The importance of adequate motor insurance has come into sharper focus in recent years. Recent Supreme Court proceedings highlighted that nearly 56% of vehicles lack valid motor insurance.
The Court has proposed stronger measures to improve insurance compliance. These include using cameras to identify uninsured vehicles and issue e-challans. It has also proposed a pilot for a possible “no insurance, no fuel” system.
For anyone who owns a car, the message is fairly simple. Car insurance is not something to remember only when the renewal date is approaching. Keeping a valid policy is an important part of owning and using a vehicle responsibly.
Car Insurance Is More Than a Legal Requirement
Third-party car insurance is mandatory in India. The reason is straightforward. A road accident can affect other people as well as the person driving the car. If a vehicle causes injury, death, or damage to someone else’s property, the resulting financial liability can be substantial.
But third-party insurance does not cover damage to the policyholder’s own car. This is where broader insurance protection can become useful.
Comprehensive car insurance generally combines third-party liability cover with protection for the insured vehicle against covered risks. These can include accidents, theft, fire and certain natural calamities. The actual coverage depends on the policy and its terms.
Consider a situation where a car is involved in a serious accident and needs extensive repairs. The cost can quickly run into a sizeable amount. With suitable insurance, the policyholder does not have to bear the entire eligible repair expense from their own pocket. The amount payable by the insurer still depends on the coverage, deductibles, exclusions, and other policy conditions.
Motor Insurance Market Continues to Grow
The motor insurance market in India has also been seeing steady growth. According to data reported by The Economic Times, the overall motor insurance segment grew by around 9% in FY2026, taking the estimated premium base to Rs 1.08 lakh crore.
Third-party insurance recorded slightly stronger growth during the year. Premiums in this segment increased by 9.3%, compared with 9% growth in own-damage insurance. This is notable because own-damage insurance had previously been growing faster than third-party cover.
Stronger enforcement against uninsured vehicles has been cited as one of the factors behind the rise in third-party insurance.
For consumers, the larger trend is worth noticing. As the number of cars on Indian roads grows, motor insurance is becoming a more important part of the overall cost and responsibility of owning a vehicle.
Vehicle Owners Are Looking Beyond Basic Coverage
Having a car insurance policy is important. But the policy itself also needs some attention.
Not every car owner has the same insurance needs. Someone driving a new car every day can have different priorities from someone using an older vehicle mainly for occasional travel.
Depending on their needs, customers can choose between third-party insurance, standalone own-damage cover and comprehensive insurance.
Some add-ons can provide extra protection in specific situations. Zero depreciation, engine protection and roadside assistance are some examples. Their availability, cost and coverage differ from one insurer and policy to another.
This is why the cheapest premium should not be the only factor when choosing a policy. A lower premium can come with narrower coverage. Before buying, it makes sense to look at the IDV, deductibles, exclusions, add-ons and claim-related conditions as well.
Car Insurance Renewal Deserves More Attention
Insurance renewal can easily become a tick-box exercise. The policy is about to expire, so the owner renews it and moves on.
However, renewal is also a good time to take another look at the policy.
A car loses value over time. Its usage can change too. Someone who used their car mainly for office travel might start using it for longer trips. An owner who once needed a particular add-on might no longer find it useful. These changes can affect the type of cover that makes sense.
Renewing on time is also important because a lapsed policy means there is no active cover during the gap. In some situations, the insurer can also require a vehicle inspection before issuing a new policy after a break in coverage.
Square Insurance allows customers to compare car insurance plans online and renew their policies digitally. Customers can review available options, choose their preferred coverage, and complete the renewal process online.
Comparing Policies Can Make a Difference
Car insurance is not always easy to compare at first glance. Two policies can have similar premiums but differ in terms of coverage and claims. Looking beyond the price can therefore help.
Before buying or renewing a policy, car owners can consider:
- Type of cover: Whether third-party, own-damage or comprehensive insurance fits their needs.
- IDV: The insured declared value assigned to the vehicle.
- Deductibles: The amount the policyholder needs to pay towards a claim, where applicable.
- Exclusions: Situations or expenses that are not covered by the policy.
- Add-ons: Whether additional covers are actually useful for the vehicle and its usage.
- Claim process: How a claim needs to be reported and processed.
- Network garages: Whether convenient cashless repair facilities are available.
- No Claim Bonus: Whether the policyholder is eligible for applicable benefits for claim-free years.
Square Insurance provides an online platform where customers can compare plans from different insurers. This allows them to look at different coverage options instead of choosing a policy based only on the premium. The platform also supports online purchase and renewal.
Digital Buying Is Making Car Insurance Easier
Buying or renewing car insurance no longer has to involve lengthy paperwork or repeated visits. Customers can enter their vehicle details online, compare available plans, review the coverage, and complete the payment digitally.
Square Insurance offers online car insurance purchase and renewal, along with plan comparison and add-on options. Customers can review the available choices and select coverage based on their requirements and budget.
For customers, the advantage of online comparison is not just speed. It also gives them an easier way to understand what they are paying for before making a decision.
The Right Car Insurance Can Ease a Financial Setback
Insurance cannot stop an accident from happening. It cannot prevent theft or damage either. What it can do is make the financial impact easier to manage when a covered event occurs.
A suitable policy can help with eligible repair expenses, third-party liabilities, and other covered losses. The extent of protection depends on the policy selected and its terms.
That is why buying car insurance should not be treated as just another annual expense. Taking a little time to compare coverage and understand the policy can help avoid unpleasant surprises later.
Square Insurance enables customers to compare, purchase, and renew car insurance policies online. By bringing different insurance options together, the platform gives vehicle owners a simpler way to review their choices and keep their car insurance active.
About Square Insurance
Square Insurance is an insurance broker that helps customers to compare and purchase insurance policies across different categories. Its digital platform offers car insurance comparison along with health insurance, bike insurance, travel insurance, and life insurance. You can also purchase and renew online, along with access to different coverage options and add-ons.
