What Is the Purpose of Vehicle Insurance?

Purpose of Vehicle Insurance?

Why Do We Need an Insurance for Our Vehicle


Driving a car is a big liability rather than an indulgence. Indeed, many people regard driving as a gimmick, especially in a country like India, where people pride themselves on showing their wealth. With the rising cost of living, owning a car is no longer a joke, and people can easily afford bicycles and automobiles. It depicts the issue in front of a large audience, increases adaptability, and thus saves time. Driving is also reducing reliance on public transportation.


The statistics show that driving has made our lives easier, but it has also pushed us toward a dangerous lifestyle. “The racetrack closes at the graves,” as someone wisely put it. Individuals who over-speed their automobiles in the name of hotshot risk their own lives as well as the lives of others. Daily accounts of disasters, as well as passings in the newspaper, are becoming commonplace. Individuals are losing their lives in street accidents by disobeying traffic laws and failing to follow driving principles, putting the lives of others at jeopardy. Furthermore, the purchase of additional parts, along with high repair expenses, puts a strain on your finances, demonstrating the need of having a good Motor Insurance plan nowadays.


Motor insurance is often purchased for cars that are driven on the streets with the primary goal of protecting the vehicle and the driver from actual injury in the event of a catastrophe. Purchasing a motor insurance policy is important for a variety of reasons:


  • Obligatory by Law: The most common reason for buying motor insurance is because it is required by law. According to the Motor Vehicle Act, having a Third-gathering insurance is required. The police have the right to verify your vehicle’s reports at any time, including the PUC, permit, and insurance policy. You will be in a terrible situation if you are unable to provide archives. As a result, it’s a good idea to have an motor insurance before you hit the road.


  • Misfortune and car damage: We all know that some people have poor driving sense, and with the type of traffic that we have in our nation, there isn’t a day that goes by without vehicles colliding and causing injury. The main benefit of having motor insurance is that it covers the expenditures incurred as a result of any mishap or damage to your car. As a result, it is always preferable to be on the safe side and have motor insurance before riding your bicycle or car on the streets.


  • Reduces your liability: In India, Third Party Liability (TPL) motor insurance is needed, which protects you from the legal repercussions of a catastrophe caused by you. TPL means that if you cause injury to another person or their property in an accident, the insurance will pay for their treatment and keep you out of legal trouble.


  • Hospitalization: Not every car owner is lucky enough to sustain only minor scrapes and injuries in an accident. A few blunders have landed you in a bad situation, and you should be admitted to the hospital. In such case, rather than paying the expensive medical clinic and treatment charges out of pocket, your motor insurance company will reimburse your medical clinic bills.


  • Repays your family after a disaster: Some mishaps are so bad that they result in the death of the car owner, which is the most sad outcome of a street mishap. When the owner of a bread-acquiring method passes away, his or her family finds it difficult to meet their daily requirements. In this approach, an motor insurance plan aids the family in bearing expenditures following a traumatic event.
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