InvestorQ : Why should one take auto insurance?
Karim Sahu made post

Why should one take auto insurance?

Suresh Patil answered.
3 years ago

It is almost daily that we read headlines about accidents and deaths due to accidents. You can be the best driver in the world and despite that meet with an accident. In fact, the fault need not even be yours. The fault could be of the person driving next to you or the one ahead of you.

Auto insurance gives you a safety net that protects you from financial losses associated with the vehicle if you ever meet with an accident.

As part of a motor/auto insurance policy, an insurance company agrees to pay you a sum assured at the time of an incident that is covered under the plan. For this, you will have to pay premiums towards the policy at regular intervals.

The amount of coverage opted for also determines the amount that one has to pay towards motor insurance.

However, your question doesn’t hold any ground because in India, it is mandatory for all new vehicles to be insured under the Motor Vehicles Act, 1988. Do note this rule is for personal as well as commercial vehicles.