Car Insurance
Car Insurance

On road protection for your investment

The need for having the right car insurance is now more pronounced than ever, as it keeps you financially well-covered if any accident were to occur while driving on the road, and lends you peace of mind at the same time. That forms the basis of the Private Car Insurance policy by Liberty General Insurance (LGI). This car insurance policy provides protection to the car owner against I) damages to the insured vehicle, and II) any third party liability as determined by the law.

Key Benefits of Car Insurance

Well, there are a number of key benefits of buying a Liberty Private Car Insurance Policy, and here are some of the prominent Car insurance details:

  • hasslefree Image


    Inspection & cashless
    claim service at more than 4300 network garages

  • Claim Assistance


    Settlement within 7
    working days

  • Transfer Image


    Existing No Claim
    Bonus from any insurance provider

  • Avail


    Of additional protection & convenience through
    different add on covers

  • Telephonic Service

    Telephonic Service

    For effective claims support & assistance from 8:00 AM to 8:00 PM daily.

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Why having car insurance is a must

Driving a car without third party insurance is a punishable offence according to the terms of the Motor Vehicles Act, 1988. Having at least third party insurance is a statutory requirement as the owner of the insured vehicle is legally liable to pay for any injury or damage suffered by third party/parties or third party property, arising out of an accident due to the use of the insured vehicle in a public place.

Types of car insurance covers

The two options you have when you buy online insurance for car include: -

  • Liability Only Policy (Statutory Requirement)
  • Package Policy (Liability Only Policy + Damage to owner’s vehicle called O.D. or Own Damage Cover)

Private Car Package Policy

Based on the option you choose, LGI’s online car insurance in India comes with specific coverage.

Own Damage to the vehicle insured caused by-

  • Accident due to external means
  • Earthquake, flood, storm, landslide, rockslide
  • Burglary, housebreaking or theft
  • Fire, explosion, self-ignition, lightning
  • Terrorism, riots, strike or malicious act
  • Transit by road, rail, inland waterway, lift
  • Wear and tear, mechanical or electrical breakdown, failure or breakage
  • Damage by a person driving with invalid driving license or under the influence of alcohol/drugs
  • Depreciation, any consequential loss
  • Claims arising out of contractual liability
  • Loss/damage due to war, civil war, mutiny, nuclear perils, etc.
  • Damage to tyres and tubes unless the vehicle is damaged during an accident
  • Use of vehicle otherwise than in accordance with the ‘limitations as to use’ (e.g., private car being used as a taxi)
  • Loss/damage outside India

a) Depreciation Cover

It covers Depreciation amount deducted on the value of parts replaced as a result of admissible claim under Own Damage Section of policy.


Insured vehicle should be repaired at any of Company’s authorized Garage.


It does not cover the claims in which vehicle is not repaired at any of the Company’s authorized Garage.

b) Consumables Cover

It covers expenses incurred towards “those items or substances of specific use which at the time of loss are either totally consumed or rendered unfit for further consumption” arising out of damage to the vehicle insured and/or to its accessories.

Consumables shall mean those items or substances which have specific use and when applied to their respective uses are deemed to be consumed completely and/or are deemed to be unfit for future use. These items include grease, lubricants clip, air conditioner’s gas, bearings, engine oil, oil filter, break oil, nut and bolt, screw, washers and the like.

Special conditions applicable:

  • For any claim to become payable under this add-on, it should be admissible under “Own Damage Section” of the Policy
  • All such costs to be supported with proper bills/invoices only from Garages authorized by the company
  • Such repairs to be undertaken within three (3) days of the date of loss


  • Expenses under this add on in an event of a Total/Constructive Total Loss
  • Labour Cost plus Service Tax in respect to such consumables
  • Repairs/Labour bills from Local Garages against insured items.

c) Gap Value Cover

Company agrees to pay the “difference amount” between the amount received under Own Damage Section i.e. Insured Declared less deductibles under the policy AND price as per purchase invoice OR the current replacement value of vehicle if the same make model is available, whichever is less in the event of a Total Theft or Total Loss/Constructive Total Loss of the vehicle.

It also covers the Road Tax and first time registration charges if specifically declared and additional premium is paid.

Maximum liability to the company is limited to the sum insured mentioned in the policy schedule.

