Your wallet could get empty with a rising vehicle price, but not with your motor insurance!


06 Jun 2023

Secure Your Finances and Protect Your Vehicle with Motor Insurance

The rising cost of vehicles has caused many people to hesitate before making a purchase. After all, it's a major investment, and you want to make sure that you're getting the best deal for your money. Fortunately, there is one way to make sure that you don't get hit with a huge expense when it comes to vehicle ownership: motor insurance. Motor vehicle insurance helps protect your vehicle from damage, theft, and other unexpected events that can occur.

It also helps protect you financially by providing coverage for medical expenses and property damage if you are involved in an accident. With the right coverage, you can rest assured that your vehicle is protected and that your wallet won’t get empty in case of any unforeseen circumstances.

How motor insurance helps you save money?

Here is why motor vehicle insurance can save money in the long term:

  1. Avoiding legal trouble

As per the 1988 Motor Vehicles Act, vehicles need to have at least third-party liability insurance coverage in place when operating on Indian roads. If the owner-driver fails to show valid proof of insurance coverage when interrogated, they will face a penalty of Rs. 2000 and/or 6 months imprisonment for the initial time. For subsequent incidents, the penalty will be Rs. 4000 and/or 3-month imprisonment as per Motor Vehicle Amendment Act 2019.

  1. Covering third-party liabilities

Car insurance plans offer coverage against all the legal third-party liabilities arising due to damage/loss caused by the insured vehicle. This means that if you get into an accident and someone else's property is damaged, or they are injured, your car insurance will cover those costs. This type of insurance is essential for anyone who drives, as it will protect both you and other drivers from unnecessary costs.

  1. Covering own damages and other services

Comprehensive car insurance plans are a great way to save money while protecting yourself against any possible damages. They offer comprehensive coverage against all own damages, so you don't have to worry about paying out of pocket for any repairs. Plus, they often come with roadside assistance and other features that can help make your life a little easier.

  1. Premium discounts

Car insurance plans offer NCB, or No Claim Bonus, which can help to lower premium rates. This is a great way to save money on your car insurance, as it rewards drivers who have a good driving record and have not made any claims on their insurance policies. The longer the policyholder goes without making a claim, the higher the NCB discount they will receive.

  1. Covering personal accidents

Car insurance is an important expense, and it's important to make sure you get the most bang for your buck. One way to do this is by getting personal accident cover. This type of coverage provides additional protection in the event of an accident, and it can often save you money in the long run. Plus, it can help provide peace of mind and financial security in the event that something unexpected happens.


All things considered, a motor insurance policy is one of those expenses that everyone should have, and that's why we feel confident recommending it. After all, you can never be too cautious when it comes to protecting the things that mean a lot to you.

Team Kotak GIC

The content of this blog has been created and carefully reviewed by the esteemed team at Kotak General Insurance, with the sole purpose of providing valuable guidance and sharing insights on the importance of general insurance. Our objective is to assist users in making informed decisions when purchasing or renewing insurance policies for their cars, bikes, and health. Our expertly curated information aims to empower our readers with the knowledge they need to protect their valuable assets and financial interests.