Car Insurance and why is it more than a statutory requirement?

Car Insurance and why is it more than a statutory requirement?

Today, everyone wants to own a car. We spend so much of our precious time finding the best car with the jazziest colors and with top-notch features. However, do we really spend even a little of our time on finding the right car insurance for our safety? Most probably, the answer would be ‘No’. Have you ever wondered why the government has made it compulsory for every car owner to at least have third-party car insurance? Why do they emphasize so much on this?

When you buy a car and the moment you take it out from the showroom, you and your car both are at risk of any accidents or damage. These accidents are not welcomed and one cannot escape from them wishfully, no matter how good a driver you are. Any mishappening might put you and the third party involved in a bad financial situation. So, why risk our lives while driving even though we know there will be mishaps on the road. You cannot be gutsy enough to hope that no misfortune will happen to you or your car.

Here, car insurance comes as a savior. Car insurance is generally a contract between you and an insurance company wherein you decide to pay premiums in exchange for financial protection against financial losses resulting from an accident or any other car damage.

As a result, for the safety of its citizens, the Indian government made it compulsory for car owners to have at least Third-Party Car Insurance.

Is third-party car insurance enough?

Third-party car insurance is the basic insurance that only covers damages to a third party’s vehicle or property, physical injuries, disability, and death. Third-party insurance will only cover claims for losses caused to the third party, regardless of whether you are driving, a member of your family is driving, or you hired a driver. Unfortunately, according to the terms of your third-party insurance policy, you are not covered for damages to your car.

Therefore, it is often suggested to go for comprehensive car insurance. A comprehensive car insurance plan is a detailed insurance policy that covers both third-party and personal damages. It also offers policyholders to extend their coverage with a few add-on covers. Due to its comprehensive coverage, it is also the most suggested.

Reasons to buy a Car Insurance

It compensates for losses

Not only do vehicles cost a lot of money, but they also cost a lot of money to get fixed. Your valuable car can get damaged due to someone else’s carelessness. A car colliding with yours or you trying to avoid a pedestrian or saving a cyclist due to which you might be crashing into a wall can cost you a lot of money. However, if you have good coverage car insurance, you won’t have to pay for any of these repairs out of your pockets.

Can cover the cost of your hospitalization bills

In India, certain car insurance providers offer personal accident coverage for the car owner in addition to third-party liability coverage. This is a very beneficial insurance policy since it covers minor and major injuries caused to the car owner in the event of an accident. If he or she has to go to the hospital, he or she does not have to pay for anything out of pocket. The required payments will be made by the car insurance company. If the car owner dies as a result of his or her injuries, his or her family will be paid a significant sum to help them financially cope with the loss.

It lowers your exposure to risk

In India, having Third Party Liability (TPL) car insurance is compulsory. The TPL coverage protects you against the legal consequences of an accident that you might cause in the future. For example, if you have an accident that causes damage to another person’s property or any minor or severe injuries to another driver/pedestrian, the insurance company will pay for their treatments while safeguarding you from the legalities.

It compensates your family after the death

The death of the car owner is the most tragic event of a car accident. After the bread-earning policyholder has passed, his or her family may find it difficult to maintain their everyday lives. A car insurance coverage, on the other hand, can assist in covering the family’s expenses following the terrible incident.

You can drive stress-free

If you are a new or underconfident driver, having your car insured will help to ease the stress of driving. Car insurance is mandatory even for expert drivers since they may be involved in a car accident with little or no fault of their own.

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