Car Insurance in Chennai

Set on the Bay of Bengal in eastern India, Chennai is the capital state of Tamil Nadu. This pleasant city exhibits traditional South Indian culture, art, and customs. It is home to a number of unique shrines and forts with a rich heritage and history. However, the city also has a modern-contemporary side, where you can find quirky cafes, luxury hotels, and famous restaurants. In addition, some of the prime locations of the city are Teynampet, Tambaram, Anna Nagar, and Nungambakkam. You can enjoy fun-filled nightlife at these locations.

While Chennai is indeed a tourist hotspot, travelling through the streets of Chennai in a car without car insurance is a grave mistake. Let us understand the need for car insurance in the city of Chennai, and where you can get the best four-wheeler insurance in the city.

These facts will intrigue you about cars in Chennai:

• National Ranking: Chennai ranks among the top 10 most congested cities in India, with a Traffic Index score of 197.7 in 2025.

• Approximately 1.5 lakh vehicles traverse the Madhya Kailash–Taramani stretch daily.

• Chennai records 40–50 road fatalities per month, primarily due to high-risk violations such as riding without helmets, triple riding, drunk driving, over-speeding, and entering 'no entry' zones

• Vehicle thefts in Chennai have doubled, increasing from 5% in 2022 to 10.5% in 2023, making it one of the most theft-prone cities in India.

• Chennai has approximately 5.2 million registered vehicles as of March 2023, with four-wheelers forming a major share. The number continues to grow due to rising urbanisation and personal mobility demand.

There 3 kinds of insurance policies available in Chennai:

1. Third-Party Car Insurance

Also known as third-party liability car insurance, this kind of insurance covers any liability that arises from an accident caused by the policyholder’s car.. It covers individual and property related liabilities. In India, in order to drive on public roads, a third-party car insurance policy is mandatory as per Motor Vehicle Act 1988.

2. Comprehensive Car Insurance

This type of car insurance policy will give an all-round coverage for you and your car. It covers own-damage as well as third-party liability. A comprehensive insurance policy can be customised using add-ons like Zero-Depreciation Cover, Roadside Assistance Cover, Accessories Cover, etc. This type of insurance is recommended for a new car to protect it from any damages that can be costly.

3. Own-Damage Car Insurance

As the name suggests, this type of car insurance covers any damage caused to the policyholder's own vehicle. It does not cover third-party liability, so you must already have third-party car insurance to get this type of insurance. This is an excellent type of insurance policy for cost saving and buying third-party insurance from another insurer and own-damage insurance from another insurer.

Key benefits of car insurance in Chennai include:

There are multiple reasons of why having car insurance in Chennai is a smart decision:

• Legally Mandatory

A third-party car insurance policy is mandatory by law under Motor Vehicle Act 1988 to drive on public roads of Chennai.

• Theft Risk

In 2023, Chennai stood 2nd as the most theft-prone city in India. Getting car insurance ensures you get compensated if your car is stolen in the city.

• Natural Calamities

Chennai is prone to flooding. It receives heavy rainfall every year, causing waterlogging and potholes in the streets, posing a threat to cars. Having car insurance ensures repair costs don’t eat up your savings.

• Saves Money

This is pretty much self explanatory. A four-wheeler insurance policy will help you save money by providing financial support during the time of need as per policy.

• Peace of Mind

While driving on the roads of Chennai, 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.

Understanding what your car insurance policy in Chennai covers can help you stay protected against major financial risks on and off the road.

• Collision - Damage and loss caused due to accidents or collisions.
• Theft - Coverage against losses incurred when your car is stolen.
• Fire - Loss or damage caused due to an accidental fire.
• Natural disaster - Damage and loss occurred due to natural calamities like, flood, earthquake, etc
• Personal accident - A compensation of about Rs. 15 lakhs in case the accident leads to death or disability of the owner.
• Third-party losses - Your insurer compensates for property damages and injuries caused by your car.

Below are the key exclusions of a car insurance policy in Chennai that every vehicle owner should be aware of to avoid unexpected claim denials.

• Damage/loss caused due to war or similar conditions
• Damage occurred while driving under the influence of alcohol.
• Damage that arise when driving without a valid driver’s license.
• Damage occurred when the insurance policy is not active
• Regular wear & tear
• Regular servicing expense

Buy car insurance online in Chennai by following these steps:

1. Visit Coverfox website, then go to Insurance > Car Insurance tab
2. Write down your registration number of the vehicle or
3. Click on “Bought a new vehicle?”
4. Select Manufacturer, then Car Model
5. Choose your powertrain
6. Choose your variant
7. Click on Get Quotes
8. Compare prices and Select appropriate Add-ons
9. Make an online payment through secure gateway
10. Your policy will be emailed to you after verification

Follow these steps to file a claim for car insurance in Chennai:

• Inform the insurer: Immediately inform the insurer about the incident

• Lodge an FIR (If required): File an FIR at the nearest police station in Chennai if required (In case of major accident or thefts).

• Fill the claims form: Fill in the claims form from your insurer (Most insurers have it on their website) and submit the required documents.

• Repair the car at a Network Garage (Cashless Claim): Visit the nearest network garage in Chennai of your insurer, and get your car fixed there. Payment will be settled by the insurer directly.

• Repair the car at a non-networked Garage (Reimbursement Claim): If a network garage is not available, you can repair your car at a garage, pay the appropriate costs, and collect the receipt. The insurer will reimburse you of the amount as per the policy.

Submit these documents to file a claim in Chennai for car insurance:

• Insurance policy document

• Vehicle Registration Certificate (RC)

• Driver’s licence

• First Information Report (FIR) – mandatory for theft or severe accidents

• Photos of the damaged vehicle or accident site

• Repair invoices and payment receipts (for reimbursement claims).

For choosing the best insurance policy in Chennai use this checklist:

• Compare insurers online through Coverfox

• Check coverage scope of the insurance policy

• Check inclusions and exclusions of the insurance policy

• Select only the required add-ons

• Check availability of NCBs for discounts

• Check network garages of the insurer

• Ensure you buy car insurance through Coverfox for best deals and excellent support

There are several cashless garages in Chennai authorized by various Car Insurance Companies. Some of them are mentioned below:

Follow these traffic rules in Chennai to avoid complications with insurance:

• Follow all traffic rules and regulations on the road to avoid fines.

• Carry all necessary documents with you (Insurance, Licence, RC, PUC)

• Do not Drink and Drive or drive under influence.

• Do not give the car to someone who is illegal to drive.

• Do not carry expired car insurance, renew it at the earliest.

• Don’t do rash driving