How Car Insurance Helps You Avoid Traffic Challan Fines?

It’s another Monday, and you’re en route to the office. Suddenly, a police officer pulls you over for a routine check. Despite following the traffic rules and having your documents, the officer fines you. 

The reason? Expired car insurance. 

Just like that, what started as a regular day takes a turn for the worse, all due to the absence of active vehicle insurance. But car insurance’s benefits extend beyond just preventing traffic fines. So, join us as we explore car insurance benefits and how you can pick one for yourself.

Why Get Car Insurance To Avoid Traffic Challan Fines?

Let’s have a look at some car insurance benefits for owners:

• Legal compliance

As per Indian motor laws, car owners must have third-party car insurance. IRDAI has also mandated a personal accident cover of a minimum of ₹15 lakhs.

• Protection against uninsured driving penalties

Driving without car insurance is a serious offence and can lead to fines of up to ₹ 4,000 or even the suspension of your license.^[1] An active car insurance policy helps you prevent this.

• Coverage for traffic incidents

Car insurance also acts as a financial safety net in case of accidents. It covers any damages to your vehicle and others, protecting you from significant out-of-pocket expenses.

• Peace of mind

Knowing you’re insured brings a sense of security, allowing you to enjoy your drive without worrying about potential accidents and their financial consequences.

How To Purchase Car Insurance? 

Here are some things to consider when purchasing a new car insurance policy:

1. Choose the type of plan you want

Two types of insurance plans are available to car owners: third-party insurance and comprehensive insurance. 

Third-party car insurance provides coverage against liabilities to other parties for injury or damage caused by your vehicle. It only covers damages to third-party vehicles and people in it at the time of the accident. Comprehensive insurance, on the other hand, covers damages to the third party as well as your vehicle. As a result, comprehensive plans tend to have higher premiums than third-party insurance.

Although it is mandatory to have third-party vehicle insurance, comprehensive plans are recommended for complete protection, especially for new or high-value cars.

2. Select your preferred coverage 

Car insurance offers coverage beyond accidental damage. Many providers offer protection against theft, fire, vandalism, and natural disasters, ensuring greater security for your car.

You can even pay an extra amount towards your car insurance premium to get add-ons or riders that extend protection to various parts of your vehicle, like the engine and accessories.

3. Get a personal accident cover

A car insurance policy covers the damages to the vehicle, not the owner. That’s why you are legally required to get personal accident coverage along with your vehicle insurance.

The Insurance Regulatory and Development Authority of India (IRDAI) made it compulsory to own a personal accident cover with a condition of its coverage being above ₹15 lakhs, with effect from January 2019.^[2] This is intended to protect the owner against any personal injuries or losses.

4. Compare different insurance providers

The market is filled with insurers competing to sell their policies. So, don’t settle for the first policy you see. Instead, compare premiums, coverage, exclusions, claim process efficiency, settlement ratios, and customer service ratings to make an informed decision.

5. Buy from a trusted platform

Beware of fraudulent companies offering fake insurance with hefty discounts and unrealistic coverage, only to disappear with your money. Only buy car insurance from reputed providers like PhonePe to ensure you get genuine coverage and reliable support.

Key Takeaways

Driving your car without insurance is illegal and attracts heavy penalties and legal action. In case of an unfortunate incident, you will have to bear all expenses out of your pocket. Hence, it is recommended that you carry up-to-date car insurance before you take your next drive.