Motor insurance, mandated by law, saves you from the financial burden incurred due to damages suffered by your vehicle from natural as well as man-made calamities such as flood, earthquake, hurricane, theft, riots, etc. However, apart from giving you a financial cushion amid these perils, a motor insurance offers various other benefits as well. Given below are five ways where it can be crucial for you during a crisis:

Cashless facility

There are many insurance companies which offer cashless facility in their network garages. In simple terms, when you service a damaged vehicle in any network garage, you won’t have to pay anything. The insurer will settle all the expenses of your insured vehicle.

The key benefit of having this facility is the sheer convenience of cashless repair and servicing, without the need for substantial amounts of cash.

Road-side assistance

In case of any unforeseen events such as a flat tire or engine trouble, the insurance company provides free roadside assistance for your insured vehicle. These services include towing, emergency services etc.

For example, if you were stranded on a busy highway due to engine overheating, your insured vehicle can be towed to the nearest garage without any extra cost.

Third party liability insurance

As the name suggests, third party insurance is for claims related to third-party damages. This liability insurance covers personal injury as well as accidental damage caused to a third-party involving your vehicle.

In addition, you are insured against death/injury (caused by your vehicle) to pedestrians, occupants of other vehicles and any damage caused to the property. Any impact of possible litigation on your finances will be covered by the motor insurance company.

Minimal financial impact

After an accident, repair and overhaul expenses can add up to a substantial amount. If you suffer any serious injuries in the mishap and require hospitalization, Personal Accident (PA) coverage under motor insurance covers any medical expenses arising from the same.

With PA cover in motor insurance, you and your family members are insulated from financial uncertainties in case of a mishap.

Peace of mind and enhanced coverage

Stress is a natural response after events such as accidents. With motor insurance, you are insulated from the anxiety and worry, which could adversely impact your recovery.
You can respond to any medical challenges with greater confidence and certainty. Also, with various add-ons to your base policy such as zero depreciation cover and engine protection cover, you can enhance your coverage.

Before buying a motor insurance plan, it’s important to compare offering from multiple insurers. You can easily do so at insurance aggregator portals that list multiple offerings. Click here to calculate your motor insurance premium.


The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.

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