Debunking Myths about Comprehensive Car Insurance

New Delhi (India), August 7:  The number of car buyers has grown in India rapidly and so has the car insurance market. Almost every car owner purchases comprehensive car insurance to protect themselves and their vehicle in the event of any unfortunate incidents. It is the most popular insurance type in India. Nevertheless, there exist many myths about comprehensive insurance and this needs to be debunked. Many people still think they have to purchase insurance from the car dealer when they buy a new car. In reality, you can buy car insurance online or offline from your preferred seller. There are many more misconceptions like this. Let’s steer clear of them!

Introduction

Car ownership has grown significantly in India in the last few years. The market for both new and used cars has seen healthy growth. According to a report, compared to May 2023, May 2024 saw a 4% growth in car sales. During the former period, total car shipments stood at 3,35,436, which has grown to 3,50,257during the latter month. With an increase in car sales, the car insurance market also expanded very strongly.

Even though comprehensive car insurance is the most sold and popular vehicle insurance type, many people are not aware of its details. A lot still believe in the old myths about this car policy. These can lead to confusion or misconception when buying car insurance online or when making claims.

Update Your Knowledge About Comprehensive Car Insurance

Do you still believe the old rumours about comprehensive car insurance?Here are some common myths that need to be debunked time and again until everyone knows their ‘truth’!

Myth 1: New car insurance must be purchased from the car dealer

This is one of the most common myths about comprehensive insurance. Many people who buy their first car fall prey to this falsehood. They think that when buying a new car, they must get its insurance from the car dealer. There is no such compulsion. You are not bound in any way to buy your new car policy from the dealer. As long as you have the engine and chassis number of the car, you can buy insurance from any authorized company or channel. Buy it online or from your preferred agent.

Myth 2: Policy add-ons are not needed when you are buying comprehensive car insurance.

Comprehensive car insurance is generally a well-rounded product. You get third-party cover mandated by the law, own damage protection which helps recoup your repair costs, and personal accident cover mandated by the Insurance Regulatory and Development Authority of India (IRDAI). You can also add more power to your comprehensive policy by getting add-ons for it. People often want to buy insurance at a cheap rate, so they give up on add-ons. In reality, riders provide many benefits like zero deprecation, return to invoice cover, and emergency roadside assistance.

Myth 3: Online car insurance policies are not accepted everywhere.

This is another myth spread by people with ill intentions. Some may say that the police will not accept the online policy and will give you a challan. Others say they do not come with cashless cover and depreciation or taxes are too high. All of these things are incorrect. Buying car insurance online is fully legal and accepted by traffic police as long as it has the mandated third-party cover. The cashless cover is a matter of the insurance company's cashless network of garages. Policy being bought online or offline is not an issue. Taxes and depreciation are fixed by regulators and are the same for both modes of policy purchase.

Myth 4: Even if you get car insurance online, you will still have to wait till the policy papers are sent by courier to your home. 

This is an old one and mainly stems from the earlier practice of some insurance companies sending policies by courier to people. Things are entirely online now and are completed in a few minutes. You can buy car insurance online and the moment your policy is issued, a copy is sent to you by email. Also, you can download the insurance policy copy fromthe company website. The insurer may still send you a printed copy by courier for your records but you do not have to wait till then. Print your comprehensive policy pdf and you are good to go.

Myth 5: Even if you buy the policy online, you still have to pay for it in cash at the company office or through an agent.

This is another myth that has been circulating for so long. Earlier when the insurance was not sold online, people had to go to the office or an agent to pay the premium. This is not the case anymore. If you buy car insurance online, you can immediately pay the premium also online. Many modes of payment are accepted like UPI, credit or debit cards, NEFT, etc. In many cases, you also get reward points for online payments from the company that issued your payment card.

Myth 6: Online car insurance policies are old plans with only the most basic features.

This is such a bad myth about online car insurance purchases that it provides diametrically opposite information. They are neither old plans nor are their features poor in any manner. Instead, most insurance companies put their latest and most feature-loaded plans on their website for sales. If you want the best comprehensive insurance, search online, and compare insurers and features to find one.

Myth 7: Online car policies come with poor or no claim support and you have to do all the paperwork yourself. 

This is another piece of gross misinformation. The insurance company will not segregate customer support based on sales channel. It makes no business sense. As long as you are in the cashless network of garages, the repair centre will handle your claim part and guide you properly. You just have to sit with them and they will handhold you through and through. Otherwise, you still have access to all the channels of customer support that the company provides which will assist you with all your queries.

Conclusion

While it may be very hard to find where the misleading information came from, they are all just myths! Buy car insurance online with confidence. Search and comparison shop! Visit different insurance company websites as well as check out what is offered by third-party online policy aggregators. Research what works best with your needs and supercharge your policy by choosing from the various add-ons that the insurer offers. Remember to claim all applicable discounts as well. Finally, always make sure that you are buying the insurance policyfrom an IRDAI-authorised vehicle insurance provider.

Disclaimer: The above information is for illustrative purposes only. Before concluding the sales, please refer to the policy wordings and prospectus for more details.

Moneycontrol Journalists are not involved in creation of this article.