Have you ever considered whether everything you have heard about four-wheeler insurance is true? From ‘red cars cost more to insure’ to ‘third-party coverage is all you need’ — myths like these can cloud your judgment. Maybe you are buying too much coverage? Or too little? Or worse, no coverage at all because of misinformation? The bottom line is that believing in these misconceptions can lead to costly mistakes.
Automobile insurance isn’t just a legal requirement; it’s your financial shield against unexpected mishaps. However, searching the web for facts against fiction can be overwhelming. In this blog post, we bust five widespread myths about four-wheeler insurance. Read and make informed decisions when choosing the right car insurance plan, ensuring peace of mind and saving money.
Busting the Top 5 Four Wheeler Insurance Myths
Myth 1: Premium coverage is determined by the colour of the car, especially red.
In Reality: It’s a flashy claim since red-coloured cars are considered sportier, but it is entirely false. The car’s colour has zero contribution in deciding your four-wheeler insurance premium. It’s based on several factors, like the car’s make, model, engine capacity, and safety features— but not its colour.
Myth 2: If a car is old, it doesn’t require insurance.
In Reality: Insurance premiums may decrease as your car depreciates, but accidents do not discriminate by the car’s age. Under the Indian Motor Vehicle Act 1988, car insurance is mandatory, whether it’s an old car or a brand new one. Additionally, if the car’s value has lowered, repairs or accidental liabilities can cost a fortune. Hence, even minimal coverage is always necessary for financial and legal protection.
Myth 3: Third-party insurance is enough.
In Reality: Third-party insurance may meet legal requirements but only protects against damages to the third party instead of your own car. Hence, relying solely on third-party insurance, you may risk paying out of pocket for expensive repairs or replacement. Comprehensive car insurance plans, however, cover damages to your car, theft, and natural calamities (even rat bites), including third-party liabilities.
Myth 4: You lose a Non-Claim Bonus if the policy gets transferred from one insurer to another.
In Reality: It’s completely a myth. The Non-claim bonus is linked to the policyholder, not to the car. Your non-claim bonus (NCB) doesn’t leave your side even if you transfer your policy to another insurer. Your NCB is your asset, a reward reflecting your driving skills, to which only you have the right. As per the law, if you do not file any claims till your insurance lapse, you can get up to 80% of your NCB. However, make sure to file for it within 90 days before your four-wheeler insurance lapses.
Myth 5: Insurance covers every damage caused under any situation.
In Reality: It doesn’t matter if you were driving or not, as long as a person behind the steering holds a valid driving license, the insurer is liable to pay for the damages. However, every policy has exclusions. In situations like being convicted of drinking and driving, your insurer won’t cover any damages and will further turn down any claim made straight away.
Hot tip — Always thoroughly read your insurance plan terms and conditions to understand what is covered and what is not.
Conclusion
The auto insurance sector has several myths and misconceptions. Do not let them steer you off your decision.
Start with understanding the facts from myths about your four-wheeler insurance. Talk to a trusted expert insurance provider like Chola MS General Insurance to help you with the research. Don’t invest in any plan blindly. Instead, compare the types of car insurance options available to find the one that meets all your requirements, ensuring both affordability and comprehensive protection of your vehicle.
Let your insurance be the safety gear that keeps you driving forward confidently.
Also Read: Which Car Insurance Policy Cover is Best?
