Why is car insurance important? – liveinsure.in

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Why is Car Insurance Important?

Car insurance is an important part of life for any four-wheeler owner, especially in India. On an Indian 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, so, is it really necessary?   The simple answer is yes. It is essential to have car insurance, and not just because it is mandatory to have it according to the regulations. It saves from the financial and emotional burden of covering damages caused by an accident.

There are many reasons to buy car insurance:-

  1. Pay Now and Save Later – Car insurance can help protect you and your family from huge expenses. By investing a small amount now in your own protection, you can help avoid costly expenses in the future. Coverages such as collision insurance, comprehensive insurance, property damage liability and bodily injury liability can help cover the costs of expensive claims if an accident happens.
  2. Protect Yourself and Others – The right car insurance can help protect you, your family members, your passengers and other drivers. If an accident happens, you want to know you have the right coverage to take care of any property or bodily injury costs that may arise. Get a car insurance quote online or speak with an agent today to learn how you can help protect yourself and your family.
  3. Save Time and Hassle – The fallout from a car accident can be incredibly time-consuming and tedious. With appropriate coverage, you can avoid negotiating with other drivers and property owners involved in the accident and managing the costs of repairing or replacing your vehicle. Good car insurance can help handle a lot of these headaches. A good auto insurance policy can help with vehicle towing, repairs and replacements, and covering the costs of damages to other drivers. Once you make a car insurance claim, the insurance company can help manage the process and support you through it.
  4. Peace of Mind – Everyone makes mistakes. But sometimes another driver’s mistake can become your problem. With the right type of car insurance you can feel confident that you’re protected if an uninsured or underinsured driver hits you.
  5. Supplement Your Health Insurance – Car insurance may be able to help you pay for medical expenses that health insurance normally won’t cover. A good car insurance policy can help cover expenses such as dental work and medical treatments required as the result of an auto accident.

Why is Car Insurance Mandatory in India?

What Is A Motor Insurance Policy?

A motor insurance policy covers the owner from any financial losses incurred as a result of an unforeseen circumstance, like an accident, natural disaster, theft, etc. Any damages to the insured vehicle, the policy holder or third-party will be covered by the insurer.

The Most Important Car Insurance Coverage

The most important coverage has to be your state’s minimum liability and property damage coverage. More than anything else, you need to maintain car insurance to keep yourself legal to drive. You risk losing your driver’s license and fines driving without it. Get into an accident without liability coverage and you could be facing enormous penalties including bills from the damages you caused.

Liability and property damage coverage is there to protect the other drivers on the road from the damage you cause. Your car insurance policy probably lists liability as bodily injury 20/40 as an example. The 20 is the placeholder for how much will pay out for medical expenses, pain, and suffering per person and is valued at $20,000. The 40 is the placeholder for how much will pay out for medical expenses, pain, and suffering per accident and is valued at $40,000.
Property damage provides coverage for other people’s property. For instance, if you hit another person’s car or damage city property like a guardrail or traffic sign, your property damage coverage on your car insurance will cover the damages up to the limit listed on your policy.
                                                                                                                                                                                                                      Having coverage protecting other people’s property and medical expenses is important for your own financial protection. Without it, you can be sued for the damages.

Other Important Coverage

You want to protect your own property too. You will need to purchase physical damage coverage so you are protected against major expenses of car repairs if you cause damage to your vehicle or some other outside factor causes damage to your car.

Comprehensive coverage will payout for damage from anything other than a collision. It includes but is not limited to deer, rodent, glass damage, fire, theft, vandalism, and storm damage. A deductible usually applies.

Collision coverage pays out when you damage your vehicle in a collision whether it is with another vehicle, a tree, or mailbox; it does not matter. Collision will pay out minus your deductible.

 

Other Considerations

In most states, buying car insurance is required by law. But it is also one way to protect yourself and your family from the potentially devastating costs of a large accident claim. A car accident can be costly, even if you’re not at fault. Managing and paying for the repairs or replacement of your vehicle, and potentially going to court, can be time consuming and expensive. That’s why it’s important to buy the right level of car insurance coverage from a company with industry-leading insurance products and a reputation for great claims service. Excellent claims service can help save you time and frustration after an accident by streamlining processes from getting a tow truck and rental vehicle, to paying for medical bills and repairs.

 

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