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 are 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 in Chennai. 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 car insurance policy in Chennai 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 damage that can be costly.

3. Own-Damage Car Insurance

In Chennai, 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 savings and buying third-party insurance from another insurer and own damage car insurance from another insurer.

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

• Theft Risk

In 2023, Chennai stood 2nd as the most theft-prone city in India. But, if you have car insurance in Chennai, you can claim for the IDV of your car. 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 in Chennai, especially with add-ons like Engine Protection Cover, ensures repair costs don’t eat up your savings.

• Saves Money

If you opt for car insurance in Chennai, then you can save money while being financially secure. A four-wheeler insurance policy will help you save money by providing financial support during times of need, as per the 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.

Here are the car insurance inclusions and exclusions in Chennai:

Inclusions of Car Insurance Policy in Chennai

• Any Damage and loss caused in Chennai due to accidents or collisions.

• Coverage against losses incurred if your car is stolen in Chennai as per IDV.

• Loss or damage caused due to a fire.

• Damage and loss occurred due to natural calamities that happened in Chennai like, floods, earthquakes, etc

• A compensation of about ₹ 15 lakhs in case the accident leads to the death or disability of the owner.

• Your insurer compensates for property damages and injuries caused by your car.

Exclusions of Car Insurance Policy in Chennai

• Damage/loss caused due to war or similar conditions

• Damage occurred while driving under the influence of alcohol.

• Damage that arises when driving without a valid driver’s licence or illegal driving in Chennai

• Damage occurred when the insurance policy is not active

• Regular wear & tear

• Regular servicing expense

When choosing car insurance in Chennai, it’s important to factor in the city’s unique driving environment. Heavy traffic congestion, frequent accidents on arterial roads, and rising vehicle theft cases in urban areas make comprehensive car insurance more practical than just third-party car insurance. Chennai’s coastal location also exposes vehicles to risks from cyclones, flooding, and waterlogging during the monsoon season, which can cause severe damage to engines and electrical systems. Considering these local challenges, opting for add-ons like engine protection, zero depreciation, and roadside assistance in car insurance ensures you’re adequately covered for the specific risks that come with driving in Chennai.

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 and choose your variant
6. After that, select your specific RTO in Chennai
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

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

• Greater Chennai Traffic Police have prohibited the display of government or institutional logos – make sure your car do not have any such stickers unless permitted.

• Take care about overspeeding - Since November 2023, Chennai enforces specific limits—60 km/h for light motor vehicles, 50 km/h for heavy vehicles and two-wheelers, 40 km/h for auto-rickshaws, and just 30 km/h inside residential areas.