Decoding car insurance: Navigating expectations vs. reality


25 Aug 2023

Unveiling the Truths: What to Expect vs. What You Get with Car Insurance

Often, many people struggle to differentiate between their expectations and the reality of what their policy covers. Let's understand the various aspects of car insurance, highlighting the common expectations people have and comparing them with the often surprising realities while they check car insurance online.

How does car insurance work?

Expectation 1: Full coverage means everything is covered

Reality: While the term "full coverage" might suggest comprehensive protection, it doesn't mean that every possible situation is covered. Full coverage typically refers to a combination of liability, collision and comprehensive coverage. It's important to understand the specific terms and limits of your policy to avoid any unpleasant surprises during a claim.

Expectation 2: Insurance follows the driver

Reality: Car insurance generally follows the vehicle, not the driver. This means that if you lend your car to a friend and they get into an accident, your insurance might be the one to cover the damages. However, there can be exceptions based on specific policies and situations.

Expectation 3: Red cars cost more to insure

Reality: The color of your car has no impact on your insurance premium. Factors that influence your premium include the make, model, age and safety features of your vehicle, as well as your driving history, location and credit score.

Expectation 4: Insurance will pay for regular maintenance

Reality: Car insurance is designed to cover sudden and accidental damages, such as accidents or theft, not routine maintenance or wear and tear. Regular maintenance tasks like oil changes, tire rotations and brake replacements are your responsibility.

Expectation 5: Credit score doesn't affect insurance rates

Reality: In many places, your credit score can indeed impact your car insurance rates. Your credit score is considered an indicator of how likely you are to file a claim. Maintaining a good credit score could lead to lower insurance premiums.

Expectation 6: Any accident will lead to a premium increase

Reality: Not all accidents automatically result in premium increases. It depends on the circumstances, the severity of the accident, and whether you were at fault.

Expectation 7: Your new car will be fully covered immediately

Reality: When you buy a new car, it's crucial to notify kotak general insurance promptly to add the vehicle to your policy. Your new car might not have full coverage until you officially update your policy, leaving you vulnerable in case of an accident.

Expectation 8: Minimum coverage is always sufficient

Reality: Medical bills, property damage and legal fees can quickly surpass the limits of minimum coverage. While minimum coverage might be the cheapest option, it might not provide adequate protection in the event of a significant accident.


Decoding the world of car insurance requires a clear understanding of the expectations versus the reality. Remember that communication with kotak car insurance is key – always ask questions, review your policy thoroughly and tailor your coverage to your unique needs and circumstances. This way, you can ensure that your car insurance meets your expectations while providing the protection you need.

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Team Kotak GIC

The content of this blog has been created and carefully reviewed by the esteemed team at Kotak General Insurance, with the sole purpose of providing valuable guidance and sharing insights on the importance of general insurance. Our objective is to assist users in making informed decisions when purchasing or renewing insurance policies for their cars, bikes, and health. Our expertly curated information aims to empower our readers with the knowledge they need to protect their valuable assets and financial interests.