India is going to be the third largest car market after the US and China by 2020, reaching a 7 million manufacturing number, according to Ford. The increasing number of vehicles together with a general disregard for traffic rules is making the road’s accident-prone in India.
Accidents can prove costly, especially if injuries are involved, motor insurance can prevent these unwanted expenses. It is also mandatory by law in India.
Here’s a look at 4 advantages of having motor vehicle insurance.
1. Coverage for Repairs and Replacement Costs
The bumpy and patchy roads, full of potholes can not only harm your car but could also cause a hole in your pocket. Your vehicle may even suffer damages caused by natural calamities like earthquake, floods, cyclones etc. and man-made calamities like fire, an explosion, thefts, riots, terrorist attacks etc. This is where your motor insurance saves you. Costs of these damages can be recovered from the insurance authority after assessment.
Damages incurred in a road accident are also covered by vehicle insurance. Car insurance authorities assess the criticality of the damages and decide whether the parts need to be replaced or repaired. The cost of repairs and replacement of parts is taken care by your motor insurance.
2. Assured Medical Claims
Being in a car accident can result in extensive injuries; you need to be prepared for such events. In case of severe injuries, if an individual cannot bear the medical bills, insurance can support the expenses. The motor vehicle insurance policy covers damages to the driver and passengers.
3. Protection from Financial Liability
Can you afford to pay for the damages to your car in an accident? Even if you can, think about the additional medical expenses you will have to bear. This could create unwanted financial stress on you and your family. Your savings might get depleted and your investment goals can be brought to a halt. Motor vehicle insurance can help reduce such risks.
4. Legal Requirement
Motor insurance (third-party insurance) is mandatory as per the law in India. It is meant to protect properties and lives. In case you have an accident and you don’t have insurance for your vehicle, you may get stuck in legal procedures; leading to fine, prosecution and even cancellation of your driving license. Having motor insurance can save you from this legal hassle in case you meet with an accident.
There are plenty of advantages of being backed by private car insurance. It will protect you from heavy fines, impoundment of your vehicle, suspension of license and even jail time if found driving without one.
You can even add depreciation cover, personal accident cover and receipt value cover to your private car insurance. Selecting cashless mode helps you get assistance without paying anything. Motor insurance saves you from unforeseen damages.