Car Insurance Car insurance is mandatory for all vehicles that run on Indian roads. Given the large number of automobiles that have made their way to Indian streets, the need for having insurance has also grown tremendously in recent years. Though the purchase of a new car can be exciting, considering potential accidents that may occur and damage your vehicle has also become important. In such situations, a car insurance policy can come in handy as it will significantly lower the costs incurred on repairing the damaged vehicle or replacing its parts.
Why Do You Need Car Insurance?
Car insurance is required mainly for the following reasons:
Mandatory by law: The Motor Vehicles Act of India has made it compulsory for all vehicles used in public spaces to have car insurance. A third-party liability policy is compulsory for all, but you can decide to go for a comprehensive car insurance policy too. The reason why third-party liability insurance is mandatory is that in case of accidents, any damages or losses to the property of a third party along with injuries to the said person gets covered.
Effective investment: Recent studies have shown that one in six car accidents take place in India. Whether you are at fault or not, these odds cannot be taken lightly. As such, if you have comprehensive car insurance policy, it will ensure that your vehicle gets covered for the costs incurred on repairs in case of accidents. It will also safeguard the policyholder for any bodily injuries. In case of collisions with other vehicles, the compensation could run into thousands of rupees, perhaps lakhs. Your car insurance policy will help you breathe easy and cover the costs for you in exchange for a nominal premium, making it a worthwhile investment.
Offers peace of mind: Having a car insurance policy gives you peace and a healthy sense that you can cruise on a highway or even squirm through peak traffic without having to worry about the consequences of potential accidents. Sometimes, even the tiniest of scratches to another vehicle could urge the driver to create a scene on the road and demand money for repairs. With car insurance, you can put these worries in the back seat and drive easy.
Health insurance boost: Many of the car insurance policies out there provide coverage for the injuries you sustain or the injuries sustained by your fellow passengers during an accident. If the policy that you choose does not offer this cover, you can purchase personal injury protection as an add-on cover, and it will boost your health insurance, covering things that may not be covered by your health insurance plan.
Saving time: Meeting with an accident can be quite stressful. You have to get your vehicle repaired, pay for the expenses incurred on repairing the vehicle of a third party, pay for the treatment of any injuries sustained by you or a third party, making claims, finding a good garage, etc. You will have to run around a lot. But with car insurance, your stress can be significantly lower, and you can also save a good amount of time as the insurance company will handle everything for you.