What Are Some Reasons That Make Car Insurance a Must Have in Your Insurance Portfolio?


Having your own car nowadays is no luxury but a matter of choice—choice for convenience over the hassles of public transport. But when you buy a car, there is an added compliance of insurance. While it is a simple and easy way to ensure protection for your car, many buyers tend to ignore its importance.

Car Insurance

Road accidents in India, a 2018 report by the Ministry of Road Transport and Highways, states that India has about 11% of the road fatalities in the entire world, which is an alarming number. This has made it critical to ensure protection for all vehicles on the road and, thus, mandatory compliance with third party car insurance.

Insurance helps to mitigate financial losses, thereby saving your hard-earned money. With the advent of the digital revolution, you can now explore the option of buying car insurance online. Thus, as important as health insurance to seek the right treatment, car insurance is also essential. Let’s look at some of the reasons that make car insurance a necessary part of your insurance portfolio.

1. It pays for damages

The foremost advantage of having car insurance by your side is its protection against damages. Cars are expensive, and so are their repairs. At times, it isn’t even your fault, and your car is damaged. For instance, a passer-by hits your parked car on the street, or another car rear-ends while you wait at the red light. These instances can cause hefty financial loss, and that’s when a car insurance policy comes to the rescue. You can avail of several long-term benefits with a cover at affordable car insurance prices. * Standard T&C Apply

2. Lowers the liability

As discussed above, a third-party policy is the bare minimum coverage to be purchased. Even if it offers no compensation for the repairs required to your car, it definitely covers the legal liabilities that may arise during an accident or collision. It can be either due to property damage or even injury to a third person, resulting in either disability or even death. Say you lose control and collide on oncoming traffic, resulting in a head-on collision. This can be severe, and injuries may be faced. With a third-party car insurance policy, the cost of legal liabilities due to the aggrieved third person can be compensated for. Moreover, there is no maximum amount for injuries to third persons but a capping on the compensation provided for property damage set at ₹7.5 lakhs. * Standard T&C Apply

3. Compensation to your family

Any accident that may result in a demise will be shattering for your family. Car insurance policies compensate for the policyholder’s death in case of an accident. Moreover, if such a person is the sole breadwinner, it can be even more stressful in financial terms. Thus, alleviating the financial hardships that the dependents might face.

These are some reasons you should make car insurance a part of your insurance portfolio. While you can purchase car insurance online, it helps to choose and compare the different plans and help select the best for you. Car insurance prices differ based on the features opted for and must be bought considering a balance of the features and its price. Also, note that insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

Carol P. Middleton
Student. Alcohol ninja. Entrepreneur. Professional travel enthusiast. Zombie fan. Practiced in the art of donating rocking horses for the underprivileged. Crossed the country researching hula hoops in Deltona, FL. Won several awards for supervising the production of etch-a-sketches in Nigeria. Uniquely-equipped for investing in bathtub gin in the financial sector. Spent a year building g.i. joes worldwide. Earned praise for deploying childrens books in Africa.