These Reasons Tell Why a Car Insurance Is Necessary

The traffic jam snapshots of Indian streets show a clear picture of how many cars cover the roads on a daily basis. Owning a car surely puts an end to dependency on public transport. However, it increases the chances of accidents even more.

Read more


Compare & Save upto 85%* on Car Insurance
Processing
Get Car Insurance starting
@ only 2094/year#
  • Renew Policy In2 Minutes

  • 20+ Insurers To Choose From

  • 51 Lakh+ Vehicles Insured

#TP price for less than 1000 CC cars. All savings are provided by insurers as per IRDAI approved insurance plan. Standard T&C apply.

Car Insurance Premium Price

New India Assurance

Cashless Garages

253

Plan type

Comprehensive

Starting from

₹ 2,727

Check premium
Claim Advantage
  • Self-Video Claims
  • Reimbursement Within 7 Working Days For Non-Cashless

National Insurance

Cashless Garages

268

Plan type

Comprehensive

Starting from

₹ 2,757

Check premium
Claim Advantage
  • Self-Video Claims
  • Reimbursement Within 7 Working Days For Non-Cashless

Bajaj Allianz

Cashless Garages

1024

Plan type

Comprehensive

Starting from

₹ 2,868

Check premium
Claim Advantage
  • Spot Claims Upto Rs. 30,000
  • Repair service at select cashless garages

DIGIT

Cashless Garages

Repair Anywhere

Plan type

Comprehensive

Starting from

₹ 2,962

Check premium
Claim Advantage
  • 6-Month Repair Warranty
  • Advance claim payment
  • Free Pick-up & Drop

Oriental Insurance

Cashless Garages

258

Plan type

Comprehensive

Starting from

₹ 3,005

Check premium
Claim Advantage
  • Self-Video Claims
  • Reimbursement Within 7 Working Days For Non-Cashless

DIGIT

Cashless Garages

Repair Anywhere

Plan type

Third Party

Starting from

₹ 2,094

Check premium
Claim Advantage
  • Covers damages to third party property
  • Covers damages to third party person

Bajaj Allianz

Cashless Garages

1024

Plan type

Third Party

Starting from

₹ 2,094

Check premium
Claim Advantage
  • Covers damages to third party property
  • Covers damages to third party person

Oriental Insurance

Cashless Garages

258

Plan type

Third Party

Starting from

₹ 2,094

Check premium
Claim Advantage
  • Covers damages to third party property
  • Covers damages to third party person

National Insurance

Cashless Garages

268

Plan type

Third Party

Starting from

₹ 2,094

Check premium
Claim Advantage
  • Covers damages to third party property
  • Covers damages to third party person

New India Assurance

Cashless Garages

253

Plan type

Third Party

Starting from

₹ 2,094

Check premium
Claim Advantage
  • Covers damages to third party property
  • Covers damages to third party person
See more plans

Above-mentioned prices are for a 7-year-old Maruti WAGON R AVANCE LXI (998 CC) registered in Gurgaon and 15 days before expiry of previous policy

The increasing number of accidents in India is quite alarming. It increases the risk to both the car owner and as well as the third party. Over that the chances of damage caused by natural and man-made calamities make it riskier in India to own a four-wheeler. Let us understand apart from the mandatory insurance cover why is it really necessary to buy car insurance in India.

Why is Car Insurance Mandatory in India?

Approximately thousands of road accidents occur in a day in our country and it is quite concerning the amount of money gets spent on the resolution. It is safe to say that a minimal cost can be borne by the car owner but who will take the responsibility for huge damage/loss?

This is where car insurance plays a vital role. Keeping the major loss and damage to the people and people's property the law has made it compulsory for every car owner to buy a car insurance plan in India.

However, the insurance company will only provide coverage to those who will buy the insurance, the car owners without insurance policy will have to bear the losses from their pocket.

The insurance companies offer two types of insurance plans - one is third-party insurance and the other is a comprehensive insurance plan.

Following are the major reasons that make it a must to buy Car Insurance:

1. Provides Cover for Damage

A motor insurance policy whether third-party or comprehensive insurance plan provides coverage for the damage caused by an accident on the road. Whether it is your car damage or third-party person or vehicle damage, a car insurance plan can save you from spending a huge amount to cover the losses. While a third-party plan only covers the liability towards the third party, a comprehensive plan covers the damage/loss of your car and co-passengers.  

2. Mandatory as Per Law

As per the Motor Vehicles Act of 1988, it is mandatory to buy a car insurance plan in India. Third-Party car insurance is a policy that falls under the mandatory category covering only the liabilities towards the third party.

Remember that if you'll be found without the mandatory insurance plan then you will be charged with a penalty by the traffic personnel. It is advisable to avoid such penalties by keeping your motor insurance plan renewed from time to time.

3. Cover for Liability

As we have discussed before, with the help of only third-party insurance you can cover the damage or injury caused to a third-party person or vehicle by your car. This plan can save you from the legal issues pertaining to an accident caused by your car, as it settles the damage/loss of the third party when required.  

4. Online Purchase is Cost-Effective

Digital media has shown a great increase in online shopping for several goods/services during the time of the pandemic. It is safe to say that the online purchase saves time, cost and offers discounts. Even to buy a car insurance plan you can refer to online means to purchase a cost-effective plan. It also helps you save agent commission and the renewal is hassle-free as it takes only a few clicks and requires no paperwork. 

5. Replacement in Case of Theft

The case of theft is a major concern for every car owner, especially if you own an expensive car. A motor insurance plan comes with the benefit that in case your car gets stolen, the insurer will provide compensation for the value of the car or replacement (depending upon what you choose at the time of purchase). Remember to choose the theft cover rider to avail this benefit. 

