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Importance of Car Insurance in India in 2021

In India, owning a vehicle comes with a set of responsibilities. Whether you have purchased a vehicle for personal use or commercial use, it is mandatory to have insurance for it. Car insurance in India comes with several benefits but it is not the only reason why you must get one. 

What is car insurance?

A car insurance policy is a legal contract between a car owner and an insurance company where the latter provides financial cover against accidents or risks involving the vehicle. The policy gives protection against different losses that could occur and lead to expenses and subsequent liabilities. You can easily buy car insurance online and choose the right type of coverage. You pay a premium for the coverage of your car and the amount is based on different factors such as the age of the car, your geographical location and the coverage you opt for. With insurance cover, you can be stress-free and take your car on the roads with a peaceful mind. 

Why is car insurance important in India?

Let us take a look at the advantages of car insurance.  

As per Indian laws, every car owner in the country must have a third-party liability cover before taking the car on the road. The cover will protect you from any third-party damages and liabilities. It is a minimum requirement but it is best to compare car insurance quotes and choose a policy aligned with your needs. 

Further, if the car meets with an accident and suffers damage, the expenditure incurred by you will be reimbursed by the company. If the car is damaged due to natural calamities, you will get reimbursement for the expenses of repairing the car. 

If your car is stolen, the insurance company will compensate you for the same. You will be required to submit an FIR when you put the claim. You will get a reimbursement of an amount equal to the IDV of your car. 

In case a third party is involved in the accident, the insurance company will cover the legal liabilities that have to be paid to them due to the accident caused by your vehicle. It will also cover for the death or injury of the third parties. 

What happens if you do not have car insurance in India?

If you do not have car insurance in India and you are driving the car, you could be penalised for not obeying the law and the authorities can take action against you. Additionally, if you meet with an accident or if your car is stolen, you will not be able to recover any expenses. The amount incurred for repairs will be paid out of your pocket and you will not receive a reimbursement. Remember, such expenditure can be high and could drain your savings. 

Surprising benefits of car insurance in India

You should never overlook the importance of car insurance​. There are several benefits of buying one. Some of them are:

No claim bonus

One of the top benefits of having car insurance is that you get a no claim bonus for every claim-free year. It may also be available as a discount on the premium amount, which will make the insurance even more affordable. 

Wide network of garages

If your car needs repairs, you can choose from a wide range of garages for cashless service. It will make it convenient for you to avail the services. 

You can also choose from a wide variety of riders or add-on covers to enhance the coverage of the insurance policy. The process of buying car insurance and making claims has become quick and seamless in India.