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Home / Motor Insurance
What is Vehicle Insurance
Vehicle insurance, also known as motor insurance, covers your car, two-wheeler, or commercial vehicle (such as trucks or buses), as well as electric vehicles, against damage from accidents, fire, natural disasters, theft, or other risks. It also provides the legally required third-party cover under the Motor Vehicles Act for injury or damage your vehicle causes to others.
With ACKO, you can buy or renew your vehicle insurance fully online in minutes and skip the paperwork. Because we work without middlemen, our premiums are lower, and you get features like cashless repair at partner garages, optional add-ons (zero depreciation, engine protection, roadside assistance), and a high claim settlement ratio that shows we process claims reliably.
Types of Vehicle Insurance in India
The different types of vehicle insurance policy in India are as follows:
Car Insurance
Car insurance is an insurance policy that offers coverage against damage to your car caused by accidents, fire, theft or any natural calamities. It also covers third-party (TP) liabilities caused in an accident involving the insured car. While purchasing a third-party liability policy is mandatory by law, opting for own-damage cover or a comprehensive car insurance policy ensures complete financial protection for your vehicle.
Two Wheeler Insurance
Two wheeler insurance or bike insurance provides financial and legal protection to all types of two-wheelers, including bikes, scooters, mopeds, and sports bikes. It covers two-wheelers against own damages such as accidents, fire, theft, etc. Additionally, it includes any accidental loss caused to the third party or property. Similar to car insurance, purchasing third-party cover is mandatory by law, while own-damage cover remains optional for comprehensive protection.
Commercial Vehicle Insurance
Commercial vehicle insurance is an insurance policy that covers commercial vehicles like trucks, buses, etc. The coverage is similar to car/bike insurance. It covers accidental damages to the insured vehicle and third-party liabilities. All commercial vehicles must have at least a third-party liability policy to comply with the law.
Electric Car Insurance
Electric car insurance, as the name suggests, provides financial protection to your electric vehicle in case of any unforeseen events like accidents, thefts, natural disasters, etc. In India, a third-party electric car insurance policy is compulsory, like all the other types of motor insurance. To protect your favourite EV, do not forget to get an Electric Car Insurance policy.
Types of Motor Insurance Policy in India
The different types of motor insurance policies available in India are as follows:
Third-Party Motor Insurance Policy
A Third-party Liability Vehicle Insurance Policy covers financial liabilities if the insured vehicle accidentally damages other people's property or causes injuries/death to a third party. A third-party insurance policy is mandatory as per law; however, it does not cover damages to the vehicle.
Comprehensive Motor Insurance Policy
The Comprehensive motor insurance policy provides all the coverage benefits of the Third Party Plan, on top of covering damages to the vehicle caused by accidents, calamities, fire, rat bites, and theft of the insured vehicle. This policy can also be enhanced with add-on covers or top-ups to get better coverage.
Own Damage Cover Policy
An Own Damage Car Insurance policy covers the cost of repairs or losses to your insured vehicle caused by accidents, fire, theft, natural or man-made calamities, and other unforeseen events. This policy provides financial protection for damages to your own car, which are not covered under a Third-Party Liability policy.
While Third-Party insurance is legally mandatory, opting for an Own Damage cover (or a Comprehensive Policy that includes both) is advisable to ensure complete protection for your vehicle and finances.
Difference Between Third-party, OD, and Comprehensive Policy
In the table below, let’s take you through the differences between third-party, OD, and Comprehensive policy:
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Features of Motor Vehicle Insurance
Motor vehicle insurance comes with several key features. The following table explains the benefits and top features of purchasing vehicle insurance online.
