Introduction
In today\’s time it is very important to have insurance for every car. It not only provides legal protection but also provides you financial convenience. In case of an accident, car insurance helps you and other people from financial losses.
What is Car Insurance?
Car insurance is your financial safety that protects you and your car from accidents, theft and damages. If your car is damaged in an accident or some other loss, repair and medical expenses can be very costly. This is what car insurance does – it gives you financial support and protection so that you do not have to spend more money than you can afford.
Why is car insurance necessary?
Legal Requirement : Third-party insurance is mandatory in India under the Motor Vehicles Act, 1988. If you do not have insurance, you may be fine or even jail.1
- Legal Requirement – It is mandatory to get car insurance not only in our country but in most of the countries. If you do not have car insurance, you may be fined or penalized if caught by the police.
- Financial Protection – If the car gets damaged due to an accident or natural cause (like fire), then there can be huge loss. Hence, the insurance company covers your loss.
- Third-Party Protection – If your car causes any vehicle or third party loss, the insurance company covers the cost.
- Peace of Mind – When you have car insurance, you don’t have to worry about where the money will come from.
By taking car insurance you not only get protection for your car but also help in becoming a responsible driver for others. Now we will see what are the different types of cars.
Types Of car Insurance
Whenever you take insurance for your car, one or more plans come in front of you. Each plan has its own importance. So understand the types of car insurance given below.
Third-Party Liability Insurance (most basic and mandatory)
- This insurance is compulsory in India and all countries, driving a car on the road without insurance is a legal offense
- If your car damages someone else\’s car or property or a third person is injured, the insurance company covers the cost.
- But keep in mind that third party insurance does not cover the loss of your car.
Comprehensive Car Insurance (best and full coverage)
- In this, along with third-party liability, your car is also protected.
- All types of damages like accident, theft, fire, natural disasters (flood, earthquake) and vandalism are covered.
- If you want full protection of your car, then this policy is the best option.
- This plan is a little expensive than third-party insurance.
Collision Insurance (Protection of your car)
- If your car is damaged in an accident, the insurance company will bear the cost of repair
- Whether the accident happens due to some other reason or it is your mistake, the repair cost of your car will be covered.
- But there is no coverage for third-party damage or natural disasters.
Personal Injury Protection (PIP) (Cover of medical bills)
- If an accident happens due to any reason, the medical expenses of you and the people sitting with you are covered.
- Doctor fees, hospital bills, and even lost wages (if you are unable to work) are also included.
- This insurance is not available in all countries or states.
Zero Dep Insurance (100% claim without depreciation cut)
- Normally, the value of car parts depreciates over time, so the insurance company deducts the depreciation amount during claim settlement.
- In Zero depreciation plan, you get the entire money. Without deducting any charges.
- This plan is a little costly, but is the best option for new and luxury cars.
Pay-as-you-drive insurance (usage-based insurance)
- This is a new plan and smart insurance option that charges premium based on the amount of driving you do in your car.
- If you drive less or drive occasionally, you may find it cheaper than normal insurance.
Which insurance is best for you?
- If you just want to fulfil legal requirement → take Third-Party Insurance.
- If you want full protection → Comprehensive Insurance is best.
- If you have a new model or luxury car → consider Zero Depreciation Insurance.
- If you drive less → Pay-As-You-Drive plan will be right.
You should choose the best option according to your need! 🚗💡
How to choose the right car insurance policy

Taking car insurance is not a legal requirement, because it is for your financial security. But which policy is best for you? Which plan is best for you and good according to your need? It can be a bit confusing to see or take this.
Let us understand step-by-step how to choose the right car insurance policy:
Understand your needs 🤔
First of all, decide how much coverage you need:
- If you want to avoid police challan or legal charges → take Third-Party Insurance.
- If you want to protect your car → Comprehensive Insurance is best.
- If your car is new or of high value. → consider Zero Depreciation Policy.
- If you drive your car less. → look for Pay-As-You-Drive plan.
- Try out plans from different insurance providers
Try out plans from different insurance providers
All companies offer different premiums and plans, so it is not right to check the premium and buy a policy from a single company.
- Compare Premium + Coverage + Benefits.
- Use online insurance aggregators ( SAHWAL INSURANCE ).
- Take recommendations from friends and family who are already using the policy.
Read the fine print of the policy carefully 📜
Never buy any policy in a hurry! Insurance policies have many terms & conditions, which can give you problems at the time of claim.
- Check the coverage and exclusions (what will be covered and what will not).
- Is the claim process simple or complicated?
- Are there any hidden charges or deductibles?
Selection of Add-On Covers is done carefully 🛠️
If you want extra cover, you can get add-on covers, but you will have to pay extra premium for each cover.
✅ Zero Depreciation Cover: You will get the full claim amount, without depreciation deduction.
✅ Roadside Assistance: You will get help in case of breakdown or emergency.
✅ Engine Protection Cover: If the engine is damaged in a flood or accident, you will get cover.
✅ Consumables Cover: Even small things like nuts, bolts, engine oil, coolant will be covered.
Check the Claim Settlement Ratio ✅
Claim settlement ratio means how many claims the insurance company approves.
- a company\’s claim settlement ratio is high (95%+), its claims are easily approved.
- If a company\’s ratio is low, it faces problems in the claims settlement process.
So, choose an insurance company that provides fast and maximum claims amount.
Check Customer Reviews and Feedback ⭐
Before buying any insurance policy, definitely read the reviews of existing customers of that company.
- People share their experiences on Google Reviews, Quora, and Insurance Forums.
- If there are too many complaints about a company (such as claims of delays or poor service), avoid it.
Take advantage of discounts and offers 💰
Many insurance companies offer different discounts, such as:
- No Claim Bonus (NCB): If you did not make any claim last year and renewed the policy before 90 days, you will get a discount in your premium.
- Anti-Theft Device Discount: If your car has a security system, the premium may be less.
- Good Driver Discount: If you are a safe driver and your record is clean, some insurers give extra discount.
Conclusion
Taking car insurance is a long-term decision, so don\’t choose any policy without thinking. Compare, understand the need, and select the best option. 🚗✨