Insurance

Why Do We Need an Insurance for Our Vehicle?

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Driving a vehicle is not a luxury but a great responsibility. Even many people regard driving as a status symbol, especially in a country like India where people believe in showing off. With rising incomes, owning a vehicle is not a big deal these days and people can easily afford to own bikes and cars. It not only represents the status of a company, but also increases mobility and thus saves time. Driving also eliminates dependence on public transport.

It is true that driving has made our lives more comfortable, but at the same time it also pushes us towards a dangerous life. As someone said “The highway ends at the cemetery”. In the name of showing off, people not only put their own lives at risk, but also hurt others by speeding their vehicles too much. Daily reports of accidents and fatalities in newspapers are now commonplace. People lose their lives in traffic accidents by breaking traffic rules and not respecting driving ethics, they also endanger the lives of others. Plus, the cost of replacement parts coupled with high repair costs puts a strain on your wallet, proving that having a good car insurance policy is essential these days.

Motor insurance is mainly contracted for vehicles that are driven on the roads with the main objective of protecting the vehicle and the driver against any physical damage in the event of an accident. Several factors justify the importance of taking out car insurance:

Required by law: The main reason to buy car insurance is that it is required by law. According to the Motor Vehicle Act, it is mandatory to have liability insurance. The police have the right to check your vehicle documents, such as the PUC, registration and insurance policy, at any time. If you can’t provide documents, you’re in trouble. It is therefore advisable to take out car insurance before hitting the road.

Vehicle Loss and Damage: We all know that people have no sense of driving and the type of traffic management we have in our country, hardly a day goes by without vehicle accidents do not cause damage. The main reason to have car insurance is that it covers the expenses incurred due to any loss or damage to your vehicle. Therefore, it is always good to be more careful and have car insurance before riding a bike or car on the roads.

Reduces your liability – Third Party Liability Insurance (TPL) is compulsory in India, protecting you from the legal implications of an accident caused by you. TPL means that if you cause damage to another person and their property in an accident, the insurance will pay for your treatment and save you from legal consequences.

Hospitalization: Not all vehicle owners are lucky enough to sustain a few cuts and bruises in an accident. Some accidents put you in a difficult situation and you must be hospitalized. In this situation, your auto insurance company will pay the hospital bills, rather than pay the high hospitalization and treatment costs out of pocket.

Compensate your family after your death: Some accidents are so terrible that they lead to the death of the car owner, which is the most unfortunate result of a traffic accident. Once the insured breadwinner dies, it becomes difficult for his family to meet their daily needs. Therefore, a car insurance policy helps the family to meet the expenses after any unfortunate event.

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