Why Car Insurance is Mandatory in India?

Driving in India is a luxury that thousands of people partake of every day. It is now quite simple to buy a car in the country, and with higher disposable incomes, most households are able to afford more than one car, too. Having one’s car increases one’s mobility and eliminates dependence on public transport.

However, driving in India also comes with its own perils. We often hear car owners rue traffic indiscipline, lack of legal enforcement by road authorities and myriad other complaints about the traffic scenario in India. Cases of road accidents and rule-breaking are reported in the newspapers on a daily basis. Considering these factors, it is important to get car insurance right after one buys a car.

Why do you need car insurance?

It pays for damages

Not only are cars expensive, paying for their repairs is costly, too. Sometimes, your car may be damaged due to someone else’s negligence. A car colliding with yours, or you swerving to avoid a jaywalker and crashing into a wall, or even a stray cricket ball cracking your windshield can set you back by a considerable amount of money. However, if you have car insurance, you need not pay for these repairs by yourself.

It reduces your liability

Taking Third Party Liability (TPL) car insurance coverage is mandatory in India. The TPL policy covers you against the legal ramifications of an accident caused by you. For example, if you happen to cause an accident that results in damages to another person’s property or injuries to another driver/pedestrian, the insurance will pay for their treatment and save you from the legal repercussions of the case.

It costs less when purchased online

Buying car insurance online results in lower premiums and hence, a cheaper car insurance policy. This is because the insurer has lower operating costs when transacting over the Internet, and is happy to pass on the component of money saved on paying commission to a broker, to the customer. Buying car insurance online has other advantages, such as renewing the policy in minutes and paying premiums without any paperwork.

It compensates your family after your demise

The most unfortunate outcome of a road accident is the car owner’s demise. Once the bread-earning policy holder has passed away, it might become difficult for his or her family to sustain its daily life. However, a car insurance policy can help pay the family’s expenses after the unfortunate event.