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Common Car Insurance Myths and Facts

Common Car Insurance Myths and Facts

The top 5 fallacies about car insurance are exposed in this article. It provides facts to support every misconception and explains why car insurance is required.

Buying a car and buying a car insurance policy is closely related. According to a new law issued by the Indian government, the purchase of car insurance coverage is now required. Entering the insurance industry as a newcomer can be scary, and there's a risk that you'll be easily misled by absolutely untrue lies! It is important to know the difference between myth and truth, which is why we have developed this list of the top 5 misconceptions of car insurance you should be aware of.

Common Car Insurance Myths

Any first-time car insurance buyer has got a lot of dos and don'ts of advice on what kind of insurance to buy, where to get it, which to buy from. So far, we are confused as to what is a myth and what the truth is. Advice and feedback are valuable, but they are lackluster compared to personal reality verification. Here are a set of misconceptions exposed by facts that can dispel your misconceptions and help you make an informed decision when purchasing vehicle insurance.

1. The color of your car affects premium

This is a myth that is neither realistic nor relevant. Premiums are determined by configuration, engine capacity, and body of the vehicle. Whether red or white has no effect. As a result, don't be afraid to get a car with your favorite color, even if it means paying a higher price.

2. Reducing insurance coverage saves you money

In return, because of the limited services that come with a smaller coverage plan, you end up spending more money. Accidents can occur at any moment, and if you have insufficient coverage, you will be responsible for repair costs. As a result, if you want to get the most out of your insurance, choose a plan with more coverage and a higher cost.

3. Your car insurance will cover everything

Contrary to popular belief, your car insurance covers only a percentage of the damage to your vehicle. Comes with exceptions, you may be asked to pay the first amount in cash, with your insurance provider covering the rest. The discount is called this, and different insurance companies have varying amounts to it.

4. If you change insurance companies, you will lose the No Claim Bonus (NCB)

The No Claim Bonus (NCB) is a discount on the prices you receive for not filing a claim on your car insurance policy. Many consumers believe that if they are transferred from one insurance company to another, they will lose this interest. However, this is not the case. Your NCB is convertible and stays with you even if you change vehicle insurance companies.

5. In the event of an accident, your insurance premiums will rise

Accidents have no effect on premium amounts. People are puzzled since making a claim on your car insurance coverage leads to the loss of any claim bonus (NCB). As a result, the discount you received for not making a claim on your car insurance is no longer accessible, but your premium remains unchanged. It hasn't changed in any way.

Take away

These are the first five misconceptions of car insurance that many believe are real. It will be easier for you to invest or get an insurance policy if you keep these points in mind. Securing your car from any kind of unexpected damage or accident is necessary, so read on the terms and conditions of car insurance before rushing to get one.

Read also: 

How to reduce your car premium?

The most important factors that determine your car's premium

Disclaimer: This article is published in the public interest and is intended for public information purposes only. Readers are advised not to rely on the contents of the article as crucial in nature, and further research or expert consultation should be conducted in this regard.