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.   If you have just purchased a car, then here is the 'why' to this government-mandated rule in India and why you absolutely need car insurance:  

• Reduces liability

Under any circumstances, if an accident is caused by you on the road, then you need car insurance to manage your liability. This is why, buying a Third-party liability (TPL) car insurance coverage is mandatory in India. For instance, if you cause an accident wherein you damage another person's car or are responsible for someone else's injuries, then the third party car insurance will cover the expenses and can save you from the legal ramifications of the situation.  

• Compensates for damages 

You don't need to be told that cars are quite expensive. It's quite common for damages to occur when driving. Even if you are driving safely, there can be a collision, bump, or dent due to another driver's mistake or negligence. So, in the case of any damage, you need a solid cover to compensate for the costs of repairs and fixing. This is where you need car insurance because if you try to pay for the damages on your own, it can cost a bomb and burn a hole through your pocket. Instead, the insurance company can support you through it.  

• Pays for serious injuries 

Not everyone gets away with a few bruises and wounds. At times, even with all the precautions, serious accidents can occur and lead to critical injuries. Some accidents can result in hospitalization, which can not only be emotionally stressful but also end up being a serious financial burden. So, if you are still wondering why is car insurance important - it will help you cover the hospitalization charges without having to pay it from your own savings.  

• Safeguards your family after you pass away

To give you another reason for why is car insurance important - it isn't just for you. You need car insurance because it covers your family if an unfortunate event occurs that leads to your sudden demise. If you are a bread-earning family member who holds the policy, then your car insurance will offer a personal accident cover that can help your family's expenses.   If you are concerned that buying car insurance and paying the premiums is expensive, don't let it hold you back. Because car insurance also costs less when done online, and you can research and compare car insurance policies and premiums available in the market. Also, don't forget to renew car insurance on time as otherwise, it can lapse.