FEATURES | BENEFITS |
|---|---|
24×7 Access | Purchase and go for vehicle insurance renewal anytime and anywhere |
Convenient Process | Forget form-filling and tedious documentation work. |
Low Premium | Online insurers like ACKO don't hire any middlemen. Hence, we can offer policies at low premiums as they have a low operational cost. |
Smooth Processing | Online infrastructure helps digital-first insurers to issue policies, settle claims, and service policyholders in a hassle-free way. |
Informed Decision-Making | All the necessary information is available on ACKO's website/mobile app. Also, since there are no intermediaries, policyholders can make informed decisions based on their needs. |
Quick Renewal | Vehicle insurance renewal can be instantly done with the help of ACKO’s website or smartphone app. |
Satisfying Insurance Experience | Right from researching plans, buying them, renewing them or making claims, online insurance is more convenient, time-saving and effective. |
How to Buy Vehicle Insurance Online from ACKO
Here are the steps to buy motor insurance online.
Step 1: Scroll to the top of this website, or locate the floating button “Check Prices”
Step 2: Provide your personal and vehicle details (phone, registration number)
Step 3: Select the vehicle insurance plan and add-ons.
Step 4: Pay the insurance premium and get your vehicle insurance online instantly.
How to Renew Vehicle Insurance Online
The vehicle insurance renewal process is similar to buying a new vehicle insurance policy. Here’s the process to renew vehicle insurance online on ACKO.
Step 1
If your existing policy is with ACKO, you can modify it by logging into your account. If you have purchased from a different insurer and are looking for vehicle insurance renewal on ACKO, visit our website or download the mobile app.
Step 2
Provide and verify details related to your vehicle, previous vehicle insurance details, etc., to complete the vehicle insurance renewal on ACKO. Select the right plan and add-ons that suit your requirements.
Step 3
Pay the premium amount after selecting the right plan, and you will receive the policy document in your inbox.
Why should you buy motor vehicle insurance?
Here are the top reasons to buy motor vehicle insurance.
Offers Third-Party Liability Coverage
Buying motor vehicle insurance provides you with third-party liability coverage. It covers you against damages to third-party property or injury or death of a third party caused due to your vehicle. This coverage saves you from legal hassles and financial losses.
Provides Financial Backup
If you opt for an own-damage or Comprehensive Vehicle Insurance, you will get financial protection if your vehicle suffers damage due to accidents, natural disasters, vehicle theft and total loss. Hence, vehicle insurance can be your saviour if your vehicle is stolen or damaged significantly due to such unforeseen circumstances
Provides Personal Accident Cover
It is mandatory to purchase Personal Accident (PA) cover when purchasing vehicle insurance. It provides coverage to the vehicle owner against accidental injuries/death. It provides coverage of up to ₹15 lakhs against accidental injuries, disability or death of the vehicle owner, offering crucial financial support during such unfortunate events.
Helps you Meet Legal Requirements
Having at least third-party vehicle insurance is mandatory by law in India under the Motor Vehicles Act. Driving without valid insurance can result in hefty fines, penalties, and even imprisonment. Vehicle insurance ensures you stay legally compliant while on the road.
Cashless Repairs
ACKO’s vehicle insurance policies offer cashless repair services at network garages. This means you don't have to pay for repairs upfront, as we will settle the claim directly with the garage, making the repair process convenient and hassle-free.
Benefits of Buying or Renewing your Vehicle Insurance Policy from ACKO:
Buy or renew your vehicle insurance policy from ACKO to enjoy a variety of benefits, including;
Affordable premiums - get motor insurance policies at affordable premiums (up to 85% off) without compromising on coverage.
Instant renewal - buy or renew your vehicle insurance policy instantly on the ACKO app or website to enjoy continuous coverage.
Cashless Repairs - You can avail of cashless repairs at more than 4000 network garages across India.
Digital-first process - experience a complete digital-first process when you opt for ACKO motor insurance. From buying a policy to renewing and filing a claim, everything can be done online or via the ACKO app for speed and convenience.
Faster claim settlements - with a claim settlement ratio of 99.3%, you can be assured of quick claim settlement.
24/7 support - Our Customer support team is available around the clock to assist you with claims and other needs.
