Is Car Insurance Mandatory for a Parked Car in India?
Yes, car insurance is mandatory in India even for a parked car if it is in any public space. NotRead more
What are the Risks for a Parked Car?
Even when a car is not being driven, it can still be exposed to certain risks that may cause damage or loss. Have a look at these risks:
- Theft: A parked car can be stolen even when it is kept at home or in a designated parking area.
- Fire: Electrical faults, nearby fires or other incidents can also damage a stationary car.
- Natural calamities: Floods, storms, hailstorms and falling trees can damage cars while they are parked.
- Vandalism: Broken windows, damaged body panels or other intentional acts can cause losses.
- Falling objects: Trees, construction material and other objects can also damage a parked car.
Which Type of Insurance is Mandatory for a Parked Car?
The Indian Motor Vehicles Act, 1988 requires at least third-party insurance for all motor vehicles used in public places. Here is a quick overview of insurance requirements for vehicles based on where they are parked:
| Where the car is parked |
Insurance requirement |
| Public road/parking area |
Valid third-party insurance is required |
| Private residence/garage |
Generally not required because the car is stationary |
A public road falls within the scope of a public place under the Motor Vehicles Act. Hence, you should not assume that since the car is just sitting there and not being driven on the road, you do not need to pay for its car insurance.
What if Car Insurance Expires While the Car is Parked?
If your car is parked on private premises and is not being used, the expiry of the policy does not mean you are driving an uninsured vehicle on a public road. However, you cannot take the uninsured car onto a public road. If your car insurance has expired, you should not drive the vehicle road until you renew the coverage. Doing so otherwise can attract penalties under the Indian Motor laws.
Read More: How to Renew Expired Car Insurance?
What Type of Insurance Covers a Parked Car?
The type of car insurance you need depends on the protection you want for the parked vehicle:
- Third-Party Liability Policy: The mandatory policy for every vehicle driven on public roads, third-party insurance covers your legal liability towards third parties. It does not cover damage to your own parked car.
- Comprehensive Car Insurance: Covers both third-party liabilities and your insured parked car against damages from accidents, theft, fire, and natural calamities. You can further enhance the coverage of your comprehensive car insurance by opting for add-on covers for an additional premium.
- Standalone Own-Damage Policy: The own damage insurance only covers damage to your parked car against covered risks as per policy terms. But it does not replace mandatory third-party liability cover where it is required.
Is Comprehensive Insurance Mandatory for a Parked Car?
No. Comprehensive car insurance is optional. The mandatory insurance requirement is the third-party liability cover when the vehicle is used in a public place. However, a comprehensive policy is recommended as it provides additional protection for the car itself. Hence, if your car is parked for a long period, comprehensive insurance is the ultimate protection.
Key Takeaways
Here's a quick recap of what you need to know about car insurance for parked vehicles:
- A parked vehicle is not automatically exempt from car insurance requirements.
- Third-party insurance is mandatory when a car is used in a public place.
- A car parked in private premises is different from a vehicle being used on a public road.
- Comprehensive insurance is not legally mandatory, but it can cover the parked car against specified risks.
- If insurance has expired, renew it before driving the car on a public road.
