Is Car Insurance Mandatory for a Parked Car in India?

Many car owners in India often wonder whether car insurance is necessary if their vehicle is not being driven and remains parked. Since insurance is a legal requirement on public roads, the question arises when a car is not in use or kept on private property. This article clarifies the confusion by explaining the legal requirements, the types of insurance relevant to parked cars, and the risks associated with leaving your vehicle uninsured.

Legal Requirements for Car Insurance in India

The Motor Vehicles Act, 1988, mandates that all cars must have at least a third-party liability insurance policy when they are driven or used on public roads.

• If parked on a public road, Insurance is mandatory, as the vehicle remains exposed to risks and is subject to traffic laws.
  
  
• If parked on private property, Insurance is not legally required, but the vehicle remains vulnerable to theft, fire, or accidental damage.

This distinction is essential to understanding when deciding whether to maintain coverage for a car that is not in regular use.

Types of Car Insurance Relevant for Parked Cars

When a car is not in frequent use, certain types of insurance provide more suitable protection.

●    Third-Party Liability Insurance

Third-party liability insurance is the minimum legal requirement for vehicles used on public roads. It covers damages or injuries caused to others by your vehicle. However, for a car that is simply parked, this policy offers no protection against risks such as theft, fire, or natural disasters.

●    Comprehensive Car Insurance

A comprehensive policy is more beneficial for vehicles parked in areas. Along with third-party liability, it covers damages to your own vehicle caused by theft, fire, vandalism, or natural disasters. For cars parked for long periods, comprehensive car insurance provides peace of mind by covering the risks a basic policy does not.

●    Consequences of Not Insuring a Parked Car

Car owners sometimes assume that parked cars don’t need insurance, but the risks vary depending on where the car is kept.

●    If Parked on Public Roads

When uninsured cars are parked on public roads, their owners can face legal penalties if they are checked by authorities. There is also the financial risk of third-party damage, such as if the car rolls into another vehicle.

●    If Parked on Private Property

While not legally mandatory, leaving the car uninsured means the owner bears the full financial loss in case of fire, theft, or natural disasters. Even if you rarely drive, the potential cost of such incidents makes insurance a worthwhile consideration.

Tips for Protecting a Parked Car with Insurance

Maintaining insurance for a parked car isn’t just about compliance; it’s about reducing risk and avoiding unexpected expenses. Whether it’s an older vehicle or a new one recently insured under a car insurance policy for new cars, maintaining valid coverage ensures protection against theft, fire, or natural disasters, even when your car is not on the road.

• Renew Policies on Time
  Timely car insurance renewal ensures uninterrupted coverage and prevents lapses that can lead to higher costs later. With trusted insurers like Zurich Kotak, you can easily manage your policy online through Zurich Kotak car insurance renewal, ensuring continued protection without any hassle or delay.
• Select the Right Policy
  For parked cars, a comprehensive plan is preferable to third-party cover, as it protects against theft, fire, accidental damage, and vandalism, in addition to ensuring legal compliance.
• Secure Parking Arrangements
  If you park in a garage or gated premises, inform your insurer. Companies may consider this while assessing risk, potentially reducing premiums.
• Consider Long-Term Plans
  Although there are no storage-specific policies, comprehensive long-term plans are available that reduce the need for frequent renewals.

Conclusion

Car insurance in India is mandatory only when the vehicle is driven or kept on public roads. If a car is parked on private premises, it is not legally required to have insurance, but keeping it covered under a comprehensive plan is highly recommended. This ensures financial protection against theft, fire, or natural disasters.

For car owners, especially those with new vehicles, maintaining valid insurance is a practical step towards both compliance and peace of mind.