It is a law in India to buy Car Insurance. Under Chapter 11 (Section 145 to 164) of The Motor Vehicles Act, 1988, it is compulsory to buy at least a Third-party Car Insurance Policy in India.
There are two types of Car insurance policies: Third party Car Insurance and Comprehensive Car Insurance. As mentioned earlier, a third-party policy is compulsory insurance in India for every car owner. However, it does not provide adequate coverage to the owners themselves.
Depending on the type of coverage, a car insurance policy will insure you for the damages caused to the third-party and for your own damage. Own damage includes cost of treating injuries of owner-driver and cost of repairing damages.
Car insurance offers complete peace of mind. One does not have to worry about a sudden financial crunch which may occur if the car is stolen or damaged.