Car Insurance in India – Compare, Buy & Renew Online

Car insurance is a contract that provides financial protection to the insured vehicle against accidents, theft, fire, and damage to third parties or their property. It helps reduce unexpected expenses and ensures you stay legally compliant while driving.

Car insurance is a contract where the insurer promises to compensate for the losses or damage of the insured car arising out of any unexpected event, as covered under the policy. The insurer bears the loss in return for the periodic amount - ‘Premium’, which is payable by the policyholder.

Car insurance matters because it safeguards your finances, keeps you protected on the road, and gives you peace of mind in every journey.

To ensure proper compliance, several laws work together, which are: the Motor Vehicles Act, 1988 (MVA), the Insurance Act, 1938 and the Indian Contract Act, 1872. Car insurance is primarily governed by the Motor Vehicles Act, 1988, and the Insurance Act, 1938 is responsible for regulating insurance companies, whereas the IRDAI is the regulatory body

The Motor Vehicles Act, 1988, mandates vehicle owners to have a car insurance policy in India. All vehicle owners are required to have a four-wheeler insurance policy to meet the third-party liability.

What is Car Insurance Premium?

A car insurance premium is the amount you pay to your insurer to keep your vehicle covered under an active policy. It is calculated based on your car’s value, risk factors, coverage type, and add-ons you choose. In simple terms, it’s the cost you pay to protect your car from accidents, theft, and other damages.

What is Car Insurance Premium Formula ?

Total Premium = Base Own Damage Cost – (NCB + Applicable Discounts) + Third-Party Cover Cost + Add-on Charges + GST

The car insurance premium calculator allows you to check car insurance premiums easily and quickly by just providing a couple of details, such as car brand, model, insurance amount, etc. In this way, you can make an informed decision.

What are the Key Features of a Car Insurance Policy?

The key highlights of online car insurance are:

• Car insurance premium: To cover the financial loss of a private car, the insurance companies, in return, charge a certain amount periodically, called ‘Premium’.

• Third-party liability coverage: Vehicle insurance covers the losses/damage caused to third parties and their property as well. This, in turn, prevents the policyholder from unexpected financial losses.

• Financial protection: Car insurance policies provide financial protection against the losses incurred to the vehicle. It covers the losses caused to the private four-wheeler due to natural or man-made factors, as mentioned under the policy.

• No Claim Bonus (NCB): For claim-free years, individuals can get a certain amount of discount at the time of policy renewal. The NCB goes up to a maximum of 50%.

• Add-on covers: Car insurance also allows individuals to include an add-on cover based on their requirements. A few of the major add-ons include: Zero depreciation, roadside assistance, engine protection, etc.

• Personal Accident cover: A car insurance policy helps people with a personal accident cover of up to ₹ 15 lakh to cover the financial expenses occurring out of the accident of the vehicle owner.

• Cashless garages: With a four-wheeler insurance policy, the policyholder can get their vehicle repaired at the authorised centres without any hassle.

• 24/7 assistance: Getting an online car insurance policy helps policyholders with round-the-clock assistance to address their queries.

• Easy and quick renewals: An online vehicle insurance policy adds convenience by letting policyholders renew their policy on time easily and swiftly.

Easy claim process: Like renewal, the online four-wheeler insurance saves from the lengthy offline claim process and the paperwork involved. With just a simple click, one can raise the claim request.

What are Different Car Insurance Policies in India ?

Choosing the right insurance is essential for every car owner. In India, there are primarily three types of policies available that dictate the level of protection you receive for your car, and third party involved in an incident.

1. Third-Party Liability Policy (TPL): Mandatory under Indian law, this policy protects you from financial liabilities arising from damages caused to another person, their vehicle, or their property. It does not cover your own car but ensures you stay legally compliant while driving on public roads.

2. Comprehensive Policy (Package Policy): A more advanced policy that covers both third-party liabilities and own-damage. It offers protection against accidents, theft, fire, natural disasters (like floods, cyclones, earthquakes), and man-made events (like riots or vandalism).

