Why Comprehensive Car Insurance is a Must in India in 2026?

Posted on: Feb 2, 2026 | 3 mins | Written by: HDFC ERGO Team

Why Comprehensive Car Insurance is a Must in India in 2026?

Getting a new car is very exciting, but keeping it safe is a challenge at times. However, when you get the best car insurance plan, you also get the best security for your vehicle. This is why comprehensive motor insurance is crucial. Take a look at this article to know why you must invest in a good and wholesome comprehensive policy to keep your vehicle and yourself safe at all times.

Benefits of comprehensive car insurance in 2026

Look at the logical reasons that tell you why comprehensive insurance is the way ahead:

1. Vehicle protection

Your car is one of the most precious things you own, and you would surely not want anything to happen to it. Unfortunately, trouble often comes announced, and your car may end up damaged, or worse, stolen. At such times, a comprehensive motor insurance plan helps. If the vehicle is damaged in an accident, you can use your car insurance policy to get it repaired. If it is damaged beyond repair or stolen, you can get a claim amount with which you can replace the vehicle.

2. Third-party coverage

A comprehensive plan includes the benefits of third-party insurance. Hence, when you have such a policy, you do not have to worry about getting a separate third-party plan. If another vehicle or person is affected in an accident caused by your car, you can use the third-party coverage to pay for the damages.

3. Personal accident cover

The personal accident cover is mandatorily included in a comprehensive car insurance plan. It offers medical coverage to the driver if he is injured in a road accident while using the vehicle. This is a very important advantage of motor insurance.

4. Customisation available

The comprehensive car insurance plans can be customised as per your needs. You can add riders, which are add-on covers, to maximise your coverage. You can also choose a long- term plan and customise it in the way you wish.

Reasons why you cannot rely on a basic third-party car insurance policy

Now, let us understand why it is not enough to have a third-party policy:

	Risks	Third-party insurance plans	Comprehensive insurance plans
1	Theft	❌Not covered	✅You will get a complete reimbursement if your car insurance is stolen. If you have a zero depreciation rider, you will get the highest possible value, with which you can get a brand new car.
2	Damage beyond repair	❌Not covered	✅If your car is damaged beyond repair in a fire or an accident, you can get a claim with which you can replace your vehicle.
3	Natural calamities	❌Not covered	✅Floods, earthquakes and cyclones can cause significant damage to your car. When you have comprehensive car insurance, your vehicle stays protected against natural disasters.
4	Man-made disasters	❌Not covered	✅Whether your car gets a huge dent while it's parked, or the windscreen gets shattered in a violent riot, you can claim on your comprehensive policy. This is an important cover that literally allows you to keep your car protected against all types of problems.
5	Financial impact	❌Not weighable	✅In the absence of a comprehensive policy, you have to bear the cost of the repairs and damages. This is an expensive job and will strain your finances. To avoid, simply invest in a good comprehensive policy.
6	Riders	❌Not available	✅You can attach riders only to a comprehensive motor insurance plan. This facility is not available with the basic third-party plans. Whether you want an engine cover add-on or roadside assistance, you will only get it with comprehensive insurance.
7	Loan compliance	❌Not favoured	✅If you apply for a motor vehicle loan, your loan provider will, in most cases, ask for a comprehensive car insurance plan. So, before you apply for a car loan, get a car insurance online plan.

To sum it up

Motor insurance is one of the biggest blessings of the modern day and age. However, you must choose the correct plan to get the maximum value out of your motor insurance coverage. The points mentioned above clearly state how important and useful a comprehensive car insurance plan is. You must analyse your requirements and then see which plan is best suited for you. Thankfully, motor insurance in India is quite affordable, so you will easily find a good comprehensive policy at a great price from a trusted insurer like HDFC Ergo.

Comprehensive car insurance - FAQs

1. Is comprehensive car insurance compulsory in India?

No, it is not compulsory to get comprehensive car insurance in India. However, it is highly advisable if you do so. As you can see, getting a basic third-party may not be sufficient.

Whether your car gets a small dent or massive damage, you will get the support you need to fix it when you have comprehensive coverage.

2. Is comprehensive car insurance suitable for older cars?

The answer here is yes and now. Yes, if you have an old car that you still use every day to commute, and you plan to keep using it. No, if you do not use the car very often and plan to sell or replace it soon. Use your own discretion when insuring an older vehicle.

3. Can I switch from third-party to comprehensive insurance?

Yes, you can switch from a third-party plan to a comprehensive plan. This can ideally be done during renewal. However, you can also make the switch mid-term and get a new car insurance policy, but you will have to agree to an inspection for this.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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