Going out for a long drive on a lovely weather or rushing to the office for an important meeting or attending your first job interview or dropping your child to the school for the first time their could be n- number of reasons for driving on the road. Similarly their are n number of reasons that expose you to a road accident, you could trash on a public booth, have head-on collision with another vehicle or your engine might catch fire.
Driving exposes you to lot many risks that can be imagined and may cause bodily injury to self and / or others resulting in medicinal expenses and loss of income, you might be legally liable to pay for the damages made to the property of others, or your own car might be damaged or destroyed.
All this could mean a major expense to you. Purchasing car insurance transfers the risk of these losses (depending upon the type of vehicle you choose) to the insurer.
Automobile is the most widely owned major asset of people in the developed world and now even in the developing world. It can turn out to be a chief source of an economic loss to an individual. By possessing a car insurance the risk of financial loss that can occur due to an accident or theft or fire can be transferred to an insurance agency.
The most basic form of car insurance that the driver should possess is the third party insurance (most of the governments have made third party coverage mandatory) which covers the insured from the financial obligations to a third party who has (or his property has) been run down by the insured fault and has caused injury, death, damage or destruction. The other forms of coverage that are available are personal injury, family members injury, harm to personal property, harm caused due to fire, riots or theft.
But purchasing an insurance policy is not just a matter of choice. In most of the countries it has been made mandatory by the government to purchase car insurance before driving the car on public roads, failing to which could mean severe penalties (and imprisonment in some cases). But there is a shifting view on the mandatory car insurance for the constant rise of premiums for car insurance; economically disadvantaged people have especially developed an animosity to towards the mandatory clause of automobile insurance. It’s time to ponder on this issue and come out with some reasonable solution for all.