importance of car insurance


Are you pondering over an idea of buying a new car? Or just felt the need of having Car Insurance!  Well you are diving on a right path as having car insurance can save you from many odds. As William Blake said – Hindsight is wonderful thing but foresight is better, especially when it comes to saving life, or some pain. Car insurance can not only save you from financial odds due to an accident but also helps you eliminate legal liabilities.

With improved luxurious lifestyle due to high disposable income available at the hand of people and increased living standards, buying a car has become another necessity. But buying a car comes with its pitfalls if not supported with good car insurance thus buying car and insurance cover should go hand in hand. Let’s understand why one should ponder about importance of car insurance while buying a car.

Why you need car insurance –

Ministry of Road Transport and Highways recently released “The Road Accidents in India report” for year 2017 which reports that a total of 4.64 lakh road accidents took place, of which 1.34 lakh were fatal accidents. The number of people who died in these accidents stood at 1.47 lakh. Out of which car accidents stand at 3rd largest position under accidents and damage. The below figure shows the statistics for number of road accidents caused with respective vehicles.

road accidents in india report

Government of India has made all car insurance mandatory by law and it’s illegal to drive without car insurance otherwise you can be caught and penalized if you are not having the one.

Importance of Buying A Car Insurance –

  • A cure to damages – It is said that precautions are better than cure! But when someone’s negligence eliminates precautions, cure became the only option. Car insurance acts as cure and can protect you from others negligence as it pays back for the damages caused to car during an accident which otherwise can cost you a lot from your own pocket.
  • The legal Liability – Indian legislation has made it mandatory for an owner of a vehicle to have Third Party Liability (TPL) insurance under the Motor Vehicles Act, 1988. Under which the owner has to pay certain amount as part of legal liability for the accident, injury, death or damage caused to property or person by the owner.
  • Pays up unforeseen expenses – More often during an accident the damage is suffered by the owner itself. In most cases it can be from few bruises to hospitalization for serious conditions, such cases may cost you a lot. A car insurance during the time of perils can help you save your pocket by paying for such unexpected hospital expenses and can even save your life.
  • Can be your family supportThe most important and crucial role a car insurance can play is by paying back to your family when you are not there to look after them. Most car accidents results into the death of owner, taking away the only bread earner of a house. In such scenarios car insurance can be used to pay duly expenses to the family members in times of need.
  • Buying Online is a boon!With the world transforming itself with digitization, you can easily now get car insurance online. This helps you save a lot amount of money and time which otherwise you might be spending on the brokers, paper works etc. Visit insurance websites, compare various insurances and buy the best one that suits you the most. It helps you to take decision in your own hands.
  • A holistic coverageCertain car insurances also provides a overall coverage, not only for the damages that been caused but also for other things such as towing charges for damaged vehicle, your hotel stays or even a transport compensation. This adds onto other important list of benefits that you can have while having auto insurance.
  • Comprehensive car insurance Sometime damage is caused due unforeseen disasters such as landslide, earthquake, floods, terrorist attacks, riots etc. Under such circumstances your car insurance policy acts as your ally to save you from unexpected expenses.
  • Extends support to other members Car insurance cover not only protects you but it also extends protection to members or person driving your car with your approval.
  • Added advantagesCertain car insurance provides No Claim Bonus, wherein if you are not claiming the benefits for a certain period of your auto insurance policy than you get bonus on subsequent renewal of the policy provided with certain other conditions.

What If No Car Insurance –

“The absence makes us realize the importance more than the presence” -there is no other way of understanding the importance of auto insurance until we understand the situation we might enter into without it. Let’s count down the few situations to get deep insights –

  • Without an auto insurance if you meet an accident you might need to pull huge amount of money from your pocket to pay the hefty bills for car damage or hospital bills.
  • In case of demise of owner, the family will not be getting any help and may have to struggle through financial losses due to loss of only bread earner of family.
  • You can be subjected to legal situations as there will be absence of liability. In case of auto insurance your legal liability will allow you to pay for you deeds mostly via monetary compensation which will be absent without car insurance.
  • Under unforeseen and unexpected circumstances such as theft, fire, disaster etc., you won’t be able to claim any of the losses and in turn you have to pay from your own pocket.

These are the few reasons to mention for having car insurance, definitely there exists more for same. Car is one of the biggest investments made by any of us during our lifetime. It not only serves as vehicle to travel but for some it is more precious than that. With increasing demands of cars on road and traffic issues the amount of accidents has increased which makes it important to have one. Having a car insurance doesn’t only implies protection of our vehicle or life but also denotes our social and legal responsibility as a citizen of country to protect others life too. Thus buy the best car insurance policy which lines according to your needs and allows you to drive hassle free.


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