Car insurance is mandatory to drive a car in India. New cars come with one year’s worth of insurance coverage, which can be renewed each year. If you are buying a new car, your dealer will advise you as to the best insurance company, or call in a company with whom they have an affiliation. If you are buying a used car, you can transfer the insurance policy used by the previous owner, or opt to change to a new one.While the coverage for your car is governed by Indian Car Tariff and will be the same across all insurance companies, the premiums differ from company to company. Depending on the value of your car, you could pay an annual premium of Rs. 8,000 to Rs. 60,000 or significantly more, if you’re buying a top-end luxury car.

Most insurance policies come with coverage against damage to your car, as well as third party damage (damage inflicted by your car on other cars/property/persons).

You should ask if, in addition, your insurance also covers:

  • Loss or damage to your vehicle due to natural calamities
  • Loss or damage to your vehicle due to man-made calamities
  • Personal Accident (injury to driver, passengers)

Many policies also offer cashless repair facilities, in which you do not have to pay for repairs and be reimbursed, but the repair charges are paid to the garage directly by the insurance company.

Some major car insurance companies are:

You can also compare insurance policies on Policy Bazaar.