Vehicle Insurance Calculator Pakistan 2026 – Car Insurance & Takaful Estimator

Vehicle Insurance & Takaful Estimator Pakistan 2026

Last verified: 19 August 2026 Built on rates insurers publish themselves Estimate, not a quotation

Quick answer: Comprehensive car cover in Pakistan is priced as a percentage of your vehicle's insured value. The lowest rate any major insurer publicly advertises in 2026 is 1.75%; listed market rates run to around 3.5% without a tracker, and higher when a tracker is bundled in. On a Rs. 5,000,000 car that is roughly Rs. 87,500 to Rs. 175,000 a year. Takaful is not automatically cheaper — the one operator that publishes both prices them identically. Your actual price comes from the provider after underwriting.

Most Pakistani insurance calculators quote you a single confident number they cannot possibly know. This one does the opposite: it shows a range built from rates providers publish on their own websites, tells you exactly which adjustment moved your figure, and refuses to produce a number where no verified rate exists. Every source is named and dated in Sources & methodology.

Estimate your annual cost

Runs entirely in your browser. No CNIC, registration number or phone number is asked for or sent anywhere.

The vehicle

Published comprehensive rates exist for private four-wheelers. Motorcycles and commercial vehicles are handled separately below.

The current market or declared value, not the original purchase price. Your insurer will set its own insured value, which may differ.

Age is calculated automatically.

Cover

Third-party covers other people only — never your own vehicle. The two are not interchangeable.

What are you looking for?
How the vehicle is used

Used only to surface the rules that apply where you are. No province-based loading is applied, because no insurer publishes one.

Any insurance claim in the last 3 years?
Policy details (optional)

A higher excess may reduce your premium but means you pay more out of pocket on a covered claim. No numeric effect is applied here — see the note in your result.

Add-ons

Only add-ons with a publicly published price are priced here. Windscreen cover, agency repair, roadside assistance, key replacement and depreciation waivers are offered by various providers but priced case by case — ask for them by name when you request a quote.

How much does car insurance cost in Pakistan?

Comprehensive motor cover in Pakistan is quoted as a percentage of the vehicle's insured value, applied once a year. The percentage — not the rupee figure — is what you should compare between providers.

Here is every comprehensive rate a Pakistani provider states publicly, as at August 2026:

Published comprehensive motor rates in Pakistan, 2026
ProviderProductPublished rateWhere it is stated
Jubilee General InsurancePrivate Car Comprehensive1.75% of insured estimated valueInsurer's own product page
Jubilee General TakafulPrivate Car Comprehensive Takaful1.75% of participant estimated valueOperator's own product page
Jubilee General TakafulOld Car Comprehensive Takaful1.50% of covered estimated valueOperator's own product page
United Insurance (UIC)Comprehensive, most cars1.5% – 1.8%Insurer's own blog
United Insurance (UIC)Comprehensive, older models2.5% – 3%Insurer's own blog
EFU General InsurancePrivate car, no tracker3.5%PakWheels insurer listing
EFU General InsurancePrivate car, tracker bundled4.5% – 5%PakWheels insurer listing

Rates read on 19 August 2026. The EFU figures come from a third-party listing rather than EFU's own site, and are labelled as such throughout this page. Adamjee, TPL and IGI publish product descriptions but not headline percentages.

Two things in that table are worth pausing on. First, the spread is wide: 1.75% to 3.5% means the same Rs. 5,000,000 car could cost Rs. 87,500 or Rs. 175,000 depending purely on which insurer you call. Shopping around is worth more than any other decision you make. Second, EFU's tracker rate is higher than its no-tracker rate, which surprises people. That is because the tracker device and its monitoring subscription are bundled into the percentage rather than billed separately — you are comparing a rate that includes hardware against one that does not.

What percentage of car value is insurance in Pakistan?

Between roughly 1.75% and 3.5% a year for comprehensive cover on a private car, based on rates providers publish. Older vehicles sit at the upper end or need a specialised older-car product. Third-party-only cover is a fixed low amount rather than a percentage.

How vehicle insurance premium is calculated

The arithmetic is simple. The judgement is not.

Insured value × rate = base premium. Everything else — age, usage, claims record, tracker, add-ons — moves the rate an underwriter offers you, or adds a fixed rupee amount on top. Government charges are then added at the point of sale.

