What A Motor Vehicle Insurance Is And Why You Need It

Having an insured car is one of the best ways to ensure your protection on the road. Find out what motor vehicle insurance policies are and why you need one.

Being able to buy a car is one of the most significant achievements you can have in your life. Because vehicles are quite expensive, new owners usually feel protective over their vehicles and take every necessary step to protect their vehicles in case of an unforeseen event. Perhaps the most crucial step in protecting and securing your vehicle and yourself is getting the right motor vehicle insurance coverage.

In Singapore, having motor vehicle insurance coverage is mandatory for all vehicle owners. Before your vehicle’s road tax can be renewed, you need to get your vehicle insured for the whole road tax renewal period. If you are a new car owner, you might ask, “What is motor vehicle insurance, and why is it so important?” To answer your questions, we discuss below some of the most important things you need to know about motor vehicle insurance policies.

What is motor vehicle insurance?

A motor vehicle insurance is an insurance policy that covers the car owner from any financial losses they may incur due to an unforeseen event, such as a road accident, theft, natural disaster, and so on. Any damages an insured vehicle suffers will be the insurer that will cover the policyholder or third party. If a third party suffers from a personal injury because of your driving or damage someone else’s property, you can use your motor insurance to cover your costs and yourself.

Why get motor vehicle insurance?

Aside from the fact that it is mandatory, getting trusted and affordable motor vehicle insurance in Singapore is essential for your protection as a car owner. Motor insurance essentially comes with a lot of financial and personal benefits. Here are the advantages you can experience when purchasing a good motor vehicle insurance policy.

Protects you from liabilities and legal repercussions

One of the important reasons to get motor insurance is to protect yourself, particularly from excessive financial liabilities and legal repercussions. Getting into a road accident is expensive. Suppose you get in an accident and do not have an insurance policy to cover your costs. In that case, you will undoubtedly incur a heavy expense to cover any injuries you or another person may have suffered.

By getting motor vehicle insurance, you can ensure that all the medical expenses you have incurred due to an injury caused by an accident will be covered. The insurance company will be the one to pay for your or another person’s medical bills, hence saving you a lot of time and money. Moreover, this ultimately protects you from the legal consequences that may arise out of the accident.

Ensures your vehicle gets repaired and restored

Because vehicles are prized possessions, car repairs and restoration unsurprisingly cost a fortune. This is one of the main reasons most car owners prefer to get insured. With a comprehensive motor insurance policy, you can rest easy knowing that your insurance provider will cover any damages caused to your vehicle during an accident.

Whether you need to send your car for a repair following an accident, it has been stolen, or it has suffered any damage as a result of a natural calamity like fire, earthquake, and explosion, your insurer will assure you that you will no longer bear the expenses of repairing and restoring your vehicle.

Secures collateral

These days, most people in Singapore require financing to purchase a vehicle because cars are pretty expensive. This usually takes the form of a bank loan. Most of the time, the collateral for the car loan is the vehicle itself. This means that the lender has a vested interest in the condition of a car.

When you get in an accident and the car you loaned becomes damaged, the lender will undoubtedly suffer a lot from repossessing a wrecked vehicle. For this reason, banks usually require you to purchase motor insurance before you can take out a car loan.

Conclusion

These days, motor vehicle insurance has become more desirable than merely mandatory. Most vehicle owners would choose to get motor insurance even if it was not obligatory. This is not surprising considering that having motor vehicle insurance coverage has plenty of benefits for your vehicle and yourself and others. By getting motor insurance, you can guarantee your protection on the road at all times.

If you are looking for reliable and affordable motor vehicle insurance in Singapore, India International Insurance (III) is the insurance company you should partner with. With over 70 years of experience in the industry, we already have the expertise and capacity to give every vehicle owner in Singapore comprehensive motor insurance coverage. Our motor insurance comes at a very competitive price, so you can ensure your road protection without having to burn a hole in your pocket. To learn more about our insurance plans, please send us an enquiry today.

The content of the article is based on the covers available in the market which shall be different as per terms & conditions of each contract