Common misconceptions about auto insurance in India and why they are wrong
Auto insurance is a type of insurance that provides financial protection to the owner of a vehicle against any loss or damage caused by the vehicle. In India, auto insurance is mandatory for all vehicles as per the Motor Vehicles Act, 1988. Despite this, there are several misconceptions about auto insurance that prevail among the general public. In this blog post, we will discuss some of the common misconceptions about auto insurance in India and why they are wrong.
Misconception #1: Third-party insurance is sufficient
One of the most common misconceptions about auto insurance in India is that third-party insurance is sufficient. Third-party insurance only covers the damages caused by your vehicle to third-party property or person. It does not cover any damage to your own vehicle. Therefore, it is not sufficient to protect your own vehicle from any damage or loss.
Why it’s wrong: While third-party insurance is mandatory, it is not sufficient to protect your own vehicle. It is important to have a comprehensive insurance policy that covers both third-party liability as well as any damage or loss to your own vehicle.
Misconception #2: Insurance is not required for a new car
Another common misconception is that insurance is not required for a new car. Many people assume that a new car is less likely to get damaged or stolen and, therefore, insurance is not necessary.
Why it’s wrong: Insurance is mandatory for all vehicles, whether new or old. Even a new car is at risk of theft or damage in case of an accident. In fact, a new car is often more expensive to repair or replace than an old one. Therefore, it is important to have insurance to protect your investment.
Misconception #3: All insurance policies are the same
Many people assume that all insurance policies are the same and that it doesn’t matter which policy they choose.
Why it’s wrong: There are many different types of insurance policies available, each with its own set of benefits and limitations. It is important to choose a policy that suits your needs and budget. For example, some policies offer additional benefits such as roadside assistance, while others may have a lower premium but a higher deductible.
Misconception #4: Insurance claims are always approved
Another common misconception is that insurance claims are always approved. Many people assume that once they have insurance, they are guaranteed to receive compensation in case of an accident.
Why it’s wrong: Insurance claims are subject to approval by the insurance company. If the insurer deems that the claim is fraudulent or not covered under the policy, they may reject the claim. Therefore, it is important to carefully read and understand the terms and conditions of your policy to ensure that you are aware of what is covered and what is not.
Misconception #5: Insurance is too expensive
Many people assume that insurance is too expensive and, therefore, choose not to get it.
Why it’s wrong: While insurance premiums may vary depending on the type of policy and the level of coverage, it is important to consider the cost of not having insurance. In case of an accident or theft, the cost of repairs or replacement can be significant. Insurance provides financial protection against such losses and can help you avoid significant out-of-pocket expenses.
In conclusion, there are several common misconceptions about auto insurance in India. It is important to be aware of these misconceptions and understand the importance of having the right insurance policy to protect your vehicle and yourself. It is also important to choose a policy that suits your needs and budget, and to carefully read and understand the terms and conditions of your policy to ensure that you are fully covered in case of an accident or loss.