Today, cars are no more considered as a luxury item; but a necessity for easy commutation. While going for an insurance policy, usually the buyers focus on the premium amount of the plan that he needs to pay. He gets under an illusion that he has got enough coverage for the vehicle. In some cases, there are even several myths which play a negative role in influencing the insurance coverage or purchase of plan itself.

Exposing the myths related to car insurance policies.

• My car is an old one, so I don’t need insurance for it: Usually, people think that when the vehicle becomes old, there is no requirement of getting it insured. Well, it is a big myth. As per the law, it is necessary to have insurance for your vehicle irrespective of whether it is old or new. It is not only for the safety of your vehicle but also for the safety of others which include, driver, passengers and even third-parties.
• The insurance plan can protect me from an accident if it is not my fault: The insurance policy can help you stay protected against all risks with the condition that you have a valid driving license. In case the car suffers damage due to any natural disaster or riots, fire or any other reasons, you are protected. The claim can be rejected if the vehicle is used for any other purpose than specified or driven in a reckless manner or under the influence of alcohol. The insurance company does not focus on whose fault was it; it works on the principle of damage to vehicle only.
• I may lose No Claim Bonus if I transfer my insurance policy: It is another myth among the car insurance buyers. The No Claim Bonus can be transferred to your new vehicle policy as well; and hence there is no requirement of transferring the insurance policy if the vehicle is sold. The NCB needs to be transferred within 90 days of old policy expiry date. You need to update the service provider for the same and carry out the process as required, you NCB can be easily transferred.
• For an old car, Third Party Coverage is sufficient: This is half-true. The third-party coverage can surely help you to get the third-party protected, but it does not protect your vehicle from damage in any form. Hence it is better to go for a comprehensive plan rather going just for the third-party coverage. It does not matter whether the car is new or old. From the legal point of view too,a comprehensive coverage is a much better choice.
• If I sell my car, the NCB will be moved to the new owner: There is a provision of transfer of NCB which can safeguard your interest in your insurance policy even if the car is sold. Your NCB can be given to you if you carry out the process of transfer of NCB from your old vehicle to the new one and that too within the 90days from the policy expiration. You need to update the service provider for the same and carry out the process for the transfer of NCB to get the benefits of NCB retained.
• Insurance can protect you from any damage caused: It might be true to some extent; but at the same time, one should keep in mind the exclusions of the insurance. If one faces any kind of damage due to driving under effects of liquor, he may not be able to claim. If there is any reason for the insurance service provider to believe that the vehicle is not used as required in standard condition, the claim for the same can be rejected.
• The insurance service provider cannot be changed: It is no more a valid point now as you can easily switch to another service provider once your insurance is over with the present service provider. You can select a new service provider from the new date of insurance policy only and not while one insurance policy is still into force by any of the service providers.
• I need to pay the expenses from my pocket first and then only claim can be made: This is again a big myth. These days one can go for the cashless insurance policies where he needs to send the vehicle to the designated service centers only and pay for the processing charges. The cashless claim can help one not to pay anything from his pocket and still get the vehicle repaired.

So, these are a few myths among the buyers of car insurance which need to be cleared before they go for any renewal or new insurance policy from any of the service provider in the market.