We tend to take a breath of relief after deciding what car to buy and then eventually buying it, as the process includes setting up a budget, listing a group of cars for your ultimate buy and then comparing it. However, nowadays, it’s not only you who have a say in your decision, it’s your family and friends who tend to get even more excited than you and end up giving you various choices. If somehow, you are able to get past all these hurdles and pay for your ‘companion on wheels’, there is another thing that makes you even more frustrated.
Buying a Car Insurance.
Car insurance is one of the most popular and highest selling insurance products in today’s time. It can be difficult to navigate through, particularly for a younger car owner like many of us who have always dreamed of a nice car from the moment they start earning but have little experience in a field like insurance, that our fathers were responsible for until now.
Even the older generation tends to get confused with the uncountable myths that havecorrupted the Car Insurance field ranging from what it actually covers to how the company determines what to charge you for coverage.
The actual trouble with insurance myths is that they can literally cost us money and a huge sum for that matter, or influence decisions that we make.
Therefore, we have busted some of the misconceptions about buying a car insurance that can save you from irrelevant thinking and make you save a lot of money.
1. Car Dealers Provide Better Deals.
Some even say that buying an insurance from a car dealer is mandatory which is one of the most hilarious things that I’ve ever heard. There is no law stipulating this and you can buy your car insurance individually. You can even save a huge chunk of many in some cases.
2. No Claim Bonus Expires The Moment Your Policy Ends
This is one of the biggest misconception created by people who know nothing about Car Insurance. No Claim Bonus (NCB) has a locking period of 90 days from the date of expiry of your car insurance policy. This is treated as a grace period to renew your policy and there is no impact on NCB.
3. New Car, New NCB
This is where we make the biggest mistake as majority of car buyers are unaware of this fact. No Claim Bonus has no link to your car, it’s you who is linked! NCB is a reward for handling your car well and definitely transferable from one insurance company to another.
If you sell off your car, you can, and should, carry over the same NCB to your new car. For example, if NCB for your old car was 35 percent, you can carry over the same percentage to insure your new car.
4. Premiums Has Nothing To Do With Your Profession and Age
Well, it does have everything to do with what you do and how old are you. What insurance companies do is, Risk Prediction and that is their bread and butter. According to their parameter of prediction, customers with higher age are considered more mature and tend to drive safe. Further, professionals like Doctors or Defence Personnel, you might get some rebate on premiums.
On the other hand, you are a Taxi Driver and are buying a car for commercial use, Insurance premiums tend to be higher than the other customer group.
For all those teenagers, if you are planning to buy a new car, it’s always a safe bet to register it in your parent’s name!!
5. You Are a Brilliant Driver. Nothing Can Happen To You
The last but not the least. If you think that “It will never happen to me” and “why would an animal jump in front of my car” as well as, “if something like this even happens, I have all the skills to prevent it”, then my friend, you are Wrong.
Yes, I accept that You are a great driver but can you guarantee the driving skills of others on the road. Well no!! Especially in India, where uncountable deaths are registered each year due to negligent driving.
Every new car, be it your first or fifth, is a reason to cherish. Understand that no matter how great a driver you are, accidents can happen and more often than not, they tend to occur at a very inopportune time, when you are expecting them the least.
So, do buy a car insurance as that what the law says and even it is for your own good. However, choosing an insurance policy can be a cumbersome process, but if you have your facts clear, it is one of the easiest things on this planet.