Advantages and Disadvantages of Car Insurance

With the increase in vehicles, the number of accidents has also increased. For these reasons, especially according to the law in Sri Lanka, having motor vehicle insurance is mandatory when a vehicle is put on the public road.

This is because bearing accident claims individually is expensive, and the best way to avoid motor vehicle and personal damage costs is to obtain motor vehicle insurance. However, motor vehicle insurance has both advantages and disadvantages. Today, through MotorGuide, we are informing you about this.

Why Motor Vehicle Insurance?

Motor vehicle insurance is a type of insurance that can be purchased to cover any damage or injury to the driver or occupants of the vehicle due to a road accident.

Motor vehicle insurance covers liabilities, collisions, comprehensive damage protection, uninsured motorist coverage, and medical payments. It also provides coverage for theft if the vehicle is stolen or damaged by fire, vandalism, or other natural disasters.

Importance of Motor Vehicle Insurance

Many people are unaware of the importance of motor vehicle insurance. Motor vehicle insurance is a type of insurance designed to cover unexpected situations or events, no matter how they occur. However, insurance policies differ from one another. Specifically, their purpose might be to cover an event that could happen soon or at some point in the future.

Motor vehicle insurance policies provide coverage against losses related to fire, natural disasters, theft, accidents, and many other risks.

Advantages of an Online Car Insurance Policy

The primary advantage of online motor vehicle insurance is that it not only allows comparing and purchasing a policy online but also enables customers to file claims, pay premiums, or change policy coverage online. Furthermore, policy details are accessible 24x7, and printouts for insurance cards and other documents can be obtained from anywhere at any time.

Advantages of a Car Insurance Policy

Assurance for Financial Liabilities

Do you have enough money to pay for large, sudden damages? If the answer is no, choosing the best motor vehicle insurance policy is the right option to escape massive damage costs.

Assurance for Repairs and Replacement

In the event of an accident, the motor vehicle insurance authority analyzes the severity of the damage and decides whether to repair or replace the spare parts. A motor vehicle insurance policy helps restore your vehicle from the aforementioned motor vehicle damages.

Legal Requirement

The motor vehicle owner needs a warranty for their new motor vehicle. Having the correct insurance policy protects you from legal clauses.

Assurance for Medical Claims

If the driver or passenger suffers serious injury, an individual may not be able to bear the high medical expenses. However, having an insurance policy assures coverage for financial and medical expenses.

Protects Driver and Passenger Liabilities

In the event of road accidents, if the drivers and passengers suffer any damage, your insurance policy covers the damage costs.

Personal Accident Cover

This personal accident cover protects you from the inconvenience caused by accidents, permanent disability, and the maximum amount payable under the motor vehicle insurance policy.

Third-Party Liabilities

In the event of an accident and damage to a third-party vehicle, the insurance policy covers those damages.

Disadvantages of a Car Insurance Policy

Coverage Failures

The primary and main disadvantage of motor vehicle insurance is that your insurance policy does not cover the entire vehicle. Only specific parts of the motor vehicle are under damage coverage. The policyholder should not forget to carefully examine the hidden clauses in the document before purchasing the insurance policy.

Time-Consuming Process

Many insurance companies take some time to settle claims. This is a problem faced by many policyholders.

Weak Customer Support

Some insurance companies have weak staff. So, in such instances, there might be shortcomings in the service you receive.

So these are the advantages and disadvantages of motor vehicle insurance. As mentioned earlier, motor vehicle insurance is essential for a vehicle. Therefore, if you think carefully about it before getting insurance, you can avoid the disadvantages mentioned here.