Not Buying a Car Insurance Can Cost You a Lot

Every one of us is aware of what insurance is and what benefits we would receive if we get insurance. But most feel that only buying Life insurance is important. Ensuring your commodities like cars, two-wheelers, etc. are also equally important. Having a laid-back attitude about getting your car insured can save you money at the moment, but this may prove to be a major mistake which will cost you more than you tried to save.

Every one of us is aware of what insurance is and what benefits we would receive if we get insurance. But most feel that only buying Life insurance is important. Ensuring your commodities like cars, two-wheelers, etc. are also equally important. Having a laid-back attitude about getting your car insured can save you money at the moment, but this may prove to be a major mistake which will cost you more than you tried to save.

What is car insurance?

When you buy a car, be it new or second-hand, you need to get it insured against various unforeseen incidents and expenses. There is no option of not having a car insurance in our country.

Technically, car insurance is a contract between you and your insurance company (insurer). In simple terms, according to this contract, it is agreed that if you pay a predetermined amount of premium to the insurer, they will pay you in case of any major expenses incurred due to your car.

Why not buying car insurance will cost you a lot?
As we said earlier, first of all, not getting your car insured is not an option according to our law. But in case you try to save now by not buying a car insurance policy, you may have larger holes in your pockets in case of mishaps.

Following are the reasons of why not buying car insurance will cost you a lot:

Fines

If you are caught by the traffic police, say for jumping a signal, they will inspect your documents like license, registration card, etc. During this inspection, they will surely ask for your car insurance documents. If you fail to show them a copy of a valid insurance policy, you need to pay heavy fines.

Lawsuits

If you meet with an accident with another vehicle, certain legal fees and lawsuits are filed against you. Without an insurance policy, you personally need to pay these fees and take care of any legal actions taken against you.

Benefits of Buying Insurance

Type of insurance policy: If you meet with an accident, it is needless to say that your vehicle will get damaged. Apart from your own vehicle, the third party vehicle which got damaged due to the collision would also need repairs. If you buy an insurance policy, both the type of expenses, i.e. own damage and third-party liability will be covered by the insurance company, based on the type of policy you buy.

Calamities: If your car catches fire or is caught in a landslide, storm, hurricane, is damaged due to an earthquake, etc. it would be as good as losing all the money you invested in your car. But with an insurance policy, you can file a claim and get paid for your loss.

Theft: When a car is stolen, it is a complete nightmare for the owner. Losing a vehicle which you have loved and maintained dearly, is very hurtful. But with an insurance policy, you can claim money for your stolen vehicle. This could give at least some peace of mind to the owner.

The cost of damages while in transit: Say you want to move to another part of the country and wish to take your car along. If your vehicle is damaged while being transported, you will have to get it repaired all by yourself. One cannot guess the amount of money that has to be paid for the repair work. But if you have car insurance, your insurance company will pay for getting your vehicle repaired.

No Claim Bonus

If you feel that each and every year you will have to pay the same amount of premium for the same car to the insurer you bought your policy from, without the insurer showing any gratitude for your loyalty, then this is not the case. If you pay your premiums on time and renew the car insurance policy regularly, you are entitled to a No Claim Bonus. The discount percentage of this bonus increases every year and can go up to 50% on your premium amount.

Conclusion

In this way, even if a person may save some money now by not buying car insurance, in the long run, this person will have to spend much more than the premium amount. It is better to be wise and spend money on an insurance policy rather than bearing huge costs later.


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