How To Insure Car In Pakistan Law, Rates, Companies, Documents Required

Do you know how to insure car in Pakistan? Let’s know about auto insurance law in Pakistan, rates, companies, cost, and policy for it. But before that we must be aware about what is an insurance actually means. Auto Insurance is a contract between car owner and the insurance company. Owner will be charged by the company for securing his car from damage or theft. And the company will totally be responsible to fulfill the damages or theft of your car as per the agreement done between owner and the company. Both the parties will be legally liable to meet the rules and regulations set on the Pakistan Insurance Ordinance IOI.

Insuring your car is very important especially when you are in Pakistan. The reason is obvious as the rapidly increasing rush traffic rush on roads and the crime rates. But when your expensive car is insured you are mentally relaxed and free of any kind of happenings. But remember that one can only claim again the insurance which is written between you and the insurance company. There are different insurance companies are now active in Pakistan and you can avail their services if you are meeting the following queries.

Best Car Insurance Companies in Pakistan 2023

Well these days there are more than fifty insurance companies in Pakistan are working. But the followings are the most efficient and got positive reviews in the market.

  • State Life Insurance Corporation
  • Jubilee Life Insurance
  • EFU Life
  • IGI Insurance
  • Adamjee Insurance

Car Insurance Law In Pakistan:

If you are owing a car and want to get insured it you will be required to follow the rules and regulations set in Pakistan Insurance Ordinance. The policy of car insurance law in Pakistan are as follow.

  • Auto Insurance will effects on yearly basis
  • Company is legally liable to response within five days after the customer claim the damage
  • In case of death of the policy holder the next nominee from his / her family could continue on the same parameters after the vehicle transferred to the next owner name
  • The key exclusions under the policy are wear and tear, mechanical/ electrical break down, consequential loss, loss or damaged due to war, mutiny, nuclear risks, any loss out of geographical area, loss arising from theft or criminal act of breach of trust by the insured’s driver or known person
  • Only registered cars will be registered for insurance
  • Owner from other province can insure his car from an-other province such as a Punjab number holder can insure his car in Sindh or any other province

Car Insurance Rates In Pakistan:

Different insurance companies have different car insurance rates but these are almost same. The rate varies according to the car worth. For example if your car costs up to 20 lakh then the insurance rate will be up to 2.0 %. While if your car costs up to 30 lakh then the rate will be up to 2.0 to 2.5%. And similarly the rate will be increased as per the car rates are increased. And here I would like to tell you that different companies have their insurance agents. When you will acquire an agent he will also charge his service charges so you must take insurance quotes before finalizing your plan.

Documents Required For Insurance:

  • Owner CNIC photocopy
  • Copy of vehicle registration book
  • Insurance proposal form
  • Driving License should be valid

How To Insure Car In Pakistan Law, Rates, Companies, Documents

How To Insure Car In Pakistan?

After when you have done the above documentation then you will be required to perform the following procedure step by step to complete the car insurance in Pakistan.

  1. Car insurance companies are now providing online apply services
  2. There you have to visit the official website of any of the above written insurance company
  3. After that you will fill up the insurance quotation form
  4. There you can buy the policy plan for you
  5. An inspection team will visit your written address to check your car and documentation
  6. They will give you the policy form which you must read carefully
  7. Now signature the form and never pay any cash to any person
  8. You must pay your charges at the company’s bank account and attach the bank paid vouchers
  9. It will be good if you are personally visit the insurance company office
  10. Get the insurance tracker application on your mobile for 24/7 attachments and alerts for any update

So these are the complete details about how to insure car in Pakistan law, rates, companies with policies and required documents. I hope you are fully aware about this procedure. But in case of taking any further assistance you can leave comment in the following commenting section. We will further update you after if we receive your reviews or comments in the following comments section. You can also add your suggestion in the following commenting section for taking any further update. Thank You!