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Is car insurance compulsory? Why is it beneficial?

Jay is a 27-year-old car enthusiast who has recently purchased the car of his dreams. Being an informed person, Jay reaches out to an insurance company to procure the necessary insurance covers to protect himself from the costs and damages arising from unforeseen events in the future. 

Are you a petrolhead, like Jay, who has just fulfilled his dream to own a car? Well, kudos to that! But have you thought of the next step? Don’t worry, we have you ‘covered’. Yes, we are referring to an insurance cover for your four-wheeler.

If you have questions like, is car insurance compulsory? Why is it beneficial? How can I get one? Then you are at the right place. Irrespective of the newness or oldness of your car, insurance is a must in India. A four-wheeler insurance policy is a tool of financial protection covering the expenses of damage to your vehicle or third-party liability owing to accidents and even natural calamities.

What Is the Importance of Four-wheeler Insurance?

Car insurance or four-wheeler insurance is one of the essential insurance policies in India. Our country accounts for 1% of the global population of vehicles. Nonetheless, 6% of road incidents concerning global trends happen on Indian roads, making them the second most vulnerable category after two-wheelers. In 2019 alone, 151 thousand fatalities were reported, according to the Ministry Report. Thus, basic third-party liability insurance has been made compulsory in India to minimize the extent of possible damage on Indian roads.

Where and How to Buy a Car Insurance?

If you are wondering where to procure suitable car insurance, then keep reading. You can conveniently acquire car insurance online with just a few clicks. Visit the insurance company’s website, browse through the different policies, and covers, pick one that suits your requirements, fill in the prompted details, make the necessary payments, and voila! You are all set. 

Why Are Car Insurances a Worthwhile Expenditure?

Car insurance is undoubtedly the best expense you can incur, something Jay could not understand initially. However, his insurer mentioned the multitude of benefits highlighting the usefulness of a four-wheeler insurance policy which clears all of his doubts. 

  • Safeguards Your Ride

Our lives are full of uncertainties, and insurance offers us protection against these unpredictable events. Car insurance shields your precious four-wheeler from natural mishaps, thefts, damage arising from accidents, and the like. Thus, when Jay’s insured vehicle is vandalized, his insurer will bear the losses and repair costs. 

  • Liabilities Against a Third Party Are Taken Care of

Suppose Jay has third-party liability insurance and gets involved in an accident injuring a third party’s vehicle. In that case, the cost of repairs of the third party’s vehicle is looked after by Jay’s insurance company. However, in the absence of third-party liability insurance, Jay would have to bear the expenses of his vehicle damage and the costs of repair of the third party. He would also be subject to a fine or a penalty for not having the compulsory car insurance as mandated by the law.

  • Protection That Is Comprehensive 

In addition to an obligatory third-party liability cover, a comprehensive insurance cover will liberate Jay from the financial worries of all kinds of risks associated with his car. Such a comprehensive plan offers protection to the insured vehicle from theft, fire, natural calamities, damage due to accidents, and so forth. 

  • Entitlement to a No-Claim Bonus

As the name suggests, you receive a bonus in case of zero claims. For instance, if Jay has not claimed for an entire year, he will be entitled to a bonus, which can be in the form of a discounted premium or renewal of policy at a slashed rate.

  • Eased Burden of Finance 

Car insurance takes the unforeseen financial burden off your shoulder. For instance, if Jay does not have his car insured and meets with an accident, damaging his car, the entire cost of repairs must be borne by him. Such a situation will not arise in the case of an insured vehicle. 

  • Keep Fines and Penalties at Bay

As mentioned earlier, if Jay is discovered not owning car insurance or at least a third-party liability cover, he will be penalized and subjected to a fine for not abiding by the provisions of the law. 

  • Security to Your Asset

Your car is an asset that requires protection. The security of your asset is as important as the asset itself. An insurance cover thus does not qualify as an expense but as a security investment.

  • Offers Convenience of Cashless Claim

A cashless claim refers to having your repairs made without spending a single penny out of your pocket. For instance, if Jay meets with an accident and his car requires repairs, he can have his insurer take his car to their garage and get the repairs done. This way, the insurance company directly bears the costs and expenses.

  • Economical Online Procurement

Digital procurement of car insurance proves to be highly economical, primarily because there is no paperwork involved. The business is conducted directly between the insurer and the insured, moving commission to brokers out of the picture. It also facilitates the payment and renewal processes. Getting car insurance online minimizes operating costs, making policies cheaper.

  • Pay Now and Save Later

Many insurance companies have rolled out long-term car insurance plans. The primary benefit of such long-term covers is that they have a fixed premium amount, unlike yearly insurance plans, where the premium amount fluctuates each year. Hence, you save on the surplus premium. It also liberates you from the worry of renewing your yearly insurance. 

The Endnote

Being a car enthusiast, you certainly know the value of your car and would take the necessary measures for its safe keeping. A car is an invaluable asset, and assets require security. Thus, apart from the numerous benefits of getting your car insured, keeping it from the damage of theft, accidents, and natural disturbances is the primary reason why you should get your vehicle insured. Hence Jay decides to procure relevant four-wheeler insurance that offers protection to his dear vehicle, understanding the innumerable benefits of car insurance.

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