Cars are an essential part of our lives. Be it for going to our office, for dropping the kids at their school, or for going on a long road trip; a car has become an unavoidable part of our day to day life. But, along with all the fun, the task of proper maintenance of the car, having the right insurance policy and knowing all the necessary information about it also weighs on the shoulder of the car owner. However, you need to get rid of different myths around car insurance. While some are sketchy, some are downright hilarious. Here we bust a few car insurance myths:
- The colour of your car affects your car premium – Some people believe that if your car is of red colour, then you will be liable to pay a higher car premium. But, be assured that the colour of your car doesn’t affect your car premium in any way. Rather, various other details like the safety features of the car, the cost of repairing your car, the age of your car, etc., are some important factors that affect your car premium.
- Any driver other than you is covered in the policy in case of an accident – If a third person drives your car, meets an accident, any claim that you file will be solely recorded and paid under the insurance policy owned by you, i.e., the owner of the car, and not the driver. So, be sure to give your car to only those people whose driving skills you truly trust.
- Not paying for Comprehensive policy – If you want full protection for your car (including cases when your car gets stolen or damage caused due to fire or vandalism), then make sure that you purchase comprehensive coverage instead of third party coverage.
- Insurance also covers your personal belongings present in the car – It’s a common belief of people that if and when your car gets stolen, then the personal belongings present in your car at that time, will also be covered under your car insurance. This is not true.
- Buying private insurance and using the car for business – Your private car insurance is only applicable as long as you use your car for running your errands and commuting back and forth. If you use your car for business purposes, then you will need to have a commercial vehicle policy.
- Cancelling a policy will refund full amount – . The OD premium of your car may be about 50-70% of your total premium, however, if the date of cancellation of policy from one insurer and purchase of new policy from another insurer is the same then you can get full amount minus the service tax. Hence in best case scenario you can have maximum of 82% of amount paid.
- Zero dep mean you don’t have to pay anything: For taking insurance claim you need to pay claim processing fee even in case of Zero dep policy claim. Hence it won’t be totally free of cost as claimed by sales and marketing ads. Also note that fees for claim filing will vary between Rs. 1000 (for regular vehicles) and Rs. 2000 (for luxury vehicles).
Be sure that you don’t get misled with these myths regarding car insurance, and make an informed decision.