Buying an insurance policy for your four-wheeler is one of the best things you can do to save yourself from an unforeseen financial crisis. Even small damage to your vehicle can cost you a big time. However, there are a lot of myths that people believe in when it comes to applying for four-wheeler insurance online. You think you can do without insurance until you get severe damage in your car. The insurance providers cover most of the cost for damages or theft and you have to pay a small amount of premium for the same. Even when you compare car insurance policy, you must have come across people advising against taking four-wheeler insurance online. In this article, we will discuss the myths related to automobile insurance.
Uncovering Myths about Four-wheeler Insurance
1. Auto Insurance Policy changes as per the color of your car
This may sound weird but some people believe in it. There are even forums on the internet explaining how a shiny red car will have different insurance coverage due to its costly paint. The truth is far from this. The premium for insurance does not vary as per the color of your car.
The factors that affect the premium to be paid for the policy are:
The Make
The Model
Body Type
Engine Size
Age of the Vehicle
It may also vary according to your driving record and your credit history but the color is not even a distant factor when it comes to the premium to be paid. The anti-theft provisions installed in the car may also affect the final premium you have to pay for insurance.
2. Insurance in Independent of Credit Score
Many people think that it is the car that is getting insured and hence, the credit history of the owner does not play any role in the calculation of the premium to be paid by the customer. However, your credit score is like a testimony to your financial viability and the insurance provider will make sure to assess the same before completing the entire processing. Hence, before applying for four wheeler insurance online, make sure that you have a good credit score.
3. The minimum amount of liability auto insurance, mandatory by law, is sufficient
Having automobile insurance has been mandatory in many countries and a minimum amount of auto insurance has to be done preferably at the time of purchase. There is a common notion that this insurance is enough to cover all the future damages.
However, real accidents cost way more than what these insurance policies can cover. Hence, the next time you compare car insurance policy, make sure that the amount of coverage is sufficient enough to take care of accidents or thefts in the future.
4: Private auto insurance policy covers both personal & business use of your car
This is a major confusion that people have. They believe that they can use their vehicle for business purposes like cabs and their insurance will still cover the damage in case of damage. Your private car insurance will cover you only for your usage and not a business. For using your car for business purposes, you will have to get a passenger carrying vehicle insurance or goods carrying vehicle insurance.
5. Can’t Transfer My Policy to another User
People think that if they transfer their four-wheeler insurance, then they will lose out on the No-Claim Bonus (NCB). NCB is a sort of reward given by the insurance provider to every customer for a claim-free year. However, if you transfer your insurance policy to another customer within 90 days from the date of expiry of the policy, you can transfer the NCB to the new customer too.
Conclusion
Four-wheeler policy online is easily available and you should not pay heed to the myths about it. The insurance providers offer great discounts and add-ons on their policies too. Make sure to check it out the next time you compare car insurance policy. The points mentioned above will help you in having clarity about four-wheeler insurance policies. You can also go to the official websites of the insurance providers to know more about the various schemes and offers.
