No, your car insurance is not just a piece of paper to save you from a traffic challan by the police, it's more than that. Technically speaking, an auto insurance works the save way as the life insurance or health insurance works. One has to pay the premium every year to secure the vehicle and in case of an accident, the insurance company will pay the designated amount to the car owner.
The most basic reason to insure your car has to be that the car insurance is mandated by the Indian law. In fact, driving a car which is not insured can draw heavy penalties. Insurance is one among the four documents necessary to drive your car on the road -
· PUC (Pollution Under Control)
But if you dig a little deeper, you will find that an insurance is more than just a legal paper, as we mentioned before. It has many important purposes to serve and we decode the important reasons to insure your car.
Coverage for third-party liability
If you accidentally injure a person or damage their property with your car, your car insurance policy could cover you for those expenses. The affected person, by following a legal process, can claim for damages from your insurance company. It is for this reason, a third party cover is absolutely mandatory for all cars under the law!
In fact, the third party cover is the minimum insurance you can buy while opting the insurance for your vehicle if you don't want to pay extra for comprehensive or zero-depreciation insurance. Also, it's highly recommended to insure for the other party, to save yourself from paying a huge amount on their repairs and damages.
Damages to your own car
A car is unlikely to escape an accident without getting damaged. The chances of hitting a wall, a tree or divider is as high as hitting another person and if you haven't got insurance for yourself, it can be an expensive affair. If you cannot pay for the repairs, your insurance company could rescue you to a great extent! So it is advisable to get an insurance for own damage cover too, with all the necessary clauses covered.
Injuries to passengers & driver
While some of you might be confused about this, but the insurance for your car can cover your and passenger's injuries too. Yes, that’s right! With the right car insurance, you get covered for the injuries caused during an accident and will be paid for them too. All you have to do is purchase the policy with the right clause covering damage to the person too.
Theft, Floods, Fire, Terrorist Attacks
As we mentioned earlier too, there's a policy called the comprehensive car insurance, that covers your car for damages caused due to natural disasters as well as theft. You can either get it fixed under your insurance policy or get compensation if it was damaged beyond repair. Theft, Floods, Fire and Bomb attack, all are covered in this policy and are beyond our control. So, always go for the comprehensive insurance to secure your car fully
So these were the top 4 reasons why you should insure your car as damage to a car can happen due to any reason and repairing your car can be really expensive. Taking a pro-active step can save you a lot of money!
We will bring you more such insurance related articles in the near future, so keep a tab here!