When it comes to auto insurance in Pakistan, you have several alternatives. You can locate the coverage that fits your budget by researching the sort of insurance you need and comparing the rates of plans offered by different providers.

Insurance is a legal agreement between an insurer and a person or organization under which the insurer offers financial loss protection. The company shared its clients' risks in order to make payments to the insured individual.

Types of Car Insurance Policies in Pakistan

When looking for information on how to get your car covered in Pakistan, you'll come across three main forms of coverage, which are explained below:

  1. Comprehensive Car Insurance
  2. 3rd Party Liability car insurance
  3. Collision car insurance

Comprehensive Car Insurance

As the name implies, comprehensive automobile insurance covers everything. This is the best coverage for any driver because it covers the primary driver, their car, and any damages caused to a third party in the event of an accident. It also protects you from circumstances beyond your control, such as natural disasters, weather, fire, vandalism, and so on.

Comprehensive automobile insurance also covers the driver, passenger, insured vehicle, and third-party vehicle in an accident. In general, comprehensive automobile insurance covers you for all eventualities, including accidents, fire, theft, flood, riot, and third-party responsibility.

3rd Party Liability Car Insurance

Liability automobile insurance protects you if you are at fault in an accident. It will compensate the individual who has been harmed due to your negligence. The insurance will cover the costs of the damaged car, property, and third-party passenger/driver. It should be noted that it only covers damages to third parties. This auto insurance does not cover any damage to your automobile or body. In Pakistan, drivers must have at least this level of coverage.

Collision Car Insurance

Collision vehicle insurance covers you in the event that your vehicle collides with another item or vehicle. In such horrible scenarios, collision auto insurance covers the driver, passengers, and the covered vehicle. Keep in mind that in Pakistan, weather conditions and natural calamities are not covered by collision auto insurance.

How Does Car Insurance Work In Pakistan?

When people buy auto insurance in Pakistan, insurance firms often charge a fee of 2% to 3% of the entire car cost. Additionally, anytime any part of the car has to be replaced, you must pay a set amount of depreciation. According to standard practice, the depreciation rates that insurance purchasers must pay on replacements increase with each passing year.

For example, you may have to pay 10% depreciation in your automobile insurance first year, but the amount may be over 70% by the seventh year.


In Pakistan's largest cities, there are many vehicle insurance companies. You may search for the best vehicle insurance companies and compare their coverage. You may also obtain a vehicle insurance quotation from various firms, compare their estimates, and purchase the best auto insurance package that suits your need.