Car Insurance FAQ Questions

Frequently Asked Questions

Is it mandatory to buy car insurance in India?

Yes. It is illegal to drive a car on Indian roads without car insurance.

Do private and commercial vehicles both need insurance?

Yes, all cars need insurance, be it private or commercial.

What should I do if I have a car accident?

- Take immediate safety precautions like inform the police, ambulance (if needed), and switch on the hazard lights.

- Collect the details of everyone involved in the accident like all drivers, passengers, and witnesses.

- Contact your insurance company and start your claim procedure.

How can I reduce my car insurance premium?

Few ways to reduce the premium:

- Pay annual premium instead of monthly premium

- Research the market and choose an affordable policy

- Customise your policy with only necessary add-ons

When can I renew my car insurance?

Renew your car insurance online. You will be notified in advance of the expiry date, renew it within the grace period.

What amount can I insure my car for?

The insurance amount is calculated based on several factors, like your car type, model, loans involved etc. Insurance companies customise a quote based on your needs and policy type.

What is No-claim Bonus (NCB)?

If you don’t make any claim during the whole year, you get up to 20% No-claim bonus. This gets deducted from the subsequent year’s premium for your car insurance policy.

Why do I need car insurance?

If you are driving on the roads, you must have car insurance. Here’s why:

1. Mandatory law: Under the Motor Vehicles Act, 1988, it is illegal to drive on Indian roads without car insurance.

2. Unexpected expenses: A car accident is an unforeseen event that can incur a huge amount of expenses. Not having car insurance can hit your savings and leave you cash-strapped.

3. Third party damages: Damaging someone else’s property or vehicle due to a collision can land you in a nasty situation. If you have car insurance you can get the third party damages compensated without any hassle.