Why is it Important to have Car Insurance in India

Why is it Important to have Car Insurance in India

There are several reasons why it is important to have an auto insurance for your vehicle including:

• Third-party insurance is a necessity in India as per Section 146 of the Motor Vehicle Act, 1988.
• The rate of vehicular accidents is high in India due to improper roads, especially during the monsoon.
• Manmade disasters such as riots and theft or natural disasters such as floods and earthquakes cannot be predicted or controlled. Under such scenarios, an auto insurance provides you with financial assistance at your hour of need.
• In the case of a death or disability, the family is burdened with financial needs such as medical costs, vehicle repair costs, third-party liabilities and so on. In such a case, an auto insurance comes in handy wherein you receive financial protection during your hour of need.
• Whether it is a car part replacement or repair, the cost is very high. In addition to providing coverage against vehicle damage, some insurance companies offer roadside assistance and cashless garage facility to make life easier for you.

Types of Car Insurance Policies in India

When choosing a Car Insurance plan, car owners must compare car insurance policies across all insurance providers to get a suitable policy and the lowest premium possible. There are 2 types of auto insurance plans available in India:

• Comprehensive insurance: This type of insurance will cover third party liabilities as well as damages caused to you and your car. You will receive financial protection against liabilities arising from natural disasters, theft, and accidents. Comprehensive insurance plans include third-party premium and own-damage premium. Own-damage premium is determined based on the age of the car, make and model of the car, geographical location, and engine capacity.The comprehensive car insurance policy offers Personal Accident cover for the owner-driver. In case you require Personal Accident cover for the passengers, you will have to take that coverage separately after paying extra premium. The Personal Accident cover is very useful, as it compensates you in the following manner: