Get a Car Insurance Policy To Avoid Risks on Road

Buying car insurance is not just a choice; to comply with traffic regulations, at least third-party insurance is mandatory. According to the Motor Vehicle Act of 1988, you must not drive any vehicle without a valid vehicle insurance. Sadly, even with strict regulations, people opt out of this necessary purchase. 

A report by the Insurance Information Bureau of India revealed that almost 57%^[1] of the vehicles (including four and two-wheelers) in India are uninsured. This shows that most of the population stays adamant and continues to consider car insurance as yet another added cost. 

However, that is not the case. By dodging this purchase, you are not only exposing yourself to legal issues and financial risks but also inviting huge financial implications.

Read on to understand the risks of not having car insurance.

What Happens When You Drive Without Insurance?

“Ugh….. No, I don’t need any car insurance! I’m a great driver!” 

Oozing with self-confidence, this was Aman’s go-to response whenever someone brought up vehicle insurance. Whether someone reiterated the consequences of driving uninsured or reminded him of the traffic rules for car insurance, they were met with a scoff and a lecture about Aman’s years of experience.

Aman believed he was saving money by skipping on insurance, but a harsh dose of reality awaited him. Distracted by a phone call while driving, Aman lost his focus and rear-ended the car in front of him. 

The result? Aman had to shell out thousands of rupees in compensation for the damages caused by him. He might have saved around ₹15,000 on car insurance but the car suffered such a blow that it would take a lot more to fix it. To make matters worse, he faced legal penalties for driving uninsured, including a hefty fine and a suspended license. 

Aman’s story is a stark reminder of the true cost of overlooking car insurance—a price far exceeding the savings of not being insured. Take it from Aman himself; do not make the same mistake as him.   

Risks Of Driving Without an Insurance Policy

Accidental costs are not the only liabilities waiting for you when you drive without insurance. Here are all the risks you are taking when you do not follow the traffic rules of car insurance: 

1. Traffic Fine 

By opting out of purchasing vehicle insurance, you are clearly violating the Motor Vehicle Act. So, if you are ever pulled over by the cops and busted, you shall be duly punished. Legal consequences can cost you a fine of Rs.2,000 or even imprisonment for up to 3 months. Furthermore, if it is your second offence, it can even cost you a hefty fine of Rs.4,000. 

2. License Suspension

Driving without car insurance is a threat to road safety. So, if you are found without insurance multiple times, the authorities can suspend your license. The license is usually reinstated only when you purchase vehicle insurance. 

3. Vehicle Registration Suspension 

Similar to a driving license, getting caught without valid car insurance multiple times may lead to suspension of vehicle registration. This is because multiple traffic rule offences would mark your vehicle as an element hampering road safety, making it unfit for operation.  

4. Financial Liability 

One of the most significant consequences of driving uninsured is the financial liability you face in the event of an accident. The economic risks of car insurance can be substantial. In an accident, you may be liable to pay for all the damages to the other party’s vehicle and any medical expenses. 

5. Out-of-Pocket Car Repairs 

Car repairs are notorious for being expensive. While a mere dent and paint job can already cost a few thousand bucks, significant damage can be expensive. Hence, you are not only missing out on those car insurance benefits but are also losing a big chunk of your savings to these repair costs. 

6. Medical Expenses 

Accidents are not only limited to vehicular damage. In most cases, they bring about severe injuries as well. Car insurance usually provides cover for medical expenses incurred due to an accident. But if you don’t have any, you will face the immense financial pressure of managing medical expenses. Worst case scenario– if the other party dies or sustains a permanent disability, their family may even sue you for compensation.

7. High Insurance Premium

Driving with an expired policy can lead to higher premiums for your next policy. In some cases, insurers may even decline to provide fresh insurance. Additionally, if you plan to sell your car, buyers might refuse to buy it regardless of its condition.

Key Takeaways

The risks of driving a car without insurance far outweigh the limited bucks you save on premiums. Without car insurance, you are exposing yourself to a long-lasting financial blow and inviting legal repercussions. Our advice is to be wiser, follow the traffic rules, and buy the right car insurance today.