Motor insurance is a form of insurance that protects the owner against vehicle breakdown, theft, and other related risks. It is also known as car insurance, motor vehicle insurance, or motor vehicle protection.
Motor vehicle accidents cost thousands of crores of lost wages and medical bills annually. They can destroy people’s lives physically, financially, and emotionally. Buying insurance cannot eliminate the pain and suffering that vehicle accidents cause. However, insurance can reduce the financial impact.
Very few people have the money they would need to meet the financial responsibility requirements on their own.
A motor insurance policy protects your financial interests on the occasion of unforeseen incidents like accidents, theft, etc. According to the Motor Vehicles Act, 1988, a vehicle owner must obtain a valid Third-Party Insurance policy to drive on the streets of India. A car owner can opt for a third-party incur third-party dated by law or a comprehensive approach that provides extensive coverage.
Insurance for Different Types of Vehicles
Two-wheeler Insurance
This insurance policy provides coverage for scooters and bikes. It ensures a safe ride every time you hit the road. Here’re the key benefits of buying a two-wheeler insurance policy –
- Get comprehensive coverage
- Buy or renew two-wheeler insurance for a period of 2 or 3 years
- Protection of no claim bonus
- Protection from inflation
Car Insurance
The best way to f to secure yourself and your car financially is a contract between you and your insurance company. It offers comprehensive coverage and third-party liability cover to the insured person following damage, mishap, or vehicle accident. A few key benefits are:-
- Loss or damage protection
- Cashless claims
- Personal accident cover
- Unlimited liability for third-party injury/death claims.
Commercial Vehicle Insurance
Be it an accident or theft; commercial vehicle insurance provides financial protection in case of theft, burglary, and total damage. This insurance policy covers passenger vehicles, moving goods, taxis, tractors, cranes, etc. A few key benefits of commercial vehicle insurance are:-
- Get unlimited liability for third-party injury or death claims
- It provides personal accident cover
- It offers loss or damage protection
- Indemnity for third-party property
Types of Motor Insurance Policies
Be it a private car, two-wheelers, or a commercial vehicle; there are two types of motor insurance policies:
Third-party Insurance Policy
It offers liability cover. It uniformly applies to all vehicles, including motorbikes, scooters, private cars, commercial vehicles, etc.
Comprehensive Motor Insurance Policy
This motor insurance policy covers the damage to the insured vehicle and third-party cover. This policy applies to all motorbikes, scooters, private cars, and commercial vehicles.
What’s Not Covered in A Car Insurance Policy?
- Damages caused due to drunken driving: Any damages caused due to the driver driving the vehicle under the influence of alcohol are not included under the scope of the insurance policy.
- Driving without a valid license: Claims that involve damages caused by a driver on a learner’s license / invalid license would be declined by the insurance company.
- Damages caused due to using the vehicle for commercial activities: Using a private vehicle for commercial uses is not included in the scope of the policy and will result in your insurance claim being rejected.
- Damages caused by other activities: Other reasons not included in the scope of the policy include mechanical breakdowns, driving outside the geographical limits of the country, and other terms and conditions as defined by your insurance provider.
- Damages caused by other activities: Other reasons not included in the scope of the policy include mechanical breakdowns, driving outside the geographical limits of the country, and other terms and conditions as defined by your insurance provider.
5 Reasons Why Vehicle Insurance Is A Must
Having car insurance is required by law. For example, suppose you are at fault in a car accident. In that case, the auto liability coverage required on your car insurance policy helps pay for covered losses, such as the other party’s medical bills and damage to their vehicle or other property that results from the accident. It also helps pay your legal fees if you’re taken to court over the accident. Five important reasons that make motor insurance are:
- Road accidents can occur at any time.
- It is legally required of You.
- Financial coverage when need be.
- Motor insurance protects your passengers.
- It gives you peace of mind.
Conclusion: Motor Insurance, a Peace of Mind
The importance of vehicle insurance can’t be overemphasized; whether it’s to keep you on the right side of the law, to cover you in times of car-related trouble, or give you peace of mind, car insurance keeps you safe and helps you save costs.
However, getting the best policy to suit your needs is crucial beyond getting vehicle insurance. Try to find out about the coverage of your proposed insurance policy before settling for it. It allows you to get the best out of your vehicle insurance.
