The surge in global population is paralleled by a growing number of vehicles on the road thereby increasing accidents. Acknowledging the importance of financial security and peace of mind, comprehensive car insurance becomes essential. This insurance covers damage from various incidents and can be conveniently purchased online, offering a more straightforward, quicker, and cost-effective process. Now, let’s debunk some prevalent myths surrounding full-service car insurance. Claims are subject to terms and conditions set forth under the motor insurance policy.
Myth 1: Car Insurance Gets Less Expensive For Older Vehicles
Fact: While a car’s Insured Declared Value decreases with age, several factors influence the premium. Driving history, vehicle mileage, insurance age, and claim history are crucial elements affecting the cost of insurance for older cars. You can use a car insurance calculator to check on the prices of premiums to be paid.
Myth 2: Purchasing Car Insurance Takes A Lot Of Time
Fact: Purchasing or extending insurance is now straightforward and time-efficient. Online platforms have streamlined the process, allowing users to provide basic information for a quick quote and select a plan that suits their needs.
Myth 3: Losing No Claim Bonus When Switching Insurance Providers
Fact: No Claim Bonus (NCB) protection coverage belongs to the policyholder, not the car. When switching insurance providers, the NCB can be transferred, remaining valid for ninety days after the comprehensive car insurance policy expires. *
Myth 4: Safe Cars Don’t Require Insurance
Fact: Third-party coverage is mandatory, and comprehensive insurance is crucial as it covers losses from theft, natural disasters, and accidental damages. The financial loss without insurance far exceeds the policy premium, making both types essential for a car. Claims are subject to terms and conditions set forth under the motor insurance policy. *
Myth 5: In The Event Of Complete Damage, The Cost Of A New Car Is Covered
Fact: The insurance for a car is based on its Insured Declared Value (IDV), representing the maximum the insurer will pay for a total loss claim. IDV calculations during car insurance renewal include depreciation along with the market price.
Myth 6: An Insured Party Is Only Covered For Faultless Accidents
Fact: The insurance company covers all claims as long as the insured holds a valid driver’s license. Claims are denied in cases of alcohol or drug influence, failure to meet policy terms, or using a private vehicle for business purposes.
Myth 7: Third-Party Insurance Is Sufficient For Older Vehicles
Fact: This comparison is incorrect, as comprehensive car insurance provides coverage that third-party insurance does not. Older cars are susceptible to damage from accidents, emphasizing the need for personal injury insurance.
Myth 8: You Must Renew Your Car Insurance With The Same Provider
Fact: Switching insurance providers during policy renewal is simple, and the No Claim Bonus is transferable. *
Myth 9: The Process Of Settling Claims Is Time-Consuming
Fact: Claim resolution is a straightforward process. If the vehicle is repaired at a network garage, there’s no need for out-of-pocket payments, and the claim settlement process is efficient. Claims are subject to terms and conditions set forth under the motor insurance policy.
Myth 10: The Insurance Provider Pays The Costs Back
Fact: In network garage visits, the insurance company covers repair costs, and the claim is settled without the insured paying.
* Standard T&C Apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.