What is Car Insurance?
Car Insurance (also called Motor Insurance) is a legal contract between you and an insurance company. It provides financial protection against losses or damages to your car, third-party vehicles, property, or even injuries caused in accidents.
👉 In India, Third-Party Car Insurance is mandatory under the Motor Vehicles Act, 1988.
🎯 Why is Car Insurance Important?
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Legal Requirement – You cannot drive without at least third-party insurance.
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Financial Protection – Covers repair or replacement costs in case of accidents.
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Third-Party Liability – Protects you from legal/financial liabilities if you injure someone or damage their property.
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Theft or Fire Coverage – Covers loss of car due to theft, fire, or natural calamities.
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Cashless Repairs – Many insurers have tie-ups with garages for direct claim settlement.
📌 Types of Car Insurance in India
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Third-Party Liability Insurance
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Mandatory by law.
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Covers damage to other people, vehicles, or property.
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Does not cover your own car’s damage.
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Comprehensive Insurance
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Covers both third-party + own damage.
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Protection against accident, theft, fire, natural disasters, riots, etc.
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Can be customized with add-ons.
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Own Damage Insurance (OD)
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Only covers damage to your own car.
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Useful if you already have third-party cover but want extra protection.
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🔑 Popular Add-ons in Car Insurance
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Zero Depreciation Cover (full claim without depreciation cut)
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Roadside Assistance (help if car breaks down)
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Engine Protection
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No Claim Bonus (NCB) Protection
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Personal Accident Cover
💡 Things to Check Before Buying Car Insurance
✔️ Compare premiums and coverage of multiple companies.
✔️ Check claim settlement ratio of the insurer.
✔️ Look for a wide network of cashless garages.
✔️ Choose the right IDV (Insured Declared Value) for better claims.
👉 In short: Car Insurance saves you from heavy expenses and legal troubles while giving peace of mind on the road.
