When it comes to 4 wheeler insurance, there’s no shortage of myths that can confuse even the most experienced drivers. From assumptions about what’s covered to misunderstandings about policy renewal, these misconceptions can lead to poor decisions and unexpected expenses.
But fear not—this blog is here to clear the fog around these myths and help you understand the facts behind 4 wheeler insurance. Let’s break down the most common myths and the reality behind them, so you can make smarter decisions when it comes to insuring your vehicle!
Myth #1: “Third-Party Insurance is Enough for My Car”
Fact: Third-party insurance is the minimum legal requirement in India, but it doesn’t cover everything.
While third-party insurance is mandatory by law, it only covers damages to another vehicle, person, or property. It won’t cover any damage to your own car. So, with 4 wheeler insurance, if your vehicle gets into an accident, catches fire, or is damaged due to natural disasters, you’ll have to pay for repairs out of your pocket.
That’s why many car owners opt for comprehensive 4 wheeler insurance, which offers more extensive coverage, protecting both your vehicle and third parties.
Example:
If you’re involved in an accident that causes damage to both cars, a third-party policy will only cover the cost of repairs for the other driver.
Myth #2: “Car Insurance Provides Comprehensive Coverage. It Doesn’t Matter What Happens”
Fact: There are exclusions in every insurance policy that you need to be aware of.
Comprehensive 4 wheeler insurance offers a broad range of coverage, but it doesn’t mean it covers every single event. For example, damage caused by drunk driving, mechanical breakdowns, or regular wear and tear isn’t typically covered.
It’s essential to read the policy fine print to know what’s excluded so you’re not caught off guard during a claim.
Example:
Let’s say your car breaks down due to engine failure from regular wear and tear. Unfortunately, insurance doesn’t cover the costs for these kinds of mechanical repairs, which you’ll need to handle separately.
Myth #3: “Older Cars Don’t Need Insurance”
Fact: No matter the age of your vehicle, insurance is still essential.
The misconception that older vehicles don’t need insurance stems from the idea that they have less market value. However, accidents can happen with any car, regardless of its age. An older car might not fetch much on the market, but repairs and third-party liabilities can still be costly. Having 4 wheeler insurance ensures that you won’t bear a significant financial burden in case of an accident, theft, or other damage.
Example:
Imagine your older car gets stolen. While the market value of the car might not be high, having insurance ensures you’re compensated for the loss, helping you purchase a new vehicle.
Myth #4: “If I Don’t Make Claims, My Premiums Will Decrease Automatically”
Fact: No Claim Bonus (NCB) can reduce premiums, but you must stay aware of it.
While not making claims makes one eligible for a No Claim Bonus (NCB), it doesn’t automatically lower premiums unless the NCB is applied. To benefit from 4 wheeler insurance reductions, the policy must be renewed on time, and the NCB should be carried over. If the policy lapses, the NCB benefits may be lost, meaning the individual won’t enjoy reduced premiums even if no claims have been filed.
Example:
Ankit hasn’t made any claims for two years, and he’s eligible for an NCB discount. However, if he forgets to renew his policy on time, he might lose his NCB and end up paying the full premium again.
Myth #5: “All Insurance Policies Are the Same”
Fact: Insurance policies can vary significantly in terms of coverage, add-ons, and benefits.
Not all 4 wheeler insurance policies are created equal. Some provide extra benefits like roadside assistance, engine protection, or zero depreciation cover, while others offer only basic protection.
It’s important to compare policies and choose one that matches your needs. With platforms like Digibima, you can easily compare different policies to find the best fit for your vehicle.
Example:
Meera compares two 4 wheeler insurance policies: one offers standard third-party and damage protection, while the other includes add-ons like engine protection and zero depreciation coverage. By choosing the right policy for her, she ensures her car is well-protected in all situations.
Myth #6: “I Can’t Switch Insurance Providers Midway”
Fact: You can switch insurance providers whenever you want.
Many people think they’re stuck with the same insurance company for the duration of their policy, but that’s not true! You can switch providers at any time for a better deal or more comprehensive 4 wheeler insurance coverage elsewhere.
Just make sure you don’t let your policy lapse in between switching providers to ensure continuous coverage.
Example:
Ravi is unhappy with the customer service from his current insurance provider. He finds a better option with another company and switches without waiting for his policy to expire, ensuring uninterrupted coverage.
Conclusion
Understanding the facts behind 4 wheeler insurance can help you make informed decisions that save you time, money, and frustration. Whether it’s realizing that comprehensive insurance is a better option than just third-party coverage or understanding that your policy doesn’t cover every scenario, staying informed is key.
Insurance isn’t just a legal requirement—it’s a tool to protect yourself and your vehicle. And if you’re looking for the best coverage for your car, Digibima makes comparing different insurance policies simple, helping you find the perfect plan for your needs.
FAQ Section
Q1: Is third-party insurance enough for my car?
A1: No, third-party insurance only covers damages to others. If you want coverage for your vehicle, comprehensive 4 wheeler insurance is the way to go.
Q2: Does car insurance cover everything?
A2: No, car insurance policies come with exclusions such as wear and tear, mechanical breakdowns, or damage caused by drunk driving. Always check your policy details.
Q3: Do older cars need insurance?
A3: Yes, older cars still need insurance. Accidents and third-party liabilities can occur regardless of the age of your car.
Q4: Will my premiums decrease automatically if I don’t make claims?
A4: No, while you may be eligible for a No Claim Bonus (NCB), it won’t automatically lower your premiums unless applied. Make sure to renew your policy on time to retain your NCB benefits.
Q5: Can I switch insurance providers midway through my policy?
A5: Yes, you can switch insurance providers at any time without waiting for your current policy to expire, ensuring continuous coverage.
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