Categorized | Car Insurance

car insurance myths

Car insurance is a wide ranged topic and when a prospective buyer comes across huge variety of car insurance features he may get muddled up. Hence, there are potential chances that he gets into the trap of myths associated with car insurance.

Here are some common car insurance myths which can easily mislead the person who is going to buy car insurance policy. Read them on to clear your misunderstandings:

Bigger is your car, higher is the insurance rate

Size of car does not always matter but the type and size of engine, model etc need to be considered. In addition to this, amount of car insurance Premium depend on the type of the coverage. If it is comprehensive and not collision, you of course need to pay higher insurance rate, whereas if you choose for lesser car insurance cover, your car insurance rate will also get lowered.

I won’t pay if I am not at fault

This is a general perception of the mass population buying no-fault car insurance that if the first person driving the car is not at fault he or his car insurance provider won’t have to pay for the liabilities caused. This is not the truth. If you are not at fault, you may not need to pay but it is your car Insurer who will pay for your injury. And who is going to pay for damages is decided amongst the car insurers.

My insurer will provide protection in case of theft, damage due to Accident and natural calamities

Buying car insurance Policy is not enough; you should look into the details of Coverage as well. Comprehensive insurance will surely provide you car insurance cover for theft as well as various natural calamities but to provide for liability in case of accident you need to have collision coverage.

I am covered for the parts stolen from inside the car

Car insurance policy is designed to provide relief from major financial requirements and therefore it does not cover the parts stolen from inside the vehicle and if it does, it is limited to just few of the items.

My friend was driving my car when the accident occurred so he and his insurance company is responsible

Car insurance follows the Insured and not the person driving the car. So, if you gave your car to your friend to drive, it is you and your car insurer responsible to pay for liabilities in case of accident of your car.

I and my neighbor have the same type of cars, hence our insurance quotes and discounts would also be same

Discounts and car insurance premium at some extent depend on the type of car but this is not the only parameter to calculate premium. It depends on other factor too such as age of the driver, distance to be driven regularly, marital status, driving history and many more to mention.

Cheaper cars attract cheap car insurance

There is no such product called cheap car insurance. Insurance is called cheap as per the policyholder’s ability to pay. There can be cheap car insurance for a car ranging from Rs 4-lakh to Rs 10-lakh. Besides this, rates of car insurance policy depends on the type of car, size of engine, model etc. In case you have a cheap car but its engine size is more than any other expensive car, and model is also not the regular one it may attract heavy car insurance premium with no discounts.