Car Policy Basics for Indian Drivers

If you own a car or are planning to buy one, you’ll quickly discover that a "car policy" is more than just paperwork. It’s the set of rules that keep your vehicle legal, insured, and road‑ready. In this guide we break down the must‑know parts: insurance, road tax, registration, and the little‑but‑important RTO rules.

Understanding Insurance Requirements

First up, insurance. Indian law mandates at least a third‑party liability cover. That protects other road users if you cause an accident. Most drivers upgrade to a comprehensive plan because it covers theft, fire, and damage to your own car.

When you shop for a policy, look for these three factors:

• Coverage limit: Higher limits mean better protection but cost more.
• Deductible: A lower deductible reduces your out‑of‑pocket expense after a claim.
• Add‑on benefits: Roadside assistance, zero depreciation, and engine protection can be worth the extra premium.

Renew your policy before it expires—most insurers send a reminder 15 days prior. Late renewal can lead to a gap in coverage, and you’ll face a higher premium next year.

Managing Road Tax and Registration

Road tax is a state‑level charge you pay each year. The amount varies by vehicle age, engine capacity, and the state you’re registered in. To avoid penalties, pay the tax before the due date; you can usually do this online through your state’s transport department portal.

Registration is a one‑time process when you first buy the car. You’ll need:

• Proof of purchase (invoice or sale deed)
• Address proof (Aadhar, utility bill)
• Insurance certificate
• Form 20 (application for registration)

Take these documents to your nearest Regional Transport Office (RTO). The officer will assign a registration number and issue a registration certificate (RC). Keep the RC in your glove box—it’s proof that your car is legally registered.

Don’t forget to get a valid driving licence. A learner’s licence is okay for practice, but you need a full licence to take your car on the road. The test includes a written part and a practical driving exam. Passing both earns you a licence that’s good for 20 years, after which you’ll need to renew.

Finally, stay on top of emission checks. Many cities require a pollution under control (PUC) certificate every six months. It’s a quick test at any authorized centre, and it helps keep the air cleaner.

By keeping insurance up to date, paying road tax on time, and maintaining registration paperwork, you’ll avoid fines and keep your car running smoothly. If you ever feel stuck, a quick call to your insurer or a visit to the RTO can clear most doubts.

Remember, a car policy isn’t a hassle—it’s a safety net for you and everyone else on the road. Stay informed, stay compliant, and enjoy the ride.