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10 Common Myths About Buying a Comprehensive Car Insurance
Team AckoAug 25, 2022
As the population in all parts of the world is increasing, the number of cars on the roads is increasing at an exponential rate as well. With more cars, the number of accidents is also increasing. Accidents can happen even if you drive safely. To ensure mental peace and to avoid any financial stress due to a damaged car, comprehensive car insurance is a must.
Comprehensive car insurance takes care of any damage or loss to the car due to accidents, fire, theft, falling objects, vandalism, civil disturbances or natural disasters. Buying car insurance is simple and with the option to buy comprehensive car insurance online, it is less time consuming and more affordable. There are many myths about car insurance. Let us state some facts to clear common misconceptions.
Contents
- Myths About Comprehensive Car Insurance
- 1. Myth: Car Insurance Gets Cheaper for Older Cars
- 2. Myth: Buying insurance for your car is time consuming
- 3. Myth: Changing Insurers Results in Losing No Claim Bonus
- 4. Myth: Safe drivers do not need insurance
- 5. Myth: The price of a new car is paid in case of total damage
- 6. Myth: Insurance only covers accidents where insured is not at fault
- 7. Myth: For old cars, only a third party insurance is needed
- 8. Myth: Car Insurance has to be renewed with the same insurance company
- 9. Myth: Claim Settlement procedure is cumbersome
- 10. Myth: The insurance company reimburses the expenses
Myths About Comprehensive Car Insurance
1. Myth: Car Insurance Gets Cheaper for Older Cars
Fact: Though the Insured Declared Value decreases as the car becomes older, there are many other factors which influence the premium. Driving record, kilometers of car, age of insured and claim history are some of the other factors which play an important role and can increase the premium of an old car.
2. Myth: Buying insurance for your car is time consuming
Fact: Buying a new insurance policy or renewing it has become extremely easy and time saving. With the option to buy car insurance online, it has become easier. All that needs to be done to buy car insurance online is to fill in some basic information and you can get a quote. Then choose a plan best suited to your needs.
3. Myth: Changing Insurers Results in Losing No Claim Bonus
Fact: NCB – No Claim Bonus protection cover is given to the policyholder and not the vehicle. When one changes their insurance company, the NCB gets transferred. The bonus is valid for a period of 90 days after the comprehensive car insurance policy has expired.
4. Myth: Safe drivers do not need insurance
Fact: Buying third party insurance is mandatory and thus, one cannot skip buying car insurance. However, buying comprehensive insurance is a choice but one must have it as it pays for not only accidental damages but also for any loss due to a natural calamity or theft. The financial loss which one will need to bear is much more than the premium they pay for the insurance policy. Both the types of insurance are important for a car.
5. Myth: The price of a new car is paid in case of total damage
Fact: The insurance of a car is dependent on the IDV or the Insured Declared Value. This is the maximum amount that the insurance company pays in case of a total loss claim. When the policy is renewed depreciation is taken into account along with the market price in the IDV calculation.
6. Myth: Insurance only covers accidents where insured is not at fault
Fact: The insurance company pays for all claims as long as the insured has a valid driving license. If there is any accident which is caused under the influence of drugs and alcohol, all insurance claims are rejected. A claim should be in accordance with the terms and conditions of the insurance policy, if not it will get rejected. An example would be raising a claim for the damaged private car while being used for commercial purpose. This claim will get rejected as a private vehicle cannot be used for commercial purposes.
7. Myth: For old cars, only a third party insurance is needed
Fact: A comprehensive car insurance gives the coverage which a third party car insurance does not give and thus, this comparison is wrong. Both are types of insurance and cannot be confused. Old cars can also meet with an accident and be damaged and thus, having insurance for own damage is essential.
8. Myth: Car Insurance has to be renewed with the same insurance company
Fact: At the time of renewal of the policy, one can easily change the insurance company for any reason. While changing insurance companies, the No Claim Bonus gets transferred as well.
9. Myth: Claim Settlement procedure is cumbersome
Fact: Claim settlement is an easy task. If the car is repaired at a network garage, there is no need to pay for any damage except the parts that are not covered. Lodging a claim is easy on the website on our website. If you live in a metro city, we offer three-day repairs as well. Acko Insurance has a very well-designed claim settlement process which keeps the convenience of the insured in mind.
10. Myth: The insurance company reimburses the expenses
Fact: This is not always true because if one goes to a network garage, the claim is settled without paying anything and the insurance company pays for the repair cost.
It is important to understand comprehensive car insurance before one buys it. There are many myths which cause harm and the insured takes uninformed decisions. Understanding insurance is simple and thus, there is no excuse for not having a comprehensive insurance to ensure mental peace.
| Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet; and is subject to changes. Please go through the applicable policy wordings for updated ACKO-centric content and before making any insurance-related decisions. |
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