Debunking 6 Common Car Insurance Myths
Finding the right Car Insurance requires a bit of research. You have to get familiar with the policies and their benefits before you can buy one!
Now, it doesn’t help that there’s a lot of misinformation floating around that only makes it confusing on how to best make use of Car Insurance. Additionally, false information can lead to one making the wrong decision, which could prove troublesome at the time of filing a claim. In this article, we will clear some of the common misconceptions surrounding Car Insurance.
Myth 1: The likelihood of a claim getting settled is higher if I buy Car Insurance from the car dealership.
Fact: The decision of whether or not your claim is approved lies solely on the insurance company. The involvement of a car dealer or an insurance agent does not increase or decrease the chances of your claim settlement. The insurance company will consider the events surrounding the claim as well as the documents and evidence supporting it before taking a decision on claim approval.
Myth 2: If I buy Car Insurance through the offline mode, I will get more benefits.
Fact: The benefits available under a Car Insurance policy will not differ based on the mode of purchase i.e. online and offline. The benefits will only vary on the basis of the type of Car Insurance — Third-Party Insurance and Comprehensive Car Insurance. Please read through the policy benefits and exclusions carefully before purchasing a Car Insurance policy.
Myth 3: Paying more premium means high coverage.
Fact: Car Insurance premium is fixed based on car’s make & model, age, add-ons opted if any, type of policy, etc. A Comprehensive Car Insurance will cost more when compared with Third-Party Insurance. If you’re opting for add-ons, the premium will increase. However, high premium does not indicate high coverage as there are other elements about the car impacting the premium.
Myth 4: Car Insurance will pay for everything.
Fact: While it’s always recommended to get Comprehensive Car Insurance for maximum financial protection, it’s important to remember that there are exclusions in a policy. They are those cases that aren’t covered by the policy. For instance: damage to your car will not be covered if it’s found that at the time of the accident, you were driving under influence.
Myth 5: Only car dealers can give deals on insurance
Fact: You can get a discount on the Own Damage premium for policies purchased online and offline. The discount offered is at the discretion of the insurance company. It is advised to compare quotes of different insurance policies online before making a purchase.
Myth 6: The price is the same across insurance companies.
Fact: This is partially true. In case of third-party Car Insurance, you will notice that the premium is the same across insurance companies as it is fixed by the IRDAI. However, this is not the case for Comprehensive Car Insurance, where the insurance company fixes the premium of the Own Damage component.
Correct information isn’t hard to find — it just requires a little time and some research.
Before purchasing a motor insurance policy, we recommend reading through the policy document so that you’re familiar with what’s covered and what’s not. For an exhaustive coverage, a Comprehensive Car Insurance policy is a good choice with add-ons that cover risks that your vehicle is most exposed to.
You can compare Car Insurance policies on the PhonePe App. All you have to do is click on “Car Insurance” and enter details about your four-wheeler to find the most suitable policy.
If you are planning to purchase motor insurance, check out the links below to know more