Why Is Car Insurance Necessary for Driving in the City?

Besides high-rises and vibrant nightlife, car ownership defines the most sought-after urban lifestyle. This brings many challenges, from heavy traffic to a lack of parking space and, worst of all, road accidents. In 2022, India recorded over 4.6 lakh road accidents, nearly half of which occurred across 10 cities, including Delhi, Bengaluru, and Chennai. Therefore, you must get car insurance for city driving. 

Read on to learn more about the common car ownership challenges urbanites face and how car insurance helps them.

Challenges of Being a City Driver

Here are some challenges associated with driving in a city:

• Dense Traffic: Cities are renowned for dense traffic, especially during rush hours and on weekends. With so many bikes, cars, and public transport vehicles sharing the road, the likelihood of accidents increases. Irresponsible drivers and a lack of strict traffic regulations make the situation worse.
• Lack of Parking Space: Scarce underground and multi-level parking spaces in cities force owners to utilise on-road parking or encroach public spaces. As you can imagine, this adds to traffic congestion and increases the chances of collisions.
• Frequent Minor Accidents: On urban roads where traffic crawls, one is more likely to be in a minor accident than a high-speed collision. Scratches, fender benders, mirror clips, and sideswipes are common when driving on congested roads.
• Faster Wear and Tear of Car Parts: City driving involves frequent stopping and starting, idling in traffic, and navigating potholes and speed bumps. You must constantly steer, apply brakes, hold the clutch, and shift gears. Consequently, car parts get damaged easily, requiring frequent maintenance and replacements.
• Costly Repairs: Cities have a much higher cost of operating a business and labour expenses. So, frequent visits to a garage, even for minor fixes, can quickly become costly. 
• Theft and Vandalism: With so many vehicles on the road, thefts and carjackings are quite common in cities. Additionally, miscreants and vandals deliberately damage vehicles by breaking windows, deflating tyres, and chipping the paint. 

Benefits of Having Car Insurance for City Driving

Here’s how car insurance provides you with a much-needed safety net:

• Legal Compliance: Due to increasing traffic violations, authorities conduct routine checks to enforce traffic norms. Driving a car without proper insurance will attract a fine of Rs 2,000 and even three months imprisonment. So, having car insurance in the city saves you from penalties for non-compliance.
• Coverage for Third-Party Liabilities: Whether you get third-party car insurance or comprehensive cover, you will be protected against damages caused by your car to a third party in an accident. These policies generally cover physical injuries, death, and damages to the vehicle and the property.
• Personal Accident Cover: Getting personal accident cover with a third-party policy is mandatory. Alternatively, you can get comprehensive car insurance that includes both. The cover ensures you get compensation if you suffer accidental injuries and disabilities. In the unfortunate event of death, the insurers provide compensation to the nominees.
• Protection from a Wide Variety of Damages: Car insurance coverage isn’t limited to accidental damages. A comprehensive car insurance protects your vehicle against damages and total loss caused by vandalism, fire, theft, and natural calamities. You can also purchase car insurance add-ons to cover damages to the engine, tyres, personal belongings, etc. 

Preferred Add-Ons for Owners Who Drive in Busy City

Add-ons ensure your car insurance provides adequate coverage tailored to your needs. Here are some add-ons you must get when purchasing car insurance for the city:

• Roadside Assistance Cover: This add-on allows you to request professional assistance if your car breaks down in the middle of the road. Services include changing flat tyres, jumpstarting dead batteries, fuel delivery, and car towing.
• Consumables Cover: Consumables items such as nuts and bolts, bearings, oil filters, lubricants, etc., are exhausted due to regular usage of the car. The consumables add-on covers the cost of replacing such items at the time of repair.
• Engine Protection Cover: The engine protection add-on covers engine damages from water ingress. This car insurance rider will be a lifesaver if your city experiences waterlogging during heavy rainfall. 
• Tyre Protection Cover: Tyres are as prone to damage in cities as in off-roads or villages. A tyre protection add-on covers the cost of repairing and replacing tyres damaged by potholes, sharp objects, and debris.
• Zero Depreciation Cover: This add-on ensures that the insurer doesn’t deduct the depreciation of car parts from the claim amount. This gives you a higher claim payout, saving you money in cities with expensive spare parts. 
• Return to Invoice Cover: If your car suffered irreparable damage or is stolen, the return to invoice add-on ensures that you receive the full on-road price of your vehicle as compensation instead of its depreciated value.

Key Takeaways

According to reports, India’s passenger vehicle industry posted year-on-year growth of around 8.5%, selling a record 4.24 million cars in the financial year 2024. In the coming months, more cars will be on the Indian roads, resulting in more traffic and a higher risk of accidents. So, if you are one of these car owners planning to drive in cities, get comprehensive car insurance with hand-picked add-ons to ensure 360-degree road protection. 

Consider platforms like PhonePe for a seamless insurance purchase experience.