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Why is Car Insurance Important?

Introduction:

Car insurance, also known as, motor insurance protects your vehicle from any unforeseen loss or damage. It offers coverage against loss caused by theft, accidents, damage, or any other liabilities. To get car insurance done, you will have to pay a premium on an annual basis. Car insurance provides safety to your vehicle. As per Motor Vehicles Act 1998, it is compulsory to insure a motor vehicle operating in the public space.

Once you’ve got your vehicle insured, you can claim damages regarding any injury caused to a third party or any loss it has suffered due to theft, fire, or accident. So if your vehicle is insured and gets stolen, your car insurance company has it covered for you.

Simply put, car insurance is an agreement between you and your insurance provider, where it agrees to pay you the sum of premium paid towards any loss suffered by your vehicle. This loss could be caused by theft, accident, or a third-party injury.

Benefits of Car insurance – Why is it important?

It is prudent to have car insurance when you own a motor vehicle. The chief reason behind motor insurance is that you need not worry about the costs in any unexpected crisis.  You need not worry about the financial strain, as having insurance will cover it up for you. Here are a few things you must know about car insurance importance.  These are:

  • Financial security: Having motor insurance will benefit you with financial security. In life, there are unexpected costs wary of a financial strain on your pocket. Car insurance will ensure that in the case of any unforeseen or unavoidable event, you are covered for your financial losses and will help you remain financially sound.
  • Offers legal protection: Car insurance provides legal protection against lawsuits initiated against you in the event of an accident or injury caused to a third party. It also covers all the expenses in respect of the cases brought against you.
  • Covers loss against damage: Not only does car insurance cover loss against damage or loss caused by theft. It also covers the damage or loss caused by accident or fire. It covers the cost of bills incurred towards the repair of your vehicle.
  • Offers benefits to the survivors: Car insurance benefits the survivors when an accident causes death.
  • Minimum documentation: Applying for car insurance is simple. It requires minimum documentation, mainly when it is applied online.

Additional Reads: 8 Things to Keep in Mind While Opting for a Pre-Used Car Loan

Conclusion:

Car insurance may seem costly, but it is prudent to have your vehicle assured. It helps you to save a fortune in times of unexpected expense. You can apply for car insurance either online or offline. Buying car insurance online is more convenient as it involves less paperwork and is more cost-effective.

Disclaimer:

ICICI Securities Ltd.( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Centre, H. T. Parekh Marg, Churchgate, Mumbai - 400020, India, Tel No : 022 - 2288 2460, 022 - 2288 2470. I-Sec acts as a Composite Corporate agent having registration number –CA0113. Please note, Insurance related services are not Exchange traded products and I-Sec is acting as a corporate agent to solicit these products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. Investments in securities market are subject to market risks, read all the related documents carefully before investing.

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