out my car
Truth: It is completely a myth as NCB is your property. It is that kind of proof of your driving skills. Have the only right on it. Whosoever the insurer you are going to choose, your NCB follows you and you can avail the 100% benefit of it. So, it is a complete myth that NCB will go to the buyer if you sell your car.
Myth 6: Your insurance covers you for all damages created by you
Truth: sometimes it may, but not always, especially when you are caught drunken driving. Your insurance provider simply turns down your claim.
Myth 7: I can’t switch the insurer once I buy one
Truth: Insurance plans are generally valid for one year. And, it is false that you can’t change your insurance provider. You are free to switch it at the time of renewal with the full NCB advantage that you earned from the previous insurer.
Myth 8: I need to take a separate policy for my driver
Truth: It’s good to add your driver to your policy It doesn’t require you to buy a separate insurance policy for the same. The only thing you must be ensured about is that the driver should have a valid license. If he has not, the insurer will reject your claim in case of an accident.
Myth 9: In an accident, I will have to first pay from my pocket then go through the complex claim process
Truth: Your claim will surely reimburse whether you pay by yourself or not. For online insurance, you can visit a network garage and they will directly settle the incurred expense, so no intervene is required. But if you are not able to visit a network garage, you can claim for reimbursement later.
All these are the major auto insurance myths that come in the mind of anyone.