Apart from accidental insurance, the other type of insurance which can save you from financial crisis is car insurance. In this article we will try to break some myths associated with car insurance.
Every new car, be it your first or fifth, is a heartfelt occasion. Most often new cars are insured by the dealers and you start worrying about it from second year onwards. Apart from being mandatory by law, car insurance saves you from losing your saved wealth in an unfortunate accident.
Understand that no matter how careful a driver you are, accidents can happen with/from anyone. And more often than not they occur at a very inopportune time and when you least expect them. And hence, it is very important for you to be well prepared. Yes, nobody can predict the future but we can be ready for the worst.
Let us quickly talk about the common myths that surround insurance and some points you should keep in mind before buying new car insurance.
Some Myths & Pointers about Insurance
Buying Insurance from car dealers is mandatory and they also provide better deals.
No! It is absolutely not binding on you to purchase car insurance from your car dealer. In fact, in our personal experiences, we have seen higher savings on insurance bought individually.
NCB lapses the moment your policy expires
As is wrongly propagated by many, No Claim Bonus (NCB) is locked for 90 days from the expiry date of your car insurance policy. Within this grace period if you renew your policy, there is no impact on NCB and you can keep all of it with you.
NCB lapses when you sell off your car
This is one point which majority of us are unaware of. NCB is not linked to your car, it is linked to you! So, if you sell off your car, you can carry over the same NCB to your new car premium. For example, if NCB for your old car A for the current year is 35 percent, you can carry over the same 35 percent when you insure your new car.
Premiums do not depend on your age and profession
No! Insurance companies are in this business of risk prediction. They have internally defined parameters which also include some based on age and profession. Generally, higher age group customers are considered as more mature and hence safer drivers. Also, professionals such as doctors, defense personnel etc. get some rebate on premiums. In fact, companies also decide premiums on the basis of car make and model. Based on their history, some models attract higher premium while others lesser.
Voluntary Deductible will save you money
Yes, on the upfront payment of a new insurance policy, you do feel good about the savings when you opt for voluntary deductible but in case of a claim, when you end up paying the lump sum amount, it appears to be a mistake.
Finally, even if you do not face any unfortunate accident in the year, the peace of mind a car insurance offers is well worth the premium!
Remember, not to leave your vehicles uninsured and always read the offer documents and the fine print carefully to understand what is on offer and more importantly what is not. In this age of digitalization, a simple search will let you know if you are being taken for a ride.
Also before you zero in on a policy, ensure you verify the history and speed of claim settlement of the company, their support system and their network garages.
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