Insurance is an agreement under which two parties are involved that is the insured and the insurer. The insurer is the insurance company and insured is the consumer of insurance who got his stuff insured. In agreement of insurance, the insurer provides insurance and on the other hand, insured pays the premium. The insurance are of many kinds that is life, health, home, car, fire and marine insurance. In car insurance agreement, the insurance company insures the car of the insured. It covers the risk of car being damaged. Now hereby question arises is why do we need a car insurance. The reasons why do we need car insurance are:

  • Gives a sense of Assurance

Car insurance gives a sense of assurance to the user of the car. It covers up the risk to some extent and provides claim to the user if any damage happens to the vehicle. The car driver also gets assured to some extent while driving and drives tension free.

  • Car is a Valuable Asset

Car is a valuable asset and if goes through any accident or is stolen it needs to be repaired or replaced. Insurance company gives the money for this repair or replacement if car is insured. If it is not insured the owner of the car has to bear the cost himself.

  • Insurable Interest

The insurer must have insurable interest in the car that is being insured. He must be the owner of the car. The insurable interest is very important for getting the insurance policy.

  • Reduces Burden

The insurance company reduces the burden from the shoulders of insured and relieves his tension to some extent.

  • No shortage of Finance

The insured does not have to arrange money in case of any damage for repairs or replacement. In case of any damage, the insurance company will pay the claim amount to the insured and hence leaves insured tension free.

  • Additional Benefits

Along with claims of repairs, insurance provides other additional benefits such as motor insurance as it can also be replaced when inefficient to work.

  • Online Availability

These days being insured is much easier. The purchase is hassle free and one can buy car insurance policy online as well. It has even removed the hindrance of visiting the insurance office and fulfilling the formalities.

One should surely buy car insurance; it is of great advantage to the insured. The insured can get claim if any damage happens to the car. In addition, the car insurance gives a sense of relief to the owner that even if car goes through any accident, he will get the claim. The insurance also provide breakdown assistance 24*7 along with fire and theft claims. One can get a comprehensive policy instead of a simpler one. Before giving insurance policy to any customer, the company surely checks that whether the car is in safe hands or not. One should surely get his car insured as it only reduces tension and is available at nominal premiums.