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Why vehicle insurance is the most important of all Insurance Policies

  • by Baron Angus
  • 5 Months ago
  • 0

One of the biggest gripes that the people commonly have is a relatively weaker public transport system,which eventually leads to buying a two wheeler or a four wheeler for transport. While buying a vehicle is great, understanding all the needs is equally important. If you wish to drive or ride a vehicle on road, a third party liability insurance for your vehicle is a must.

Well, don’t just take our word for it. The Motor Vehicle Act, 1988 mandates that all vehicles must have a valid insurance to be road legal. When you purchase a new vehicle, the dealer will most probably provide you with an insurance. This is one of the reasons we don’t really bother about a vehicle insurance for the first year atleast.

Here are the major reasons why you must have a comprehensive vehicle insurance on you at all times.

  • It covers the legal liability arising out of death or any injuries that a third person incurs or any damages to a third party property due to an accident.
  • It provides you cover against own damage, ensuring you can claim for the repair expenses.
  • It makes you vehicle road legal.
  • Should there be any damage to your vehicle due to natural calamities or it is stolen or is at the receiving end of a riot, the policy will cover such scenarios.
  • Some insurers also provide cover for medical expenses post an accident.
  • Insurers also provide optional additional personal accident cover for the policyholder, which can be extended for another traveler as well.

Individuals who use their vehicles as daily drivers, a vehicle insurance policy is of utmost importance.. Imagine driving down the roads without an insurance and you meet with an accident. You not only have to worry about the traffic police, the damages caused to the other vehicle/person, but you also have to pay for all the damages done to your vehicle. The easier option then is to buy a vehicle insurance and forget worrying about such things.

Vehicle are getting increasingly expensive and so are the fatalities

Inflation and several other factors are the prime culprits in raising the prices of different commodities. A hatchback that you could have purchased at Rs.4-5 lakhs a few years ago now costs Rs.6-7 lakhs. That is a steep rise in price to pay over a period of few years. Since the price of a car has increased by several folds, it is only natural that other expenses related to it also went upwards.

This translates into higher repair and maintenance expenses. If you meet with an accident, it will cost you slightly higher to fix that bumper as well. All of these additional costs make an even stronger case for buying a vehicle insurance. When you do have a vehicle insurance all of these expenses are well taken care of.

Comprehensive Coverage of vehicle insurance providers that won’t stress your finances

During the purchase of a vehicle insurance you will come across its two basic types- third party liability and comprehensive insurance. It is advisable to buy a comprehensive insurance since it offers a lot more than what a basic third party liability policy does.Here is a list of all the benefits that you can reap should you choose to buy a comprehensive vehicle insurance.

  • A comprehensive insurance provides you cover against natural calamities. If your locality is prone to either earthquake or flood, a comprehensive insurance is your best bet. Even if your locality is not prone to natural calamities, there are other benefits.
  • A comprehensive insurance provides you cover against man made situations as well. If there is a riot or strike in your locality or if you meet with an accident, the policy will cover the expenses. Instances such as theft, burglary or even terrorism are covered as a part of the policy.
  • A comprehensive insurance ensures you have the bare minimum third party liability policy to make your vehicle road legal.
  • Only a comprehensive vehicle insurance lets you avail the add-on benefits. Buying add-ons enhance your policy’s capabilities by a substantial margin.

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