6. Compensation for Family

In the unfortunate case of your demise due to a road accident, the nominee or the beneficiary in your family will receive the compensation. If your family is dependent on you, after your accidental death the insurance policy will make sure to help them meet the day-to-day expenses. 

Repercussions of Not Owning a Car Insurance

Imagine a case where you got a new car and you are following every traffic rule on the road. However, after some time if you accidentally collide with someone's property or car or even a person. This will become a third-party damage case. In this scenario, if you do not have a car insurance policy- the obvious is you will have to bear the losses/damages caused to the third party. Apart from that, the following repercussions will be applied:

  • It will lead to the suspension of your driving license
  • It will lead to legal charges and punishment
  • It will lead to the suspension of your car's registration
  • You will have to bear the traffic fine for driving without mandatory motor insurance

How Can You Buy Car Insurance in India?

You can use the following methods to buy a car insurance plan in India:

1. Online Method

We cannot stress it enough that online purchase of a car insurance policy is the easiest method during the current times. You can do thorough research, compare the best car insurance plans available in the market. You can also look for the options to customize your comprehensive car plan to enhance the overall coverage of the policy. Once you're satisfied with the research or comparison, within a few clicks you will be able to buy a car insurance plan online from the comfort of your home or anywhere as you please.

2. Offline Method

The offline method is a very traditional one. The process involves you either buying the plan from the car dealer, or insurance agent or simply walking into the nearest insurance company branch. The offline procedure involves paperwork and takes more time as compared to the online method.

The Final Word

Every car owner spends a lot of time choosing the best style, best mile coverage, best engine, best colour, best everything while purchasing a car. However, only a few people invest their time into buying a motor insurance plan for their vehicle. It might be so because many don't know about the importance and benefits of a car insurance policy. That is why the government has made it compulsory to at least buy a third-party insurance plan to cover the third-party liability due to the insured car.  

Written By: PolicyBazaar - Updated: 25 August 2021
You May Also Like
  • Transferring Car Insurance from One Person to Another

    Transferring Car Insurance from One Person to Another An integral part of selling a car, for both the buyer and the seller, is ensuring a successful car insurance transfer to the new owner. But sadly, most people have...

    read more
  • 9 Secrets That Your Motor Insurance Provider Won’t Tell You

    9 Secrets That Your Motor Insurance Provider Won’t Tell You Due to the dangerous driving conditions, it is compulsory to have third party insurance for every vehicle plying on Indian roads. It ensures the overall saf...

    read more
  • Money Saving Advice for All Car Owners

    Money Saving Advice for All Car Owners After a dream home, a dream car is your second-largest purchase that you make in your lifetime. But the expense does not cease when you drive off the car dealer's lot. Read mor...

    read more
  • Difference Between Comprehensive Insurance and Third Party Insurance

    Difference Between Comprehensive Insurance and Third Party Insurance Comprehensive insurance is insurance coverage that pays for the repair or replacement of vehicle damages resulting from an incident. Comprehensive ca...

    read more
  • Types of Motor Insurance

    Types of Motor Insurance The word Motor broadly covers a lot of classes of vehicles plying on the roads. These may be two-wheelers like scooters and motorbikes, three-wheelers or four wheelers like private cars, jeeps, ...

    read more

Find similar car insurance quotes by body type

Hatchback Sedan SUV MUV
insurance-ka-superhero
Search
Car insurance save up to 85
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
Calculate your car IDV
IDV of your vehicle
Calculate IDV
Calculate Again

Note: This is your car’s recommended IDV as per IRDAI’s depreciation guidelines.asdfsad However, insurance companies allow you to modify this IDV within a certain range (this range varies from insurer to insurer). Higher the IDV, higher the premium you pay.

Policybazaar lets you compare premium prices from 20+ Insurers!
Compare Prices

Why buy from Policybazaar?

  • 24x7 Claims Assistance
    NEW
  • Cashless Assurance
  • 3-Day Repair Assurance
  • Free Pickup & Drop
  • Self Video Claims
  • Windshield Claims At Home
View Plans

Car insurance articles

Recent Articles
Popular Articles
Is Suspension Covered Under Car Insurance?

29 Jun 2022

A car's suspension helps to maximise the friction between the...
Read more
Know All About Vintage Car Registration Process

28 Jun 2022

No car can beat the beauty of a classic vintage car cruising on...
Read more
How to Save Your Car During Monsoon with Add-On Insurance Covers?

24 Jun 2022

Rains in India are mostly witnessed during the monsoon season. The...
Read more
Know About NCB Certificate in a Car Insurance

21 Jun 2022

With your car insurance policy, you get an additional benefit of a...
Read more
Know Everything About Endorsements in Car Insurance Policy

20 Jun 2022

When you buy a car insurance policy from an insurer, your policy...
Read more
Getting Your Duplicate Car Insurance Policy is Easy-Here’s How!
Losing important documents, such as your car insurance documents, can be daunting. In such a state of affairs, the...
Read more
Multiple Ways To Check Your Car Insurance Status Online
All insurance companies in India now have a digital presence. It not only makes it easier to buy insurance online...
Read more
Transferring Car Insurance from One Person to Another
An integral part of selling a car, for both the buyer and the seller, is ensuring a successful car insurance...
Read more
Check Car Insurance Status Online on Parivahan Sewa/ RTO?
In India, buying car insurance is a compulsion for every car owner. It doesn’t matter if you are an excellent...
Read more
Car Depreciation Calculator
If you are looking to purchase a new car or planning to sell your existing one, it is important to know how...
Read more