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Vehicle insurance or motor insurance refers to an insurance policy that provides coverage for four-wheelers, commercial vehicles like trucks, buses, etc., and two-wheelers. Vehicle insurance offers coverage against third-party liabilities and accidental damages suffered by the insured vehicle due to accidents, fire, natural calamities and thefts.
There are mainly three types of motor insurance in India. The following sections explain the same.
Car insurance is an insurance policy that offers coverage against accidental damages or theft of the car or damages caused to the third party property or life due to the insured car. Buying a third-party liability policy is mandatory as per law. However, for financial backup against damages to your car, you must opt for own-damage cover or a Comprehensive Car Insurance Policy.
Two-wheeler insurance is an insurance policy that provides coverage for all types of two-wheelers like scooters, mopeds, bikes, sports bikes, etc. The insurance provides coverage against financial and legal liabilities such as accidental damages to the insured vehicle and damages to the third party property or injury/death of a third party caused due to the insured bike. Similar to car insurance, buying third-party cover is mandatory, and the own damage cover is optional.
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.
Motor vehicle insurance comes with several key features. The following table explains the benefits and top features of purchasing vehicle insurance online.
Purchase and renew the policy anytime from anywhere.
Forget form-filling and tedious documentation work.
Online insurers like ACKO don't hire any middlemen. Hence, we can offer policies at low premiums as they have a low operational cost.
Online infrastructure helps digital-first insurers to issue policies, settle claims, and service policyholders in a hassle-free way.
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.
Policies can be renewed almost instantly 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.
Here are the top reasons to buy motor vehicle insurance.
Buying motor vehicle insurance provides you with third-party liability coverage. It is the coverage that covers you against damages to third-party property or injury or death of a third party caused due to your vehicle. The coverage saves you from legal hassles and financial losses.
If you opt for an own-damage or Comprehensive Vehicle Insurance, you will get financial backup if your vehicle suffers damages 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 the reasons mentioned above.
Buying a Personal Accident (PA) cover is mandatory when purchasing vehicle insurance. It provides coverage to the vehicle owner against accidental injuries/death. The PA cover provides coverage of up to Rs. 15 lakhs, and it can be your financial backup in case of accidental injury/disability.
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 Not Covered?
✅ 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.
❌ 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.
A vehicle insurance calculator or a premium calculator helps you determine the premium amount you would be required to pay for the chosen insurance coverage. It is simple to use and is available free of cost. All you have to do is share basic information about your vehicle, choose the required coverage, and you will come to know the approximate cost for the coverage. Here are the steps to follow to know the payable premium.
Step 1: Visit www.acko.com or download the mobile app to buy a vehicle insurance policy online.
Step 2: Enter your vehicle (car/bike) details, choose the coverage, and select the suitable add-ons.
Step 3: Once you enter the details, you can view the premium amount for the most suitable coverage for your vehicle.
You can modify certain inputs like IDV and get to know the different premium amounts for different covers. Once you are convinced about a particular cover, you can go ahead and purchase the policy. The policy will be available to download as soon as your payment is processed.
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.
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.
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.
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.
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.
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 secures you against accidents/breakdowns outside a 100 kilometres radius of your residence during the policy period.
When you don't raise a claim during the previous policy period, ACKO rewards you in the form of an NCB discount on the premium amount during renewal. This discount can go up to 50% if you don't raise a claim for five consecutive years.
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.
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.
While riding, helmets are critical to circumvent injuries to your brain. 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.
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.
Here are the steps to apply for motor insurance online.
Step 1: Visit the ACKO website or download the mobile app.
Step 2: Provide the details of your personal and vehicle details.
Step 3: Select the vehicle insurance plan and add-ons.
Step 4: Pay the insurance premium online.
The vehicle insurance renewal process is similar to buying a new vehicle insurance policy. Here’s the process to renew vehicle insurance on ACKO.
If you have purchased your previous policy on ACKO, you can modify your policy by logging into your account. If you have purchased from a different insurer and looking for vehicle insurance renewal on ACKO, visit our website or download the mobile app.
