Adequate vehicle insurance is an absolute necessity for protecting one’s financial interests against accidents, thefts and mishaps. Comprehensive motor insurance transforms such events from potential disasters to manageable processes. In this guide I’ll explain why all vehicle owners need suitable insurance covers.
Shields Asset Value & Control Repair Costs
Vehicle insurance greatly reduces the monetary shocks when cars or motorbikes get damaged, stolen or written off prematurely due to collisions, disasters, riots etc.
The right policies adequately cover very high repair and replacement costs so that the asset value stays protected no matter what fate befalls your beloved vehicle.
You can get dents fixed, smashed windscreens replaced and even total losses compensated without having insurance payments cause major disruptions to other financial priorities or savings goals.
This applies equally to both expensive cars and old vehicles with low resale values that still carry high garage repair charges when something goes wrong.
Covers Legal Liabilities from Incidents
Beyond asset damage risks, vehicle insurance is mandatory due to the heavy legal liabilities that driving or ownership entails under motor vehicle laws. If your car or bike is involved in any accident with another vehicle, pedestrian, civic infrastructure etc, lengthy legal processes get triggered even if you were not at fault.
From property damages to minor injuries to major hospitalisation cases involving disabilities or death – the consequent claims and compensations can easily run into many lakhs or even crores of rupees if victims decide to litigate and extract their rightful compensation.
Hence the minimum third party liability cover is mandated by law. Going for additional comprehensive policies greatly enhances protection from such contingencies that threaten to disrupt life severely.
Keeps Family Interests Insulated
Vehicle ownership and usage impacts the entire family of the owner and primary driver whether for daily transportation needs, long drives or simply sharing the asset. If any mishap takes place, all members stand to suffer greatly from legal issues, loss of mobility and economic costs if insurance is inadequate.
Prudent owners hence opt for covers that avoid legal hassles or large-scale lifestyle disruption from incidents. Comprehensive policies enable families to cater to emergency medical needs, prevent unviable financial trade-offs and support rehabilitation or future security for affected persons.
For primary earners and driving enthusiasts, insurance also emotionally reassures families about their ability to cope and move ahead in case of permanent disability or death rather than compound their grief.
Facilitates Quick Recovery from Losses
Timely and adequate claim settlements by insurers also help vehicle owners recover from adverse events much more smoothly and resume normalcy soon through fresh purchases or completion of repairs.
The choice between accepting cash payouts to arrange replacements or availing services of recommended garages for fixing damages prevents struggles and delays increasing misery after mishaps.
Many comprehensive policies also cover costs related to renting alternative vehicles during prolonged repair periods after an incident. Hence quality covers smooth the process and accelerate turnaround times dramatically.
Preserves No Claim Bonuses, Lowers Premiums
Careful drivers accumulate substantial no claim bonuses on insurance policies over claim-free years which lowers renewal premiums considerably. However, even a single major claim approval erodes these discounts built painstakingly over successive years.
Having adequate covers shields policyholders from NCB erosion so these savings can continue accumulating allowing lower outgo as veteran owners. Some add-on covers also explicitly protect NCB retention despite approval of claims – a useful value addition.
Tax Exemptions, Savings Avenues
Several vehicle insurance features and plan options make annual premiums eligible for valuable tax exemptions under income tax rules. Covers like personal accident protection for owner-driver further enhance the scope for tax exemptions.
Hence buying adequate policy covers helps unlock tax-saving avenues through premium payments while also delivering comprehensive financial protection making it useful dual benefit.
Compare Third Party vs Comprehensive Cover
While basic third party liability insurance is mandated by regulations, comprehensive insurance delivers wider protection to both vehicles and insured occupants or drivers.
Naturally premium costs rise when you opt for higher covers but so does the extent of protection. One has to carefully evaluate asset costs, replacement values, capacities for self-insurance, legal risks involved before making informed decisions.
Add-ons like zero depreciation, engine protector, NCB retention further expand protection. Analysis trade-offs wisely based on specific needs and risk appetites.
Assess Needs Before Finalising Right Policy
Rather than simply renew outdated policies, vehicle owners buying new plans must evaluate aspects like policy types suitable for brand new vehicles or old cars, intended usage patterns like daily office commutes or occasional long drives, availability of safe garage parking, voluntary deductibles you can afford, useful add-ons etc before purchasing insurance.
Comparing premium costs and policy features across insurers using free quotes enables identifying the optimal covers best suiting your needs and risk exposures.
Especially first-time buyers need to assess needs more diligently beforehand. Seeking opinions from authorized agents or certified financial advisors can further aid prudent decisions wherever viable.
Regular Review and Changes Needed
As lifestyles evolve over time with changes in usage requirements, traffic risks, family members using the car, financial capacity etc, insurance needs also transform.
One should reassess covers during renewals or upon major life stages – buying additional cars, job changes impacting commutes, kids growing up and driving etc. This helps identify needs for enhancing liability limits, expanding add-ons or even altering deductibles optimally.
Also intimate insurers promptly about changes related to garage addresses, daily routes, alternate drivers etc to avoid hassles during claims.
Conclusion
Similar to health insurance policies, vehicle insurance forms the invisible backbone that insulates owners from severe financial shocks against both asset damage as well as legal liabilities triggered by on-road mishaps.
Hence all vehicle owners must assess their level of risks prudently and secure their moveable asset’s value through adequate covers. Comprehensive policies deliver invaluable peace of mind needed to enjoy rides without lingering worries about what tomorrow holds if something goes wrong.
Frequently Asked Questions
Q1. Is vehicle insurance mandatory by law?
Yes, the Motor Vehicles Act makes basic third party liability cover mandatory for all vehicle owners to cover legal liabilities from incidents. Higher covers are voluntary options.
Q2. What documents are needed for claiming insurance?
Keep handy copies of policy documents, FIRs, KYC proof, driving license etc to expedite claims. Insurers may demand further papers like motor investigation reports, hospital records etc.
Q3. Can I change my insurance provider freely?
Yes, porting policies to other insurers is allowed through IRDAI guidelines before renewal date subject to administrative processes. But reassess needs before switching.
Q4. Is there a deadline for intimating claims?
Yes, intimate claims earliest, ideally within 48 hours. Delays beyond 30 days from incident date can get claims rejected unless reasonable grounds are proved.