Delhi is not only a union territory but also the spice capital of the world. It is known for its food, tourist attractions, and traffic. Owning a car in Delhi means navigating the maze of unpredictable traffic, air pollution, and foggy situations. Amidst all this, having an appropriate car insurance policy might come in handy in case of mishaps or emergencies.
With around 1.3 crore vehicles in Delhi, four-wheelers account for approximately 1/4th of the share. Given the traffic chaos and a 100-day master plan by the Delhi government to reduce traffic congestion and accidents, it ranks as the 44th most congested city in the world. Further, in terms of vehicle density per square kilometre, there are around 371 vehicles per square kilometre.
Among significant million plus cities, Delhi has recorded the highest number of fatal crashes followed by Chennai, Beijing and Shanghai. However, other cities with similar demographic and geographical characteristics experience many road crashes, but their fatality rates are comparatively lower than those of Delhi.
There are majorly three types of car insurance plans available in the city of Delhi:
It is the most basic form of insurance and is mandatory under the Motor Vehicles Act of 1988. In a bustling city like Delhi, where road traffic is dense and unpredictable, this policy covers financial liabilities arising from injuries to third-party individuals caused by your four-wheeler. This type of policy is typically the most affordable because it offers limited coverage.
This insurance focuses solely on covering damages caused to your four-wheeler, offering flexibility to Delhi vehicle owners who already hold third-party coverage. It includes protection against accidents, theft, fire, and natural or man-made disasters. The coverage is subject to change as per the intermediary and the insurer, thus it is advisable to read it before buying any policy.
Comprehensive insurance provides extensive coverage, ensuring all-around protection for both third-party liabilities and damages to your four-wheeler. Ideal for Delhi drivers facing busy roads and variable conditions, it includes the benefits of third-party insurance by covering damages or injuries to third parties. Additionally, it protects your vehicle against accidents, theft, fire, natural calamities (floods, earthquakes), and man-made events (riots, vandalism).
Below are the factors affecting car insurance premiums in Delhi:
The Insured Declared Value (IDV) is the market value of your car, used to calculate the insurance premium.
The year of registration of your vehicle affects the car insurance premium. If it is a new car registered in Delhi, the IDV will be a proportion of the purchase value and so will be the insurance premium. If your car is old, then there are chances of it having a lower IDV as per depreciation and potentially a higher premium depending on the risk coverage.
The fuel type of the car also affects the car premium to some extent. In Delhi, where environmental regulations are strict, fuel types such as petrol, diesel, hybrid, and electric vehicles are considered while calculating premiums.
Whether the car has been used over a range of kilometres or has previous policy claims or accidents affects the car insurance premium. In a city like Delhi, where traffic congestion and long commutes are common, insurers consider car usage, previous claims, and mileage. If it is a new car, then mileage and engine specifications are considered.
Cars with standard and advanced safety features often qualify for premium discounts. However, this is subject to the car's make, model, and type.
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Below are the benefits of car insurance in Delhi:
| Benefits | Description |
|---|---|
| Legal Compliance | Mandatory under the Motor Vehicles Act, 1988-at least third-party insurance is required to drive legally. |
| Financial Protection | Covers damage to your car due to accidents, theft, fire, or natural calamities. |
| Third-Party Liability Cover | Provides compensation for injury, death, or property damage caused to third parties. |
| Personal Accident Cover | Offers compensation for injuries or death of the insured driver. |
| Cashless Repairs | Access to a network of garages for cashless repair services across Delhi. |
| Protection Against Natural Disasters | Covers damage due to floods, earthquakes, storms, and other calamities-important during monsoon season. |
| Coverage Against Theft | Provides compensation if the insured car is stolen. |
As we see from the above table, buying third-party insurance is a legal compliance that every vehicle buyer has to follow. However, limiting your coverage to third-party insurance alone will expose your car to the risk of damage and financial liability. Having a standalone damage policy or a comprehensive policy tailored to your car needs will protect you from unprecedented mishaps and give you a financial security net.
