Myths are persistent and unrealistic and therefore, cause more harm than good. Car insurance myths are no different.
Not only do they put you in a tough spot with the authorities but also leave you uninformed about your rights and lack thereof.
Let’s take a look at some of the common, albeit ill-founded, myths and what is actually the reality!
I do not need insurance for my old vehicle
Reality: It is mandatory to have your vehicleinsured.
Though you may feel that the low replacement value of some older vehicles does not justify the cost of comprehensive insurance, note that old cars have the highest theft rates due to demand for parts and they are easier to steal.
I am an experienced driverso why should I buy an insurance policy?
Reality:You may be the safest of drivers but can you guarantee the conduct of other drivers on the road?
If you meet with an accident and your vehicle was uninsured at the time, you will be liable for all the injuries caused to the third party and the damage to their vehicle.
I can use my vehicle for any purpose
Reality:At the time of taking a policy, one has to declare the purpose for which the vehicle is bought – personal or commercial.
You can use the vehicle for any purpose but the insurance company is liable to pay only if the damaged vehicle was being used for the same purpose as mentioned in the declaration.
For instance, if you declare the vehicle for private use but at the time of the accident, the vehicle is found carrying goods or supporting other commercial activities, then your insurer won’t be liable to pay for any damagescaused.
I will get the claim even though my driver was driving without a licence
Reality: It is a punishable offence to drive without a valid driving license.
Insurance companies will not accept any claims, if the person driving the vehicle does not have a valid driving licence.
I can drive freely outside my country
Reality: You may definitely take your car outside the country, but if your car is damaged due to accidents overseas, your insurer will not cover it.
For other geographies, you may have to inform the insurance company and they would determine the cost on the basis your travel.
Insurance policy can be terminated anytime
Reality: Your insurer does not have the power to terminate your car insurance policy at a whim.
They can cancel the policy only when you have wrongly declared facts, hidden information, not paid renewal premiums, etc.
Remember, motor insurance does not have any free look period. Thus to cancel the policy, you need to have an alternative Third Party policy.
If someone else was driving my car, I will not get the claim
Reality: Motor insurance covers damages caused by the use of your vehicle irrespective of whoever was driving the vehicle at the time of accident.
The company is liable to pay the claims, as long as the person driving the vehicle has valid license.
I hope I have cleared the air surrounding car insurance and related claims for you.
Make sure to have a comprehensive car insurance policy and follow the instructions therein to the tee in order to get your claims approved, should you have any.
Curated from Busting the Myths Surrounding Car Insurance