Owning a car is no more a luxury, not just because the standard of living has gone up and economies around the world are progressing at a breakneck speed. It is also because commuting in a car protects you from the increasing pollution and inclement weather, thereby making your commute more comfortable. However, maintaining a car is expensive, and you also have to take into account, while buying a car, what happens when it is damaged in an accident or it gets stolen. The obvious answer is to get yourself a car insurance policy, which will reimburse you the expenses you have to bear under such situations. The availability of online car insurance has made it very easy for car owners to protect their cars.
How does a motor Insurance function?
When you buy motor insurance, you have to pay a fixed premium to the insurance company, in return for which the company protects you from the mutually agreed risks mentioned in the policy. The premium depends on the sum assured, how old the car is, the age of the person who has bought the policy, and last but not least, the car manufacturer. Though buying a car insurance policy is mandatory in India, it is also a very judicious thing to do, as the amount of premium you pay is negligible to the expenses you may have to incur in case of a mishap if you do not have insurance. However, there are certain myths about car insurance that you need to clarify upfront with the insurance company so that you will know exactly what situations they will cover and in what situations you will have to shell out money for the damages from your pocket.
Common myths about motor insurance
Here we point out the chief misconceptions associated with car insurance:
- Colour matters: Many people think the colour of the car will impact the premium they pay for the insurance policy. No, the colour does not matter. The main things the insurance company would take into account are the car model, whether it is new or used the driving experience of the owner, etc.
- Fixing responsibility: A huge myth is that if you have car insurance and your friend or relative driving, the car gets involved in an accident. In such case the company shall compensate for the damage done to the car and not for anything that may happen to the driver.
- Comprehensive car insurance is a waste: Many people believe that buying comprehensive car insurance is a big waste of money and that third-party liability insurance is enough. However, in third-party insurance, the company will only cover damages incurred by the third party, and the damages you suffer will have to be borne by you. So, it is advisable to buy a comprehensive cover.
- Do not change your insurance company: Some people believe in sticking with the same insurance company forever, even if a new company comes up with a more attractive car insurance policy. It is a myth, and you can change your motor insurance company at any stage.
Be aware of these myths and use your discretion while selecting the company from which you buy your car insurance policy.