ATK
New Delhi [India], March 28: Buying motor insurance can be challenging if you do not have a proper understanding of it. Any agent or third party can trick you into buying the wrong policy for your car or bike. Because of this, it becomes important to know the different myths surrounding the motor insurance industry. No matter if you are buying a new car insurance or bike insurance plan, demystifying these myths about motor insurance becomes essential. Read further to learn more.
Common Myths of Motor Insurance
To help you buy the best car and two wheeler insurance online, we are here to demystify the myths of motor insurance. Some of these myths have been listed below:
Myth 1 – Red Cars Have Higher Premiums
Many people think that red car owners end up paying higher premiums. However, this is not the case as the colour of the vehicle plays no role in determining the motor insurance premiums. Instead, there are factors like IDV, make and model, age of the vehicle, and others.
Myth 2 – Old Vehicles Don’t Need Insurance
Whether your vehicle is old or new, it is mandatory to insure and protect it against potential damages. A third-party motor insurance is a legal mandate as per the Motor Vehicles Act of 1988. You should in fact take a comprehensive plan as old vehicle tends to have breakdowns more frequently as compared to new vehicles.
Myth 3 – Loss of NCB in Case of New Motor Insurance Purchase
No Claim Bonus or NCB is a bonus given out to the policyholder if they do not raise a claim in a given year. There is a common misconception that this bonus gets lost if you buy a new insurance plan from another insurer. This is true as on the contrary, the No Claim Bonus gets added to your new motor insurance plan as well. Just remember to fill in the NCB details before 90 days of policy expiry to get continued NCB benefits.
Myth 4 – Motor Insurance Provides Coverage Only When the Driver is Not At Fault
A comprehensive motor insurance policy provides coverage for all kinds of damages, provided that the driver is not found to be riding under the influence of alcohol or drugs. The driver should also have a valid driver’s license and insurance copy to be covered against both third parties and damage to the insured vehicle. Also, you need to understand that coverage will only be provided for the insured vehicle, not when you are using another vehicle and meet with an accident.
Myth 5 – Choose Less Coverage for Paying Lower Premiums
Sometimes, policyholders compromise on the coverage offered under their car or bike insurance plan to pay lower premiums. It is advisable not to do so, assess the coverage need, and choose a plan accordingly. For instance, if you are driving on mountain terrain, there are high chances of breakdowns; thus, a third-party insurance plan won’t be sufficient. So, understand the coverage requirements and don’t buy a motor insurance plan just because it is affordable.
Myth 6 – Motor Insurance Provider Cannot be Changed
Whether you have bought a car or bike insurance policy, you can easily change the insurer at the time of policy renewal. All motor insurance plan comes with an expiry date, so if you are dissatisfied with your plan, you can get it changed during the renewal period.
Myth 7 – Add-ons Lead to Unnecessary Increase in Premiums
While it is true that including add-ons like Engine Protection Cover, No Claim Bonus Protector, Zero Depreciation Cover, etc increases the premium, it is also true that these add-ons become necessary to ensure extra protection for your vehicle. Let us understand this with No Claim Bonus Protector: this add-on restores your NCB even after you have raised a claim. So, it makes sense to include add-ons in your plan based on your budget and requirements.
Myth 8 – Motor Insurance Claim Process is Tedious
Many people just avoid raising motor insurance claims to eliminate the claim process. However, The claim process is hassle-free when you choose the right insurers like Acko. At Acko, you can enjoy a seamless claim experience and get your claim request settled on time.
Take Away
So, now that you know the common myths of motor insurance, make sure to buy the right car and bike insurance plan.
(ADVERTORIAL DISCLAIMER: The above press release has been provided by ATK. ANI will not be responsible in any way for the content of the same)
