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.
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 four-wheeler insurance 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 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 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.
Insurance premium in Chandigarh is affected by the following factors:
The price, age, model, and variant of the car have a major effect on the premium calculation of car insurance in Chandigarh.
In Chandigarh, if the car owner resides in a less traffic-dense area or a high-risk accident area, it also influences the price of premium of the car insurance.
The driver’s background also affects the premium price of the car insurance in Chandigarh.
The type of car insurance policy, tenure, deductibles, and add-ons selected directly affect the price of the car insurance policy.
NCB bonuses, festive offers and direct discounts also affect the premium rate of the car insurance policy in Chandigarh.
Benefits of buying four-wheeler insurance in Chandigarh are:
| Benefit | Description |
|---|---|
| Add-on Flexibility | Add-ons like zero depreciation, engine protection, and roadside assistance enhance the protection of the car insurance. |
| Cashless Repairs | Tie-ups with garages in Chandigarh allow hassle-free, cashless claim settlements. |
| Financial Protection | Covers repair damages from accidents, theft, fire, or natural calamities. |
| Legal Compliance | Mandatory under the Motor Vehicles Act to avoid fines and legal penalties. |
| No Claim Bonus (NCB) | Rewards safe driving with premium discounts on renewals. |
| Peace of Mind in Traffic Conditions | High congestion and accident risk in Chandigarh make insurance highly valuable. |
| Personal Accident Cover | Provides monetary support in case of accidental injury or death. |
| Quick Online Purchase & Renewal | Easily available through digital platforms with instant policy issuance. |
| Support During Natural Calamities | Covers damage from floods, heavy rain, and landslides, common in Chandigarh. |
| Third-party Liability Coverage | Protects you against legal and financial liability for injury or damage to others. |
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.
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Coverfox is an excellent platform for buying car insurance online in Chandigarh:
To make a claim against car insurance online in Chandigarh, follow these steps:
These are the required documents to file a claim in Chandigarh for car insurance:
Follow these tips for choosing the best car insurance policy 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:
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.