During the vehicle insurance renewal on ACKO, you will have to share and verify details related to your vehicle, previous vehicle insurance details, etc. Select the right plan and add-ons that suits your requirement.
Once you have selected the right insurance policy for your car/bike, make an online payment. Once you pay the premium amount, you will receive the policy document in your inbox.
Here are the steps to buy or renew motor insurance online on ACKO.
Step 1: Scroll to the top of this page or download the ACKO app.
Step 2: Enter your car registration number and click on the “Insure Now” button.
Step 3: Choose the vehicle insurance plan and add-ons.
Step 4: Customise the IDV as per your preference.
Step 5: Pay the premium online to instantly buy or renew vehicle insurance online.
Note: Existing ACKO customers can simply log in to your account and renew the policy by clicking on your policy card.
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 account and click on the Claim Now section.
Step 2: Provide details about the claim and upload the relevant images of vehicle damage.
Step 3: Depending on the type of damage, ACKO will settle the claim within a few hours/days.
For minor claims, ACKO will instantly reimburse the repair cost. In case of major claims, ACKO will inspect your vehicle. The repair bill will be settled with the garage (except deductibles) if it is a Network Garage. If not, you will have to pay the bill first and then submit the bills to ACKO to get them reimbursed.
In case of theft or third-party losses, the process becomes a bit complex and can involve filing a First Information Report (FIR) with the police. When your vehicle is stolen, you will need a Non-Traceable Certificate from the police to raise a claim. In case of third-party losses, the issue is directed to Motor Accident Claims Tribunal, which decides the compensation amount.
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.
Details related to the vehicle, such as age, engine specifications, etc.
Details about the PIN code of your locality.
Details related to previous claims associated with the vehicle.
The extent of the policy cover, including the add-ons, if any.
The higher the Insured Declared Value (IDV), the higher the premium amount.
The higher the amount of the deductibles, the lower the premium amount.
Installation of anti-theft devices will also have an impact on the premium amount.
No Claim Bonus percentage at the time of vehicle insurance policy renewal impacts the final payable premium.
New-age digital insurers like ACKO eliminate the need for middlemen, which reduces operating costs. This, in turn, results in a lower premium amount.
Consider the following factors while purchasing a motor insurance policy for your vehicle.
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.
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.
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.
You must consider the insurer’s network garages so that you have access to them across the country and where you reside.
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.
The value of the vehicle stated in the policy is the IDV. So, in case of a total loss or when the damages are beyond repair, you receive the IDV after deducting depreciation and applicable deductibles. Ensure you choose the right IDV for your vehicle for the right compensation.
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.
Check how the premium is calculated and what factors impact the cost of the insurance plan. Clear any doubts before you buy the plan.
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 about motor/vehicle insurance.
The three types of motor insurance are car insurance, bike insurance and commercial vehicle insurance.
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.
There are mainly three types of motor insurance products: Third-party Liability Policy, Comprehensive Insurance Plan and Personal Accident (PA) cover.
Motor insurance refers to an insurance plan that provides coverage for motor vehicles like cars, bikes, commercial vehicles, etc.
To check vehicle insurance, you can visit the ACKO website or download the app and provide basic details of your vehicle.
As per law, purchasing a Third-Party Vehicle Insurance Plan is mandatory. It safeguards you against third-party liabilities.
As long as you own a vehicle legally, you can purchase a motor insurance policy for it.
The vehicle insurance segment is primarily divided into private and commercial (or) heavy vehicle insurance. The next layer involves selecting either a Third-party Liability policy or a Comprehensive Motor Vehicle Insurance Plan.
Vehicle owners purchase policies from certified insurance companies for their vehicles. If the vehicles get damaged, the policyholder raises a claim, the insurer verifies it, and if approved, settles the claim by paying the cost of repairs as per the terms and conditions of the policy. This is the basic working model of motor insurance in India. However, this can differ in special cases like theft or third-party liabilities.
If you are driving a vehicle on public roads, then it must be insured. Not following such a mandate can lead to penalties and legal issues.
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.
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.
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.