Back in 20th-century, cars were supposed to be only a luxurious product because back then not everyone was able to afford a new car, but today it became an essential product for every middle-class person, although many companies in the market still portray cars as the product of luxury and watching their marketing strategy they still are. But today we live in the 21st century and since back then technology and minimum wages for people developed very fast. This increase contributed to a bigger middle class (in terms of population) and technology made cars very easy to manufacture and cheap which every middle-class person can afford. This whole process contributed to a high number of sales in the broader market.
For many people, cars have become a basic requirement to live a comfortable life. The majority of people these days own one or more cars but not all are aware of the importance of getting car insurance. Some drive their cars to different corners of the city unaware of the fact the laws they are breaching and the consequences they will have to face if they ever get caught.
Following are some main reasons why one should get car insurance:-
1) Abide by the law
According to Motors Vehicle Act 1988 in India, one must have vehicle insurance at all times. If one is found driving their car without any insurance or if it has expired, their driving license may get temporary or permanently cancelled. In addition to that, the person would also have to pay the penalty for the same.
2) Provides protection
There are different kinds of insurance available in the market such as basic third-party and comprehensive insurance. When one gets the Comprehensive one done, it covers not only the loss and damage of the third party but also our own. It provides protection not only in the case of road accidents but also from the loss and damage due to natural calamities such as riots, fire, strikes, and also when the car gets stolen.
3) Pays for the third-party damage
The third-party insurance policy covers the expenses of loss and damage caused to the third person with whom you have been involved in a road accident. The road accident may involve the person, their vehicle, or their property. Repair bills, hospital bills, etc. get covered under this.
Thus, it is clear how important it is to get one’s car insured. Though one might have to pay an amount regularly beforehand, it will be a big relief if one faces any such kind of adverse situation. If one is tight on budget, he/she can go for the third-party insurance policy instead of the comprehensive one.
In short, to keep oneself safe from getting their license suspended, paying penalties, spending on bills and repairs on the losses, providing protection to the family members, and also covering the legal cost, car insurance should be done.