5 Myths about Car Insurance to Avoid
Would you believe it if I told you, “Your red Honda Civic will attract a higher insurance premium than your neighbour’s black Civic”? Sounds outrageous and silly, doesn’t it?
The red car myth is just one example of many such car insurance myths that have no rational basis but people still hold onto them. Let us take a look at 5 big car insurance myths and facts, so that the next time somebody tries to pull the wool over your eyes, you can bust those pesky auto insurance myths with facts!
Myth: “Your friend crashed your car?! Sorry man, insurance won’t cover that!”
Fact: False. Car insurance facts are very clear on this. It does not matter who was driving the vehicle at the time of the accident. One should have a valid driving license. The owner is eligible to claim in such events.
Myth: Car insurance claims will not cover the entirety of cost of partial damage due to depreciation.
Fact: False. Companies these days offer “Zero Depreciation” policies that ensure complete protection without considering depreciation in case of partial loss.
Myth: More premium means more coverage!
Fact: False. You may want to agree with this, since this sounds empirically true. Though premium for the third party component of car insurance are fixed by the Regulator IRDAI, the own-damage component is driven by Insurer.. For the very same coverage, you can get two vastly different quotes from different companies. For the affordable quotes on car insurance, visit HDFC ERGO’s official website!
Myth: No Claim Bonuses (NCB) become null and void once you buy a new car or if you want to purchase a new policy at a different insurance company.
Fact: False. This common misconception plagues many customers. It is important to understand that No Claim Bonuses (NCBs) are “fortunes favoured by the insured.” This means that these discounts are not for the vehicle but the owner, awarded for responsible and safe claim-free driving. So, all you need to do in the event of purchase of a new car or policy is to ensure that you go through the necessary paperwork to have your NCBs transferred in full to your new policy. This is easier than ever at HDFC ERGO that allows you to transfer NCBs in full to your new policy!
Myth: Only accidents are covered under car insurance.
Fact: False. Car insurance covers not only losses and damages due to accidents but also due to earthquakes, floods, landslides, fire, self ignition, burglary, house breaking etc
So arm yourself with facts when thinking of purchasing car insurance so that you are in a position to make the best decision based on your needs.