Why an insurance policy for a car is mandatory? Know this before you get one

In life, the risk goes up as the number of uncontrollable elements goes up. This is true, especially when you are driving.

You might be a very good driver and follow all the rules diligently, but that doesn't guarantee your or your vehicle’s safety for several reasons.

When you drive in such conditions, the only thing that can save you from a severe financial burden is an insurance policy for car.

Which is why the government made it mandatory in 1989. Let’s see how insurance coverage safeguards your life below.

Third-party safety:

According to 2023 data, less than 4% of people in India have health insurance. This increases the probability that, in case of an unfortunate event, the person at the receiving end is not insured.

And the probability of that person being the breadwinner is very high because about 88% of road fatalities are men.

If you dive even deeper, about 44% of road accidents involve two-wheelers, about a third of all accidents.

With all this considered, your chances of encountering an event involving someone who’s a breadwinner with a non insurance bike are very high.

This is exactly why the government of India made third-party insurance mandatory. So don’t miss out on policy renewals.

Safeguard your financial situation:

Getting your vehicle towed, assessed, fixed and brought back to its original condition costs a lot of money. Oftentimes, that amount is way higher than one can afford.

One thing to remember is that your vehicle can be damaged by a number of factors. Maybe you’ll hit a stray dog, or maybe there’s a big pothole filled with water you can’t avoid, or maybe an unsuspecting motorist ran into your parked vehicle.

All these are highly probable in our chaotic roads and at the end of the day, you’ll need money to get your car back in shape.

Would you be able to bear the cost every time? No right? And that’s another reason why you need an insurance policy.

Financial settlement for the afflicted:

Although road accidents frequently result in injuries, they can also cause fatalities. In India, traffic accidents claim the lives of roughly 19 people every hour.

In cases like these, where the driver or owner is the family's main source of income and dies in a car accident, an insurance policy for a car also offers financial support because the family would not only be left with deep grief but also face significant financial strain.

The insurance company's financial settlement in these cases guarantees that the deceased's family or closest relatives can support themselves during uncertain times in addition to meeting their necessities.

Does more than just cover expenses:

Now that we’ve learned about the critical ways in which insurance helps us let’s see some great additional benefits only those with insurance get:

Roadside assistance:

This typically includes emergency towing, flat tyre assistance, fuel delivery and lockout services. All these are highly unanticipated circumstances that leave you panicking. And insurance can help you with these. Great, isn’t it?

Rental car reimbursement:

This add-on pays for the expense of renting a substitute car while yours is being fixed. Your daily schedule will be less disturbed thanks to rental car reimbursement, which offers a replacement vehicle for errands, commuting, and other uses.

Policies frequently outline a maximum number of days or an amount that can be reimbursed for a rented car.

Daily cash allowance:

Your daily cash allotment pays for other forms of transportation while your car is being repaired, such as ridesharing or taxis. The allowance offers financial flexibility in the event of unforeseen disruptions and can be used for any daily transportation-related expenses.

Conclusion:

Now that you know more about how insurance can affect your life don’t get insurance because it’s mandatory. Find one that can add great value and convenience to your life while being the safety net it is. And if you are wondering which one to get, here’s a suggestion from us. ACKO.

With their digital-first approach and vast network of garages for cashless claims and the most benefit-rich plans with great customizability, ACKO offers unbeatable deals every single time. Check them out!