It is a Sunday morning- a long-awaited leisure after an arduous week of corporate hither and thither, and all you can think about is whether you have packed your golf gear or not. Your kids are having a blast at the back of your new 4×4 while your partner beside you seems pleased at this little family outing. Here’s the trouble. You have been made to tail this sedan that is driving at 20Kmps on the national highway! And when you thought he couldn’t drive worse, he proves you wrong and pulls up with no warning whatsoever. Thank goodness for your all-wheel disc brakes, you managed to avert some serious damage to life and automobile alike. But just when you felt it was all forestalled, the auto-rickshaw behind you had to whack your rear bumper. What’s done is done. At least you got insurance right? No? What a bummer!

What is Car Insurance and what is its origin?

So what is Car Insurance and why should you get it? Car Insurance or Auto Insurance is a means of protection or way of safeguarding your vehicle against physical damage or corporeal injury resulting from traffic accidents. Its provision is financial and can be further extended to cover thefts, keying, and other damages sustained due to an act of God. It must come as a surprise to know that Car Insurance was practically non-existent until the end of the FirstWorld War, even though automobiles were much more dangerous than they are today. It was in the UK, a mandatory insurance scheme for automobiles was launched that came into effect with the Road Traffic Act of 1930.

Car Loan

Types of Car Insurance in the country

 It is to be noted here that the terms and conditions pertaining to the protection offered by Car Insurance can vary from country to country or even region-wise. In India, Car Insurance or Auto insurance is responsible for covering damages and liabilities to vehicles and drivers caused by accidents or acts of God. It is now mandatory for any vehicle, be it personal or commercial, to have auto insurance. To make the process seamless, all top dogs in the automobile industry have tie-ups with insurance companies. In India, Auto insurance can be categorized as the following:

  • Private Car Insurance
  • Two-wheeler Insurance
  • Commercial Insurance

Life is anything but certain. Uncertainty lingers with you like that very shadow of yours. So everything valuable in life or life itself must be secured. And your sedan or 4×4, or perhaps your very own cost-efficient vehicle, should be no exception.