Why Having a Car Accident Loan is Important for the Youth?

Road connectivity in India has improved drastically in the last couple of decades. In fact, between 2000 and 2015, the length of roads in India increased by 39%. In the same period, our roads witnessed a 158% increase in the number of vehicles, according to information provided by PRS Legislative Research.

But with the rise in number of vehicles and road length, there was an increase in another statistic, an unfortunate one, road accidents. In fact, in 2016 alone, 464,674 collisions took place on the roads of India, according to data provided by the National Crime Records Bureau. These led to injuries, loss of property and even the death for thousands of people. Despite this, many people do not have a personal accident insurance policy.

The Importance of Car Accident Loan

Apart from the loss of lives and property, which takes place due to an accident, there are other expenses that may arise too. Car accidents can also often lead to an injury lawsuit, which can cost you a fortune. Additionally, there could be car repairs to take care of. A car accident loan helps you in paying for the fees of the attorney, mortgage payments and other routine expenses.

After being involved in a car accident, you might not be able to work because of the injuries. This means not being able to earn a living. In such a situation, the added financial stress of hiring a good lawyer to help your case can be extremely tough. This is why having a car accident loan is vital. These are even more vital for the youth, who might not have a well-paying job or enough savings at this stage of their life.

Car Accident Loan Alone is Not Enough

Although a car accident loan can be a saviour, it alone is not sufficient for dealing with the losses resulting from an accident. What you require is personal accident insurance. This type of policy provides financial support for medical expenses, such as treatment, hospital stay and medicines. There are generally two types of policies:

Individual Accident Insurance

Under this category, an individual gets the benefits of the insurance policy for the damage caused by an accident. The policy usually provides compensation for personal injury, such as loss of limb, eyesight, or any other permanent damage. It also covers death due to an accident. In case of death, the assured sum is paid out to the family of the policy holder. Certain policies may even offer financial assistance for transportation of the mortal remains. Some policies might also provide for the education to the children of the policyholder, in case of their demise. This policy is best suited for salaried individuals.

Group Accident Insurance

This policy is generally bought by employers for their employees. The benefits of this personal insurance policy are fewer than the individual policy.

In 2018, nearly 1.49 lakh deaths took place in India because of road accidents. Such a tragedy can leave a family in an extremely difficult situation financially. Therefore, it is a good idea to get personal accident insurance, so that you don’t need a car accident loan.