Motor insurance is very important for safely riding today. Owning a vehicle today is a necessity and not a luxury. Having a motor vehicle increases mobility. It also reduces the dependence on public transport. Still, we cannot deny the fact that driving on Indian roads has its risks.
Any unfortunate accident can damage the vehicle and also cause bodily injury which can sometimes lead to death. To protect yourself financially from any such incident or accident, it is a wise decision to take a motor insurance policy. It is also called auto insurance.
To avail of motor insurance benefits, timely payment of premium is essential. Motor insurance premium depends on several important factors like car model, age, etc.
In this article, we will broadly cover the importance of motor vehicle insurance and throw light on its importance.
What is Motor Insurance?
Motor insurance protects you financially when a two-wheeler or car gets damaged in an accident or accident.
A motor insurance policy offers various benefits such as compensation paid in case the vehicle is damaged due to accidents, riots, etc. It provides coverage in case the vehicle is a victim of theft.
How many types of motor insurance are there in India?
In India, the following types of motor insurance are available:
Third-Party Motor Insurance
This type of motor insurance provides coverage against liabilities that may arise due to third-party damage to the insured vehicle. In simple words, it provides compensation to a third party due to injury/death caused by the vehicle. Third-party insurance is mandatory for plying on Indian roads.
Comprehensive Vehicle Insurance Policy
A comprehensive motor insurance policy includes its own damage cover and benefits of third-party insurance. It provides 360-degree protection to the motor vehicle. Avail motor insurance coverage against multiple perils like theft, fire, accident, etc. It is recommended to buy a motor insurance plan for end-to-end protection.
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04 Reasons Why Vehicle Insurance Is Important
Whether you have two-wheeler insurance or a car insurance policy, you are financially protected against vehicle damage or bodily injury. Let us have a look at the following major reasons to apply for a motor insurance scheme
Financial Protection
A motor insurance policy will never leave you in financial trouble. It provides optimum protection and will act as a financial cushion in times of crisis.
Order of Law
As per the Motor Vehicles Act, having third-party insurance is mandatory and should not be ignored. If anyone is found driving without this insurance then he should be prepared for remedial legal action.
Third-Party Liability
This takes care of any third-party liabilities that may be caused by any damage caused to your vehicle. The insurer will pay for the treatment done by the third party. Third-party liability insurance protects you from any legal litigation.
Cover in case of death
Death is one of the direst consequences of an accident or accident. Things escalate when the main breadwinner of the family dies in an accident. This put such family or immediate dependents in financial worries. Hence, the pay-out option within the motor insurance plan enables the family to be financially independent while taking care of the day-to-day expenses. Check the terms and conditions of the insurance policy as it may differ from insurer to insurer.
commercial vehicle insurance
Commercial vehicle insurance, as the name suggests, is for vehicle owners who operate for business purposes. It is mandatory for them to have insurance which will help in running their business smoothly. Commercial vehicle insurance protects businesses and business owners from any liabilities or damages that arise due to accidents or damage to property where their vehicles are involved, including loss of life, bodily injury, or property damage. This type of insurance is available for commercial vehicles like trucks, cars, private and public carriers, taxis, etc.
Regardless of the type of insurance, owners have only two different insurance types to choose from – personal damage (protects the owner in case of an accident) and third-party liability (protects the owners from any legal complications), With the right insurance policy, motor vehicle owners can have stress free and happy driving!