Sponsored: Cracking the whip on car insurance myths
There are a lot of myths related to car insurance. They are spread because of lack of awareness and clarity regarding the insurance world.
We have all grown up with thousands of myths and urban legends - be it Santa Claus, Tooth fairy, Unicorns, Leprechauns, or other mythical characters. These myths are spread through word of mouth and our belief in them is based on social acceptance. Similarly, there are a lot of myths related to car insurance. They are spread because of lack of awareness and clarity regarding the insurance world. Another reason for the spread of car insurance myths is the insurance mumbo-jumbo which most people don’t understand. Hence, let’s shed some light on these car insurance myths:
1.Car Insurance premium is higher for new cars: Against popular belief, car insurance premium rates are not just related to the age of your car. For instance, an old car whose manufacturing has stopped will obviously have a greater premium than a new car. The spare parts of the new car are easily available. Hence, its premium will be cheaper.
2.In comprehensive car insurance policy, the insurance company pays the entire claim amount: People often get confused between comprehensive insurance and nil-depreciation insurance cover. Nil depreciation is generally an add-on cover offered with car insurance where depreciation of your car is not considered and the entire claim amount is cleared by the insurance company. Comprehensive car insurance, on the other hand, means that both third party or own damage is covered by the insurance company.
3.Your policy covers you even if you use your car commercially: A personal motor insurance policy does not provide coverage for commercial use. You can’t use your private car as a taxi and expect the insurance company to cover you. If you are using a car commercially, you would need to take commercial car insurance for the same.
4.The value of your car is equal to its purchase amount: This myth is so widely spread that it is hilarious. People who have heard of depreciation would know that the value of your car decreases the moment you drive it home from the showroom. In addition, if you are buying a used car its value decreases even further.
Hope the list cleared a lot of your doubts and liberated your minds from the myths of car insurance. After all, the magic of Santa Claus and Fairies is entertaining only for children.
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