Vehicle Insurance: A Necessary Evil?

Vehicle insurance is mandatory in many countries, and for good reason. In India, for example, the ever-growing number of vehicles on the road has led to a rise in traffic and, unfortunately, accidents. As per the Road Accident Report, 449,002 road accidents took place in India. Accidents can be devastating for those involved and can result in financial turmoil. This is where car insurance comes into play. It is mandatory in India to have at least third-party car insurance, which covers vehicle damages, physical injuries, property damage, and accidental deaths. Comprehensive car insurance is also an option and offers overall protection against accidents, fire, theft, and natural disasters.

Third-party insurance is mandatory in India

In India, it is mandatory to have vehicle insurance to drive on public roads. The Motor Vehicles Act, 1988, states that all vehicles operating in public spaces in India must have motor vehicle insurance. This includes third-party insurance, which covers any damages caused to a third party in the event of an accident. It is the cheapest and most affordable type of car insurance available, and it is considered enough to comply with the law.

Third-party insurance is a mandatory requirement for vehicles in India, as per the Motor Vehicles Act, 1988. This act was passed in 1939 and amended in 1988, and it applies to all vehicles, including two-wheelers and four-wheelers. The Supreme Court has also ruled on this matter, making it mandatory for car owners to have a three-year third-party policy and two-wheeler owners to have a five-year policy.

Third-party insurance covers any damage caused to a third party, including injury, death, and property damage. The compensation offered is limited to Rs. 7.5 lakh for third-party property damage, but there is no cap on liability for death or injury. This type of insurance ensures that the third party receives the necessary treatment and care, and it also absolvess the car owner-driver from financial obligations.

While third-party insurance is mandatory in India, it is important to note that it does not cover any damages sustained by the insured vehicle. For that, a comprehensive insurance policy is needed, which covers both third-party liabilities and own damages. Comprehensive insurance is not compulsory but is recommended to provide complete protection for your vehicle.

Comprehensive insurance covers a wide range of risks

Vehicle insurance is mandatory in many places, including India and the United States. In India, all vehicles operating in public spaces must have motor vehicle insurance, with at least third-party insurance being mandatory. In the US, liability insurance is required by law in most states.

Comprehensive insurance is particularly useful if you live in an area prone to natural disasters, animal collisions, or vandalism. It can also provide peace of mind if you're concerned about unforeseen events, such as break-ins or weather damage.

However, comprehensive insurance doesn't cover damage caused by collisions with other vehicles or objects, personal belongings inside your car, or normal wear and tear. It's also important to note that comprehensive insurance is not required by law in any state in the US, but lenders usually require it if you lease or finance your vehicle.

No-claim bonuses incentivise safe driving

The no-claim bonus acts as a way for insurance providers to recognise and reward low-risk drivers with a good driving history. By not making claims, drivers demonstrate their ability to drive safely and avoid accidents. This also helps insurance providers by reducing the number of claims they have to process and pay out.

In addition to the financial benefits, no-claim bonuses can also be seen as a status symbol or badge of honour for drivers. It is a way for them to show that they are responsible and careful drivers. This can be especially important for young or new drivers who may not have a long driving history to demonstrate their skills.

Furthermore, no-claim bonuses can also be protected with an additional policy feature known as "no-claim bonus protection". This optional coverage ensures that even if a driver makes a claim, their accumulated no-claim bonus remains intact. While this protection usually comes at an extra cost, it can provide peace of mind and help drivers maintain their hard-earned discounts.

Overall, no-claim bonuses are an effective way to incentivise safe driving, encourage responsible behaviour on the road, and reward drivers for their good driving records.

Insurance provides peace of mind

Vehicle insurance is mandatory in many places, including India and British Columbia. In India, the Motor Vehicles Act, passed in 1939 and amended in 1988, dictates that all vehicles operating in public spaces must have motor vehicle insurance. While comprehensive cover is not compulsory, at least third-party car insurance is required. This is also the case in British Columbia, where drivers are required to purchase basic insurance with ICBC but can choose their optional coverage.

Additionally, insurance can provide a sense of security when travelling. Some insurance packages offer emergency roadside assistance, rental car reimbursement, and coverage for food and accommodation expenses if an accident occurs far from home. This can help to ensure that you are protected against unexpected twists and turns during your journey.

When it comes to choosing insurance, it is important to find the right coverage for your needs. A knowledgeable agent or insurance expert can help assess your needs and ensure you have a policy that suits you. This might include optional coverage for additional liability, collision, fire, and theft, depending on your specific circumstances.

By investing in insurance, you are not only fulfilling a legal requirement but also providing yourself and your family with peace of mind and financial security.

It's easy to buy insurance online

In many places, vehicle insurance is mandatory. For example, in India, it is compulsory to carry at least third-party car insurance. In the US, liability insurance is considered the most basic form of auto insurance and is required in most states.

Gather the information you will need about your cars and drivers

To speed up the process of buying auto insurance online, have this basic information ready for each driver on your policy:

• Social Security number (optional)
• Driver’s license number
• Driving distance to work
• Driving violations, accidents or claims in the last five years (approximate dates and details)
• Make, model and year of your vehicle(s)

Get an insurance quote online

Enter your ZIP Code and click "Get a Quote". Then answer some questions about yourself, the car you want to insure, and the people who will be driving the vehicle.

Compare car insurance

Once you have your car insurance quote, shop around to see who has the best options available for what kind of coverage or policy you need. When comparing, keep in mind:

• Coverages that are offered
• Deductibles and liability limits
• Additional customizable features

Find insurance discounts

As you get your instant auto insurance quote, the insurance company will help identify discounts on car insurance that might apply to your policy to save you money by lowering your premium.

Understand your coverage options

There are a number of car insurance coverage options to choose from that can help fit your needs. Common coverage options include liability insurance, comprehensive insurance, and third-party insurance.

Customize your policy with additional options

Some of the most popular, affordable upgrades include:

• Roadside Assistance: which can help you if you need a tow, jump-start, or tire change
• Vanishing Deductible: which lets you take $100 off your deductible for every year of safe driving
• Accident Forgiveness: which means your insurance rates won't increase following your first at-fault accident

Select the auto insurance policy that’s right for you

When you receive your instant car insurance quote, you will get several options to choose from, making it easy to select a policy that’s right for you and your budget. You can also change coverages to create a more personalized policy.

Choose a payment method and buy your insurance instantly

Once you’ve picked a policy, simply choose a payment option to complete the transaction. After that, you can download and print out your proof of insurance card. You can also save your auto ID card to your phone's wallet through a mobile app.

Frequently asked questions