Things You Need to Know About Your Vehicle Insurance
When driving legally on the road, there are several important documents you must have — and vehicle insurance is one of the most essential. Whether you already have insurance or are planning to get one for your new vehicle, it's important to understand how it works, its benefits, and what to be cautious about. Today, MotorGuide explains the key things you should know about your vehicle insurance to stay protected and make informed decisions.
Advantages of Having Vehicle Insurance
1. Financial Security
Having insurance gives you financial protection in case of unexpected accidents or damage. Even if you drive carefully, accidents can occur due to someone else's negligence. In such situations, your insurance helps cover repair costs and reduces the financial burden.
2. Helps Control Risk
Insurance is designed to minimize financial risk. If an accident occurs, the insurance company supports you by paying for the damage based on the coverage you selected. This ensures that you are never left alone to deal with major expenses.
3. Useful in Emergencies
In an emergency, such as a collision or damage to the vehicle, having valid insurance ensures you can get immediate assistance. Many companies also offer 24-hour roadside or towing services for policyholders.
4. Easier Loan Applications
If your vehicle is insured, it becomes easier to apply for a loan. Financial institutions often prefer insured vehicles because they represent lower risk.
5. Acts as an Investment Plan
Some insurance policies offer both coverage and investment benefits. These plans allow you to build savings or earn returns over time, adding extra value to your insurance.
Things to Be Careful About When You Have Insurance
1. Read the Agreement Carefully
Before signing the insurance agreement, read it thoroughly. Many people later realize that certain benefits or claims they expected are not included. Make sure you understand the coverage limits, exclusions, and claim process clearly before agreeing.
2. Fill Out Forms Accurately
When filling out insurance forms, ensure all personal details such as name, address, and age are entered correctly. Any mistakes can lead to claim rejection or legal complications later. Also, clearly mention the nominee who will receive benefits in case of your absence.
3. Check if You Can Afford the Premium
Before finalizing your insurance, make sure you can comfortably afford the premium. If you choose a package that exceeds your budget, missing payments can reduce your coverage or even cancel your policy. Choose a plan that balances protection and affordability.
4. Review the Benefit Period and Payout Amount
Understand how much you will receive and when. Some long-term insurance plans provide payouts after 20–25 years, so evaluate how much that amount will be worth in the future. Consider inflation and financial stability when making your choice.
5. Don't Give Money Directly to Agents
Always make insurance payments directly to the bank or the official company account — not to the insurance agent. If the agent leaves the company later, you may have no way to trace the transaction. Paying officially ensures your money is protected and properly recorded.
6. Keep Emergency Contact Numbers
Make sure to save your insurance company's hotline number or your agent's contact information. Share it with your family members so they can reach out quickly if you are involved in an accident or lose your documents.
7. Ask Others About Their Experience
Before choosing an insurance company, talk to people who already have insurance with that provider. Ask about their experience with claims, benefits, and customer service. This will help you identify trustworthy companies and avoid unpleasant surprises later.
Insurance is not just a legal requirement — it's a vital safeguard for your safety and financial stability. Knowing how insurance works, understanding your policy details, and choosing the right coverage can save you from future stress. By following these guidelines from MotorGuide, you can confidently maintain your vehicle insurance and enjoy peace of mind on every drive.