3. Standalone Own-Damage (OD) Cover: A policy designed specifically to cover damages to your own vehicle. It includes protection from road accidents, fire, theft, and natural or man-made calamities. It must be purchased along with a third-party policy, as OD-only insurance is not legally sufficient.

What is Car Insurance for EVs

Car insurance for electric vehicles (EVs) is a specialised motor insurance policy designed to cover the losses or damage caused to EVs. An EV car insurance policy covers all the damage or losses incurred in the possible events as mentioned under the policy.

Since EVs have higher repair costs and sensitive electrical systems, EV insurance ensures complete protection from accidental damage, fire, water-related issues, and third-party liabilities. It provides customised coverage for modern electric cars and helps reduce ownership risk.

How can You Enhance a Car Insurance Policy With Add-Ons?

Add-On covers are the simplest way to enhance the car insurance policy in a way you want. These are optional enhancements you can attach to your comprehensive or OD policy for improved coverage.

Popular add-ons include:

• Zero Depreciation: Ensures full claim value without deducting depreciation because of the vehicle’s age.

• Engine Protect: Covers engine damage due to waterlogging, oil leakage, or mechanical breakdown.

• Roadside Assistance: Help during breakdowns—towing, jump-start, tyre change, fuel delivery, etc.

• Return to Invoice (RTI): Provides full invoice value in case of total loss or theft.

• Consumables Cover: Pays for items like nuts, bolts, engine oil, and AC gas during repairs.

Why Should You Buy a Car Insurance Policy Online?

Other than being mandated by the law, there are several reasons that benefit the vehicle owners.

Few of the benefits one can enjoy by buying a car insurance policy online are:

1. Paperless Process: No physical forms or documents are required. You can upload details digitally and receive your policy directly to your email or dashboard. This ensures faster processing, minimal errors, and a smoother buying experience.

2. Instant Quotes: Compare multiple insurers side-by-side within seconds. Online platforms allow you to check premiums, add-ons, coverage benefits, and discounts instantly.

3. Time and cost-effective: Getting a car insurance policy online saves time and money. By allowing people to compare all plans in the same place, it saves time and money as online policies are cheaper than offline policies.

4. Lower Premiums: Online car insurance often costs less because there are no middlemen or agent commissions. Insurers offer exclusive online discounts, making your policy more affordable compared to offline purchases.

5. 24/7 Accessibility: Unlike offline agents, online car insurance services are available round-the-clock. Whether it's midnight or early morning, you can buy, renew, or compare policies without delays.

6. Instant Policy Issuance: Once payment is completed, your policy document is generated instantly. You can download it immediately, making it ideal for urgent needs like vehicle inspection, long trips, or regulatory compliance.

How to Choose the Right Car Insurance Policy Online?

The digital market makes finding car insurance easy, but you must focus on balancing essential coverage, your budget, and the insurer's reliability to make a smart investment.

1. Compare Coverage Options: Start by comparing policies from multiple insurers. Look at what each plan covers, the premium amount, available add-ons, and claim settlement benefits. This helps you understand which plan gives the best value for your needs.

2. Consider Your Car’s Age & Condition: Choose coverage based on how old your car is. New cars benefit from comprehensive insurance and add-ons like Zero Depreciation, while the older cars may need essential coverage with fewer add-ons to keep premiums affordable.

3. Evaluate Driving Habits: Your daily driving style plays a big role in selecting the right policy. If you drive long distances, choose add-ons like Roadside Assistance on the other hand, if you frequently drive through traffic, a Zero Depreciation add-on may save repair costs.

4. Check Your Location Needs: Policies should match the risks in your area. If you live in high-flood or coastal areas, then the Engine Protection add-on is the best option. If you live somewhere in High-theft zones, then a comprehensive or anti-theft discount would be a better option.

5. Verify Claim Settlement Record: Always choose insurers with a high claim settlement ratio and easy claim procedures. This ensures faster approval and a smoother claim experience when you need it the most.

What are the Things to Keep in Mind While Buying a Car Insurance Policy in India?

Before you finalize your purchase, it is vital to pay close attention to the details of the policy. What you are paying for, and what is excluded, will ensure a smooth experience.

