Why You Should Insure Your Car

Buying a motor vehicle is one of the biggest achievements in your life. New car owners often feel a sense of security about their vehicle and need to take necessary steps to protect it in case of any unexpected events. Therefore, choosing the right insurance can be considered a crucial first step in securing both your vehicle and yourself. Motor insurance has many benefits, but many people are not aware of them. That's why MotorGuide is telling you today why you need to insure your motor vehicle.

What is a Motor Insurance Policy?

A motor insurance policy covers the owner for any financial loss incurred due to an unexpected situation such as an accident, natural disaster, or theft. It covers any damage to the insured vehicle, the policyholder, or a third party.

What are the types of Insurance?

There are three types of insurance in Sri Lanka.

• Full Insurance / Comprehensive insurance
• 3rd Party Insurance
• 3rd Party Fire & Theft

How Does a Motor Insurance Policy Help You?

Protects You and Others

An unexpected event such as a motor vehicle accident can happen anywhere, anytime, and to anyone. One of the most important reasons to get motor insurance is to protect yourself and others. For example, if you are involved in an accident and do not have reliable insurance to cover your expenses, you would have to bear significant costs to cover any injuries to yourself or another person. However, a motor insurance policy ensures coverage for medical expenses resulting from any injuries caused by an accident. Your medical bills, from surgeries to hospitalizations, will be paid by the insurance company. Therefore, insurance will definitely save you time and money.

Protects Your Vehicle

A motor insurance policy primarily functions to protect your car, motorcycle, or other personal vehicle. With a comprehensive motor insurance policy, you are assured that any damage to your vehicle in an accident will be covered by your insurance provider. Unexpected incidents can include things like theft of your car, fire, riots, explosions, and strikes.

Covers Third-Party Damages

Still wondering why it's important to get motor insurance? If you are involved in an accident with a third party, such as a pedestrian, another vehicle, or someone else's property, this policy ensures that costs for repairs, hospital bills, etc., will be covered by the insurance company.

Without full insurance coverage, you would have to pay for damages to any third party. However, motor insurance coverage protects your money and reduces your liability.

Covers Legal Expenses

Often, accident victims attempt to sue for damages or injuries. In the event you face a lawsuit, a motor insurance policy protects your money by covering these expenses. The insurance company is obligated to take care of any costs arising from a lawsuit filed against you in relation to a road accident.

In many countries, like Sri Lanka, motor insurance is a legal requirement. Whether you choose a basic or comprehensive cover, operating a personal or business vehicle without motor insurance is illegal.

So, these are the reasons why you need to insure your motor vehicle. However, the terms and conditions can vary across different insurance companies and some policies. Therefore, don't forget to pay close attention to the terms and conditions before choosing an insurance company.