Add-on Covers Under Vehicle Insurance
Add-ons are additional insurance covers that can be purchased by paying a premium. Note that you can buy these additional covers only with a Comprehensive policy and not with a Third-party policy. Here’s a list of popular motor insurance policy add-ons on ACKO.
Zero Depreciation
With this add-on, ACKO will not consider the depreciation charges while settling the claim. As a result, your after-claim payout will be more than what it would have been if you didn’t have this cover.
Roadside Assistance
Stranded on the road? Simply call us, and our professional vehicle mechanic will rush to your location to help you out with the vehicle’s issues, including towing services during car breakdowns.
Consumables Cover
Usually, you have to pay the cost of consumables while repairing the vehicle. ACKO does not cover costs such as usage of oil, nuts and bolts, etc. With this add-on, such costs shall be covered.
Engine Protection
With the Engine Protection Add-on, you can insure your car’s engine against most of the damages, such as floods, that are not covered in a Comprehensive Plan.
Key Replacement Cover
Car keys aren’t cheap, and the cost can go upwards of Rs. 10,000. With Key Replacement Cover, you can save your money on expenses incurred for replacing a lost, stolen, or damaged key and even a replaced lock, if required.
Outstation Emergency Cover
Outstation Emergency Cover secures you against accidents/breakdowns outside a 100 kilometres radius of your residence during the policy period.
No Claim Bonus (NCB) Cover
When you don't raise a claim during the previous policy period, ACKO rewards you with an NCB discount on the premium amount during your vehicle insurance renewal. This discount can go up to 50% if you don't raise a claim for five consecutive years.
Return to Invoice Cover
In case your car is stolen or damaged beyond repair, the Return to Invoice add-on cover will help you recover the amount mentioned on the car's invoice value, including the car registration cost and road tax as well.
Personal Accident Cover
Along with a Third-party vehicle insurance plan, it is compulsory to own a Personal Accident Cover in India. This additional cover provides financial protection in the event of permanent disability/death while driving or riding your vehicle.
Personal Belongings - Damage/Theft
While riding, helmets are crucial in preventing brain injuries. With this add-on cover, ACKO will cover the repair/replacement cost in case your helmet is stolen or damaged in an accident, fire, man-made or natural calamities.
Personal Accident Cover for Passengers
When you buy this add-on cover along with your Comprehensive car insurance policy, you can secure your near and dear ones in case of permanent disability/death while driving a car. With this add-on cover, you get access to coverage of up to Rs. 1 lakh per passenger.
Importance of Vehicle Insurance Renewal
It is important to renew your vehicle insurance policy for the following reasons:
Legal Requirement: In India, it is mandatory to have at least a third-party vehicle insurance to drive legally on the roads. Hence, failure to renew your policy could result in fines, penalties, or even the suspension of your driving license.
Financial Protection: Vehicle insurance helps cover the costs of accidents, theft, or damage. If you let your policy lapse, you risk paying out-of-pocket for repairs or legal expenses in the event of an unforeseen incident.
Avoiding Gaps in Coverage: Renewing the motor insurance policy ensures there is no gap in coverage. A lapse can leave your vehicle unprotected, and any new claims made during this period might not be covered.
No-Claim Bonuses: If you have maintained a claim-free record, renewing your policy without a break may qualify you for a no-claim bonus or discount. With NCB discounts, you will be able to save on the premium amount.
Peace of Mind: Keeping your vehicle insurance up to date provides peace of mind, as you know your vehicle is protected against unforeseen events such as accidents, theft, or natural disasters.
How to File a Motor Insurance Claim with ACKO
Filing a claim on ACKO is easy and hassle-free. All you have to do is log in to your account via the website or mobile app to raise a claim. Here is how the claims are settled on ACKO.
Step 1 - Log in to your ACKO profile using your mobile number.
Step 2 - Open your motor insurance policy and click on “Register a claim”.
Step 3 - Enter the necessary details and upload all claim-related documents (as required).
