Car Insurance, Necessity or Compulsion?

Necessity or Compulsion 0 Comments

“Anything which can go wrong will go wrong” – Murphy’s Law.

It’s often said that one among five young drivers will face a crash within the first six months. Often car insurances are neglected because the probability of being in a car crash is quite low and people doesn’t want to spend a good amount of hard earned money towards the premium of any car insurance. Car accidents are not always because of you but often caused because of an error someone else committed. As a result having a relatively good car insurance eases out the headaches related to the compensation for life and property caused by the accident.

Car insurance or auto insurance as its commonly known as, deals with compensation or insurance packages for a motor vehicle ranging anywhere from a car, bus, truck to two wheelers such as scooters, bikes, etc. It protects the vehicle owner as well as any third party involved in the case of an accident. It generally compensates for the various bodily damages and provides the money for repairs. It also provides compensation for the damages caused to the third party in terms of loss of life or property during the accident your car was involved in.

Types of Insurance Policies:

  • Third Party Policy: The owner of the vehicle in order to save up a bit of the premium can opt for this type of policy. It only includes the damages caused to any third party who was involved in the accident along with you. It takes care of the compensations involved due to loss of life or cost associated due to certain injury, as well as damage to property both private and public. The word third party means anyone other than the insurer or the insured.

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  • Comprehensive Cover: This includes both Third-party as well as own damage. This is generally the type of insurance which is recommended as it compensates for any damage caused by the particular accident to the owner or the insured as well. It takes care of any bodily damage to the vehicle, repair costs involved in the case of any gruesome accident, injury or damages caused by the driver or its co-passengers, as well as any legal costs needed to deal with the lawsuits involving the accident. Car insurance also protects the owner in case of any natural or man-made calamities such flood, earthquake, landslide, thunderstorm, hailstorm, electronic accident, mobs, riots, theft or robbery.

Is it a Compulsion?

Based on the motor vehicles act, it is mandatory for any vehicle to have the third party policy insurance to be eligible for the road. Failure to attain any such insurance policy makes the vehicle illegal to ply on public roads. So, to some extent, yes having an insurance policy is a compulsion, but it is always advisable to get a comprehensive policy from any reputed insurance provider.

Prior research should be conducted to check for the best insurance provider, at the lowest possible price. Customer reviews should be taken into consideration while selecting any insurance policy. Also, make sure to check for the claim settlement ratio for any particular insurance provider. Lastly, I would like to say it’s always good to be safe than to be sorry.

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