5 Common Misconceptions Related to Vehicle Insurance

Although having a vehicle insurance policy is mandatory, that is not the sole reason why people buy it. They understand the importance of a vehicle insurance policy and why it is mandatory. In this age of technology, vehicle owners can now buy two-wheeler insurance online and car insurance as well. This has made buying an insurance policy easier. However, understanding an insurance policy fully is difficult for a first-time buyer. For him/her, this is only an expense entailing the ownership of a vehicle. 

This is one of the common myths regarding vehicle insurance. Many people still assume that only dealers provide the best insurance policy. However, the truth is far from that. The myth is rooted in the fact that buying an insurance policy for every vehicle is mandatory. To make it easier for customers, dealers began providing insurance policies with the purchase of the vehicle. However, the vehicle owner can choose not to buy the policy and check other options to see which insurance policy is most beneficial for him/her.

Getting an insurance policy which provides coverage for a minimum premium is not a prudent decision. Although it might help the vehicle owner to help save some money in short term, it is not useful for long term. For example, buying a policy with high deductibility might lower the premiums, but it also means that vehicle owner will have to pay for the repair damages and other miscellaneous charges out of his/her own pocket, which nullifies the key point of buying an insurance policy.

If a vehicle is to be driven by more than one driver, than premiums of insurance policies are higher. Having more than one driver increases the risk for insurance companies and, thus, they charge a higher premium. Many insurance companies believe that a vehicle driven by a single driver will be well-maintained and it carries less risk for them. Therefore, when buying a vehicle insurance, make sure that only one person drives the vehicle.

It often happens that when a person buys a car, a dealer tries hard to sell add-ons for the insurance policy for more benefits. This does not imply that all of these add-ons are essential. What add-ons a vehicle owner should buy depends on the specific requirement of the owner. They are add-ons as they make the insurance policy better, however, they are not mandatory and the vehicle owner can choose to not buy them.

There is no strict guideline or rule that stating that a vehicle owner should renew insurance policy from one insurer only. Generally, a vehicle insurance policy is for one or two years, unless the owner has chosen for multi-year policy. For renewal, the vehicle owner can choose to change the insurance, one that offers better insurance terms.

It may be tiresome to read through all the terms and conditions of an insurance policy, however, it provides better understanding of the policy and how the vehicle owner can make the best of it. If any part of it isn’t clear, the vehicle owner can ask the insurer the same before signing it.

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