When it comes to purchasing a car insurance policy for the first time, there are numerous myths that tend to impact the buying decisions of insurance seekers. 

One such myth is: “The higher the premium, the broader will be the coverage”. It is nothing but a misconception. 

Today, in this article, we will try to bust all the common myths about car insurance, including the one we have mentioned above. 

5 Car Insurance Myths Debunked

Following are the common car insurance myths and facts you must know before purchasing car insurance:

Myth 1: The Higher the Premium, the Broader Will be the Coverage

This is perhaps the biggest misconception in the insurance industry. Many people believe that by paying higher insurance, they will get the best coverage. However, this is not true. The insurance premium rates don’t guarantee wider coverage. 

In reality, your car insurance premium is decided after taking into account various factors such as the make and model of your car, your policy type, the sum insured and deductibles, and so on. 

On the other hand, the level of coverage a policy offers depends entirely on the type of policy you opt for and the terms and conditions of your insurance provider. 

Myth 2: Buy Car Insurance Offline for Better Coverage

This is another myth regarding the purchase of a car insurance policy. Some insurance seekers, especially the ones purchasing a policy for the first time, believe that buying car insurance online can lead to scams and extravagant charges. Thus, they should buy car insurance offline for better prices and coverage. 

In reality, the mode of purchasing an insurance policy never dictates its price or coverage. It is merely a matter of ease and convenience for the buyers. 

If the insurance provider is reliable, then you can get the same coverage and benefits regardless of whether you purchase your policy online or offline. For example, Tata AIG is known for providing the most reliable car insurance online. They offer comprehensive coverage at cost-effective premium rates. 

Myth 3: Older Vehicles Don’t Require Insurance

If you are among those who believe that older vehicles don’t require insurance, then you are completely wrong. 

First of all, having suitable motor insurance is mandatory for every vehicle owner, regardless of the age, type, make/model of their vehicle. It means having car insurance for an older car is not optional; it is compulsory. 

Secondly, older vehicles require insurance as much as the newly purchased ones. The reason is very obvious: older vehicles are more likely to suffer damage or loss during an unforeseen event like a road accident. 

Dealing with these expenses without insurance can impose a financial burden on the vehicle owner. Hence, it becomes important to insure your older vehicles as well. 

Top car insurance providers like Tata AIG offer various comprehensive car insurance policies that come with benefits such as network garages, no claims bonuses, efficient claims settlement, and more. 

With the right car insurance policy, you can handle the resulting losses and damages with your older cars in a smooth and hassle-free manner. 

Myth 4: Car Insurance Pays for Everything

If you think that car insurance will pay 100% for the losses and damages incurred by your vehicle, you are certainly wrong. 

Every car insurance policy comes with its own set of inclusions and exclusions. Note that it only offers coverage for the inclusions. It means that if your car has suffered damage/loss due to an exclusion of the policy, it won’t get covered by your insurance. You will have to pay for such expenses out of your pocket. 

For example, If your car has suffered damage in a road accident and it is found that you were driving under the influence of alcohol, your insurance provider will not pay for the repair or recovery of your car. This is because a majority of car insurance policies have damage/loss due to personal negligence as an exclusion. 

But at the time of purchase, most people pay attention to the inclusion and ignore the exclusions of the policy. As a result, they end up getting disappointed when their insurance provider refuses to cover the excluded scenarios. 

For this reason, it is strongly advised to read the policy inclusions and exclusions carefully before making a final decision. 

Myth 5: No Claims Means No Benefits

Finally, some car insurance buyers believe that their insurance will be wasted if they do not make a claim during a policy tenure. 

But this is again a myth. 

If you don’t make a claim during your policy tenure, you will become eligible for the no-claims bonus. Most reputed insurance providers offer a “No Claims Bonus” for their policyholders in the form of excellent rewards and discounts on their car insurance policy renewal or new policy purchase. 

It means you can stay assured that even if you don’t make any claims during the tenure of your car insurance policy, you will be entitled to receive the car policy renewal benefits. 

Final Thoughts

A car insurance policy not only allows you to handle the expenses incurred due to unexpected loss or damages, but it also ensures that you adhere to the legal requirements. 

Unfortunately, some people end up making wrong choices by believing the myths that surround the purchase of car insurance. This is the reason why it is recommended to understand the importance of car insurance and overcome the misconception surrounding it before buying a suitable car insurance policy. In this blog, we have tried to highlight the car insurance significance and myths to help you make the right decision. We hope this helps!