The capital of the northern Indian states of Punjab and Haryana, Chandigarh city is a lively place to visit. It is known to be planned and designed by the famous Swiss-French modernist architect, Le Corbusier. Chandigarh features a number of gardens, stone sculptures, and unique forts. Some of the very popular tourist attractions in the city are Rose, Garden, Rock Garden, Sukhna Lake, Government Museum & Art Gallery, Terraced Garden, Leisure Valley, and the Museum of the Evolution of Life.
In Chandigarh, over 2 lakh new vehicles were registered between 2020 and May 2025, averaging 100 registrations per day. Specifically, in the year 2024-2025, 47,348 vehicles were registered. This includes 40,332 fuel vehicles and 7,016 electric vehicles as per RTO reports. As the number of cars in the city is increasing so is the need for car insurance. Having the right coverage in Chandigarh also ensures that you are protected from financial and legal liabilities related to your car, in case of an accident, theft or a natural disaster.
Chandigarh continues to witness a sharp rise in traffic violations and road safety concerns. Here's a detailed look at recent trends from official reports.
Third-party car insurance in Chandigarh is mandatory by law as per the Motor Vehicle Act 1988. It covers liabilities that resulted from an accident caused by the policyholder’s car. It covers third-party individual and property damage.
A comprehensive four-wheeler insurance policy in Chandigarh covers both own damage and third-party damage. It gives full protection to the policyholder’s car. It can be optimised and enhanced using add-ons. For new cars, comprehensive car insurance is the best choice.
Own Damage Car Insurance in Chandigarh will only cover the policyholder’s vehicle’s damages. Third-party damages are excluded in this policy and have to be purchased separately. This is a cost-effective type of car insurance policy, where you can buy third-party insurance from one insurer and own-damage insurance from another.
You should buy car insurance online in Chandigarh because:
Third-party car insurance is mandatory by law under the Motor Vehicle Act 1988 to drive on the public roads of Chandigarh.
The Chandigarh Police have registered over 3,200 vehicle theft FIRs since 2021, and the recovery rate has been low, with only about 26.6% of stolen vehicles recovered. Car insurance provides financial help if your car gets stolen, as per the IDV in the policy and the invoice add-on.
Chandigarh is susceptible to various natural calamities, with earthquakes, floods, and extreme heat being the most prominent. Extreme heat waves can cause significant engine damage and failure, and so can floods. Having engine protection coverage covers damages done to the engine of the car in a natural calamity, if you have comprehensive car coverage.
A car insurance policy will help you save money by providing financial support during times of need, as per the car insurance policy.
While driving on the roads of Chandigarh, you do not have to worry about getting into trouble, at least financially, if you have four-wheeler insurance. In case of an accident or mishap, the insurance company will make you whole.
Below are the Inclusions of a car insurance policy in Chandigarh:
Covers collision-related damages caused by accidents on Chandigarh’s busy roads, such as Madhya Marg or near Sector 17.
Provides compensation in case your car is stolen, offering protection against vehicle theft incidents in and around Chandigarh.
Includes coverage for fire-related damage caused by engine overheating, short circuits, or accidental fires.
Offers financial protection from natural disasters like floods during monsoon or minor earthquakes affecting the region.
Provides a personal accident cover of up to Rs. 15 lakhs for the owner-driver in case of death or permanent disability.
Covers third-party losses by compensating for injuries or property damage caused by your vehicle, helping you avoid legal liabilities.
Below are the exclusions of Car insurance in Chandigarh:
Does not cover any damage or loss arising from war, riots, or civil disturbances in Chandigarh.
Excludes damages that occur when driving under the influence of alcohol or any prohibited substance.
No coverage is provided if the vehicle is driven without a valid driving licence, as per Chandigarh traffic regulations.
Damages that occur when the insurance policy has expired or is inactive are not covered.
Regular wear and tear, ageing parts, and mechanical breakdowns are excluded from coverage.
Routine maintenance expenses such as oil changes, servicing, or tyre replacements are not included in the policy.
Choosing the right car insurance coverage in Chandigarh requires careful consideration of the city’s traffic conditions and your daily driving habits. With busy roads and increasing vehicle density, a comprehensive policy is often the safest choice, offering protection against accidents, theft, and natural calamities. If your car is frequently parked in open or public areas, opting for theft and own-damage cover adds extra security. It’s also wise to include personal accident protection for financial safety and review policy inclusions, exclusions, and claim processes thoroughly to ensure complete coverage suited to Chandigarh’s driving environment.
Coverfox is an excellent platform for buying car insurance online in Chandigarh:
There are several cashless garages in Chandigarh authorized by various Car Insurance Companies. Some of them are mentioned below:
| Name | Address | City | State |
|---|---|---|---|
| Joshi Automotive Pvt Ltd | Plot No. 67 Ind Area Phase 2 Chandigarh | ||
| Krishna Auto Sales | 177-E, Industrial Area-1, Chandigarh | ||
| Lally Automobiles Pvt Ltd | Plot No-6, Industrial Area, Phase-1 |
Follow these traffic rules in Chandigarh to avoid any hindrances with insurance:
Dedicated lanes for commercial vehicles (yellow-numbered trucks, buses, autos) are enforced on certain stretches, like between Sector 16 Cricket Stadium to Punjab & Haryana High Court.
Wrong U-turns or turning left from the main road instead of using the designated slip road are fined under the traffic rules specific to Chandigarh.
Traffic police vehicles violating rules are penalised more strictly — double the fine of a regular citizen, plus a departmental inquiry
Uniform fines have been set for violations like helmet or seatbelt non-use, not depending on whether it’s a first or second offence.
p roads in Chandigarh often have separate traffic lights for cycles or slip-road turns; drivers must stop at these even if there’s no main signal visible.
Apart from these, every driver must be updated with Chandigarh RTO rules and traffic regulations – and must follow them vigilantly to avoid fines and keep safety of everyone.
Ans: There are various ways of lowering insurance prices in Chandigarh, like opting for longer terms, bundling policies, maintaining NCBs, selecting required add-ons only, etc.
Ans: To get the best deals on car insurance in Chandigarh, you can rely on Coverfox.
Ans: Yes, a basic one is mandatory, but a comprehensive car insurance policy is recommended.
Ans: Yes, insurers have their network of garages spread across Chandigarh.
Ans: Yes, if your policy is about to lapse, you need to renew your car insurance policy.
Ans: Car insurance in Chandigarh protects you from financial losses due to accidents, theft, natural disasters, or third-party damages. It ensures legal compliance under the Motor Vehicles Act and provides peace of mind while driving on busy city roads.
Ans: Premiums are influenced by your car’s make, model, age, and engine capacity, your driving history, the type of coverage chosen (comprehensive or third-party), and the locality within Chandigarh due to differing accident or theft risks.
Ans: To file an online claim, log in to your insurer’s portal, submit details of the accident or loss along with photos and a claim form, await verification, and track the claim status until settlement.
Ans: You typically need a valid insurance policy copy, driving licence, RC book of the vehicle, FIR (if theft or third-party accident), estimate of repair bills, and photographs of the damage.
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