Insurers ask owners to pay the costs and then reimburse them
Myth 1: Comprehensive insurance is unnecessary
Fact: As per the Motor Vehicle Act 1988, Third Party Liability cover is mandatory for all vehicles plying on public roads in India. However, it is advisable to have a comprehensive motor insurance as it covers loss or damages to your vehicle including any damages suffered by the third party and/or occupants.
Myth 2: Only the driver is liable in an accident
Fact: The owner of the car is primarily responsible in the event of an accident. He is liable to the third party for all damages suffered by the said third party and also for any damages suffered by the occupants.
Myth 3: Comprehensive insurance covers everything
Fact: A comprehensive car insurance policy has various exclusions and limitations that will affect your claim to get all expenses reimbursed. You must read the policy document properly and ensure your claim is not affected by these exclusions and limitations.
Myth 4: Old cars won't be a target for theft
Fact: Newer car models are often fitted with security systems or anti-theft devices, thus making car theft a more difficult scenario. If no new technology such as engine immobilizers and GPS locators are installed, then old cars are more likely to be stolen than new ones.
Myth 5: Insurance cover all personal belongings in the car
Fact: Your car insurance only covers for accessories such as music systems, GPS navigation units, etc. and CNG or LPG kits that are insured under the policy. It does not protect against your personal belongings in the car including any cash or jewellery.
Myth 6: Color of a car affects its premium
Fact: Your insurance premium does not depend upon the color of your car. It is actually dependent on other factors such as the cubic capacity, the make and model, the year of manufacture, and the place of registration, among others.
Myth 7: Insurers ask owners to pay the costs and then reimburse them
Fact: Quite a few insurance companies offer cashless repairs. This means that you only pay for what is not covered under your policy. The rest is paid directly by the insurer to the dealer without you having to bear any costs.