What genuinely moves the number:

  • Insured value. The single biggest factor. Declaring an inflated value costs you more every year and gains you nothing, because a total-loss settlement is based on actual value at the time of the claim.
  • Vehicle age. Jubilee's headline 1.75% product is written for vehicles up to five years old. Beyond that you move to an older-car product, which at the same operator is priced at 1.50% for Takaful — lower, not higher, because the insured value has fallen and the product covers less.
  • Usage. Taxi, ride-hailing and goods-carrying vehicles are underwritten separately. A private-car rate does not apply to them.
  • Claims history. A clean record supports a no-claim discount at renewal; recent claims work against you.
  • Tracker. Sometimes required above a certain value, sometimes bundled into the rate, sometimes billed as a separate device and subscription. Always ask which.
  • Sum insured caps. Jubilee's published private car product caps the sum covered at Rs. 9 million. Above that, expect individual underwriting rather than a rate card.

What does not reliably move it

City and province, despite what many pages claim. Karachi, Lahore and Peshawar plainly carry different theft and accident risk, and underwriters price that risk — but no Pakistani insurer publishes a location loading table, so any calculator applying a specific city percentage is making it up. This estimator applies none.

Is car insurance mandatory in Pakistan?

Third-party liability cover is legally required, and in 2026 that requirement finally acquired teeth in one province.

In March 2026 Sindh amended the Provincial Motor Vehicles Ordinance, 1965 through the Motor Vehicles (Amendment) Act, 2026, inserting a new Section 67-H. Under it, no vehicle registered in Sindh can be registered, transferred, or have its annual token tax paid without valid third-party insurance. The SECP described Sindh as the first province to effectively enforce the requirement, and the effect was immediate: active third-party policies in Sindh rose from 11,200 in March 2026 to 165,064 by the end of June, a 1,374% increase.

The amendment also created a no-fault compensation framework — victims are paid without having to prove who caused the accident:

Sindh statutory no-fault compensation limits, 2026
OutcomeCompensation
DeathRs. 700,000
Loss of both hands, arms, legs or feetRs. 500,000
Loss of sight in both eyesRs. 500,000
Loss of one arm or handRs. 450,000
Loss of one leg or footRs. 400,000
Loss of sight in one eyeRs. 250,000
Permanent disability (statutory limit)Rs. 500,000
Aggregate per vehicle per accidentRs. 20,000,000

Source: SECP press release of 7 March 2026 and Jubilee General Insurance's published Sindh act-only product page. Admissible claims must be settled within 45 days of complete documentation.

To keep the mandatory cover affordable, Sindh cut stamp duty on third-party motor policies from Rs. 500 to Rs. 50 and reduced provincial sales tax on them from 15% to 5%. Enforcement runs through the SECP's Motor Insurance Repository, a central database that lets excise offices verify a policy electronically instead of accepting a piece of paper. The SECP has said it is working with the Punjab Provincial Transport Authority on linking route permits to the same repository, so other provinces are likely to follow.

Outside Sindh, third-party cover remains a legal requirement under the Motor Vehicles Ordinance, 1965, but is not yet tied to registration or token tax in the same enforceable way.

Car insurance vs Takaful in Pakistan

Takaful is a cooperative risk-sharing arrangement. Participants contribute to a common fund from which claims are paid, the operator manages that fund as an agent for a fee, and any surplus may be distributed back to participants. Conventional insurance transfers risk to the insurer in exchange for a premium, and the insurer keeps the underwriting profit.

Pakistan regulates both through the SECP. Takaful operates under the Takaful Rules, 2012, which permit both full-fledged operators and — importantly — conventional insurers running window Takaful operations alongside their conventional book. That is why several familiar names appear in both columns.

Is Takaful cheaper than insurance?

Not inherently. The clearest available evidence is that Jubilee General prices its conventional Private Car Comprehensive and its Private Car Comprehensive Takaful at the same 1.75%. Anyone telling you Takaful is systematically cheaper or more expensive is generalising past the evidence. Compare on the things that actually differ: coverage wording, exclusions, excess, claims handling, Shariah governance arrangements, and surplus-sharing terms.

What comprehensive vehicle insurance covers

Reading one insurer's actual policy schedule is more useful than a generic list. Jubilee General's published Private Car Comprehensive wording covers loss or damage to the vehicle by: accidental external means; fire, external explosion, self-ignition, lightning and frost; burglary, housebreaking and theft; malicious act; riot and strike damage; flood, hail, wind, hurricane, cyclone, tornado and typhoon; earthquake, volcanic eruption or other convulsion of nature; and risk while in transit by air, road, rail, inland waterway, lift or elevator. It adds third-party liability for death, bodily injury and property damage, plus a small medical expenses benefit.

Note the small print that people miss: the same policy limits recovery-to-nearest-workshop costs to Rs. 500 and medical expenses to Rs. 350. These are token amounts, not meaningful benefits. On the liability side, comprehensive policies in the Pakistani market commonly carry a third-party liability limit around Rs. 10,000,000.

