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Five Reasons Why You Should Have Car Insurance?

Here we are mentioning the top five reasons why car insurance is necessary

Tuesday August 18, 2020 5:53 PM, ummid.com News Network

Car Insurance Tips

Gone are the days when driving a car in India was considered a luxury. Due to the higher disposable income, many households even have more than one car now. Having a car not only increases your mobility but removes dependence on others and especially on public transports.

However, this independence and ease of mobility come with lots of perils. We many times hear cases like car accident leading to car damage, damage to third-party in an accident, car theft or loss, etc. Considering these instances, it is suggested to get the right car insurance policy after purchasing a car.

We work hard by doing all the necessary research in singling out a car, but do we take the same effort in finalizing a car insurance policy? Well, the majority of us will say no. But the effort you put in finalizing the model of a car, the same level of scrutiny is required in selecting a car insurance policy. Here we are mentioning the top five reasons why car insurance is necessary:

1. Compulsory by the Law: According to Motor Vehicle Insurance, 1988, it is mandatory to have at least a third-party insurance for your vehicle before plying it on the roads. If you are found driving your car without an insurance policy or if your car insurance policy has expired, then you must have to pay the penalty. In such cases, your driving license can be permanently or temporarily canceled.

2. It Pays for Third-Party Injuries and Damages: Purchasing a basic third-party car insurance policy protects from damages or losses to third-party persons or property. If any time you met with a road accident in which a third-party such as a pedestrian, another vehicle, or property is involved, then the insurance provider pays the bills of the hospital and/ or the repair expenses. Without having a valid insurance plan, you will be needed to pay the cost of treatment and/ or repair from your pocket. Therefore, car insurance policy helps you to reduce the liabilities that you have related to car and hence protects your finances.

3. Provides Coverage for Legal Cost: The accidents sometimes can have legal issues. If in a road accident a legal case is filed against you, then you will have to hire a lawyer and may have to pay for many other legal formalities. In this way, you may end up spending a lot of money on all these legal issues. However, if you have a car insurance policy, then the cost of these legal issues will be borne by your insurance provider.

4. Protection for Self and Vehicle: A comprehensive car insurance policy not only pays for third-party damage or loss but also protects against injuries or damages to yourself and your car. Not every car owner is fortunate enough to get out of an accident with small bruises and cuts. Some accidents can result in hospitalization due to fractures or other serious injuries. In such cases, if you have a car insurance policy, you can be protected against hospitalization costs as well. In addition to this, if your car gets damaged due to natural calamities, explosions, fire, the act of terrorism, riots, or is stolen, then as well the insurance provider pays for the expenses.

5. Your Family Gets Compensation: Many car insurance plans come with personal accident cover. This feature can be a built-in feature or you can buy it as an add-on cover. However, with personal accident cover, if at all the policyholder dies in a road accident, then his/her family members will get compensation. This kind of financial assistance, when the bread earner of the family dies, helps it to cope up with various financial expenses.

Selecting a Right Car Insurance Plan

After understanding the importance of a vehicle insurance plan, you must start looking for a policy that can offer you and your car the best protection. You can compare various four-wheeler insurance online and select the most suitable one. It is up to you whether you want to go for basic third-party insurance protection for your car or want to have comprehensive coverage for it. Selection should be based on the reputation of the insurance provider, its benefits and features, claim process, turn around time for claim settlement, and car insurance policy premium. It is advised to purchase a car insurance policy online because it reduces the cost of a middle man like insurance agents and enables you to make an informed decision as you see the pros and cons of various insurance providers online by yourself. So, spend some time in selecting the most suitable car insurance plan for your precious possession.

Summing It Up!

Many times, it is seen that new car owners consider car insurance as a formality and does not think it as need. They think it nothing more than an extra expense so they end up in purchasing the most basic third-party liability insurance and later when some loss or damage happens to their car, they regret. However, we are not saying that you should not go for a third-party car insurance policy, instead of for the cars that are older than ten years and you use them rarely, opting for a basic third-party cover is recommended. On the other hand, taking third-party insurance for a new car must be avoided.

Go for a comprehensive cover with some required add-ons so that your car remains protected against any damage or loss. For selecting the most suitable car insurance policy, you can use a platform like Policybazaar. Comparing various four-wheeler insurance lets you make the most informed decision about purchasing a car insurance policy. This is because it compares different plans on various parameters and shows you the most suitable result so that you can get the best vehicle insurance plan for your car. So, do not give it a second thought just compare different plans and opt for the most suitable car insurance policy.

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