Insurance is like a spare tyre. You may not require it, but not having one is not an option.
  • Do You Have To Insure Your Car Even If It's Off The Road!

    It is mandatory for all car owners to be in possession of an auto insurance policy, as per the Motor Vehicles Act, 1988. The minimum level of coverage required to stay on the safe side of the law is the third-party liability insurance. However, it is advisable to buy a comprehensive car insurance plan to get extended benefits from your motor insurance.

    Buying comprehensive car insurance may seem like a worthwhile option if you are a person who drives frequently. But what if you have a car that you will not be using for which the insurance has run out? Does it make sense to spend money on insuring it, especially when you intend to sell it off in the near future? Read on to find the answers to these questions.

    Coverage Under Different Types Of Insurance Policies:

    Car insurance policies can be broadly divided into the following types:

    Policy Type Coverage
    Third-party liability insurance
    • This plan protects the policyholder from legal liabilities due to accidents.
    • Third-party injuries, death, and property damage are covered.
    • The insured car and its owner/driver is not offered insurance protection.
    Comprehensive car insurance
    • This insurance plan protects the insured car and its owner/driver.
    • This cover includes third-party liability insurance.
    • The insurance coverage includes natural calamities, in-transit damages, theft, and man-made disasters.
    • The coverage under this plan can be enhanced using add-on car insurance covers.

    As indicated above, the comprehensive car insurance plan offers coverage for a wide range of incidents that could even affect cars that are off the roads.

    Risks To Parked Cars:

    Consider a scenario wherein your vehicle was parked in a parking lot in the neighbourhood. If a wayward neighbour happens to ram his/her vehicle right into the rear bumper of your prized possession, the only relief you would have is that your vehicle was covered by a comprehensive car insurance policy. Your parked car’s windshield could also have been damaged by a cricket ball that was hit towards the boundary during the friendly neighbourhood match. What if your parked car was damaged by an earthquake of severe magnitude? To shield your financial future from such adversities, it is optimum to have sufficient protection even for your parked car. Protect your vehicle from all adverse eventualities with a comprehensive car insurance plan!

    Risks Of Off-road Driving:

    Off-road driving is another aspect that has to be considered in this context. There are many drivers who prefer driving on off-road tracks and in the woods. While off-roading is seeing an increase in popularity, it is usually frowned upon by the insurance company. The risk posed by off-road driving necessitates that such vehicles are insured with comprehensive coverage.

    At the time of policy purchase or renewal, you should inform your car insurance provider of the purpose of use of the vehicle i.e., off-road driving. The insurer will provide you a quote based on that. It is best to be honest in this regard, as that is the only way you can get adequate protection for your vehicle and yourself.

    After buying the insurance you should also read through the policy documentation to ensure that the terms and conditions are in line with what was agreed upon.

    Final Word:

    Motor insurance is a necessity for every vehicle in India, irrespective of how it is used. A break in your insurance policy could have serious repercussions. You will not be able to sell your car unless it is insured. You will also lose the No Claim Bonus you earned under the insurance of a vehicle if there is a long break in its insurance coverage. So, even if you do not intend to use that vehicle anymore, you should renew its insurance coverage.

    If you are on a tight budget, you can settle on a third-party liability insurance standalone plan for the vehicle parked in your private garage. Note that it is mandatory for such vehicles to be insured as well.

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