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Insurance is important because it can help protect you from financial losses if something wrong happens to your car. If you have a car insurance policy, it will provide financial protection for you and the passengers in the event of an accident. 

Your policy may also include coverage for property damage, personal injury, and other types of accidents. Car insurance is mandatory in most states, so it is important to have coverage if you own a car. 

Importance of Having a Car Insurance Coverage

There are several reasons why everyone must have a car insurance plan. If you are involved in an accident, having coverage will help pay for damages to your car and/or injuries that you may suffer. In addition, if you have a car then, it is mandatory to have liability insurance to protect yourself financially if someone is injured in a crash while using your vehicle. 

If you do not have car insurance and are involved in an accident, you may be held liable financially. In India, car accidents are common. According to the National Crime Records Bureau (NCRB), in 2015, there were 1.14 million road accidents in India, resulting in 31,000 fatalities and over a crore injuries. 

Moreover, NCRB reports that the number of registered vehicles has also increased from 68 lakh in 1981 to over 1.3 crores in 2015.  This increase in car ownership has led to an increase in car accidents and consequently an increase in the number of people who have to seek medical help after a car accident. 

In fact, according to a study by Aon Hewitt2, around 66% of all medical expenses incurred after an accident are due to injuries sustained as a result of the collision.  So it is not surprising that getting car insurance coverage is important for people living in India.

In a country like India, car insurance is a must for all drivers. While the requirement varies by state, most require at least liability insurance. In addition, many states also require comprehensive collision coverage. 

That means that if you’re in an accident and are at fault, your insurance policy may not cover all of your losses. If you’re not covered by your insurance, you could be on the hook for a large sum of money if something bad happens to you while driving in India. Make sure you have the right car insurance policy in place before hitting the indian roads

Why is Car Insurance a Must?

Car insurance is a necessity for most people. Not only do you need it if you are in an accident, but car insurance also protects you financially if something happens to your vehicle. Here are some of the benefits of getting car insurance: 

• If you have car insurance, the police will not impound your vehicle if they find that it has been stolen. 
• If you are involved in an accident, having car insurance will help cover the cost of damages to your vehicle and/or injuries that you may suffer. 
• Your rates will be lower if you have comprehensive and collision coverage because these policies tend to cost more than standard policies. 
• You may be able to get discounts on your rates if you have a good driving record and are willing to pay a premium for a safer driving experience.

Conclusion

Everyone should have car insurance to protect themselves and their vehicle in the event of an accident. The cost of car insurance can vary based on your state of residency, driving history, type of vehicle, and other factors. Car insurance can also help cover costs if you’re sued for damages in a car accident. You may also be able to get benefits if your car is stolen or damaged due to  fire.

An insurance rider is an auxiliary policy that can be added to a primary policy to broaden its scope of protection. Life insurance riders are inexpensive additions that can be added to your current term policy to provide additional coverage. This is an additional policy that can be purchased to extend the coverage of the primary insurance.

Who Exactly Is A Rider?

A rider is an enhancement cover that may be added to an already existing insurance policy in order to extend its coverage and increase its level of risk protection. Riders are low-cost additions that can be utilised to improve the life insurance coverage that is already included in your current term insurance policy. This is an additional policy that can be purchased in addition to the fundamental insurance protection that is already provided.

Protection for anything from normal medical care to catastrophic illness, accidental death or incapacity, educational and/or wedding expenditures for your children, and so on can be obtained through the use of riders. There are several other types of insurance policies, such as term, endowment, remittances, and unit plans, that can have riders attached to them. It is fashioned in such a way as to cater to the requirements of the policyholder.

Can You Add a Rider to an Existing Policy?

A life insurance policy that already exists can, in fact, have a rider added to it. It is a well-known fact that one cannot purchase riders before first obtaining a policy. Add a rider to your current policy for additional protection and financial security in the form of maturity payouts, death benefits, and more. However, before you go out and get a rider, there are a number of strategies and pointers that you need to keep in mind in order to prevent putting further strain on your finances. The following are some helpful hints that will guide you through the process of attaching a rider to your life insurance policy:

• Ensure That Your Plan is Covering Your Needs

One should make sure they have done extensive research on the policy’s coverage before getting it. Even while buying an insurance plan is rather common among people in general, it’s possible that it won’t meet all of your specific requirements and wants. If you’ve already signed up for the plan, you have the option to improve the coverage by including additional riders in your plan.

• Research Some Helpful Riders For You

There is always someone available to ride with, regardless of the circumstances. While the most common ones, such as premium waiver benefits, premium return, and family income benefit riders, are some of the most common ones that customers add to their policy for future protection. It’s possible that you’ll still require coverage for your children, partner, or health; if so,  in these types of situations, riders can be added to your policy.

• Look Around For Riders That Are More Economical For You.

Pick riders whose premiums you will be able to afford over the long run. Despite the fact that riders are frequently viewed as being cost-effective and kind to one’s wallet, some of them may be extremely expensive. If you continue to choose unneeded riders in the hopes of maximising your long-term gains, however, all that will happen is that your wallet will gradually become more and more empty.

• Analyse the Instructions Given By the Rider.

There are a few riders that do not provide any benefits upon reaching the maturity age, while others do not provide any financial benefits, and so on. Checking the terms, policies, and conditions of your insurance rider, as well as the list of exclusions and inclusions, will help you prevent unpleasant surprises at the last minute. It is recommended that you look into whether or not it gives maturity advantages and whether or not you have the ability to discontinue the rider when necessary.

• Include Your Family Members Among the Riders

In addition to this, you have the option of including other members of your family on the rider. The Child Rider Benefit and the Spouse Rider Benefit are two of the available riders that provide financial support for dependents. These can also save you money when it comes to your taxes. 

Conclusion

A Rider is an affordable supplement to your plan that can help you expand your policy over the long term by increasing the protection and coverage of your plan and safeguarding your family’s future. You can think of a rider as an investment in the security of your family’s future. As a consequence of this, you ought to give some serious thought to the possibility of including riders in your life insurance policies.