Car insurance is one of the most important types of insurance. It is important not only for the owner of the vehicle but also for the people around. This is precisely the reason why the government has made motor insurance compulsory. Take a look at this article to know more about car insurance and why it is a legal mandate.
Importance of Car Insurance in events like an accident
A road accident is not just unpleasant for the driver of the vehicle. It affects many other people, their property, and even lives.
- Damage to vehicles: When a car collides with another vehicle, there is immense damage to both the vehicles. The impact can range from a few scratches and dents to engine damages or even a complete wreckage of the cars.
- Damage to property: If a car rams into a stationary object like another car or even a boundary wall, etc, there can be tremendous damage to the other property.
- Damage to human life: And last but not the least, a road accident affects lives. From the lives of the drivers and the passengers to those of the bystanders on the streets, everything is at risk when a road mishap takes place.
Keeping these factors, damages and losses in mind, the government has made car insurance mandatory. As a vehicle owner, you are liable to take responsibility for the damages caused by your vehicle. However, most people don’t have the financial resources to cover such damages. The government therefore compels you to buy insurance so that the insurance provider, on your behalf, can take care of the liabilities when the need arises.
How car insurance is beneficial to car owners and people in general
As we saw from the points mentioned above, an accident can cause way too many issues for way too many people. You therefore need the security and protection from car insurance to ensure the damage can be controlled. Some ways in which this can be achieved include:
- Vehicular repairs: This is one of the most beneficial uses of car insurance. A motor insurance plan will compensate you as well as the third party for the vehicular damages that stemmed out of the accident. You can use the claim amount to get the cars fixed and back on the roads in a timely manner.
- Third party compensation: What is the fault of a person whose property you damage due your faulty driving? He deserves compensation. But you may not be financially equipped to pay the compensation. This is why you need a car insurance plan. Your insurer will compensate the third party on your behalf.
- Health cover: This is another significant reason for buying car insurance. As a driver or passenger in the car or even as a bystander, human lives and health may get severely affected due to a road accident. A car insurance plan provides a health cover with which you and the third party can seek treatment in the best hospitals. This is another way in which car insurance is beneficial to car owners and people in general.
- Legal cover: This is a massive way in which a car insurance plan is beneficial to a car owner. If you find yourself in the midst of a legal tussle and are dragged to court by a third party, your insurance provider will pay for your legal costs. Legal costs are very high and it often becomes difficult to afford them. However, when you have a good car insurance plan, you can fight it out with the financial backup from your insurance provider.
The bottom line
There are some extremely logical and understandable reasons as to why the government makes car insurance compulsory. As a vehicle owner, it is your duty to be a safe, responsible driver and to protect the lives and the properties of the people around you. Your car insurance plan helps you to do this and gives you the needed support when there is an emergency. So if you have recently purchased a car, get the insurance done. Do not wait for trouble to knock on your doors – stay one step ahead in the game and protect a large group’s wellbeing by buying a wholesome car insurance policy.