Special Conditions applicable to this benefit

  • The vehicle is not more than 3 years old on the date of commencement of the policy period
  • The Total Loss/Constructive Total Loss (CTL) or Total Theft of the vehicle should be admissible under the Own Damage Section of the policy
  • Insured should be the first registered owner of the vehicle
  • Vehicle insured should be indigenous


  • It covers only First registered owner vehicles
  • It does not cover imported vehicles

d) Roadside Assistance Cover

In case of breakdown of the insured vehicle, LGI will provide roadside assistance through the authorized vendor unlike cheap car insurance in India which doesn’t cover the same.

  • Vehicle relocation to the nearest garage in case of Major Breakdown
  • Repair services for Minor Breakdown
  • Assistance in case of Lockout/Lost Keys
  • Changing of Flat tyre
  • Arrangement of emergency fuel in case the vehicle runs out of fuel
  • Alternative transport assistance to the nearest safe location for the passengers of the vehicle

Special conditions

All additional expenses regarding replacement of a part, additional Fuel and any other service which does not form a part of the standard services mentioned above would be on chargeable basis to the insured.


  • Roadside Assistance other than authorized vendor
  • It does not cover the expenses towards replacement of any parts and fuel cost

e) Passenger Assistance Cover

It is a comprehensive cover to secure the passengers travelling in the insured vehicle. The cover includes-

  • Hospital Allowance
  • Medical Expenses
  • Medical Transport Assistance

Special Conditions applicable to Medical Expenses Coverage

The Company stands to cover medical expenses for treatment taken from only registered medical practitioners under respective medical councils.

f) Key Loss Cover

In consideration of extra premium paid by the insured as mentioned in the policy schedule it is hereby understood and agreed subject to the terms, conditions, exclusions and limitations that the Company will reimburse insured towards-

  • The cost of replacing vehicle keys in case of irrecoverable occurrences of lost or broken or damaged keys
  • The cost of replacing locks and keys in case of theft of keys and/or if the vehicle is broken into along with damage to the locks/keys of the insured vehicle resulting in security threat to the vehicle.

Special Condition

Insured s required to provide police report confirming the incident details occurring during the mentioned Policy Period.

g) Engine Safe Cover

Company undertakes to provide cover to the engine of the insured vehicle including its block and child parts along with the gear box, transmission or differential assembly provided the loss or damage is due to-

  • a) Ingression of water in the engine or
  • b) Leakage of lubricating oil from the engine/assembly arising out of accidental damage

Special Conditions

  • Water ingression cover will commence only when there is an evidence of vehicle being submerged or having stopped in a water logged area
  • Vehicle is taken to the garage within 24 hours of water receding from the water logged area and the intimation to the Company be given not later than three days from the receding of water
  • Insured shall take reasonable care to avoid further damage to engine/gear box post water ingression or leakage of lubricating oil. Insured should not try to crank or push start the engine post undercarriage damage or post insured vehicle stopping due to water ingression

Special Exclusions

  • Loss or damage covered under manufacturer’s warranty or part of manufacturer’s recall
  • Loss or damage to the engine and/or gear box due to delay in intimation to the insurer or delay in retrieval of insured vehicle from water clogged area

Car Insurance FAQs

Q1. Is it mandatory to have motor car insurance in India?​

Answer. Yes, motor insurance is mandatory in India. Having at least third party motor insurance in India is a statutory requirement as per the Motor Vehicles Act, 1988.

Q2. What is car insurance?

Answer. It is an insurance policy that covers four wheelers against damage or loss resulting from accident or theft. One can buy online car insurance policy or by visiting the insurer.

Q3. What are the different types of car insurance?

Answer. Car insurance is of two types

  • Liability only or third-party car insurance

Third-party insurance is the most basic vehicle insurance that is compulsory for every motor vehicle on road. It only covers the loss or damage suffered by third party in case of an accident arising out of the use of the insured vehicle. Liability only policy does not cover any loss or damage to the insured vehicle or to the insured.

  • Comprehensive car insurance

It is an all-inclusive policy which provides complete coverage i.e. loss or damage to insured as well as to the third-party, in case of theft or an accident.

Q4. When do you buy commercial car insurance?

Answer. Commercial car insurance policy is required if you use your vehicle for commercial purposes or own vehicles operated by a business.

Q5. Is it required to renew four wheeler insurance every year?

Answer. Yes. Car insurance policies are usually offered for one year, so you will have to buy car insurance, every year. Purchase online motor insurance to avail various benefits such as better premiums, less paperwork, etc.

