Many people are still perplexed by insurance because it is a broad term with many facets. Regarding vehicle insurance, it is essential to remember that having a third-party car insurance policy is required by the Motor Vehicles Act of 1988.

Third-party liability insurance covers liabilities resulting from an accident with a third party. On the other hand, a comprehensive approach provides extensive coverage, including protection against third-party liability and damage to one’s vehicle.

Before purchasing an insurance policy, consult with your friends and family about their previous experiences with various insurers. Though they are a good source of primary data, you should also conduct your research because there are many myths that people believe in and may inadvertently pass on.

Let us debunk seven bajaj allianz car insurance misconceptions or myths you’ve probably heard to clear the air –

• Myth 1:

If your friend is driving your car and is involved in an accident, they are responsible for the damage, not you.

Reality: The car insurance policy follows the vehicle rather than the driver. So, if your friend is in an accident, your insurance company will cover you if the person driving the insured car has a valid licence.

• Myth 2:

The colour of your car will affect the amount of your insurance premium.

Reality: Your premium is determined by factors such as the car’s make and model, IDV, age, and so on, rather than its colour.

*

• Myth 3:

If you live in a rural area, your car is less likely to be damaged, so you don’t need to insure it.

Reality: No matter where you live, the Motor Vehicles Act of 1988 requires all car owners in India to have basic third-party car insurance.

• Myth 4:

If you change companies that cater car insurance online or offline, you will lose your accumulated NCB.

Reality: The no-claim bonus (NCB) is a concession you receive in the form of a settlement to keep. Even if you want to switch to a different insurance company at the time of renewal, you can transfer your accumulated NCB; you won’t lose it.

*

• Myth 5:

Because your car is old, you don’t need an insurance policy to protect it because it is less likely to be stolen.

Reality: Your car is not only vulnerable to theft but also accidents. True, the Insured Declared Value (IDV) depreciates over time, but that doesn’t mean you shouldn’t get car insurance. A comprehensive motor insurance policy will protect you against third-party liability as well as your damage.

*

• Myth 6:

If your car is damaged by natural disasters such as floods or earthquakes, your insurance company will not cover you.

Reality: If you choose a comprehensive policy, the insurance company will cover any damage to your car caused by natural or man-made disasters. Compensation will be provided to repair the damage to the vehicle in situations such as floods, earthquakes, and fires, among others.

• Myth 7:

In the event of total damage, the insurance company will be responsible for the cost of your vehicle.

Reality: If you have a comprehensive motor insurance policy, the insurer is obligated to pay the IDV of your car in such cases.

*

Before jumping to conclusions, it is critical to clarify your doubts, educate yourself on the bajaj allianz car insurance claim process, and determine whether what you are hearing is a myth or a fact. Look for rewards and compare insurance quotes to find the ideal fit for your needs.

* 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.

Subscribe to Bajaj Allianz General Insurance YouTube Channel here!