Don't Fall for These Myths About Buying Third-Party Car Insurance Online In this article, we debunk some of the most common myths surrounding the purchase of third-party car insurance online, helping you make better-informed choices.
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When it comes to car insurance, misinformation is widespread. Many car owners in India—particularly first-time buyers—hesitate to purchase third-party car insurance online due to common myths. Unfortunately, these misconceptions can lead to poor decisions, legal trouble, or financial loss.
In this article, we debunk some of the most common myths surrounding the purchase of third-party car insurance online, helping you make better-informed choices.
Myth 1: Third-Party Car Insurance Is of No Use
One major myth is that third-party car insurance has no real value because it doesn't cover damage to your own vehicle.
The Truth:
This is completely false. Third-party car insurance is mandatory under the Motor Vehicles Act, 1988. Driving without it can result in hefty fines, legal proceedings, or even imprisonment. It covers financial liabilities if you cause damage to another person's vehicle or property, or if someone is injured in an accident involving your car.
Moreover, it ensures legal compliance and protects you from unexpected expenses. Even if you consider yourself a safe driver, accidents can happen without warning. Being insured is always the wiser option.
Myth 2: Buying Insurance Online Is Risky
Many vehicle owners believe that purchasing car insurance online is unsafe and prone to fraud.
The Truth:
Buying car insurance online is both secure and convenient. Trusted insurance companies use encrypted payment gateways and secure platforms to protect customer information. Additionally, online portals offer the benefit of comparing various policies, checking customer reviews, and verifying an insurer's credibility before making a purchase.
Because online sales reduce administrative costs, insurers often provide discounts, making it more affordable. Transparency and easy access to policy details make online buying the preferred choice for many modern drivers.
Myth 3: Third-Party Insurance Covers All Damages
Some people mistakenly believe that third-party car insurance offers complete protection, including for their own vehicle.
The Truth:
This is incorrect. Third-party car insurance only covers damage or injury caused to others—be it their vehicle, property, or person. It does not cover damage to your own vehicle from accidents, theft, fire, or natural disasters.
For protection against such incidents, you need a comprehensive insurance policy that includes both third-party liability and own-damage cover.
Myth 4: Third-Party Insurance Is Expensive
Another myth is that third-party car insurance is costly and not worth the investment.
The Truth:
In reality, third-party car insurance is the most affordable type of policy. The Insurance Regulatory and Development Authority of India (IRDAI) standardises and regulates its pricing to maintain affordability across different vehicle segments.
Buying online often adds to the savings, as many platforms offer additional discounts. While the premium is based on the vehicle's engine capacity, it remains significantly lower than a comprehensive policy.
Myth 5: You Must Buy Insurance Offline
Many believe that insurance must be purchased through agents or offline channels.
The Truth:
This is outdated thinking. Today, you can easily buy, renew, and manage your car insurance online. Digital platforms provide instant quotes, comparisons, and paperless transactions. Eliminating middlemen reduces costs and increases transparency.
Online services also let you download your policy immediately, track claims in real-time, and receive support without visiting a branch—all from the comfort of your home.
Myth 6: Third-Party Insurance Claims Are Difficult
Some believe that filing a claim under third-party car insurance is complex and often leads to rejection.
The Truth:
While third-party claims may take slightly longer than comprehensive ones due to legal formalities, they are not inherently difficult. If you're involved in an accident, notify the insurer and follow the claim procedure. Most insurers guide you through the legal steps and documentation needed to support your claim.
To increase the chances of approval, ensure you provide essential documents such as the FIR, accident report, and witness details. The insurer will assess the situation and compensate the third party as per the policy terms.
Conclusion
Buying third-party car insurance online is a safe, simple, and cost-effective option that ensures legal compliance and shields you from financial liabilities in case of an accident. Online platforms provide access to competitive pricing, instant policies, and the convenience of managing everything digitally.
Don't let myths and misconceptions cloud your judgement. Take time to research, compare insurers, and select a policy that meets your needs. A smart choice today can help you avoid legal hassles and financial setbacks in the future.
