Top 10 Car Insurance Myths Debunked

Posted by rebe ballos on March 17th, 2020

Car insurance is such a broad and often intimidating topic. It surely occurs various myths around it. These myths not only create a wrong impression of car insurance, but they may also end up causing you to spend more. Check out some important myths and truths behind the car insurance. 

Myth 1: Colors other than white or black cost more to insure    

Fact: This may have been the case in the past, but now a days it's not accurate. Insurance company do not charge you extra for insuring a red car. The insurance premium is affected by a number of factors, but the car’s color is not one of them.

Myth 2: Comprehensive insurance does not cover natural damage/caused by acts of God 

Fact: An act of God is a natural calamity which you have no control such as an earthquake, Tsunami, etc. Your insurance covers all damages under the comprehensive insurance policy. By knowing that we have no control over nature.

Myth 3: Your vehicle’s insurance is equal to the value you paid for it   

Fact: No, that's not true exactly. if you pay a higher premium for it than your car’s insurance value will be equal to the value you paid for it. But, By default, your car is insured for a lesser amount.

Myth 4: No need to inform insurer about car modifications  

Fact:  In case of modifying your vehicle, you have to inform the insurance company to cover the modification under insurance. Otherwise, you won't be able to make a claim in case your car gets damaged and your insurance will stand void.

Myth 5: Vehicle’s use for business purposes covers Insurance  

Fact: Basically, Personal vehicle insurance is different from commercial vehicle insurance. In case of commercial vehicle, the cost is expected to be higher than the personal vehicle users. [Note: The tips are powered by the trusted Car Workshop Dubai Center, United Arab Emirates]

Myth 6: If someone else is driving your car than thepersonal damage cover can be claimed

Fact: No, it cannot be possible. Since the insurance policy is in your name, the personal damage cover will be in your name too. In such case, any injury inflicted on you in an accident will be covered by the personal damage cover of your car’s insurance.

Myth 7: Insurance cost goes up if you opts for a higher variant of a car  

Fact: You know a higher variant car brings with it additional goodies such as anti-theft systems (central locking and engine immobiliser). These features can actually help you in availing discount on insurance premium.

Myth 8: One has to pay for repairs from his own pocket even if the car is insured    

Fact: This is partially true. In case you have zero depreciation insurance, you won’t have to pay even a single penny for repairs. However, in case of regular comprehensive insurance, you will have to pay the entire cost of repairs and the insurer will reimburse its part of the total cost to you.

Myth 9: Only an insured car can be driven on public roads   

Truth: This one is partially true, too. As per the Indian law, you need to have third-party insurance if you want to drive your car on public roads. However, we advise you to insure your car as well so that if it gets damaged, it can be repaired without you having to shell out a bomb.

Myth 10: Old car insurance can be transferred to a new car    

Truth: If you are buying a new car, you can get the no claim bonus transferred from the old car to the new one. In essence, if you have not claimed insurance in the previous year on your old car, you can avail a discount on the insurance you buy for your new car. However, the insurance of the old car will be transferred to its new owner and not to you.