What is usually not covered

Common exclusions across published Pakistani motor wordings include depreciation and wear and tear; mechanical and electrical breakdown; damage to tyres and battery alone (with the insurer typically liable for 50% of replacement if the vehicle is damaged at the same time); loss from theft or breach of trust by the participant's own driver or a known person; accidents outside the stated geographical area; driving by someone not described in the schedule; loss while driving under the influence of alcohol or drugs; radiation and nuclear risks; and war or civil unrest. Always read your own policy wording — exclusions differ between providers and change between versions.

Third-party vehicle insurance

Third-party cover pays other people. It never repairs your own car. It is the legal minimum, it costs a small fraction of comprehensive cover, and for a low-value older vehicle it is often the sensible choice.

No Pakistani insurer publishes a third-party tariff schedule the way comprehensive rates are published, which is why this estimator does not generate a precise third-party figure. What can be stated: United Insurance's own 2026 guide puts annual third-party premiums for cars under 1000cc at roughly Rs. 1,500 to Rs. 3,000. Several insurers, including Jubilee General, now sell the Sindh mandatory act-only policy directly online.

Insurance for financed and leased cars

If your vehicle is on finance or lease, the financing institution — not the insurer — sets the requirement. In practice banks and leasing companies require comprehensive cover for the full term, and typically require the policy to be assigned or endorsed in the financier's favour so that a total-loss settlement goes to them first. Some restrict which insurers they accept, and some bundle their own arrangement into the instalment.

Requirements differ between institutions and this page does not attribute a specific requirement to any named bank. Ask your financier in writing what they require before you buy a policy, or you may pay for one they will not accept. If you are still at the buying stage, work out the monthly cost first with the car instalment calculator.

Vehicle tracker requirements

Trackers are not universally required. Whether you need one depends on the insurer, the vehicle's value, and sometimes the model's theft record. Where a tracker is involved, ask three questions: is it required or optional; is the cost inside the quoted rate or billed separately; and who owns the device if you switch insurers. EFU's listed rates illustrate why this matters — its tracker-inclusive rate is a full percentage point above its no-tracker rate because the hardware and monitoring sit inside the percentage.

Insurance add-ons

Add-ons available in the Pakistani market include personal accident cover for the driver and passengers, windscreen protection, agency or authorised-dealership repair, roadside assistance, key replacement, coverage for installed accessories such as tracker, screen and audio systems, and depreciation waivers. Availability varies significantly — no insurer offers all of them.

Only two have a publicly published price: Jubilee General lists personal accident cover for a paid driver at Rs. 500 and for four passengers excluding the driver at Rs. 900. This estimator prices those two and no others, because inventing prices for the rest would defeat the point of the tool.

How to buy vehicle insurance online

  1. Establish your vehicle's realistic current market value. Do not inflate it.
  2. Decide comprehensive or third-party, and conventional or Takaful.
  3. Request the rate as a percentage from at least three or four providers. This is the only figure that compares cleanly.
  4. Ask each what the excess is, whether a tracker is required, whether its cost is inside the rate, and what the sum insured cap is.
  5. Check the policy wording's exclusions before you pay, not after a claim.
  6. Buy directly from the insurer's own site or a licensed intermediary. Verify the provider is SECP-registered.

How to make a vehicle insurance claim

  1. Notify immediately. Published Pakistani wordings require immediate notice to the company when a claim arises. In case of theft, immediate notice to the police is mandatory.
  2. Report to police where required — theft, and generally any accident involving injury.
  3. Lodge the claim through the provider's app, portal or helpline.
  4. Submit documents. See below.
  5. Survey and assessment. A surveyor inspects the vehicle at an approved workshop or on site.
  6. Approval and repair or settlement according to the policy terms and any applicable excess.

Settlement timelines are set by the provider and by law where applicable. One verified timeline exists in 2026: under the Sindh mandatory third-party framework, admissible claims must be processed within 45 days of complete documentation. No comparable published deadline applies to comprehensive own-damage claims, so treat any page promising "claims settled in X days" with caution unless the insurer states it.

Documents required

Commonly requested at policy purchase: CNIC, vehicle registration book or smart card, and vehicle details including engine and chassis numbers. Some providers require photographs or a pre-inspection.

Commonly requested at claim: completed claim form, policy documents, driving licence, accident details, photographs, a repair estimate, and a police report where applicable.

Provider- and case-specific: Jubilee General's published Sindh third-party claim requirements illustrate how specific this becomes — a death claim needs a NADRA succession certificate and an FIR confirming the accident, while a disability claim needs a traffic police accident report, a hospital disability certificate with discharge summary, and the injured person's CNIC or B-Form. Ask your provider for its own list; do not assume.