1. Compare Plans: When buying car insurance online, always compare the available plans to cover unexpected financial losses at an affordable premium, in order to make an informed decision.

2. Claim Settlement Ratio (CSR) Review: When comparing the different car insurance plans, always review the CSR of the insurance providers. It is a metric to measure the percentage of claims successfully settled by that particular insurer. Opt for the plans of the companies with high CSR.

3. Understand Policy Terms: Before purchasing, read the policy’s inclusions, exclusions, deductibles, and conditions. This prevents surprises during claim settlement and helps you know exactly what your insurance covers.

4. Choose Coverage That Matches Your Risks: Select a policy that suits your budget while covering the unexpected losses at the same time.

5. Maintain No Claim Bonus (NCB): Avoid raising claims for small damages. Conserving your NCB helps you get a discount on your renewal premium over the years.

6. Check Cashless Garage Network: A strong network of cashless garages ensures quick repairs without paying upfront. Choose insurers with a wide network in your city for smoother claim experiences.

7. Review Claim Filing Process: Make sure the insurer offers a simple, digital-first claim process—like app-based filing, video inspection, and quick approval. This saves time and reduces hassle during emergencies.

What is IDV in Car Insurance Policy?

The Insured Declared Value (IDV) is the current market value of your car and plays a major role in deciding your insurance premium. A higher IDV means better compensation during total loss or theft, while a lower IDV reduces your premium but limits your payout. IDV is influenced by several factors that determine how much your vehicle is worth at the time of policy purchase or renewal.

1. Car’s Age: IDV decreases every year due to depreciation. Older cars have lower IDV compared to new ones.

2. Vehicle Make & Model: Premium or high-end vehicles automatically carry a higher IDV than budget cars due to their higher market value.

3. Depreciation Rate: Insurers apply a standard depreciation percentage each year, directly reducing the IDV.

4. Registration City: Cars registered in metro or high-risk areas may have slightly adjusted IDV due to market demand and risk levels.

5. Market Conditions: Current resale value trends and manufacturer pricing changes can affect how insurers determine your IDV.

Car insurance is essential for every vehicle owner, but choosing the right one becomes easier when you understand coverage types, premium factors, and other crucial aspects relating to it. Compare quotes, explore add-ons, and pick a comprehensive policy that keeps you fully protected on the road.

Evaluate your needs, compare policies online, and choose a plan that delivers maximum coverage at the right price. Make an informed choice today and enjoy complete peace of mind.

How to download your car insurance policy online on Park+?

Park provides individuals with access to download the insurance policy details whenever they need. Just perform these simple actions to get the soft copy of the car insurance policy:

1. Navigate to Park+ and go to the ‘Profile’ section.
2. Once there, select ‘Orders’ to view your complete list of transactions.
3. Find and click on ‘Insurance Order’ to access details of your car insurance order.
4. To download the policy, simply click on ‘Download Policy’.
5. Wait a few minutes for the car insurance policy documents to be saved to your device.

Note: For added convenience, the policy documents will also be sent directly to you via WhatsApp.

Why Should You Renew an Expired Car Insurance Policy Immediately?

Car insurance renewal is a process of extending the policy coverage for another period, renewing the policy details, including the add-ons, etc., to ensure that the car remains protected against any financial losses as covered under the policy terms.

Getting a policy renewed on time is a responsibility of the policyholder; it not only eliminates risks but also brings a lot of benefits.

Here are some of the great benefits that policy renewal on time brings to the policyholder:

• Prevents from fines and penalties by adhering to the Motor Vehicles Act, 1988.
• A valid continued car insurance policy provides financial coverage.
• Protects from financial losses/liabilities.
• Helps in the accumulation of No Claim Bonus (NCB)
• Eliminiates the possibility of increases in the car insurance premium.
• Eliminates the chances of vehicle inspection. In case a car insurance policy lapses, the vehicle needs to be inspected again before buying a new car insurance policy.

What are the Benefits of Car Insurance Renewal Online?

Renewing a car insurance policy might seem hectic, but not anymore with the available online options. Park+ allows policyholders to renew their car insurance online easily. Online renewal of a car insurance policy is undoubtedly a cost-effective method and in addition to this, it brings tons of great benefits.

