Top 5 Things Misunderstood About Car Insurance – Latest News From Jammu Kashmir | Tourism


Having auto insurance is mandatory if you own a car. While most car owners know how insurance works on a superficial level, there are still quite a few misconceptions and myths about car insurance. In an age where there is a plethora of information available with just a few clicks, it can often be difficult to distinguish between fact and fiction. Only if you have a complete understanding of how auto insurance works will you be able to make the right decisions and get the right coverage for your beloved car.

To help you out, here are some of the most common misunderstandings about . Knowing the truth about them will surely benefit you as a car owner.

1. If my car is very old, I don’t need insurance.

People often believe that replacing an old car is relatively cheaper because its value has depreciated over time. Buying a comprehensive insurance plan for this doesn’t seem worthwhile to many. However, accidents can happen anywhere, anytime, so staying covered is highly recommended. An older car requires more care and can be more expensive to repair. Also, it is more likely to be stolen due to the demand for its parts. More importantly, according to the , it is mandatory to have auto insurance whether you own a new or old car.

2. If I am at fault, I cannot make an insurance claim.

If you have a valid driver’s license, any accidents you are in are covered by your insurance policy. A comprehensive insurance policy covers accidental damage, theft, fire, riot damage, mechanical breakdown, etc. However, it does not accept claims for accidents caused by alcohol or drug intoxication. It is also important to understand that the claim must follow the terms and conditions of the policy agreement. For example, if you purchased a vehicle for personal use and then used it for business purposes, your accident claim will be denied.

3. If I sell my car, I will lose my NCB.

NCB describes your driving abilities. It is personal property to which only you have access. Even if you sell your car or change insurers, no one else can use it. Your NCB belongs to you, not your vehicle. Only you can benefit from its advantages. That’s why even if you sell your car, you won’t lose your NCB. You can use it on the next vehicle you buy.

4.If I opt for lower coverage, I will save money.

People often buy auto insurance with less coverage in hopes of saving money. However, this is one of the most common mistakes to make. Due to the limited services provided by the reduced coverage, you will end up paying large sums out of pocket for repairs and replacement. Accidents can happen no matter how carefully you drive. In the event of theft, fire, flood or war damage, you will face a significant financial burden. Inadequate car insurance policies can cost you more; therefore, invest in policies with wide coverage and you will live a stress-free life.

5.If I opt for cashless repairs, I don’t have to pay anything.

When your car is damaged in an accident, you must notify your insurance company and contact or drive to the nearest garage. Then your vehicle is appraised and a repair estimate is prepared for you to submit to your insurance provider. Your insurer pays the garage to repair your car after a thorough check. However, some exclusions are not covered, for example, certain fiber or rubber components or damage caused by normal aging. In this case, you will have to pay for their repair out of pocket. You, as the policyholder, have to bear the costs of deductibles and amortization. Before making a cashless claim, you should fully understand the conditions and restrictions. If needed, you can opt for add-ons such as zero depreciation, consumables coverage, etc.


Being well aware is always beneficial. When you can tell a myth from a fact, you can save yourself a lot of trouble. Knowing the truth about auto insurance will not only help you get the right coverage, but also help you get the most out of your insurance policy.


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