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  • Dec 02, 2023

7 Reasons Why Car Insurance Is Beneficial

Did you know, according to a report, there are approximately 50 accidents per hour. And the accidents come with hefty repairs and sometimes fatalities.

So, who is incharge of all these expenses? And what if it is too high to be borne by one person? In such situations car insurance saves the day.

Fortunately, the government of India made it mandatory to have third-party car insurance, whether you buy a new or used vehicle. There is another option for comprehensive coverage to protect your car against all sorts of financial loss from accidents to theft.

Having insurance is a necessity, it is like an asset added to your financial security, so let’s dive into the blog to learn more benefits of car insurance.

What Is Car Insurance?

Let us first understand the concept of car insurance before we list down the benefits.

Car insurance is a contract between the insured and an insurer to provide financial protection in the event of a car accident, theft, or other covered incidents. In exchange for a premium, the insurance company covers certain financial losses.

As per the Motor Vehicle Act, you must have third-party car insurance whether you buy a new car or used one. If you are looking to fully converge for yourself, your vehicle and others on the road, you can consider a comprehensive car insurance policy. It provides a safety net in case of unexpected events, offering financial support and legal compliance for responsible driving.

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7 Benefits Of Car Insurance:

  1. Financial Protection Against Accidents & theft:

    Car insurance provides financial protection in case of accidents, theft, or damage to your vehicle. It helps the policyholder to cover the cost of repairing or replacing your vehicle, as well as medical expenses and damages resulting from the accident.

    Without insurance, you would be personally responsible for covering all these expenses, which can be substantial and potentially lead to financial hardship.

  2. Protection Against Natural or Man-made Calamities:

    Having a comprehensive car insurance policy that includes coverage against natural disasters like floods, storms, or earthquakes. Also, man-made disasters like riots, terrorism, or vandalism ensure full protection for your vehicle.

    It provides financial support associated with such damages, adding an extra layer of security for car owners.

  3. Legal Compliance:

    In India, according to the Motor Insurance, having car insurance is a legal requirement. Driving without insurance is not only risky but can also result in severe legal consequences, such as fines, licence suspension, or even imprisonment.

    Having car insurance ensures that you comply with the law, providing a layer of protection not just for yourself but also for third-person who may be involved in an accident with your car.

  4. Flexible Add-ons Option:

    One of the advantages of car insurance is the availability of flexible add-ons or optional coverage options. These add-ons allow policyholders to customise their insurance policies to better suit their specific needs and provide additional protection. However, you must know that you can buy add-ons only if you have a comprehensive policy.

    Some of the common add-ons that most people buy with their comprehensive car insurance policy:

    • Roadside Assistance Cover: Useful for emergency services like towing, fuel delivery, and more.

    • Zero Depreciation Cover:Provides comprehensive coverage without factoring in depreciation.

    • Engine Protection Cover:This covers damage to the engine, which may not be included in a standard policy.

    • Passenger Cover:Provides medical coverage for passengers in the event of an accident.

    You can purchase as many add-ons as you need. However, the more add-ons you buy, the higher your premium will be.

  5. Medical Coverage:

    Apart from vehicle and property damage, accidents can also cause physical injury to a third party, passenger or personnel, which can be very severe at times. Some policies include medical coverage that helps pay for medical expenses if you or your passengers are injured in an accident.

    The expenses may include hospital care, rehabilitation, and lost wages if the injury prevents you from working.

  6. Protection Against Uninsured Drivers:

    In some cases, you may encounter drivers who do not have insurance or have insufficient coverage. In case you’re involved in an accident with an uninsured or underinsured driver, your insurance can help cover your expenses, including vehicle repairs and medical costs.

    In short, this aspect of car insurance is crucial since it protects you from potential setbacks caused by other’s negligence or lack of insurance.

  7. Peace of Mind:

    Car insurance provides peace of mind while driving. Knowing that you have financial protection in case of unforeseen events can reduce stress and allow you to focus on the road.

    Car insurance acts as a safety net, giving you confidence that you can handle the financial aftermath of an accident without a significant impact on your finances. This allows you a more secure and stress-free driving experience.

Final Thought:

For maximum protection of your car and yourself, nothing beats a motor insurance policy. As you make this crucial decision, opt for a policy that is not only robust but also easy to comprehend and simple to purchase.

Hindustan Warranty Assist offers hassle-free service and provides peace of mind on the road, knowing you are a shield against every unforeseen event.

Customise your comprehensive car insurance policy now and drive confidently.