Why is Car Insurance Necessary?

You may have comes across car insurance hoardings or advertisements everywhere and thought to yourself about why is the same message repeated again? Well, the reason is that it is mandatory by the law, Motor Vehicles Act. If you drive around in India without having a car insurance, it is illegal and you will be fined for it. Besides, not having can put you in further trouble. If there is any situation where the third party is injured or the car belonging to them is damaged, possessing a car insurance can provide cover for the same. Well, in this case, if you don’t have one, you may be the one paying for it. This security is called as third party insurance. It does not only apply to the third party but also serves protection to the one who is driving or one’s family members who may also be driving the car. Therefore, you can take purchase motor security for the same reason. It also protects you from any natural calamities such as earthquakes, hurricane, etc. or man-made calamities such as riots, terrorist attacks, etc. Majorly, car insurance is of a few types such as Third Party Car Security and Comprehensive Car Insurance.

At the time of selecting the car insurance policy, it is important to understand an individual’s requirements such as how many members drive one car and purchase it, accordingly. It is essential for the motor insurer to follow a certain set of guidelines. A minimum amount of insurance is required in all the states of India. There are a number of benefits associated with purchasing a car insurance. It provides one against misfortunate events such as accident, death, etc. It can also cover lawsuits such a legal fees that may be charged against an individual due to an accident. It covers the repair expenses due to any damage caused to the vehicle or due to other reasons such as robbery, fire, etc. For those who own more than a single car insurance policy, there may be premium discounts offered by a car insurance company. It may also facilitate extension of coverage to those who drive one’s motor with the owner’s permission. There are many times when one may not have made claims. For this, a car insurance policy provides no claims bonus to its customers. There are a number of companies that provide motor security such as ICICI Lombard, Bharti AXA, Bajaj Allianz, etc. in India through which you can purchase motor insurance online as well. Many companies even provide car insurance calculator to facilitate easy premium calculations.