Did the idea of car insurance just strike your head? In an abrupt and idle hour of the day or maybe during a conversation with your colleague on uncertainties of future, you just happened to rush to the search engine and see how you can protect your beloved vehicle. It sounds great until your head starts playing a loop of thoughts questioning if it’s that important at all. If this situation resonates with you then this small gateway is here to take a few minutes from your time. In this article, you will learn the reasons why car insurance is important. Let’s scroll and find them out.
Why is Car Insurance Beneficial
The topmost purpose of getting your car insured is combating the unforeseen jeopardies on your car or yourself which includes coverage for accidental damages, bodily injuries and even compensation after one’s demise. Let us look more into that and read about 5 reasons why car insurance is important.
1. It is Mandatory by Law
Car Insurance is mandated by law in India. As per the Motor Vehicle Act 1988, it is mandatory to have every car functioning on Indian roads to be insured. This is to cover up the vehicle with protection against unforeseen events in future.
If your car is found playing on roads across the country without a valid insurance or you are driving a car with an expired insurance policy then you will be made to pay a penalty for violation of law.
Apart from the penalty, you will also invite the risk of getting your driving license revoked for a temporary period and even worse – permanently. Thus, it is the foremost reason why car insurance is important in India.
2. It Protects Your Car
And it protects you. Car insurance is important in India not only in terms of adhering to law but also the protection of the vehicle and its driver/owner. In fact, protecting the car and its owner is the foremost reason why car insurance is important.
You can use a comprehensive car insurance plan in order to protect your car and yourself against accidents due to man-made as well the natural-calamities. Car insurance covers the cost of treatment and the vehicle repair, preventing you from heavy bills.
On getting your car insured particularly with a comprehensive plan, you become eligible to enjoy coverage for any third-party liabilities which includes vehicle damage, bodily injuries and legal charges.
3. It Pays for Third-Party Liabilities
While the comprehensive car insurance plan offers you the coverage for third-party expenses, own damage along with additional coverage, you also have a choice to select the third-party coverage plan in order to protect yourself from third-party liabilities.
If ever you get involved in a car accident in which any third-party person or vehicle is involved, the insurer will pay the expenses for repair or replacements and the medical expenses etc. The insurer will also cover legal expenses.
4. It Covers Medical and Legal Expenses
Another important reason why car insurance is important is that it helps ease the burden of medical expenses on your wallet. So, if being involved in a car accident has got you or the third-party injured, the insurer will take care of your medical expenses.
Besides the payment of medical expenses, getting your car insurance also safeguards you against the legal repercussions. In any case lodged against you for car accident, the insurer takes care of the legal expenses including the lawyer fees.
5. It Provides Financial Aid to Family
There are some car insurance plans that also offer the personal accident cover. While some plans have this feature built into the standard plan or you can opt for this coverage as an add-on which varies across different plans and insurers.
One of the important reasons why car insurance is important is that it brings financial peace to the insured’s family in case of his/her demise. This compensation applies in both the own damage as well as the third party cover.
Assess and Choose the Right Plan
There were you, catching up with the major reasons why car insurance is important for you, your vehicle and your loved ones. Now that you just had a gentle reminder on the benefits of car insurance, you may hop to different car insurance plans to compare and shortlist the best ones. Check up on reviews, claim settlement ratio etc. and decide what’s best for you. Sipping your coffee, you can hunt for a plan that is designed just according to your requirements and budget. In the meantime, we will be back with more collections of important checkpoints to better your financial lifestyle.
Share your views and suggestions in the comments section and let us know what’s your take on this.