Car insurance is mandatory by law for every car owner in India. If you don't buy it or renew on time your existing car insurance cover you will be penalized by road traffic authorities. Beyond this, it’s the financial losses that you will have to bear on your own, due to any accident, third party property damage, health injury or their loss of life, etc. It can make a huge hole in your pockets. Hence, getting your car insured becomes all the more important. The validity of your car insurance policy is up to a certain period only.