What is Auto Insurance?

10 Feb 2019

Auto insurance is an insurance policy taken by vehicle owners to mitigate the risks associated with a vehicle in case of an accident or theft of the vehicle or third party accidents. Auto insurance is also referred to as motor insurance. Under this policy, the insurer pays the costs incurred by a vehicle owner in such events in return for the premium paid by the vehicle owner for a Policy Term. Getting a third-party insurance policy for your vehicle is mandatory in India as per the Motor vehicle Act.

What is the Importance of Auto Insurance?

Driving a vehicle comes with its share of risks especially in a country like India which is notorious for reckless driving. In such a case, you will need an auto insurance policy in place which will pay for the costs. There are five key reasons why you must ensure that you select the right policy suited to your needs:

1. A vehicle is expensive

Any vehicle, especially a car, is a prized possession of many and does not come cheap. Therefore, it is essential to take the right policy which will pay for the repair of the damages which are caused due to an accident. In the unfortunate event of theft of your car, you will be able to claim compensation under your policy.

2. Reduces your liability when you cause the accident

A third-party liability auto insurance is mandated by law in a country like India where the incidents of road accidents are quite high. What this policy does is that it protects you from going out of pocket when you may have caused the accident and third Party Death / Injury Property damages occured.

3. It also protects you

Auto insurance policies also provide a personal accident cover for Owner Driver which is helpful in case you have been badly injured in the accident.

4. Allows you to drive peacefully

Knowing that your vehicle is insured, you can drive around with a peace of mind, without being trapped in the constant fear that you will have to incur considerable costs in case of any damage to your car.

Disclaimer: Liberty General Insurance provides you health insurance policies depending on your requirements. However, before you apply, please read the policy wordings carefully. You can click here to know more