The Motor Car Act requires third-party insurance, which must be acquired whether you buy a new or old vehicle. This sort of insurance safeguards you against legal and financial problems. A full insurance coverage, on the other hand, protects your vehicle against damage caused by accidents, fires, theft, and natural disasters, among other things. In India, driving without valid car insurance is unlawful. Third-party insurance protects not only you, but also any passengers or family members who may be driving your vehicle.