Pakistani vehicle insurance & Takaful providers

The following are established SECP-regulated providers with public motor product pages. This is a neutral list in alphabetical order, not a ranking — we have no basis to name a "best" insurer and will not pretend otherwise.

Pakistani motor insurance and Takaful providers
ProviderConventionalTakafulPublished rate?Notes verified from official sources
Adamjee InsuranceYesYesNoOffers third-party, comprehensive and own-damage motor products; online purchase available
EFU General InsuranceYesYesNot on own siteComprehensive, third-party and own-damage cover for private and commercial vehicles; established 1932
Jubilee General InsuranceYesYes (window)Yes — 1.75%Publishes rate, vehicle age limit (5 years), sum insured cap (Rs. 9m) and add-on prices; sells Sindh mandatory act-only cover online
TPL InsuranceYesYesNoComprehensive, older-car, Secure T and 3T products; DrivePro usage-based product; cover limited to Pakistan's geographical limits
United Insurance (UIC)YesYes — 1.5–3%States 1.5–1.8% for most cars and 2.5–3% for older models on its own site
IGI General, Askari General, UBL Insurers, Pak-Qatar General Takaful, Alfalah, Atlas, PremierYesVariesNoActive motor providers; no headline percentage published, so not modelled here

Provider details read on 19 August 2026. SignTest.pk has no commercial relationship with any provider listed and earns nothing from these links.

More vehicle tools

Not licensed yet? Start with the free road-sign and theory test or the car licence test. A valid licence is a condition of cover under every motor policy wording we have read — driving on an invalid licence can void a claim.

Sources & methodology

What was researched

Regulatory. The SECP is the insurance regulator under the Insurance Ordinance, 2000, read with the Insurance Rules, 2017. Takaful operates under the Takaful Rules, 2012, which allow both full-fledged operators and window Takaful operations within conventional insurers. The SECP's press release of 7 March 2026 and the Sindh Motor Vehicles (Amendment) Act, 2026 provided the Section 67-H requirement, the no-fault compensation limits, and the Motor Insurance Repository.

Providers. Product pages were read directly at Jubilee General Insurance and Jubilee General Takaful (rates, age limits, sum caps, covers, exclusions, add-on prices, Sindh act-only terms and claim documents), EFU General Insurance, TPL Insurance, Adamjee Insurance and United Insurance. PakWheels' insurer listing supplied EFU's percentage rates, which EFU does not publish itself — those are labelled as third-party-sourced everywhere they appear.

How the estimate is built

The estimator uses a market-range model, not a pretend quotation.

  1. The comprehensive band starts at 1.75% to 3.50% of insured value. The lower bound is the lowest rate any major insurer publishes; the upper bound is the highest standard no-tracker rate found in a provider listing.
  2. Modelling adjustments — SignTest.pk's own assumptions, not provider rates — widen or shift that band for vehicle age, usage class, claims history and tracker arrangement. Each one is named in your result with the multiplier applied, so you can see exactly what moved the number and disagree with it.
  3. Add-ons with a published price are added as fixed rupee amounts.
  4. No adjustment is applied for province, city, driver age or deductible, because no Pakistani provider publishes one. The tool says so rather than inventing a factor.

What could not be verified

  • No third-party tariff schedule is published by any provider. The estimator returns guidance rather than a computed figure for third-party cover.
  • No published comprehensive rate exists for motorcycles or commercial vehicles. Both categories are declined rather than estimated.
  • Adamjee, TPL, IGI and Askari publish products but no headline percentages, so none of their pricing is modelled.
  • Deductible and excess amounts are not published in a comparable form.
  • No insurer publishes a location loading, a driver-age loading, or a no-claim-discount scale.
  • Bank and leasing requirements for financed vehicles are not attributed to any named institution.

Last verified: 19 August 2026. Rates and products change without notice. We re-read the source pages periodically and update this page and its assumptions when they change; there is no automatic feed.

Frequently asked questions

How much does car insurance cost in Pakistan in 2026?

Comprehensive cover is priced as a percentage of insured value. Published rates run from 1.75% at the lowest to around 3.5% without a tracker, and 4.5–5% where a tracker is bundled in. On a Rs. 5,000,000 vehicle that is roughly Rs. 87,500 to Rs. 175,000 a year before add-ons. Third-party-only cover for a small car is in the region of Rs. 1,500–3,000.

How is car insurance premium calculated?

