What Your Car Insurance Policy Does And Does Not Cover?

Car Insurance

With recent social and political unrest in the country leading to road violence and property damage, many people are wondering whether their car insurance policy will cover such incidents. In this post, we will answer these questions and provide information on what a car insurance policy does and does not cover. So, read till the end and leave your thoughts or questions in the comment section.

Car Insurance

Car Insurance Types in Pakistan: The Least Known Fact

Did you know that there are three types of car insurance in Pakistan and one of them is mandatory? The general perception is that buying car insurance is optional; But no. Every car owner must purchase at least Third Party Liability Insurance. Three types of car insurance:

1 – Third Party Liability Car Insurance:

This is mandatory and covers damage caused by the policyholder to third parties. These losses may include property damage, accident or death due to the accident.

2 – Third Party Fire and Theft Insurance:

As the name suggests, this type of insurance policy covers the insurer and third party against fire and theft.

3 – Comprehensive Car Insurance:

This is a combination of the types of insurance policies mentioned above that cover third party damage and cover the insured in case of losses such as theft and fire. However, it can also include other sources of damage such as riots, terrorism, earthquakes, floods and others. This policy is the focus of this blog.

Also Read: 5 types of Important Insurance every person should have

What Your Car’s Comprehensive Insurance Policy Does And Does Not Cover?

The following information should be considered as general information and should be used for informational purposes only, as specific coverage may vary from company to company.

Loss or Damage (Covered)

The insurance company indemnifies the policyholder against loss or damage to the vehicle and/or accessories:

  • Accident
  • Fire
  • Theft
  • Burglary
  • Riot or Strike
  • Malicious act
  • Flood, hail, wind, hurricane, cyclone, tornado, etc
  • Earthquake, volcanic eruption, etc
  • Transportation of car by air, rail, road, inland waterway
  • Terrorism

Terrorism refers to the loss or damage to the property of our policyholder due to an explosion or an act of terrorism committed by an individual or individuals on behalf of or associated with an organization. However, it is not clear whether an act of terrorism committed by a person not affiliated with the organization would be covered.

In addition, it may not cover other forms of loss or damage caused by terrorism.

Loss or Damage (Not Covered)

The insurance company will not indemnify the policy holder against the loss or damage of the vehicle and/or accessories in the following cases:

  • War (declared or undeclared), foreign war, invasion, invasion.
  • Civil war.
  • Civil/military insurrection, popular uprising, rebellion, insurrection, revolution, military or usurped  power.


In conclusion, it is safe to say that May 25, 2022 and May 9, 2023 will be covered by your car insurance policy for the loss or damage of your car in May. However, if the same event can be categorized as civil war, civil or military unrest, civil insurrection, rebellion, insurrection or revolution, you may not be able to cover the loss or damage to your car by your car insurance.

Also Read: How To Sell Your Car Fast Online in Pakistan

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