Q6. When I buy new car insurance, do I purchase third party or comprehensive car insurance?

Answer. Third party car insurance is mandatory as per the law. But, you should buy car insurance as per your requirements. As liability only policy only covers third party liability, any damage to your vehicle will not be covered. Hence, it is advisable to buy comprehensive cover as it protects you and your car against accidental damages and losses, in addition to third party liability. Plus, it would be best to buy online car insurance as it offers numerous advantages.

Q7. What are the factors that affect the premium for insurance policy for car?

Answer. The below mentioned factors can affect the premium for car insurance policy: -

  • a) Insured’s Declared Value (IDV) of the vehicle
  • b) Cubic Capacity of the vehicle
  • c) Geographical Zones (City of Registration of Vehicle). So, your premium will vary with your location, which means that car insurance in Delhi will be different from car insurance in Mumbai or Chennai or Bangalore.
  • d) Age of the vehicle
  • e) Claim History of the Vehicle
  • f) Selection of Voluntary Deductibles in the motor insurance policy

Q8.What is Insured Declared Value (IDV) in a car insurance policy?

Answer. Insured Declared Value (Sum Insured under Motor Insurance Policy) reflects the value of the motor vehicle determined based on the Manufacturer's Listed selling Price of the vehicle and depreciation based on the Age of the vehicle. It will be fixed at the commencement of each policy period for each insured vehicle. The IDV is applicable for the purpose of Total Loss/ Constructive Total Loss (TL/ CTL) claims only. For the purpose of TL/CTL claim settlement, this IDV will not change during the currency of the policy period in question. It is clearly understood that the liability of the insurer shall in no case exceed the IDV as specified in the policy schedule less the value of the wreck & Excess.

IDV Depreciates with Vehicle Age which means car insurance prices for a new car will be higher than an old car

Q9. What is No Claim Bonus or NCB in four wheeler insurance?

Answer. No-claim bonus (NCB) is a discount in OD premium offered by vehicle insurance companies on car insurance if an Insured has not made a single claim during the term of the motor insurance policy. No Claim Bonus (NCB) is offered to an Insured as per the NCB Slab (GR 27). An insured becomes entitled to NCB only at the renewal of a policy (which was bought as a new car insurance policy) after the expiry of the full duration of 12 months.

No Claim Bonus can be transferred on new car insurance subject to Insured having NCB Reserving Letter.

Q10. What happens to the NCB of my motor car insurance in case I switch my insurer?

Answer. The next slab of NCB will be allowed in the new motor insurance policy of New Insurer (listed car insurance companies in India) subject to no ownership transfer, no claim in Previous Policy and previous policy runs for the full period of 12 Months (365 days). The policy buyer can compare various car insurance quotes and the benefits to purchase the best car insurance policy in India with the advantage of NCB.

Q11. Why use car insurance calculator?

Answer. Using car insurance calculator you can calculate your estimated vehicle insurance premium online. Just enter your requirements for vehicle insurance online in the calculator to get instant insurance quotes. Getting insurance quotes and comparing them will help you get your hands on the best car insurance in India.

Q12. Why purchase car insurance online?

Answer. It is beneficial to buy car insurance online in India as there are various policies to choose from and you can make a better and a more informed decision. When you buy car insurance policy online, do complete research and then make the decision. Buying car insurance policy online also helps you save on time and money. When you buy car insurance online in India, you get better benefits than purchasing offline.

Q1. Can I buy LGI car insurance online?

Answer. Yes, you can buy LGI car insurance online. Whether you want to buy new car insurance online or renew it, both options are available on LGI website.

Q2. What are the types of car insurance plans offered by LGI?

Answer. LGI offers two types of motor insurance policy- Package Policy and Third Party Liability Policy. Buy our online vehicle insurance to enjoy a range of benefits.

Q3. What are the add-ons available with LGI Private Car Package Policy?

Answer. LGI Private Car Package Policy is one of the best car insurance policies in India, and it offers maximum coverage through 7 add-on covers:

  • 1.Depreciation Cover
  • 2.Consumable Cover
  • 3.GAP value cover
  • 4.Passenger Assist Cover
  • 5.Roadside Assistance cover
  • 6.Key loss cover
  • 7.Engine safe covers

Q4. Are electrical and non-electrical accessories covered under LGI private car insurance?​

Answer. Electrical and non-electrical accessories will be covered under LGI Private Car Package Policy as follows-

  • Electrical accessories

Electrical accessories which are not a part of factory-fitted equipment of the vehicle will be covered under the insurance policy on payment of additional premium.

