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Car Insurance in India
Dec 1, 2023

Busting the Top 5 Myths About Car Insurance in India

It is commonly said that if you tell a lie enough times, it becomes the truth. That is why it is important to be aware of the myths and misconceptions we come across every day. Some myths and misconceptions about certain things can stop us from making the right decisions. Take, for instance, car insurance If you own a car, then having a car insurance plan can be very beneficial. However, if you believe some of the myths about car insurance, then you may not be able to enjoy all the benefits of having a car insurance policy. 

To raise awareness regarding this issue, we break down the top 5 myths about car insurance in India so that you and other car owners can make the ideal decision. 

 Car Insurance Myths Debunked

Here are some common car insurance myths and why you need to stop believing them:

 Myth #1: My second-hand car does not need insurance

Truth: As per the Motor Vehicles Act of 1988, all motor vehicles plying on Indian roads need to have insurance coverage that covers a minimum of third-party liabilities. Hence, even if you have a second-hand car, you need to have mandatory insurance coverage for it.  You can even go ahead and buy a comprehensive car insurance plan. Cars, regardless of whether they are new or second-hand, are valuable assets and hence, should be protected with solid coverage. With a comprehensive plan, you can enjoy car insurance benefits such as coverage against earthquakes, floods, typhoons, hurricanes, storms, and even riots, strikes, and malicious activity. * Claims are subject to terms and conditions set forth under car insurance policy.

 Myth #2: I do not need car insurance because I am a safe driver 

Truth: Driving safely and carefully is indeed a good habit. However, regardless of how careful one may try to be, there is no predicting when an accident will occur. By driving without car insurance coverage, one runs the risk of putting their life and finances in danger.  Along with the self, people in the other car or on the property may also be injured. Your car may also suffer damage. Many of these damages and injuries can be taken care of with a good car insurance policy. * Claims are subject to terms and conditions set forth under car insurance policy. Additionally, having car insurance is a matter of legal compliance. Thus, you must not believe such car insurance misconceptions and opt for a solid car insurance plan anyway.

 Myth #3: The car insurance claims process is always tedious 

Truth: The time taken to resolve a claim depends on many factors. In most cases, if the information provided is clear enough and no further investigation is needed by the insurer, the claim will be resolved soon enough. The claim process will mostly have three major steps:  ᄋ Registering the claim: You can do this by reaching out to Bajaj Allianz General Insurance Company online or even calling us on our toll-free number, which is 1800-209-5858 with the relevant information and documents.  ᄋ Send the vehicle for repair: You can send the vehicle to the nearest repair shop or even take it to a network garage to avail the cashless facility.   ᄋ Surveying and claim settlement: Based on the information provided by you, we will verify your claim. If everything is tallied, your claim will be settled accordingly.  For minor claims, you can also use our Motor OTS (On-The Spot) service, which will settle the claim within 20 minutes. *  Claims are subject to terms and conditions set forth under car insurance policy.

 Myth #4: No Claim Bonus is lost during policy portability 

Truth: If you port your policy from one insurance company to another, you will retain your No Claim Bonus (NCB). It would not be affected regardless of the insurance company you choose. This is mostly because the NCB is an indicator of your driving skills. The NCB is gained in comprehensive car insurance only if you have not raised a claim in a year or more, which goes on to showcase that you have been a prudent driver and car owner. * Hence, it stays with you even if you port your plan. 

 Myth #5: Add-ons are a waste of money 

Truth: Unless you buy add-ons that you do not really need at all, add-ons can prove to be very useful. For instance, the zero depreciation add-on can help you receive the full claim amount (subject to applicable out-of-pocket expenses) without consideration of the depreciation value of the car. * Add-ons can be a good investment in the long run if chosen wisely. Claims are subject to terms and conditions set forth under car insurance policy.  You can also use a car insurance online calculator to get a better idea of the premium with and without the addition of add-ons to your plan. 


Most car insurance myths and misconceptions are falsified versions of the truth. Now that you are aware of the truth behind these myths, we hope you can choose the right car insurance plan and make the most of it.   * Standard T&C apply.   Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale. 

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