Getting car insurance may seem like a chore or an unnecessary expense to many people! However, insurance is an absolute must have for every car owner. You are required by law to carry insurance when you are driving on a public road but there are also a whole list of reasons why buying car insurance is a smart choice for everyone. Discussed below are five key factors why car insurance online or offline policy is something no car owner should ever skimp on!
1. It is a legal requirement!
First and foremost, buying car insurance is an important legal requirement. As per the Motor Vehicles Act, any vehicle which has more than 50cc capacity engine and can go above speeds of 25 kmph must be mandatorily registered and insured by an IRDAI authorized motor insurance company if the owner wants to drive the vehicle on a public road. The reason behind making insurance compulsory is to ensure that if in case a road accident occurs and if a damage of any kind occurs to the life, limb or property of any person, then the Motor Accident Claims Tribunal should be able to ensure appropriate compensation for such injured person. At the same time, the government also wants to ensure that no unnecessary financial burden is created on the vehicle owner as well. This is why third-party insurance is compulsory for car owners. In case a car owner is found to be driving their vehicle without a valid insurance policy, they will be subject to challan which can be Rs. 2000 in the first instance and Rs. 4000 in subsequent instances. Further there are also imprisonment provisions where habitual offenders can be sentenced to jail time and their vehicle can also be seized.
2. It compensates you in case of car theft!
Vehicle theft continues to be one of the most common crimes in India. Despite repeated efforts by car manufacturing companies as well as law enforcement agencies, the cases of car theft continue to increase in the country! Having comprehensive insurance means you can sleep a bit easy about this problem at least. In case a car is stolen and the police are unable to trace it, they will issue a no-trace certificate which can be sent to the car insurance company with the claim and other relevant documentation. The car insurance company will look into the matter and pay-out a claim based upon the Insured Declared Value of the car after making appropriate deduction. While this will not reduce the mental stress caused due to car theft, it will certainly help you cover the financial hit caused by the loss to a certain extent. Consider this to be the best possible choice when you have very few, if any!
3. It protects you in case of car accidents!
The technology for cars has advanced a lot in the last few years as a result of emission and safety norms that keep on getting stringent every year. While this has helped in many aspects, it has come at a price, literally. Now when cars are more reliable and breakdowns are rare, the repair cost has gone up considerably for accidental repairs. Many parts in modern cars are essentially just small computers and the mechanical parts are so complex that repair or replacements cost too much. If you have comprehensive insurance, you can file a claim for accidental repair should the need arise. You can visit a cashless garage, get your car repaired, pay your share of the repair bill and the insurance company will take care of the rest.
4. It can help you if your car is damaged in a natural or man-made calamity!
India is a country with very rich and diverse geography. This however also comes with its own challenges. You will have to contend with a number of natural calamities at any given point of time. There have been cases of people having to bear major repair costs because their cars got damaged in earthquakes, landslides, floods, even the odd tsunami has been known to cause problems. Then there is also the problem of a large population and more people also means a larger number of people taking bad decisions at bad times. The damage to your car in case of a calamity can be anywhere from a few scratches to a major repair job sheet with multiple part replacements. People have also had the bad luck of their cars becoming total loss cases without any fault of their online. In such cases, having comprehensive car insurance online or offline policy can be very helpful!
5. It can help you if you are ever stuck on the road!
One thing that everyone dreads when they are driving a car is being stuck on the road! True, you can get a roadside mechanic to look at your car and fix it but if there ever was a better way to get fleeced, it cannot be any worse than this! This is why when you buy car insurance online, you are generally offered to add emergency roadside assistance cover to your policy. This is an optional extra but is realistically a must have. In case you are ever stranded on a road, all you have to do is call the RSA vendor empanelled by the car insurance company and someone will come to your rescue. They can do minor on the spot repairs, tyre changes, battery jump starts and even arrange for emergency fuel.
As a car owner, you need to be very careful in different aspects of vehicle ownership. Always try to get comprehensive car insurance and renew it well in time. Do not drive the vehicle if you do not have a valid car insurance policy with you! While you need to be careful while driving, there are still a lot of things that can go wrong, which is why it is extremely important to stay covered with a comprehensive insurance plan. And since you can buy car insurance online, with just a few clicks, you should not delay buying one, especially if you have bought a new car or planning to buy one.
Disclaimer: The above information is for illustrative purposes only. For more details, please refer to policy wordings and prospectus before concluding the sales.