In India, car insurance is mandatory by law, under the Motor Vehicles Act 1988, for every vehicle. Casually forgetting to get your car insured or thinking about getting it done later is risky and not advisable. It puts you on the wrong side of the law and can lead to large fines.

Also remember that there is a period of validity for car insurance, which is usually twelve months. If you dent your car or cause an accident beyond the validity date, none of the benefits can be availed. Hence, timely renewal of your car insurance is as important as purchasing it.

Mistakes can be avoided by being careful, but they may still occur. However, by having car insurance, you can save yourself from unnecessary costs, fines and inconveniences.

Regulations regarding car insurance
Absence of car insurance is a punishable offence. Driving without a valid insurance can attract a maximum penalty of Rs. 1000/- and/or 3 months imprisonment. In some cases, they may even suspend your license.

If you are caught for going against the traffic rules or even stopped for a routine check, it is compulsory to provide your car's documents. This includes the insurance documents. If you do not possess valid car insurance documents, you will be fined.

The cost of ignoring car insurance
If you accidentally dent another vehicle, not only will you have to pay for that from your own pocket, but also you will have to face an added penalty for not having your insurance. That may include a fine or even imprisonment depending on the nature of the violation. Even if you are injured in a car accident, along with the exorbitant hospital bills which you will have to bear, you will also be asked to pay an extra fine for not having valid insurance.

The types of car insurance available
There are various companies providing different car insurance options. It is advisable to carefully study and compare options before making a decision. There is a 'Third Party Insurance' which will help pay out all damages caused by you to the other person whose vehicle you have damaged. Then there is a 'Comprehensive Insurance' which covers 'third party' liability and also protects your car against damages from accidents, theft, floods, etc. Choosing a suitable policy will help you save thousands in compensation and restorations costs.