  • Non-electrical accessories

Any non-electrical equipment which is not factory-fitted with the vehicle will be covered under non-electrical accessories at an additional premium.

Q5. Is there any discount offered on LGI car insurance if I install an anti-theft device?​

Answer. Upon installation of an Automobile Research Association of India (ARAI) approved anti-theft device in your vehicle, which is dully certified by the Automobile Association of India, you can get a discount of 2.5% on the OD (Own Damage) premium subject to maximum of Rs. 500.

Q6. What coverage is offered for third party liability under LGI Private Car Package Policy?

Answer. LGI Private Car Package Policy coverage for third-party includes:

  • Permanent injury or death caused by the vehicle insured
  • Damage to any property (excluding vehicle) due to the insured vehicle

Q7. How many network garages are under LGI network?

Answer. With LGI car insurance, you can avail cashless claim service at 4300 network garages.

Q8. How do I register a car insurance claim with LGI?

Answer. You can register your claim in the following ways-

  • Call us at 1800 266 5844
  • Register on car insurance claim online on LGI website

Q9. How can I pay for the car insurance policy that I purchase online on LGI?

Answer. There are multiple payment options e.g. credit card, net banking, debit card, etc., for online payment when you buy car insurance online.

Q10. Does LGI car insurance come with personal accident cover?

Answer. Yes. LGI Private Car Package Policy offers personal accident cover to owner/driver. However, you can also purchase add-on personal accident cover for passengers by paying extra premium.

Q11. Is online auto insurance purchase the only option to purchase insurance from LGI?

Answer. You can buy motor insurance online through LGI website or through one of our branches. You can locate a branch near you using the ‘Branch Locator’ tool on our website. However, buying motor vehicle insurance online is a better option as you get an instant policy minus any paperwork and you get better benefits as well.

Car Insurance Glossary (A)

  • Accident: Any event that is not planned and causes damage, injury or death.
  • Actual Cash Value – It is the market value of a vehicle that is paid in case of total loss or damage to vehicle.
  • Accidental Death and Dismemberment: It is an insurance benefit or rider which pays a stated amount in the event of death and/or dismemberment caused by accident.
  • Accident Frequency: The number of accidents that occur in a given period of time.

Car Insurance Glossary (B)

  • Bodily Injury: Any type of injury, sickness, disease or death that is the result of an accident.

Car Insurance Glossary (C)

  • Car Insurance: An insurance policy which is specifically designed for a four-wheeler and provides reimbursement for third-party and own damage expenses.
  • Car Insurance Calculator: A tool that can be used to estimate your online car policy premium.
  • Cancellation: Termination of an insurance contract by the insurer or insured before the renewal date of 4 wheeler insurance.
  • Claim: If your vehicle suffers damage due an accident or due to any natural disaster, you can file for a claim.
  • Claim amount: It is the amount of money the insurance company agrees to pay for the accidental damages as per the terms and conditions of an online car policy.
  • Coverage: It is the protection or benefits of a motor vehicle insurance policy.
  • Comprehensive Coverage: A comprehensive vehicle insurance policy pays for physical damage or loss of your vehicle due to natural calamities, vandalism, fire, and theft, and also covers third-party loss and damages.
  • Collision Coverage: It covers repair or replacement of your car in case of a collision, which happens due to no one else’s fault but yours.
  • Car Insurance Quotes: It is an estimate of premium for the insurance coverage you select based upon the information you enter into the car insurance calculator.

Car Insurance Glossary (D)

  • Deductible: It is the amount of the loss that has to be paid by insured before the insurance company pays for the claim. The deductible amount is fixed at the time you buy car insurance.
  • Depreciation: The percentage loss in value of the vehicle due to age, and wear and tear. As the age of the vehicle increases, the rate of depreciation also increases, and the amount offered by the insurer in the event of a car insurance policy claim goes down.

Car Insurance Glossary (E)

  • Exclusions: All perils or risks that are not covered under the terms of an insurance policy. For example, a car policy does not offer cover for normal wear and tear, accidents that occur due to driving under influence of alcohol or drugs, etc.

