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Why Do You Need Car Insurance in India
to Protect Yourself?

Gone are the days when owning a car was a luxury. Today, it is a necessity, especially for a family of more than two. It not only reduces your dependency on public transport but is also a safer option than a two-wheeler for the entire family to travel together. You can choose from a wide range of car brands and models, depending on your need and budget. Whichever car you choose, remember to secure it with robust car insurance. There are two reasons for this. First, to drive a car anywhere across India, you need a motor insurance policy. Legally, all vehicle owners must have at least a third-party policy. Not having insurance or driving your car with expired or invalid insurance can result in heavy fines, imprisonment, or both, depending on the situation. Read on to know why you need car insurance for protection.

Car insurance is a financial cover for any monetary loss that you may face in case of accidental or non-accidental damage to your car. It also covers the damage or physical injury to a third party caused by your insured car. Here are the reasons why you need insurance:

  • Third-party car insurance is mandatory

Third-party insurance is made mandatory by the government to minimise the loss for a car owner in case of uncertain occurrences. An accident involving a third party is associated with trauma, legal hassles and monetary issues. Starting from the repairing costs to the third party to treatment for physical injuries, if any, you would be unprepared for the expenses that may appear all of a sudden. Your insurer would cover you against these sudden losses if you have car insurance policy.

  • On-road risks

Rash driving and careless, ignorant drivers are a common sight on Indian roads. There can be a head-on collision or your car can get hit from any side without any fault of yours. The problem increases if a third party gets physically injured or his/her vehicle or property gets damaged. You would be in trouble if the third party gets severely injured or succumbs to their injuries. Apart from legal issues, you will have to provide financial support to the bereaved family if they move court and demand compensation. Third-party four-wheeler insurance would cover you in such difficult situations as your insurer would take up the burden. The insurance company takes care of the legal and financial liabilities of its policyholders.

  • Penalty for not having insurance

Since, in India, a third-party insurance policy is mandatory for all car owners, you cannot drive your car without getting it covered. If you are caught driving without insurance or with an expired policy, you will have to pay fines or face imprisonment or both, depending on the situation. However, the third-party four-wheeler insurance covers third-party losses; it does not compensate for any damage to your car or physical injury to the policyholder.

  • Most roads are in a bad shape

You will find most roads in India are in a bad condition. It does not matter if you stay in a metro, semi-urban or rural area. The condition becomes worse during monsoons when water-logging and potholes make driving a difficult experience for you and a risky affair for your car. Mostly, there are high chances of your car getting damaged in these situations. If you have a high-end car such as Audi, BMW, or Mercedes, then the cost of repair and spare parts will be quite high. Even if it is a medium-range or budget car, the entire burden of repairing cost would be on you unless you have a comprehensive insurance policy. This policy would cover the damages to your car due to accidental and non-accidental reasons.

  • Physical injury to yourself

If you are lucky, you can get away absolutely unharmed or with minor bruises and cuts after an accident. However, unfortunately, if the injuries are severe enough to cause temporary or permanent disability or loss of life, then a personal accident (PA) cover will support your traumatised family members financially. This is even more important if you are the primary earning member in your family. You are eligible for PA cover if you have third-party, own damage or comprehensive car insurance.

Besides getting your car covered, remember to renew car insurance on time to avoid late-payment charges. There would also be the risk of non-coverage.

Get car insurance to keep yourself stress-free while driving your car. It would take care of all your legal and financial issues if there is an accident on the road or damage to the car anywhere across India.

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