Why do we need insurance for our vehicle?

Driving a vehicle is not a luxury but a great responsibility. Even many people consider driving to be 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 nowadays and people can easily afford to own bikes and cars. It not only represents the status of a society, but also increases mobility and thus saves time. Driving also eliminates reliance on public transportation.

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 endanger their own lives, but also injure others by overspeeding their vehicles. Daily reports of accidents and deaths in the newspaper are now commonplace. People are losing their lives in traffic accidents by breaking the traffic rules and by not following the ethics of driving they are also endangering the lives of others. Also, the cost of replacement parts coupled with high repair costs puts a strain on your pocket, proving that having a good auto insurance policy is essential these days.

Car insurance is purchased primarily for vehicles on the roads with the primary goal of protecting the vehicle and driver from any physical harm in the event of an accident. There are many factors why it is important to buy car insurance:

Required by law: The main reason to buy auto insurance is that it is required by law. According to the Motor Vehicle Law, it is mandatory to have third-party insurance. The police have the right to check your vehicle documents, such as PUC, license and insurance policy, at any time. If you can’t provide documents, you’re in trouble. Therefore, it is advisable to purchase car insurance before you hit 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, there is hardly a day without vehicle crashes causing damage. The main reason to have auto insurance is that it covers expenses incurred due to any loss or damage to your vehicle. Therefore, it is always good to be safer and have car insurance before riding a bike or car on the roads.

Reduces your liability – Third Party Liability (TPL) insurance is mandatory 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 suffer a few cuts and bruises in an accident. Some accidents put you in a difficult situation and you need to be hospitalized. In that situation, your auto insurance company will pay the hospital bills, rather than paying the high hospital and treatment costs out of pocket.

Compensate your family after your death: Some accidents are so terrible that they result in the death of the car owner, which is the most unfortunate result of a traffic accident. Once the breadwinner policyholder passes away, it becomes difficult for their family to meet their daily needs. Therefore, an auto insurance policy helps the family take care of expenses after any unfortunate event.

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