The unpredictability of what could happen when driving makes vehicle insurance very necessary as it provides some peace of mind or comfort to the insured. In addition to this there are many other reasons why we must in place an insurance policy for our vehicle.
Why We Must Have Vehicle Insurance
Mandatory By Law :
Having a vehicle insurance is mandatory by law for vehicle owners. According to the Motor Vehicle Act, having a Third Party Insurance is a must. Some people go a step further to rather buy higher classes of Insurance because of the value it brings. You could run into serious trouble for driving a vehicle without insurance and could even end up in jail. The police and other law enforcement agencies are authorized to check that you have you insurance in place while on the road. It is advisable not to drive if the insurance policy has expired until a valid one is put in place.
Loss and Damage To Vehicle :
Insurance like earlier mentioned provides peace of mind, meaning that in the event of loss or damage to vehicle, the insured will be compensated by the insurance company. Driving comes with so much risk as you could hit someone or be hit. Imagine having a serious accident that involves fixing your vehicle and that of the other party or having a newly purchased vehicle stolen after a few days. The financial impact of a lost or damaged vehicle can be very devastating and this makes insurance a necessity.
Reduces Your Liability :
Both Third Party Insurance and Comprehensive Insurance cover liability to a third party . Insurance will protect you from legal implications of an accident you caused. The insurance company will pay for the damage to property and also cover medical expenses.
Medical Expenses :
Sometimes accidents could be complicated and involve medical issues. In such a situation your insurance company will foot these hospital bills and save you the stress of coughing out huge sums of money to settle hospital bills.
Compensates Your Dependents On Your Demise :
Some road accidents could result in death of the insured. In such a situation, the Insurance company will compensate the family for the loss and this would help in no small measure for them to grieve an move on with their lives.