Know Why Car Insurance Is Important?

With the increasing amount of vehicles on the road, accidents are also increasing at an alarming rate. The repair expenses for a damaged car can be difficult to bear. Car insurance can be very helpful to cover damage expenses by choosing a comprehensive car insurance policy, otherwise the owner may have to bear the repair costs. The car insurance policy can also help cover major or minor losses incurred by the third party such as their injuries, death or damage. 

For safety and security purposes, it is mandatory that owners of vehicles should have car insurance. With a car insurance policy, the owner can financially protect themselves from repair expenses of a damaged car when an accident occurs. 

Reasons Why Car Insurance Is Important

Below mentioned are some reasons why car insurance is important:

1. Compulsory for Car Owners

As per the law, it is mandatory for all car owners to have a car insurance policy while driving in India. In India it is a legal requirement to carry a third-party car insurance policy, which covers the financial liabilities incurred towards a third party. If a car owner fails to carry a third party cover, the driver can be penalised with fine or imprisonment. 

2. Third Party Liabilities

Third party car insurance cover helps you cover third party liabilities, in case your car is involved in an accident that may result in damage or loss to the property of the third party. If you face any legal charges in case of bodily injuries or death of a third party, your car insurance can help you protect against the same. 

Also read - Reasons Why You Should Renew Your Car Insurance Policy On Time

3. Damage to Insured Vehicle

Comprehensive car insurance policy can be used to cover own damage expenses. In case your car is damaged due to an accident, fire or self ignition, the comprehensive insurance policy will cover the same. In case your car is damaged due to burglary, theft, strikes, riots etc. your insurance policy shall also cover these.

4. Personal Accident Cover

One of the major reasons why people choose to have a car insurance policy is that it offers personal accident cover for a pre-decided amount. Personal accident cover provides financial protection against accidental permanent total disability and death caused in an accident. 

5. No Claim Bonus

One of the biggest advantages of having a car insurance policy is No Claim Bonus (NCB). For every year the car owner doesn’t file a claim for his/her car insurance policy, he/she shall receive No Claim Bonus for that year. The bonus varies from 20-50% as per the different terms and conditions of different insurance providers. 

To Conclude

Purchasing or investing in a car is a task that requires time and knowledge. People spend a lot of time on selecting a car that is best suited for their requirements under their budget, what they don’t put time and effort into is the car insurance. A car owner must have car insurance either third party or comprehensive cover, that can help them financially protect themselves from repair expenses of a damaged car when an accident occurs. Third party car insurance has been made compulsory in India. 

You may also like to read - Why Buying The Lowest-Priced Car Insurance May Be A Bad Choice?

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.