Indian roads are the most unsafe in the world. Numbers of road fatalities are increasing year on year. An unfortunate event like accidents can leave you huge lifetime financial burden if you are uninsured. We see so many road accident reports in a news paper on a daily basis. Considering the grave risk, it’s crucial to buy car insurance right after the purchase of four wheeler. Though it’s a legal mandate to have car insurance, it’s more important to understand the fact that one should have adequate and comprehensive coverage.
Here are 5 most important reasons to insure your car:
- It protects your valued Vehicle:Just like buying your car, getting it repaired is also an expensive affair. Car repair is something that is inevitable especially when you are driving on Indian roads. At times, you might have to pay heavily for someone else’s negligence. If you have car insurance, you can shield your four wheeler from any injury inflicted beyond your control.Apart from accidental injury, comprehensive car insurance policy pays for damages or loss due to man-made calamities and as well as natural calamities. Man-made calamities include theft, strike, riot and any other damages that occur during transit etc. Natural calamities include earthquake, hurricane, storm, flood etc which is beyond your control. Without insurance, you will have to pay a huge amount out of pocket for all the damages that may occur.
- It protects you:We cannot avoid the fact that serious road accidents do occur sometimes. A comprehensive auto insurance policy provides you provisions for hospitalization in the event of road accidents. It gives you medical protection against serious injuries. Personal accidental cover helps you by covering your treatment cost and expenses to certain extent for any kind of disability resulted in accident.
- It reduces your Financial Burden: Be it a car repair or a medical cost during a serious accident can dent a big hole in your pocket. Car insurance can relieve your financial stress by paying for expenses incurred. Some of the comprehensive car insurance plans also provide you an option to have accidental insurance for co-passengers. Basically, if you have car insurance in place you don’t have to shell out a large part of your savings in case of unfortunate event.One of the worst results of road accident could be a demise of car owner which surely leaves his family shattered. In an unforeseen event like death, it protects the family by paying considerable amount of compensation.
- It helps you Comply with Government Laws: It’s a mandatory legal requirement in India to have third party liability car insurance. If there is any accident caused by you when driving your four wheeler, your third party car insurance protects you against any legal liabilities such as death or injury to third party and also any damages to third party vehicle. There is no limit on the amount of liability covered in respect of death of the third party. It also provides coverage to the extent of Rs. 7.5 lakh for any damages to third party vehicle. Hence, buying car insurance reduces your liability and helps you comply with the government laws.
- It’s an Essential Cost: You will have to pay a yearly premium for availing all the benefits that protects you and your valued asset. It’s kind of a policy that you lose on if you don’t use it. However, if you are fortunate enough to not make any use of the policy, you get a substantial benefit in the form of no claim bonus which accumulates every year starting from the first year at 20% to 50% at the beginning of sixth year. Hence, car insurance is very much crucial and an essential cost. You can avail at a cheaper rate when purchased online.
To sum it up, it’s a smart decision to have adequate car insurance to safeguard your four wheeler. It’s also a legal mandate to have third party car insurance in India to compensate the third party in case of unprecedented events. A comprehensive car insurance plan prevents you from heavy financial expenses by paying of the repair cost and providing medical protection. Hence, car insurance is very much necessary to safeguard you and your valuable asset against unforeseen circumstances.