make most of your car insurance

Every individual who is having car understands the value of having a car insurance policy. However there are also various types of motor insurance policy such as third party liability insurance and comprehensive car insurance. This creates lots of confusion among the car owners as they were not able to decide on which policy to take. Even more difficult task is understanding the small small clauses in the insurance policy. This stops you to make most of your car insurance.

In addition to all these technical confusion, there are lots of myths and misconceptions that exists about the car insurance policy. So it is very important that you understand what is myth and what is real fact to make most of your car insurance policy.

Myths That Stops You To Make Most of Your Car Insurance

Myth 1 – Car Dealer are the best source to provide best car insurance deal

There is a myth among the people that car insurance dealers provide the best car insurance deal to them. However this is completely untrue. As car dealers only recommend those insurers with whom they have tie – up or who pay them with high commissions.

So if you want make best car insurance purchase, it is very important that you compare the quotes of various insurers. You can do so online. And then compare these quotes with what your car dealer is offering. Before finalizing the deal, make sure you also check the claim settlement ratio and add-ons, etc.

Myth 2 – Number of Drivers Does not Matter

There is a myth among people that number of drivers doesn’t matter in case of Insurance. However this is untrue. The fact is changing driver for your vehicle frequently or multiple drivers results in increasing the risk. Hence insurance companies charge higher premiums. On the contrary, car insurance companies prefer single driven vehicle as it reduces the risk. So, make sure that only one driver drives your car.

Myth 3 – Minimum Coverage is profitable

In order to make most of your Car insurance, just overcome your myth that getting the minimum coverage saves the premium. Well, it could be a good thinking for short run. However for long run it is not helpful at all.  For example – if you go for high deductible policy, it could lead to win discount on premiums however when you will file claim, most of the claim amount you have to bear from your own pocket.

Myth 4 – In case of delay in Policy Renewal, NCB do not lapses

You are a good driver and you save a good sizable amount of NCB for yourself. However your motor car insurance plan lapses and you are not able to renew it within time. You need not to worry as after the expiry date , a 90 day grace period is permitted for renewal of the policy.

One more important thing to note is that No claim Bonus goes with you wherever you go. So even if you switch the insurer, the accumulated amount is transferred.

Myth 5 – Installing Anti – Theft Device has no effect on the Premium

If you install an anti – theft device approved by ARAI, then the Insurance companies offers discount on premiums. The installation of anti theft device results in lower risk to the event of theft. Hence it is good from Insurance company perspective and hence they offer higher discounts on premium.

Myth 6 – All add – ons or riders are important

In order to make most of your car insurance, the most important rule that you consider in your mind is that all the add -ons that your dealer offers are not important. Choose the add – ons according to your own requirements and needs.

Myth 7 – If we buy car insurance from Dealer it comes with more benefits

It is a belief that among the people that if they buy car insurance plan from dealer, it comes with extra benefits and service. However this is completely untrue. Services like free servicing, free car wash, Teflon coating, etc are the add-on services that your car dealer provides along with car. On the other hand offerings like cashless claim settlements, genuine part usage, quality assurance, quick survey, etc are offered by insurance companies.

Myth 8 – You cannot switch your insurer

This is the greatest myth that I have ever heard of. If another insurer is offering you with better deals and discounts, you can switch the insurer. However, this need to be done before the policy get expired.

So if you are confused whether to switch or not and are delaying premium payments or policy renewal the you will come into high risk customer category. For this you will be charged with higher premiums.


Well, I know its a very hectic task to read the entire car insurance plan document, but it is very necessary. After reading the policy you can on your own can differentiate between facts and myths and hence make most of your car insurance.

Also Read >>> Guide To Choose Best Car Insurance Plan