Published on November 4th, 2016 | by Guest

Car Insurance Myths That Prevent You from Realizing the Potential of Your Policy

While most car owners know that it is important for them to have comprehensive car insurance, the complex drafting of the policy contents makes it almost impossible for it to be understood by the laymen. Apart from this, there are a number of myths and misconceptions that people have about car insurance that makes it very difficult for them to get the best out of their covers.

Some of the common ones busted:

The Best Insurance Deal Is Available From the Car Dealer

Most people, when buying a car, tend to focus only on the vehicle, as a result of which the financing and the insurance are often glossed over by the dealer. This is a deliberate ploy because often the dealer makes more money on them than by selling the car itself. All dealers like to push products of the insurance companies that they have struck a deal with. As a result, they are able to push overpriced insurance packages and earn hefty commissions. You can just get alternative quotes online for the vehicle you have decided to buy and you will be sure to get a deal that is far more attractive. There are a number of websites that have insurance policy comparators and let you buy a policy that is customized to your requirements at a cost that is usually far less than what is offered by your car dealer.

Opting For the Minimum Coverage Is the Best Policy

Car insurance has two main elements; third party cover and own-damage cover. The first element is mandatory and because it is relatively less costly, many people think that it is perfectly okay for them to just have this cover. There is also the feeling the expense of getting own-damage insurance is unnecessary because they follow safe driving procedures and are unlikely to meet with an accident. Given the heavy traffic, uncertain road conditions, rash driving by others not to speak of the chances of theft and damage due to natural calamities, not having comprehensive insurance can mean a complete write-off of your car without any reimbursement. Also, the technique of lowering the premium by agreeing to pay a higher deductible can make it impossible for you to claim damages that are lighter, without being out of pocket.

No Claim Bonus Is Lost When You Sell the Car or Change Your Insurer

If you have been careful and not made a claim then the insurance company rewards you with a no claim bonus. It starts with 20% for the first claim-free year and climbs successively to reach 50% in the fifth year. Getting half of the applicable premium knocked off can be a great saving but most people are under the impression that they lose the NCB if they sell off the car or even change the insurance company. You only have to ensure that you get the new policy or the renewal of the old one within 90 days of its expiry to avoid losing out on the no claim bonus. With the application of the NCB, you can make your commercial motor insurance far more affordable for your business fleet.

Dealers Offer a Better Freebie Package

Most dealers try to lure customers to renew their insurance policies with them by offering many freebies such as free servicing; polishing of the car that may seem to be a big deal but in monetary terms may really amount to nothing. Further, features like cashless claims, genuine parts, assurance of quick surveys, etc. are actually your right and not something the workshop of the dealer should dispense as a favor. Even if you purchase your insurance cover online, you will still be able to get cashless claims entertained at any workshop that is in its approved network.

Conclusion

It is only by reading the promotional matter of the various insurance companies and also the various car insurance guides available online that you can make yourself well informed about the subject. By doing this, you will be able to take the best decisions without anyone being able to mislead you. Also, the process of educating yourself will let you discover all the features of your insurance policy, and the best ways of keeping yourself covered with the least cost.

Tags: car, insurance, myths, policy, potential, prevent, realizing