How to Reduce and Save on Vehicle Insurance Premium
Here are a few ways to reduce your vehicle insurance premium:
Choose your Add-ons Wisely: Select only essential add-ons that genuinely add value to your coverage.
Buy from Digital Insurers: Purchase your policy from digital-first insurance companies like ACKO to get lower premiums.
Maintain No Claim Bonus: Avoid raising claims for minor damages to earn NCB discounts during renewal.
Install Anti-Theft Devices: Get a premium discount by installing approved anti-theft devices in your vehicle.
Renew on Time: Renew your policy before it expires to avoid premium increases.
Compare Policies Online: Compare vehicle insurance policies online to find the best coverage at competitive premiums.
Opt for a Higher Voluntary Deductible: Choose a higher voluntary deductible amount to lower your premium. You might pay more out-of-pocket during claims, but your annual premium will be reduced.
Maintain a Good Driving Record: A clean driving history with no traffic challans or accidents can help you negotiate better premium rates with insurers.
Motor Insurance Coverage
Vehicle insurance comes with several coverage benefits, depending on the policy you choose. The following are the coverage details of a Comprehensive Motor Insurance Policy. You can refer to the concerned policy’s Policy Wordings for a detailed list of inclusions and exclusions.
What’s Covered?
What’s Not Covered?
What’s Covered in a Motor Insurance Policy by ACKO
✅ Third-party Cover: Coverage for injuries to a third party or damages to their property.
✅ Own Damage: Damage to the insured vehicle due to an accident, fire, natural calamities or man-made calamities.
✅ Theft Cover: Insurance cover for the vehicle in case it gets stolen.
✅ Natural Disasters: Damage due to earthquakes, floods, cyclones, landslides, etc.
✅ In-transit Damage: Any damage to the vehicle during transit
What’s Not Covered in a Motor Insurance Policy by ACKO
❌ Own damage is excluded in case of a Third-Party Policy.
❌ Damages to your vehicle when riding/driving in an intoxicated state.
❌ Damages to your vehicle when riding/driving with an expired vehicle insurance policy.
❌ Damages to your vehicle when riding/driving with an invalid Driving Licence.
❌ Cost of repair/replacement of parts that are damaged due to regular wear and tear.
❌ Any claims related to personal items stolen from your vehicle.
How Does the Motor Insurance Premium Vary?
Here’s a list of factors that play a vital role in determining the vehicle insurance premium of your bike or the car’s Comprehensive Insurance Policy.
Vehicle Details
Details related to the vehicle, such as age, engine specifications, etc.
Location Details
Details about the PIN code of your locality.
Claim History
Details related to previous claims associated with the vehicle.
Policy Coverage
The extent of the policy cover, including the add-ons, if any.
Insured Declared Value
The higher the Insured Declared Value (IDV), the higher the premium amount.
Deductibles Amount
The higher the amount of the deductibles, the lower the premium amount.
Anti-theft Devices
Installation of anti-theft devices will also have an impact on the premium amount.
No Claim Bonus Discount
No Claim Bonus percentage during vehicle insurance renewal impacts the final payable premium.
Insurance Company
New-age digital insurers like ACKO eliminate the need for middlemen, which reduces operating costs. This, in turn, results in a lower premium amount.
Things to Consider While Buying Vehicle Insurance
Consider the following factors while purchasing a motor insurance policy for your vehicle.
Coverage
Analyse if you need third-party liability coverage or comprehensive coverage for your vehicle. It is recommended that you opt for Comprehensive insurance for broader coverage.
Premiums
Understand how the premium is calculated and what factors influence the cost, including vehicle make and model, age, registration location, and your driving history. Compare quotes from different insurers to find the best coverage at competitive rates.
Add-on Covers
For broader insurance coverage, you can choose from Zero Depreciation cover, Return to Invoice cover, Roadside Assistance cover, etc. But we recommend that you select appropriate add-ons that add value to your coverage.
