Why Car Insurance Matters in Pakistan
Owning a car in Pakistan is becoming more common, but many drivers remain unaware of how essential car insurance really is. Whether it’s for legal compliance, financial protection, or peace of mind, car insurance is a must-have in 2025.
This guide will help you understand the types of car insurance in Pakistan, what’s covered, what’s not, and how to choose the right policy.
Is Car Insurance Mandatory in Pakistan?
Yes. According to Pakistani law, Third-Party Liability Insurance is mandatory for every vehicle on the road. This ensures that if your car causes damage to another person or property, the insurance covers it.
However, comprehensive coverage, while optional, is highly recommended.
Types of Car Insurance
1. Third-Party Liability Insurance
Legally required
Covers damage/injury caused to another person or vehicle
Does not cover your own car’s damage
Cheapest type of insurance
2. Comprehensive Car Insurance
Covers both third-party liability and your own vehicle
Protection against theft, fire, accidents, and natural disasters
Offers peace of mind but comes with a higher premium
3. Collision Insurance (offered by some companies)
Specifically covers damages caused by car accidents, regardless of fault
4. Add-On Covers
Engine protection
Zero depreciation
Roadside assistance
Personal accident cover for driver and passengers
💰 Average Car Insurance Cost in Pakistan (2025)
Premiums vary based on several factors:
Car make and model
Market value of the car
Age of the car
Location (Karachi, Lahore, Islamabad, etc.)
Driver’s age and history
Estimated Annual Premiums:
Third-party: PKR 3,000–5,000
Comprehensive: PKR 10,000–50,000+ (based on car value)
Benefits of Having Car Insurance
Legal protection: Avoid fines and legal trouble
Financial security: Save lakhs in case of an accident
Peace of mind: Stress-free driving experience
Protection against theft & natural disasters
Cashless repair services at partner workshops
What’s Typically Covered?
Accidental damage
Third-party injury or property loss
Fire and explosion
Theft or total loss
Natural disasters (floods, earthquakes)
Towing charges (if included)
What’s Not Covered (Common Exclusions)
Driving without a valid license
Drunk driving
Damage during illegal activities
Wear and tear, mechanical breakdowns
Unapproved modifications
Driving outside covered geographical limits
How to Choose the Right Car Insurance Provider in Pakistan
Things to Consider:
Claim settlement ratio
Customer reviews and reputation
Cashless garage network
Add-on covers offered
24/7 helpline or roadside support
Digital claim process (many insurers now offer apps)
Popular Car Insurance Companies in Pakistan:
EFU General Insurance
Adamjee Insurance
TPL Insurance
Jubilee General
UBL Insurers
Askari General Insurance
How to File a Car Insurance Claim
1. Inform your insurance company immediately after an accident
2. File an FIR if required (theft, third-party injury, etc.)
3. Submit all required documents: CNIC, driving license, registration, photos
4. Get a survey done by the insurer’s representative
5. Wait for claim approval and repair authorization
Tips for First-Time Buyers
Always read the policy document carefully
Ask about deductibles (amount you pay out of pocket)
Renew your policy on time to avoid a lapse
Choose comprehensive if your car is expensive or new
Bundle multiple insurances (life, health, car) to get discounts
Drive Smart, Stay Insured
Whether you’re buying your first car or already own one, car insurance is not an option — it’s a necessity in Pakistan. From traffic risks to rising theft cases, a good insurance policy protects your vehicle, finances, and future.
Take your time, compare plans, and drive with confidence in 2025 knowing you’re covered.
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