Motor insurance is mandatory in India, yet many vehicle owners are chronically underinsured or unaware of their actual coverage. Here are the most common myths — debunked.
Myth 1: Third-Party Insurance is Enough
Third-party insurance covers damage to others — not your own vehicle. If your car is damaged in an accident, flood or theft, third-party alone won't pay a rupee. Always consider comprehensive coverage.
Myth 2: My Policy Covers Everything
Standard comprehensive policies have exclusions — wear and tear, mechanical failure, drunk driving. Read your policy document. Add-ons like engine protect, tyre cover and consumables are available.
Myth 3: Low Premium = Good Deal
A policy with fewer add-ons and lower sum insured will always have a lower premium. Cheapest is not best when you're talking about protecting a ₹10–50 lakh asset.
Myth 4: I Can Get Repairs Done First
Never repair your vehicle before the surveyor inspection unless absolutely necessary. Get insurer approval first, or your claim may be partially or fully rejected.
Myth 5: Claims Make Premiums Go Up Forever
Your premium increases if you claim, but NCB (No Claims Bonus) builds over time if you don't claim. Protect your NCB — small damages may be better paid out-of-pocket.
Myth 6: My Policy is Automatically Renewed
Policies must be actively renewed. Driving without a valid policy can result in heavy fines and personal liability exposure. Set calendar reminders 30 days before expiry.
Myth 7: All Insurers Are the Same
Claim settlement ratios, turnaround times and network garage quality vary significantly. An insurer with a 95% settlement ratio vs a 70% one makes a huge real-world difference.
Work with VIRAM to pick the right coverage and insurer for your vehicle.