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Reasons why car insurance is important?

Reasons why car insurance is important?

Car insurance is not only a legal requirement but also a necessity for car owners. Read to find out why car insurance matters.

With more vehicles on the road, road accidents are increasing at an alarming rate. Repair expenses can cost dearly for many owners of hard-to-afford cars. Car insurance is necessary to cover a significant to minor loss suffered by the third party for their injuries, deaths and property damage. To cover special damage expenses, one needs to choose a comprehensive cover, otherwise, car owners will have to bear the costs of repairing on their own. Additionally, for coverage, there are multiple reasons to choose auto insurance. 

Reasons why car insurance is necessary?

The reasons why car insurance is necessary for policyholders are as follows:

1. Mandatory in accordance with the law

According to the Indian car tariff, it is mandatory for all car owners to own at least a car insurance policy while driving in India. Third-party coverage is a basic car insurance plan that covers only the financial obligations you may incur to a third party. Since then, it is a legal requirement to carry at least a third-party policy, so failure to carry it while driving can result in you being punished with fines and imprisonment.

2. Cover damages

The car insurance plan, whether it's a third-party insurance plan or a comprehensive insurance policy, provides coverage for damage or loss caused by an accident or accident. Car insurance cover can help you save a lot of money to cover losses. While the third-party policy only covers your liability to a third party, the comprehensive insurance plan compensates for the damage or loss to your vehicle, you and the passengers involved.

You may also want to read: Personal Accident Car Insurance Coverage: A Useful Guide

3. Covers third-party responsibility

With the help of a third-party car insurance policy, you can get coverage from your insurance company for damages to a third party caused by an accident with the involvement of the insured car. In simple terms, a third-party car insurance plan can save you from legal problems as well as liability to the other party in connection with an accident in your car because it compensates for damage or Loss of the third party involved in the collision.

4. Replacement in case of theft

Car theft is a big problem for every car owner, especially, if you have an expensive car. It brings a great loss that not everyone can afford. A comprehensive car insurance policy comes with a feature to cover your loss if your car is stolen. At such events, inusrance tends to provide compensation for the loss of the vehicle, considering it a complete loss. In general, in such cases, an amount equal to the declared insured value (IDV) is provided.

5. Compensation for family

If an unfortunate accident of your death is an accident or accident, then your beneficiary or candidate as advertised in the policy will become eligible for compensation. If your family depends on your income, in such a case, your insurance provider will be keen to provide your family with daily expenses after your accidental death. This can be received with a comprehensive car insurance policy and with basic coverage. 


People invest a lot of time in choosing and buying a car. Just as seriously, they have to buy a car insurance plan. But a lot of people don't because they're unaware of the importance and benefits of car insurance. Thus, the law makes it coerce at least every car owner to buy a third-party insurance plan. However, we tried to provide some reasons why you should own car insurance without failing.

READ ALSO: Reasons why car insurance companies can reject your claims

Disclaimer: This article is published in the public interest and is intended for public information purposes only. Readers are advised not to rely on the contents of the article as crucial in nature, and further research or expert consultation should be conducted in this regard.

What are the highest insurance surcharges for additional cars?

Let's dig in to discuss the most appropriate additional covers that you should definitely consider:

1. Zero depreciation coverage

This is the most common car insurance added to the coverage of the amount of car owners. The best part of this cover is that it makes the insurance company pay the policyholder the full claim amount without taking into account any cost of consumption of the car or its parts. Without this additional coverage, the insurance company tends to pay the claim after subtracting the cost of consuming damaged car parts. This additional feature is provided for cars up to 5 years old.

2. NCB Protection Cover

Comprehensive car insurance provides a non-claim bonus benefit for policyholders for each claim-free year. When you make any claim in the policy year, your insurance company offers you a discount from NCB as a bonus that you can take advantage of at the time of policy renewal to reduce the premium of the policy For next year. This discount accumulates under this cover with each claim-free year, but, if you make one claim between them, this benefit will be terminated. With NCB protection coverage, you can retain NCB interest even after you make a claim during the policy year. 

Should read: The advantages and disadvantages of staying with an insurance company

3. Roadside assistance coverage

As the name suggests, roadside assistance cover aims to provide support on the road if suspended due to an accident, accident or car failure. With this additional coverage included in your insurance policy, you can contact your insurance company for immediate assistance. The cover provides 24-hour services such as flat tire change, starting battery, fuel delivery, on-site repairs, etc. In addition to all these, if you request the status, the cover can also get you a taxi or accommodation facility.

4. Hood protection

No matter which car you own, the engine is still the most important and expensive part of each car. With this additional coverage, you can get compensation from your insurance company even for those engine damage repairs that do not arise due to an accident. This cover is best suited for people living in flood-prone or flooding areas as in these locations, there will be a higher risk of engine damage due to water entry and this cover can Saves you in times like this.

5. Consumer cover

Whenever your car is damaged, a lot of consumables are used while repairing them such as bolts, nuts, bolts, lubricants, and so on. People think it won't cost much, but in fact, it also costs a huge amount, especially, in case of total damage repair. In addition, the standard car insurance policy does not cover these consumables. Therefore, this great addition cover can be useful to you when you need to get full compensation for repairing your car.

You may also want to read: Mistakes that can make you pay more for car insurance

6. Personal accident coverage

Personal accident cover is a very basic additional cover because it is designed to protect you along with the other passenger in the car. If you meet an accident where in addition to the damage to your car, you and your participating passengers also got injured, in such a case, can include both repair account and medications, which cannot be easy to bear. The basic car insurance policy covers the costs of repairing car damage but not injuring the participating passenger. This additional cover guarantees financial assistance during these difficult times.

7. Back to bill coverage

If your car is stolen or damaged to the point where it cannot be repaired. In such cases, standard car insurance plans cover you at the declared insured value only after considering the cost of consumption in the name of settling your claim. However, if you choose to return to cover the additions to the invoice, you can file a claim for the cost mentioned in your car bill that you received when you purchased them, including registration fees, fee tax, etc. The amount of coverage you get with this cover makes it the most important additional cover.

Take away

Comprehensive car insurance coverage can be enhanced through additions. However, you should always choose a rider based on your requirements and budget where you need to pay a small extra amount to choose them. In this article, we mentioned the highest insurance additional car covers that you should definitely try to choose according to your needs.