Nov 12, 2012, 03.40 PM | Source: Moneycontrol.com
Car owners are advised to purchase motor insurance before they even take their car onto the road. Yet, many consider motor insurance an unnecessary expense.
Deepak Yohannan (more)
CEO, MyInsuranceClub.com | Capital Expertise: Insurance ,NRI
Car owners are advised to purchase motor insurance before they even take their car onto the road. Yet, many consider motor insurance an unnecessary expense. They assume that because they have never filed a claim in the past, the need will not arise in the future. You never know when your luck might run out. Insurance was never about the best-case scenario. Just as life insurance pays out on someone's death, motor insurance becomes significant following an accident, theft, or general damage to your vehicle.
There are many reasons why you should always have motor insurance coverage. Here are some of them:
You could be too tired, stressed or distracted, and before you know it, there is a crash. It may not even be your fault. One can never be too prepared for a road accident. Even if you escape with minor injuries, the car may undergo heavy damage. Without motor insurance, you may have to write off the car entirely. On the other hand, someone with coverage would be able to carry out extensive repair work or pay a large deposit on a new car.
Before shrugging off motor insurance, think of what would happen if you required medical attention following an accident. Motor insurance coverage could help you pay the hefty medical bills that pile up following even a brief stint at the hospital. Motor insurance becomes even more important if you do not have health insurance.
Protection from Financial Ruin:
An unfortunate car accident could push the at-fault driver into bankruptcy, particularly if he/she is uninsured or underinsured. If your mistakes behind the wheel send a carload of passengers to the hospital, you would be liable to pay their medical expenses. Assuming there were no injuries, you would still need to pay for the damage to the other car. To top it all, if somebody slams you with a lawsuit, you would have to foot the legal bills as well. Comprehensive motor insurance ensures that you are financially prepared for such unforeseen eventualities.
Motor insurance is particularly useful when smaller collisions leave you with a cracked windshield or a damaged bumper. Anyone who owns a vehicle knows that car repair is expensive business. While it may not be viable to file claims for all the sundry minor repairs, insurance coverage could come in handy when replacing a windshield or fitting a new fender.
Theft and Vandalism:
There is no getting away from the danger of auto theft. Cars with installed anti-theft devices are harder to steal, but not impossible. Car thieves may even make off accessories like CD consoles. Moreover, you never know when vandals might strike. If you have comprehensive motor insurance, the financial impact of theft and vandalism will not affect you much.
Among other things, motor insurance promises peace of mind. You can rest assured that unforeseen incidents like accidents and theft will not empty out your bank balance. Car owners paying off an auto loan are required to invest in motor insurance. If you are not burdened by a car loan, you are in a better position to buy insurance. Note that breaks in car insurance coverage could hurt your chances of getting cheaper rates in the future. Purchase motor insurance that promises adequate coverage. You will be doing yourself a favor.
The author is CEO of MyInsuranceClub.com and can be reach at email@example.com