- Date : 14/09/2020
- Read: 5 mins
Getting car insurance is a cumbersome process, car insurance only covers accidents and other such myths debunked
Like driving, where in misconceptions like “It will never happen to me” or “That cow will not jump in front of my car” abound, car insurance too has its fair share of myths attached to it.
Since we’d like to empower you to protect yourself against various disasters, we’re going to bust these myths. Prepare to be enlightened!
1. Myth: Getting car insurance is a cumbersome process.
Reality: Buying and renewing car insurance has never been easier.
The process now involves just filling in some basic details about your vehicle, after which you get an instant quote of the amount of premium it’s likely to cost you. Many insurance portals also give the option to select add-on covers via tick boxes that you can choose from. A couple of super easy steps later, you’ll have your policy in place.
As if this wasn’t simple enough, some insurance companies with advanced technology have also introduced a Photo Quote option, wherein you only need to click and share a photo of your existing policy papers to instantly receive a quote to renew your policy. It is imperative you read the car insurance terms and conditions before you buy a policy.
2. Myth: I can’t transfer my policy from one insurer to another because I will lose my No Claim Bonus.
Reality: Your No Claim Bonus goes where you go.
For those of you who aren’t aware, a No Claim Bonus is a sort of reward you get for handling your car well. It’s a payment you become eligible to receive if you haven’t filed for insurance for the entire length of your policy, and yes, it’s usually quite a substantial amount.
Happily, however, the NCB is most definitely transferable from one insurance company to another as it is attached to the driver/ owner of the vehicle. The only catch? It needs to be filed within 90 days of the expiry of your old insurance policy, so make sure you renew it in time! It is prudent to check the car insurance terms to confirm your NCB will be transferred.
3. Myth: Car insurance only covers accidents.
Reality: Insurers know that you don’t control destiny.
Apart from accidents, car insurance also covers losses caused by events out of your control. This includes natural calamities like lightning, earthquakes, floods, landslides, etc., as well as man-made disasters like burglary, theft, riots, terrorist activity, damage in transit, etc. So don’t worry about telling your insurer it wasn’t your fault!
4. Myth: The process of claiming car insurance is riddled with inconsistencies.
Reality: Car insurance claims process is actually pretty straight forward.
You just need to log on to your insurance provider's website and fill up a claim form, or you can do so via SMS or a call to the 24x7 helpline number as well. Once that’s done, you can even track its progress online. Once the claim is registered, you will be contacted within 24 hours for the next stage; document submission.
The best part is, however, that you will be assisted at every stage. If not by FAQs, by the person on the other end of the phone, so feel free to clear your doubts, sooner rather than later.
If you are wondering what to do if insurance claim is rejected, the first thing you need to do is check if you have not violated any insurance terms that led to the rejection. In case there is no violations from your end, always speak to the insurer to clarify any miscommunication. If there is no immediate resolution, you can forward the issue to the Insurance Ombudsman for a quick redressal.
5. Myth: In case of an accident, I have to pay from my pocket and then go through the hassles of processing a claim.
Reality: Either you don’t pay, or you pay and get reimbursed after wards.
For online insurance, as long as you visit a networked garage i.e. one that your insurance company has in its purview, your insurer will directly settle the amount with the garage so you do not have to bear the inconvenience.
In case you are unable to visit a networked garage for some reason, you can claim reimbursement from your insurer at a later date. Do keep all the bills and receipts handy for submission in case of a reimbursement claim.
6. Myth: In case of a car crash, I will get a claim amount equivalent to the amount of a new car.
Reality: That’s not how it works.
The principle of indemnity governs the insurance amount. This means that after you receive your claim, you are reverted to the same financial position that you were in before the damage occurred, but cannot improve upon that position. Depreciation is deducted on your existing car while calculating the value of your loss, which also holds true for the calculation of its market value. However, you can avail of an add-on Zero Depreciation cover for a little extra premium that will bridge the shortfall between the original Insured Declared Value (IDV) of the car and the current market value.
Though buying a comprehensive insurance cover can be a tricky process, it really doesn’t have to be. You just need to find an insurer willing to answer your questions and help guide you through the already simple process.