Why should you purchase a motor Insurance policy?
Bad roads, poor street lighting and unruly drivers make driving on Indian roads risky. Considering the increase in road accidents, it is prudent to guard yourself and your vehicle. While the law specifies that it is sufficient to have third-party insurance, to protect your interests, you must have a comprehensive insurance policy. The former only covers damages to the other person, that is, the third party. But, a comprehensive insurance also provides cover to you and your car in case of an accident.
Listed here are five important reasons why you need to have motor insurance apart from the legal aspect:
- Insurance pays for damages
Cars are expensive to buy, and their value drops considerably quickly. Further, regular repairs and maintenance will cost you a considerable amount of money. Motor insurance helps you by reimbursing you for external damage caused by someone else’s negligence. Sometimes, you can get into an accident as you try to save another vehicle or pedestrian. These unforeseen incidents can become expensive for a car or bike owner to remedy. Auto insurance helps you from the moment the accident takes place, right until your car is back to running condition.
- Insurance reduces your liability
Third-party insurance will help you pay for the legal ramifications in case an accident is caused by you. In case you cause an accident without intent, a third-party insurance will cover the expenses to repair the damage caused to the other person and his/her car.
- Insurance covers hospitalisation expenses
Accidents can be minor, but it is also possible that the injury borne is more than just a scratch. For example, accidents on the highway can cause serious injury that will require medical attention. This treatment usually requires funds immediately. Motor insurance will put you at ease when it comes to paying hospitalisation bills through its medical cover. You can pay an additional amount and purchase medical coverage for other passengers too.
- Protection at a fraction of the cost
Motor insurance provides several benefits in the event of an accident, at a fraction of the cost. In the event of an accident, the cost to repair your car will typically be higher than the amount that you have spent on the insurance premium. In case you need to visit a hospital after a car accident, you will need to pay for treatment. With motor insurance these costs are drastically reduced. In case you do not make a claim, you are rewarded with a No Claim Bonus on your next insurance renewal. This further reduces your premium and increases the benefits.
- Compensates your family in case of death
Deaths caused by accidents are an unfortunate reality. To account for this, motor insurance comes with inbuilt life insurance. In case of death, the money will be handed over to the nominee as stated by the policyholder.
It is evident that there are many benefits of having good motor insurance. Most policies also come with various add-on benefits that help you create an ideal policy that fits your needs. For example, you can choose to increase the life insurance component or hospitalisation cover in case of an accident. No matter what vehicle you drive, it is important to have motor insurance to help you deal with unforeseen situations easily.