Investing in a car and getting insurance is something owners take personally and put a lot of consideration into. With so many concerns comes self-investigation which leads to confusion. This confusion often stems from the misinformation and myths surrounding car insurance.
In our myth-busting series, we have decided to shed some light on the myths surrounding car insurance in Pakistan. Let’s debunk some myths about motor insurance!
Myth #1: The Color Of The Car Determines The Premium
Someone must have misguided you or maybe you googled. There is a lot of information but also an equal amount of misinformation on the internet. An easy way to determine it is to visit our website and fill in the information about your car. Did it ask for your car color? The answer must be no, so the color of your car does not play any role in determining the premium of your policy.
Myth #2: You Should Always File A Claim
A key element to keep in mind is that there is a deductible for the filed claim and sometimes the deductible is a bit higher than the price if you would have got it repaired out of pocket. Maybe it is equal to the repairs. So consider this before filing a claim and if the deductible is equal to or higher than the repairs themselves, then you should not file for a claim.
Another aspect to consider is that when going for policy renewal, your records are taken into consideration. Based on that you are sometimes given discounts or benefits. No claim bonus is a thing that states that if you don’t file a claim, you get a bonus. This is to promote safe driving habits among drivers.
Myth #3: All Insurance Covers For Everything
There are a bunch of different options to choose from. They are all there for a reason. Some people prefer a particular type, and some want to cover everything under one. This kind of insurance is called comprehensive car insurance.
Related Topic: Comprehensive Car Insurance
This is the only type of insurance that covers everything under one policy. For others, you will not get coverage for everything. You will need different policies to cover the whole car and that is not advisable. You will need to keep so many records and documents which is not practical.
Myth #4: I Only Need Third-Person Liability
The least coverage required by all the drivers in Pakistan is the third-Person Liability. Keep in mind that this is the least you must have but it does not serve you in any way but rather serves the third party that you got into an accident with in case of an accident caused by you.
Third-Person Liability does not cover you for all the shortcomings and so it is a misconception that you only need third-person liability to protect your vehicle all over.
Related Topic: What Is Third-Party Liability Car Insurance
Myth #5: If Another Person Drives Your Car Their Insurance Will Cover For The Damages To Your Car
If you have lent your car to someone else to drive and they get into an accident, you may think that their insurer will pay for the damages since they are the one responsible for it. But that is not true! There are many reasons why this can be turned down. First and foremost is the car not being registered with their name on the policy. The claim will only go through if the name of the owner matches the details of the car.
Here we have busted five myths about car insurance! Keep them coming and we will keep answering your concerns and confirming and denying the myths!
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