Take a look at the benefits you can avail by extending the policy coverage online.

• Helps you compare different car insurance plans conveniently.
• Let the policyholder discover and enjoy discounts or any other running special offers.
• The car insurance premium calculator allows the policyholder to assess the payable premium and choose the policy that best suits their budget.
• Saves time by letting people complete the entire process right from their comfort zone, without visiting the banks or car insurance provider.
• Reduced hassle. Right from reviewing the policy to renewing it, the complete process can be done without any hassle.

How Can You Save on Your Car Insurance Premium?

Having car insurance is mandatory as per the law, but it need not to be expensive. With some smart tips, you can surely save some money on the premium.

The must-know tips that help you to save some money are:

• Perform detailed comparative analysis.
• Choose voluntary deductibles.
• Enquire about the discounts or other offers.
• Select the right IDV of your car.
• Take advantage of No Claim Bonus (NCB).
• Install Automotive Research Association of India (ARAI) approved anti-theft devices.
• Select only necessary add-ons.
• Avoid making small claims.
• Drive safely to maintain a good driving record.
• Inculcate the habit of reviewing the insurance policy annually.

Factors Affecting Car Insurance Premium

A car insurance premium is the amount payable by the policyholder to secure the car against financial liabilities. The premium is mainly affected by the vehicle, driving traits, policy coverage and demographic profile.

Here are the main factors that influence the premium of the car insurance policy:

• Demographic factors:The demographic factors, such as age, gender, profession/employment type, city, marital status, income, etc., directly affect the premium.
• Driving-related factors: The driving-related factors, like driving history/record, daily or occasional travellers, etc., are a few of the main driving-related factors that highly influence the car insurance premium.
• Policy-related factors: Premium also differs based on the policy coverage, type, add-ons (if any) and deductibles. Thus, it is advised to check and choose the policy wisely.
• Vehicle-related factors: The age of the vehicle, make, model, IDV, fuel type and safety features are some of the vehicle related factors that highly affects the premium.
• Claim record: The frequency of claims raised directly affects the car insurance premium. In case of previous claims, the premium is expected to rise and vice-versa.
• Credit score: Another crucial factor impacting the premium is the credit score. A good credit score increases the chances of low insurance.
• From where the policy was purchased: The premium also differ based on the mode of buying a car insurance policy - online or offline. Usually, online car insurance policies offer low premium as compared to offline policies.
• Anti-theft devices: Installing ARAI-certified anti-theft devices usually contributes in lowering the car insurance premium.

List of IRDAI Approved Car Insurance Companies in India 2026

Here are some of the companies offering car insurance policies in India, along with their claim settlement ratio and network garages.

Take a glance of it

Benefits of Buying Car Insurance Online from Park+

Park+ offers a range of car insurance policies from different providers to let you make a wise decision. It has made the complete process of buying, renewing and claiming the car insurance reliable and convenient.

Below are the reasons why you should buy car insurance policy online through Park+:

• Cost-effective: Buying a car insurance online through Park+ is a cost-effective method. It lets individuals avail offers, special discounts (if any)
• Easy comparison: When buying car insurance policy online, you can compare quotes of different insurance provider, check the policy terms and conditions and go with the one that fits your budget and expectations.
• Transparency: With online purchase, you can review complete policy from premium to coverage, terms and conditions etc, making the purchase transparent and fair.
• Saves time and efforts:Buying car insurance online save time and effort. People can browse and compare different policies without stepping out and making physical visit.

Documents Required for Renewing Car Insurance

The documents needed at the time of car insurance renewal are: - Existing policy details - Identity proofs: aadhar card, PAN card, etc. - Residence proof - Driving licence - Passport size photograph (recent) - Registration certificate - PUCC - Card details - debit/credit card

What is the Claim Settlement Ratio in Car Insurance?

Claim Settlement Ratio or widely called CSR is the percentage of claims settled by the insurer against the total application received. The CSR reflects the creditworthiness of the car insurance provider and helps individual pick a suitable insurer. A high CSR reflects that the company has a good creditworthiness and vice-versa.