Below are the common inclusions and exclusions of car insurance policy in Delhi:
| Inclusions | Exclusions |
|---|---|
| Damage to own vehicle in an accident | General wear and tear (depreciation) |
| Natural calamities (floods, earthquakes, etc.) | Driving under the influence or without a license |
| Man-made hazards (theft, riots, fire, etc.) | Damages when the policy is expired |
| Third-party damage (person/property) | Mechanical failure or tyre damage (non-accidental) |
| Personal Accident Cover (up to ₹15 lakh) | Use of private car for commercial purposes |
Add-ons are standalone rider policies which are added to the base insurance policy. Think of them as customization. Below are the types of car insurance add-ons:
This cover provides financial compensation in case of accidental injury, disability, or death of the driver while driving the insured vehicle. It ensures support for medical expenses and loss of income during recovery.
Engine protection safeguards your vehicle’s engine against damages caused by water ingress, oil leaks, or mechanical failures not covered under standard insurance. It helps avoid costly repairs and extends your engine’s lifespan.
This add-on protects the value of non-factory-fitted accessories like music systems, seat covers, and alloy wheels against theft, loss, or damage. It ensures you get reimbursed for accessories without affecting your basic policy.
Passenger cover provides compensation to passengers injured or killed in an accident involving your vehicle. It offers added financial security for all occupants beyond the driver.
Roadside assistance offers emergency support like towing, battery jump-start, fuel delivery, or minor repairs when your vehicle breaks down on the road. This service ensures you’re never stranded and can get help quickly.
With the advancement of technology and online platforms, you can buy a car insurance policy within minutes. Here is how you can buy car insurance online in Delhi through our website with the help of the below steps.
Below are the steps to register a car insurance claim in Delhi:
Ensure the FIR clearly mentions all relevant details, especially in case of theft or third-party involvement.
Try to notify your insurer within 24–48 hours of the incident to avoid delays or possible rejection of the claim.
Keep your policy number and vehicle details handy for quick access to your account and faster claim registration.
Prepare documents like the FIR, driving license, RC, policy copy, and damage photos in advance for smoother processing.
Visit a network garage for cashless claims to avoid paying upfront and simplify the repair process.
Always note down the claim reference number and keep checking the status to ensure timely updates and resolution.
Below is the list of documents needed for a car insurance claim in Delhi:
Below are a few of the pointers which will help you choose the best car insurance policy online in Delhi:
Below are the three simple steps to get the list of cashless garage networks for car insurance in Delhi:
Step 1: Visit the cashless garage section on our website- Cashless garage network
Step 2: Click your desired insurer.
Step 3: Fill in details such as your state, city, and your car brand.
You will get the location of the cashless garage in that city as per the insurer’s network.
There are several cashless garages in Delhi authorized by various Car Insurance Companies. Some of them are mentioned below:
| Name | Address | City | State |
|---|---|---|---|
| Aasai Motors | Rz 1738/37, Tughlakabad Extn | ||
| Aggarwal Automotive Private Limited | G-5, Aggarwal Auto Mall, Outer Ring Road, Site Ii, Shalimar Place | ||
| Ashok Motors | 1/108, Manraj Complex, Main Wazirabad Road, Opp. Yamuna Vihar C Block, Nr. Bhagirathi Water Work | ||
| Auto Expert | B7 Dsidc Industrial Complex, Rohtak Road, Udayg Nagar B7 Dsidc Industrial Complex, Rohtak Road, Udayg Nagar |
Traffic rules are not designed for individual vehicles but it works as a whole set of rules to avoid mishaps and ensure vehicle safety at every nook and corner of the roads. Below are some of the common traffic rules to pay attention to in Delhi:
Ans: Yes, you can compare car insurance in Delhi before purchasing one.
Ans: The best car insurance policy is one that fits your budget, meets your coverage needs, and ensures financial protection.
Ans: If you compare and buy insurance policies it might meet your required budget. However, you can negotiate with the insurance broker or insurer to check if any discount would be manageable or not.
Ans: Yes, you can renew your car insurance policy online in Delhi.