Car Insurance Glossary (I)

  • Inclusion: All perils or risks that are covered under the terms of an insurance policy. For example, accidents due to external means, third-party liabilities, etc.
  • Insured: The person who is covered under an insurance policy is the insured or the policyholder.
  • Insurer: The insurance company which provides insurance coverage to the insured upon payment of premium.
  • Insurance Policy: A formal contract between insurer and insured which describes complete policy terms and conditions including, coverage, exclusions, premiums and deductibles, etc.
  • Insured Declared Value (IDV): IDV of the vehicle is the value of the vehicle after deducting for depreciation. In other words, it is the current market value of the vehicle. IDV is the amount which is paid by the insurer on theft or total loss of vehicle, and is agreed upon by the insurer and the insured. IDV of a vehicle reduces with age and the premium is calculated on the basis of it.

Car Insurance Glossary (L)

  • Lapse: Termination of a policy due to non-payment of premiums.
  • Limit: The maximum amount of insurance protection that is offered in a policy term.

Car Insurance Glossary (N)

  • Network garage: The garages which come under the network of your insurance provider. The best online car insurance provider would be one who has wide range of network garages.
  • No Claim Bonus (NCB): NCB is offered on policy renewals when the insured does not make a claim during the policy period. Insurers offer NCB as a discount on the Own Damage Premium.

Car Insurance Glossary (O)

  • Own Damage Premium (OD): In case of an accident, own damage cover pays the expenses incurred on insured’s vehicle due to repair or replacement of damaged parts due to a road accident, theft or damage of your vehicle due to fire, earthquake, etc.
  • Online car insurance: Car insurance policy that can be purchased online. Buy online four wheeler insurance to save on money and time, and also get additional benefits.

Car Insurance Glossary (O)

  • Personal Accident Cover: It covers the insured against accidental death and permanent total disability. Personal accident rider can also be purchased to cover passengers of the car.
  • Policy Period: It is the time period during which an insurance policy is in force and provides coverage to the insured.
  • Policy Schedule: The insurance contract which includes the details of an insurance policy. It includes the period of insurance, the car details and other related information about the policy.
  • Premium: The amount paid by the insured to the insurer in order to get covered as per the terms and conditions of the policy.

Car Insurance Glossary (R)

  • Rider: A written agreement attached to the policy which enhances the benefits otherwise payable under the policy.

Car Insurance Glossary (S)

  • Surveyor: A person nominated by the insurance company for examination and settlement of insurance claims.

Car Insurance Glossary (T)

  • Third Party: In an insurance contract, third party is anyone other than the policyholder covered under the insurance policy. The insured or policyholder is the first party, the insurance company is the second party and anyone else is a third party in the contract.

Why Car Insurance?

Listen to Our Customers


Thanks Manish

Dear Mr. Dharma – I would like to thank your company personnel at the customer services division for their excellent support. Your customer care executive, Manish Bhatia took care of all my queries in a very courteous and professional manner.

Would also like to thank Mr. R Rajkiran from ‘Invee Intelligence Private Limited’ and Mr. Umesh for taking this issue to closure.

Keep up the good work.

Majid Hashmat


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Mr. N. Rama Mohan Rao

Car Insurance Reviews

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Average RatingBased on 35 Ratings

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7/16/2016 10:51:28 AM

Category: General Insurance

hi. ashish singal, 09700616177 there is not at all good response from ur policy no. is 20000365156..

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7/16/2016 10:51:28 AM

Category: General Insurance

A good company to insure with. Quick customer service and claims also. Really feeling happy to insure with LVGI.

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7/16/2016 10:51:28 AM

Category: General Insurance

customer satisfaction is the key to competency Have got a good feedback regarding the service.I hope we get to avail the services soon in dehradun...

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7/16/2016 10:51:28 AM

Category: General Insurance

I am happy to see that being a small company the employees talk to each other & resolve customer queries fast. I am pleased with the speed of service. Very professional people...

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7/16/2016 10:51:28 AM

Category: General Insurance

I was surprised to see the level of professionalism shown by the claims & customer service team. They were quick and courteous. Cheers...

Car Insurance Blogs

Registration Number: 150 | ARN:Advt/2018/March/26 | CIN: U66000MH2010PLC209656

2019 Liberty General Insurance Ltd.

Reg Office: 10th floor, Tower A, Peninsula Business Park, Ganpat Rao Kadam Marg, Lower Parel, Mumbai - 400013

Trade Logo displayed above belongs to Liberty Mutual and used by the Liberty General Insurance Limited under license. For more details on risk factors, terms & conditions please read sales brochure carefully before concluding a sale.