Insurance gradually has taken the center-stage because of the rising penchant of people towards all kinds of loans. While it might not be mandatory by most banks when it comes to individual loans, taking car insurance is imperative as soon as you buy your car.
It is imperative because it covers expenses in the event of injuries to other drivers, pedestrians, or passengers, and vehicle damage. It also provides financial support if your car is vandalized, stolen, or destroyed by fire.
The moment you bring your vehicle on the road, you are vulnerable to accidents. No matter how safe you are driving, the chances of getting involved in one are always there. Car insurance assures you that you’re financially protected in the events of minor to major road mishaps.
Types of Car Insurance
Car insurance depends on the kind of policy you have; however, it usually covers your vehicle, in the case of damage to other vehicles, injury to other motorists, and property damage.
It can include or can be drawn-out to include coverage for a host of various things, including medical expenses, personal belongings, and breakdown assistance.
There are three primary types of car insurance:
Third-party: This might not be mandated by law, still essential. It covers damages to other drivers and vehicles, as well as damage to property. This does not cover your own vehicle- you will have to pay the bill for damages on your own.
Third-party, fire, and theft: This covers the cost included in the third party but also pay for repairs or replacement vehicles if it is stolen or destroyed/damaged by fire.
Comprehensive: This type of car insurance is the widest level of coverage available. It covers damage to your own vehicle as well as protecting you against accidents involving other people. Some policies also allow you to drive other’s vehicles or sometimes hiring cars, but typically up to third party levels.
What Can Happen If You Don’t Have Car Insurance?
In case you are stopped by traffic police and asked to show your documents, you must have your car insurance papers at that time. Or, you could be charged penalty fine as well as penalty points.
The most severe cases are even taken to court, where a driver has given false details or never qualified a driving test. Further, a count can issue a huge amount of fine or disqualification from driving.
While driving a vehicle without insurance is not an imprison able offense, an IN10 endorsement would remain on your driving license for a few years, and you will need to uncover it to insurance providers for the future.
Special Reasons for Driving Without Insurance
These are often used as arguments to reduce the seriousness of the punishment.
Here are some of the following examples:
- An insurance provider cancels a policy without notifying the holder.
- No policy being in action because of faults from the side of the provider.
- Wrong information provided to the driver (by the policyholder or vehicle owner) that they can drive without insurance.
- A person having a valid reason to trust they are insured.
Since road accidents can harm you as well as other drivers, you need to own liability insurance to make sure you can repay damages in the case of accidents.
The level of insurance you need depends on your location and the ownership status of your car. If you’re making payments or leasing on your vehicle, you need to carry wider levels of insurance than if you have the vehicle outright. Now that you know the severity of car insurance, you would be extra careful in having your insurance certificate up to date!