Why do we need insurance for our vehicle?

Driving a vehicle is not a luxury, rather it is a great responsibility. Even many people consider driving as a status symbol, especially in a country like India, which believes in showing off. With rising income plates, having a vehicle is not a problem at all these days and people can easily afford to have bicycles and cars. It not only reflects the status of a society, but also increases mobility and thus saves time. Driving is also eliminating dependence on public transport.

It is true that driving has made our life comfortable, but at the same time it also pushes us towards a dangerous life. As someone rightly said, “The speedway ends at the cemetery”. Under the guise of boasting, people not only endanger their own lives, but also hurt others by speeding their vehicles. Daily newspaper coverage of both accidents and deaths is now commonplace. People lose their lives in traffic accidents by breaking the traffic rules and by not adhering to driving ethics they also endanger the lives of others. In addition, the cost of spare parts along with the high repair costs weigh on your pocket, proving that having good car insurance is essential these days.

Auto insurance is mainly purchased for vehicles that travel on the road with the main purpose of protecting the vehicle and driver from physical damage in the event of an accident. There are many factors for which car insurance is important:

Legally required: The main reason for taking out car insurance is that it is required by law. According to the Motor Vehicles Act, it is mandatory to take out liability insurance. The police have the right to check your vehicle’s documents such as PUC, driver’s license and insurance policy at any time. If you cannot provide documents, you will be in trouble. So it is advisable to get car insurance before you hit the road.

Loss and Damage to the Vehicle: We all know that people don’t understand driving at all and with the kind of traffic management we have in our country, there’s hardly a day where you don’t cause damage without the banging of vehicles. The main reason for having auto insurance is that it covers expenses incurred as a result of loss or damage to your vehicle. That’s why it’s always good to be on the safe side and get car insurance before you hit the road with your bike or car.

Reduces Your Liability: Third Party Liability (Third Party) Insurance is compulsory in India and protects 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 their treatment and release you from the legal consequences.

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Hospitalization: Not every car owner is lucky enough to sustain only 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 pays your hospital bills, rather than paying the high hospital and treatment costs out of pocket.

Compensates your family after your death: Some accidents are so terrible that they result in the death of a car owner, which is the most unfortunate outcome of a traffic accident. Once the breadwinner has passed away, it becomes difficult for his/her family to meet their daily needs. Therefore, car insurance helps the family to bear the costs after an unfortunate event.