The Motor Vehicles Act, 1988 has made it mandatory for all vehicles to have at least a basic third-party insurance policy before being able to legally operate on Indian roads. There are so many good reasons why having coverage is so important for vehicle owners – let’s take a look, shall we.
Car insurance saves you from liabilities
As any motorist will tell you, the road can be pretty unpredictable. Even if you comply with all the traffic rules, stay in your lane, and don’t move a finger wrong…things can still go awry. A single mishap involving a third-party can possibly see you face high bills to compensate them. In such a situation, your third-party car insurance policy saves you from the worry of dipping into your own savings for these damages. This basic form of insurance covers you for legal and financial liabilities towards the third-party during an accident. Knowing that you are backed up by such protection will give you true peace of mind.
Comprehensive insurance goes a step further
Now, it is only mandatory for vehicle owners to have third-party car insurance. Yet, many motorists choose to wisely go beyond the basic coverage offered by third-party insurance by opting in for a comprehensive car insurance policy. True to its name, a comprehensive car insurance policy offers more extensive coverage by protecting you against own damages too. In fact, it protects you against:
- Own damages
- Third-party losses
- Damages due to natural disasters
- Damages due to man-made calamities
Furthermore, you can also customize your comprehensive car insurance policy with the help of add-ons. Some of the most popular add-ons include zero depreciation cover, engine protection cover, and roadside assistance, among others.
Indeed, the fact that basic car insurance is compulsory in the country helps motorists get acquainted with the many benefits of having coverage for their vehicles. This, in turn, allows them to explore more extensive forms of coverage so that they can drive absolutely stress-free.
Don’t forget about personal accident insurance!
Quite often, an accident may also leave you with an unfortunate injury or two. The IRDAI necessitates that every motorist needs to either have personal accident insurance of at least Rs 15 lakhs sum insured as a separate policy or bundled as a cover with the motor insurance policy of another vehicle that they own. This mandatory personal accident cover should not be forgotten about when you purchase either third-party or comprehensive vehicle insurance.
Personal accident insurance will cover you against accidental death and disability (such as the loss of limbs, eyesight, and so on). You will also get covered for any urgent medical treatment required due to your accident. This coverage will help protect your finances especially if you are the sole breadwinner of your family; a single mishap should not leave your loved ones unprovided for.
We hope that this article has helped you learn a bit more about the importance of car insurance as a motorist. Buckle your seatbelt and drive safely!