Cheap Car Insurance

Car insurance protects the car owner from any financial loss that occurs as a result of an accident or theft. In both the UK and India, it is a legal requirement that all vehicles and two-wheelers be insured before they are driven on roads. However, there are a few differences between the insurance policies and rules in both countries. Here are some of these variations.

Price Comparisons

Whilst cheap car insurance companies like or provide monthly payment options and multi-insurer price comparisons, this is not widespread in India.


In India, a portion of the motor vehicle insurance policy covering the third-party liability has to be paid up front for three years by new car owners. For new two wheeler-owners, they have to pay third-party insurance premiums for five years when purchasing their insurance policies. However, the insurance policies will be recognised on a yearly basis. The rest of the premiums are treated as advance premium deposits. This rule only applies to new vehicles that were bought after the 1st of September 2018. Also, the rule does not touch old vehicle owners who would like to renew their licences on a yearly basis.

The UK allows new car owners to pay yearly premiums for their cars and two-wheelers. However, some companies offer the option for multi-year policies.

Policy Requirements

In the UK, it is illegal to eat while behind the wheel or to have a pet in the front seat while driving the car. In addition, it is illegal to drive in flip-flops or barefoot. Failure to observe these rules is likely to invalidate your insurance policy in case of an accident. While you are expected to take reasonable measures to drive safely in India, there are no specific rules that touch on the shoes you wear when driving, where to carry your pet or eating while behind the wheel.

The Point System in the UK

If you are arrested for committing a traffic offence in the UK, you get points on your driving licence. These points stay on your license for between four and eleven years. The points impact the price of your motor insurance significantly in that the more you have, the lower the chances of getting discounted offers from insurance companies around the UK. If you get six points as a new driver or accumulate 12 points as a seasoned driver, your driving licence can be revoked.

For example, if you are caught using your mobile phone while driving, you get six points on your licence. In case you repeat the same mistake in three years, you lose your driving license. This law has been put in place to promote safe driving practices. Such a policy is not available in India.

Zero Depreciation Insurance Policy

Although not part of the insurance rules, you will find the zero depreciation insurance policy common in India. With a zero depreciation policy, the insurance premiums do not factor in the cost of the depreciation of your vehicle but are calculated on the initial value of the car. These insurance policies charge higher premiums than the standard policies given the depreciating value of your vehicle. On the other hand, in case of any of the insurable risks happening, you will be compensated for the value of the car at the time of its purchase.

Car Insurance Auto-renew

Unlike India, car owners in the UK can have their auto insurance automatically renewed at the end of the current coverage of 12 months. If you do not want to auto-renew your insurance policy, you need to call the insurance provider and cancel it. The law provides that the company calls you about thirty days before the expiry of the current coverage and inform you that they will be renewing your policy. Auto-renewals save you the hustle that comes with the long process of renewing your insurance policy. However, you also do not get a chance to shop around for better coverage in terms of price and insurable risks. Auto-renewal is not available in India unless authorised.

Both the UK and India enforce at least a 3rd party insurance cover for all vehicles. You could claim a discount in your next renewal if you had no claims. However, the above differences between both countries influence the price and the type of policies that you can take for your car. Please take a detailed look at insurance terms and conditions before taking up the cover. 

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How does car insurance in India differ from the UK?