Car Insurance

What is Car Insurance?

Car insurance protects you financially against damages to your car (own-damage cover) and against legal liability if your car damages a third party’s property or injures someone (third-party cover). Third-party insurance is mandatory under the Motor Vehicles Act.

Why buy Car Insurance?

• Third-party cover is mandatory by law — driving without it is a fineable offence
• Comprehensive plans cover own-damage from accidents, theft, fire, floods, riots
• Cashless repairs at 4,000+ network garages
• Engine protect, zero-depreciation, and roadside assistance add-ons available
• No-claim bonus rewards safe driving with up to 50% premium discount

Key benefits

• Covers own-damage from accident, theft, fire, natural calamities
• Third-party legal liability — unlimited cover for personal injury, ₹7.5 lakh for property
• Personal accident cover for the owner-driver (₹15 lakh mandatory)
• Cashless claim settlement at network garages
• Optional add-ons: zero-dep, engine protect, return-to-invoice, key replacement
• Pay-as-you-drive (PAYD) plans for low-usage cars

What to check before you buy

• Pick the right IDV (Insured Declared Value) — too low means under-coverage
• Add zero-depreciation cover for cars under 5 years old
• Check the network-garage list near home and frequent travel routes
• Renew before expiry to keep your no-claim bonus
• Compare claim settlement ratios — ideally above 90%

Tax benefits

Car insurance premiums for personal-use vehicles are not tax-deductible. For commercial vehicles registered to a business, the premium is a business expense and can be claimed.