Busting 5 Myths About Buying Four Wheeler Insurance

Car insurance comes under personal finance, and when it comes to personal finance, everyone has an opinion. Sometimes, unsubstantiated opinions about car insurance can be passed on from one person to the next until they turn into myths.

The thing about myths is that, to the uninitiated buyer, they are facts upon which purchase decisions will be made. This can be quite dangerous and result in major disappointments in the future.

To keep this from happening to you, the following article will go over some of the most common myths about buying 4 wheeler insurance online to ensure you make smart & sound buying decisions.  

1.    Older cars don’t need insurance

First of all, not only is car insurance necessary but it is also mandatory by law to buy at least a basic policy for every car. So, whether your car is old or new, the Indian Motor Vehicle Act, 1961 makes it compulsory to buy motor insurance.

Secondly, the reason that many people believe this myth is because old cars have a low replacement value. While that may be true, they are still under the risk of accidental damage, theft, etc. Moreover, parts of older cars can be expensive and difficult to find. Hence, you should buy four wheeler insurance to protect yourself and your car.

2.    Motor insurance only covers accidents

Many individual believe that car insurance only covers accidents. And the fact that accidents are not very common leads people to believe that car insurance is a waste of money. However, car insurance covers a lot more than accidents; it also provides compensation for damages & total loss of your vehicle due to theft, natural & man-made calamities, riots, etc.

3.    You will lose No claim bonus if you switch insurance providers

A no claim bonus (NCB) is essentially a reward for having a claim-free year. Hence, if you buy four wheeler insurance with an NCB cover and practice safe driving, you have a chance to earn a bonus. Hence, it is exclusive to you and your policy. This means your NCB follows you wherever you go. If you switch insurance providers, you can transfer the NCB as well.

4.    You should always go for minimum cover to save money

As the law only mandates having a minimum of third party cover cover, buying the least-possible coverage may look profitable to you. However, even though you may be paying a lesser premium, you can actually end up spending a lot more on repairs in case of an accident.

Simply put, going for minimum coverage to save money means you could pay much more out-of-pocket later. Hence, it is better to opt for a comprehensive cover that actually saves you money.

5.    The car colour decides your insurance cost

Perhaps the most bizarre myth that is doing the rounds is that you might have to pay a higher insurance premium for a car of a particular colour. However, there is no possible explanation that comes close to justifying it. Hence, you should not let the fear of higher premiums stop you from buying your favourite color.

However, the factors that are actually important for insurance premiums are your car’s model and make, engine’s cubic capacity, and body type.

Since you are not allowed to drive a car without four wheeler insurance, buying the right one becomes all the more important. But you can only do that when you have accurate information about it. Hence, you should always look out for myths like the ones mentioned above. To distinguish between myth and fact, you can always have a clear conversation with your insurance provider.