Insurance is an agreement between two parties, that is an insurance company and an individual also known as an insurance policy, in which a company guarantees to provide compensation for any kind of loss or damage due to a disaster, an unexpected event, illness, or death, provided some amount of fee is being paid frequently, the period of payment can be monthly, quarterly or annually, this generally compensates financial or uncertain losses. When a person buys insurance, it is considered to be a form of assurance of recovery in case of an unexpected mishap or event causing loss or damage, there are different types of insurance such as life insurance, home insurance, health insurance, liability insurance, property insurance, car insurance and many more. A mishappening or disaster cannot be stopped but a good insurance policy can cover the damages, losses, and additional expenses that are caused by it.
However vehicular insurance is the most essential and is required by law to protect one from the losses incurred and people involved. Many places have made it mandatory to get vehicular insurance without which heavy fines and legal consequences/actions are taken. Before buying anything, people often see what the benefits that come along are, and car insurance brings in multifaceted advantages.
BENEFITS OF CAR INSURANCE
1) Liability insurance- The primary reason for car insurance is personal liability, in case of damage, death, or bodily harm caused by a person to another or a person involved in it while operating the vehicle, they are protected by providing compensation or medical financial aid to recover from it.
2) Comprehensive insurance- Comprehensive car insurance protects one’s vehicle from any kind of natural or man-made disasters such as terrorist attacks, robberies, riots, earthquakes, hurricanes, etc., accidents or failure, and default in maneuvering the vehicle.
3) Financial safety- Car insurance provides financial protection against any unexpected mishaps leading to heavy losses; it covers losses caused by natural calamities, theft, or accidents by helping cover large expenses required for replacement or recovery.
4) Protection from theft- Theft is also one of the reasons why car insurance is considered essential; it provides a sense of security and relief to an individual through the provision of financial compensation and support if the vehicle is stolen.
5) Societal safety- Car insurance provides societal safety as it ensures people involved in the accidents or incurred losses from it receive proper indemnity so that the burden of healthcare and other social support is reduced from an innocent individual and the defaulter.
6) Medical Expense coverage- Some car insurance companies offer coverage for medical expenses to the victims involved in a car accident. This is essential in regions where there is no or limited access to health insurance.
In conclusion, car insurance is considered significantly important not only because it is mandated by law in many places but also because it provides numerous benefits such as financial protection, liability coverage, damage compensation, personal injury protection, protection from natural disasters, etc. It also ensures medical pay coverage in the event of any mishappening, but if a person already has medical insurance it would primarily cover all the additional expenses related to any injury so the individual doesn’t have to bear all the burden of expenses alone, however, it is important to note that car insurance is not an alternative of medical insurance, as car insurance covers and compensates any harm caused involving the vehicle whereas medical insurance covers a similar yet different aspect that is it bears not only the cost of injuries of an individual but also any type of serious illness or health problems, this also helps compensate any lost income during the recovery process.