Do you have a car? Are you planning to buy one?

Everyone would love to own a car. However, owning a car has its requirements, one of which is getting car insurance. That’s right! It is one of the most vital things and is also mandated by law. Continue reading to discover the costs of not purchasing car insurance for your valuable purchase.

The law –

The Motor Vehicles Act 1988 is an act of the Indian Constitution that governs every aspect of road transport vehicles. It states that the purchase of car insurance is a must to operate the vehicle on the roads. According to a national survey, almost 70% of the vehicles on Indian roadways lack insurance. *

Some of the financial repercussions of the same are listed below.

1. Large fines – 

Paying a large quantity of money for car maintenance and upkeep might seem unnecessary to add to the already high cost of living and rising petrol/diesel prices. However, not purchasing insurance would increase your expenses in any case.

If you are caught driving without car insurance, you may face severe consequences. The Road Transport and Safety Bill 2014 states that if someone is found driving a vehicle without a valid insurance policy, they may face severe penalties. According to amendments, the liability for light motor vehicles is INR 25,000, and for other motor vehicles, it is INR 75,000. Instead of paying a fine, it would be wiser to pay for a car insurance policy.

2. Pay losses for injuries to third parties

The Motor Vehicles Act of 1988 states that third-party car insurance is mandatory by law.

When your car collides with another vehicle, there could be property damage, fatalities, or even both. That is when third-party car insurance comes in handy.*

Without a legitimate insurance policy, you would be responsible for covering the damages from your pocket. In that case, purchasing third-party car insurance is wiser than losing money covering someone else’s accidental losses.

3. Cover your damage with losses –

Comprehensive car insurance products provide coverage for harm to your vehicle. If you’re in such a situation, the insurance provider would be responsible for paying the costs rather than you.*

When it comes to your car, the comprehensive cover gives you the necessary peace of mind, and you may choose the level of protection you want.

4. Encounter legal issues –

In addition to the financial loss incurred in an accident that results in injury to a third party or yourself, driving without insurance could result in legal issues.

You could lose your driving privileges. In addition, you risk having your car’s registration suspended, receiving a 3,000 INR fine, and spending three months in jail.

Conclusion –

Always remember to take care of your car insurance renewal. Car insurance is vital for your safety and the safety of other drivers. There is a legitimate reason why auto insurance is mandatory by law. Therefore, if you’re a proud car owner, get car insurance right away to safeguard your prized companion!

* Standard T&C Apply

Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.