How Car Insurance Policy Helps You Save Your Money

The moment someone talks about getting the car insured, most people have a tendency to consider it as yet another cost. It is like an expense that should be kept at the minimum. People scramble to buy policies that offer really low premiums as car insurance is never a priority, but an unwanted liability. The truth is so very different though! A car is a valuable asset and despite losing its value every year due to depreciation, getting it insured can still help you save money, as long as you own it.

Presenting to you some of the most important reasons why having your car insured is actually monetarily beneficial for you and can save on money too:

1. Legally Compulsory

Whether one likes it or not, it is legally mandatory to have your car insured in India. If you are caught driving your car without insurance, you’ll be liable to pay fines and penalties and repeated offenses can lead to bigger punishments under the law. That’s why every car company sells their product with an insurance coverage of at least a year after which the onus lies on the owner to renew car insurance.

2. Accidental Claims

No matter how safely you drive your vehicle, an accident can happen anytime, anywhere, if not by your mistake then may be due to some other driver’s. In such a scenario, having a comprehensive insurance coverage can help you get your car repaired without incurring expenses from your pocket. A car is a costly asset and maintaining it or repairing it can be a costly affair. Insurance helps you to keep such expenses in check.

3. Damage To Third Party

If the accident happens due to your fault, not only will you have to take care of your car, but also pay damages to the affected party that may run into a few lacs. This is where a car policy can come to your rescue. It will provide for repair of the affected person’s car as well as pay compensation in case of bodily damage to the affected person in terms of hospitalization expenses, doctor’s cost, surgery expenses, etc. Whether there is a loss of limb or death, the car policy covers such third-party claims relieving you from incurring such back-breaking expenses. In short, it shields you from all third party liabilities and expenses while at the same time ensuring that your damages are also equally provided for.

4. Natural Calamities

Rains, floods, earthquakes, fire, etc. are some disasters over which no one has any control. Imagine you bought a brand new car and within a month it got submerged in flood waters. Scary thought, right? With car insurance, you don’t have to worry about paying expenses to get your car back in brand new shape.

5. Man-made Disasters

These would primarily include burglary, theft, riots, etc. and with an increase in such events in almost all the cities of the country, you should not lose your sleep over it. If you have bought the right car policy, you can be assured that the insurance company will cover you for such damages or theft and your hard-earned money won’t go down the drain. A few rupees for insurance premium can help you save lacs in times of need!

Hope this helps you understand that getting your car insured is a necessity rather than a compulsion under law. It is for your own good. When you buy the car, the company sells it to you with insurance valid for one year. After that, it becomes your duty to renew car insurance and continue enjoying the benefits as it becomes your friend hell bent on saving your money!

Harjot Singh Narula

Harjot Narula is founder and CEO of ComparePolicy.com, an IRDAI approved insurance web aggregator focussed on selling online insurance for companies. Harjot has more than a decade of experience in software development and has also spent 5 years in US working for the mortgage and risk management industry.

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