What are some common misconceptions about insurance? Any industry that exists is bound to have some myths around it and insurance is no different. Hence, an intelligent move while exploring any topic is to debunk the myths. Today, we are here to do exactly that!
Let’s Compare empowers its clients and customers to make an educated decision when it comes to buying an insurance policy online. So, let’s take a look at what are the myths around insurance and debunk them!
Myth #1: Everything Is Covered!
This is a common myth that every insurance policy covers everything. Not every policy covers everything. A third-party car insurance pakistan only covers third-party liability and 3T will only cover theft, total loss, and third-party liability. For other damages like collision damage, you will need to get collision coverage. This is the same for all types of insurance like health and travel insurance Pakistan.
Also, not every company offers the same covers, so it is important to compare all options and get the one with the best coverage and justified rates.
Myth #2: You Should Always File A Claim!
No! You should not always file a claim. Do you know that there is a “No Claim Bonus” or NCB annually if you don’t file a claim? Other than that it is not recommended to always file a claim because your claim charges and the deductible might be more than the amount you pay out of pocket for repairs. So, compare the deductible and make a decision if you should file a claim or not. Also, if you don’t file a claim for the tenure of premium, you get a bonus that might compensate you for more than what you paid out of pocket. So, it is not important to file a claim each time for every small damage.
Myth #3: Loyalty Will Always Benefit You!
Not true! We often think that staying loyal to one company will win you benefits and cookie points from them. Which is false. Insurance companies offer universal benefits and discounts so you are no different from them. It is advised to shop for insurance every year 30 days before your policy ends. This will help you get a better rate with comparison. For this, you can use an online insurance comparison tool like Let’s Compare!
Myth #4: Having Only State’s Minimum Coverage Will Save Money!
That’s not how insurance works! Let’s say your state requires minimum Third-Party Liability. But have you ever wondered about a more grave situation like a natural disaster hitting or your car getting totaled? What then? You won’t have enough cover for these circumstances and then you will need to pay a heavy amount out of pocket that, otherwise, might have been covered by your insurer if you had adequate insurance.
Myth #5: Premium = Deductible!
This might be a blow if you are buying insurance for the first time! You might have misunderstood or not done thorough research but sadly, the premium is not all there is! When you decide on claiming the insurance, you will need to pay some amount out of pocket at that time which is called a deductible. So keep in mind that you will need to pay a little more when you claim the insurance.
We have debunked some of the myths around insurance that we frequently came across. If you have any more questions that you need to confirm and myths that need debunking, let us know and we will surely answer your queries!
Let’s Compare works on making it easy for the clients to trust us and buy insurance. We are an online insurance comparison platform empowering our customers and educating them by giving them fair and direct comparisons. We are partners with 10 leading insurance companies in Pakistan and we deal in health, travel, and car insurance.