Claim Process
Opt for a digital insurer such as ACKO for a hassle-free claim procedure. Our digital infrastructure lets you raise claims through our website or mobile app. Or, you can call us to register your claim.
Network Garages
You must consider the insurer’s network garages so that you have access to them across the country and where you reside.
Zero Depreciation Cover
Your vehicle depreciates as soon as it comes out of the showroom. Hence, claim settlements are processed after considering the depreciation. Opting for the Zero Depreciation or Bumper-to-Bumper add-on negates the depreciation factor during claim settlements.
Insured Declared Value (IDV)
The IDV represents your vehicle's current market value and determines the maximum claim amount in case of total loss or theft. Ensure you select an appropriate IDV - not too high to inflate premiums, nor too low to receive inadequate compensation during claims.
Policy Inclusions and Exclusions
Ensure you understand the inclusions and exclusions of your motor insurance policy. Knowing the terms and conditions of the policy helps you avoid unwanted surprises during claim settlements.
Why is Vehicle Insurance Mandatory in India?
Vehicle insurance is mandatory in India as per law. The exponential rise in the number of vehicles on Indian roads has only increased the possibility of accidents. Accidents can cause damages to the vehicle and probably injuries or demise of an individual. The aftermath of an accident can dent your savings due to the cost involved towards repairs and third-party liabilities.
With the possibility of accidents and the subsequent financial impact, The Motor Vehicles Act, 1988 states that all motor vehicles should be insured with the Third-party Liability Plan (TP).
The TP plan offers financial and legal protection against third-party liabilities, including physical injuries or property damage. Motor insurance is mandatory since the Act states that you must hold vehicle documents such as Driving Licence, Registration Certificate, liability coverage, and PUC certificate while driving on public roads. Not holding these documents can lead to penalties; hence, follow the mandate and stay away from penalties.
Frequently Asked Questions on Vehicle Insurance
FAQs about motor vehicle insurance.
Which type of vehicle insurance is best?
A Comprehensive Car Insurance policy is the best vehicle insurance policy.
What are the 3 types of motor insurance?
The three types of motor insurance policies are Third-Party Liability Insurance, Standalone Own Damage Insurance, and Comprehensive Insurance (which combines both third-party and own damage coverage).
What is motor insurance, and what are its benefits?
Motor insurance is an insurance plan that provides insurance coverage for your vehicle. The main benefits of motor insurance are backup against financial losses and legal liabilities.
What are the motor insurance products?
There are mainly three types of motor insurance products: Third-party Liability Policy, Comprehensive Insurance Plan and Personal Accident (PA) cover.
Is it mandatory to get insurance for your vehicle?
As per law, purchasing a Third-Party Vehicle Insurance Plan is mandatory. It safeguards you against third-party liabilities.
Are there any eligibility criteria to purchase a motor insurance policy?
As long as you own a vehicle legally, you can purchase a motor insurance policy for it.
How long will the online vehicle insurance policy buying process take?
The online motor insurance policy buying process can be completed under three to five minutes provided you have all the details handy and your smartphone/laptop has a functional internet connection.
How to file a claim against my motor insurance policy?
The first step in filing a claim against a motor insurance policy is to contact your insurer and let them know about the incident for which you want to raise a claim. You can do this by visiting the insurer’s website, by calling them, or by sending an email.
Is it possible to switch to a different insurer as well as a different insurance plan?
Yes, you can choose to avail the services of a different insurer and select another plan while renewing the policy for a smooth transition process. Make sure to spend some time researching about the insurance company and the plan before buying it.
What is IDV in vehicle insurance?
IDV in vehicle insurance stands for Insured Declared Value and represents its exact market value. It is the maximum amount the insurer will pay in case of total loss or theft of your vehicle.
What is cashless vehicle insurance?
This means that with your vehicle insurance policy, you can opt for cashless claims that will help you get your vehicle repaired at a cashless garage without spending anything from your pocket.
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