Importance of Car Insurance is a really important thing to understand for any four-wheeler owner. On road, it is mandatory to have motor insurance for your car. A lot of first-time car buyers often wonder, why is car insurance important; accidents may or may not happen, is it really necessary?
So, the Answer is yes! With more vehicles on the road, the events of road accidents are increasing at an alarming rate. The repair expense can cost dearly to many car owners which is difficult to bear. Car insurance is essential to cover a major to minor loss suffered by the third party for their injuries, death and property damage.
Top 4 Points Justifying the Importance of Car Insurance
Here is the list of pointers explaining the Importance of Car Insurance.
Covers Third-Party Liability
With the help of a third-party car insurance policy, you can get coverage from your insurance company for damages caused to a third-party due to an accident with the involvement of the insured car. In simple terms, The third-party car insurance plan can save you from legal issues as well as liability towards the other party in relation to an accident sustained by your car as it compensates for the damage or loss of the third-party involved in the collision.
A car insurance plan whether a third-party insurance plan or comprehensive insurance policy gives coverage for damage or loss caused due to an accident or a mishap. A car insurance cover can help you save a lot from spending to cover the losses. While a third-party policy covers only your liability towards a third party, a comprehensive insurance plan compensates your damage or loss sustained by your car, you and co-passengers.
Replacement In Case of Theft
Car theft is big trouble for every car owner, especially, if you have a costly car. It brings a huge loss which is not possible for everyone to bear. A comprehensive car insurance policy comes with the benefit to cover your loss in case your car gets stolen. In such events, the insurance company tends to provide compensation for the loss of the car considering it a total loss. Generally, in such situations, an amount equal to Insured Declared Value (IDV) is provided.
Safeguards your family after you pass away
If an unfortunate event of your demise is an accident or a mishap, then your beneficiary or nominee as declared in the policy will become entitled to receive the compensation. In case your family is dependent on your income, in such a case, your insurance provider will make sure to provide your family with day to day expenses after your accidental death. This can be received with a comprehensive family car insurance policy and with the basic cover.
Conclusion: Importance of Car Insurance
People invest a lot of time in selecting and purchasing a car. With the same earnestness, they should buy a car insurance plan. But many people do not do that as they are unaware of the importance and benefits of car insurance. Hence, the law makes it a compulsion for every car owner to at least purchase a third-party insurance plan. However, we have tried to present a few reasons due to which you should own car insurance without fail.