Insured value multiplied by the insurer's rate gives the base premium. The rate you are offered depends on vehicle age, usage class, claims history, tracker arrangement and the insurer's own underwriting. Fixed-price add-ons and government charges are added on top.

What percentage of car value is insurance in Pakistan?

Roughly 1.75% to 3.5% a year for comprehensive cover on a private car, based on rates providers publish. Older vehicles sit at the upper end or move to a specialised older-car product. Ask every insurer for its rate as a percentage — it is the only figure that compares cleanly between quotes.

Is car insurance mandatory in Pakistan?

Third-party liability cover is legally required under the Motor Vehicles Ordinance, 1965. Since March 2026, Sindh enforces it directly: under the new Section 67-H, no vehicle registered in Sindh can be registered, transferred or have its token tax paid without valid third-party insurance. Other provinces have the legal requirement but not yet the same enforcement link.

What is comprehensive car insurance?

Cover for your own vehicle plus liability to others. Published Pakistani wordings typically include accidental damage, fire, theft, malicious acts, riot and strike, flood and storm, earthquake, and transit risk, alongside third-party death, injury and property damage.

What is third-party car insurance?

The legal minimum. It pays other people for injury, death or property damage you cause. It pays nothing towards your own vehicle. It is cheap because the exposure is narrow.

What is vehicle Takaful?

A cooperative alternative to conventional insurance. Participants contribute to a shared fund from which claims are paid, the operator manages that fund as an agent for a fee, and any surplus may be distributed back to participants. In Pakistan it is regulated by the SECP under the Takaful Rules, 2012.

Is Takaful available for cars in Pakistan?

Yes, widely. Both full-fledged Takaful operators and conventional insurers running window Takaful operations offer motor Takaful, including comprehensive cover for cars and motorcycles.

Is Takaful cheaper than insurance?

Not inherently. Jubilee General prices its conventional and Takaful private car comprehensive products at the same 1.75% rate. Treat any claim that Takaful is systematically cheaper or more expensive with scepticism, and compare coverage, exclusions, excess, claims handling and surplus-sharing terms instead.

Does car insurance cover theft?

Comprehensive cover does — published wordings list burglary, housebreaking and theft. Third-party cover does not. Note a standard exclusion: loss arising from theft or breach of trust by your own driver or a known person is generally excluded. Immediate notice to the police is mandatory.

Does car insurance cover flood damage?

Comprehensive wordings in Pakistan commonly list flood, hail, wind, hurricane, cyclone, tornado and typhoon damage, along with earthquake and other natural convulsion. Given Pakistan's monsoon flooding, confirm this is in your specific wording rather than assuming it.

Does vehicle age affect insurance premium?

Yes, and in two ways. It changes the rate offered, and it can change which product you are eligible for — Jubilee's headline private car product is written for vehicles up to five years old, with a separate older-car product beyond that. Very old vehicles may be declined for comprehensive cover entirely.

Does vehicle location affect the premium?

Underwriters price geographic risk, but no Pakistani insurer publishes a location loading table. Any calculator that applies a specific percentage for Karachi or Lahore is inventing it. This estimator applies no location adjustment and says so.

Does a financed car need insurance?

In practice yes. Financing institutions generally require comprehensive cover for the term of the finance, usually assigned or endorsed in their favour. Requirements vary between institutions — ask your financier in writing before buying a policy they may not accept.

Is a tracker required for car insurance?

Not universally. Some insurers require one above certain vehicle values or for theft-prone models. Where a tracker is involved, ask whether its cost sits inside the quoted percentage or is billed separately — EFU's listed tracker-inclusive rate is around a full percentage point higher than its no-tracker rate for exactly this reason.

What documents are needed for car insurance?

At purchase, commonly CNIC, registration book or smart card, and vehicle details. At claim, commonly a claim form, policy documents, driving licence, accident details, photographs, repair estimate and a police report where applicable. Specific requirements differ by provider and claim type.

How do I make an insurance claim?

Notify the insurer immediately — published wordings require it — and report to police where theft or injury is involved. Lodge the claim, submit documents, allow the surveyor to inspect, then repair or settlement follows under the policy terms and any excess. Sindh's mandatory third-party claims carry a statutory 45-day processing requirement; comprehensive own-damage claims have no equivalent published deadline.

Can I insure an old car?

Often yes, through a dedicated older-car product rather than the standard one. Jubilee's Old Car Comprehensive Takaful is priced at 1.50%, and TPL markets both an older-car comprehensive product and Secure T for total loss, theft and third party. For a low-value car, third-party or a theft-and-total-loss product may make more sense than full comprehensive.

Can motorcycles be insured?

Yes — motorcycle comprehensive Takaful and insurance products exist in Pakistan. No provider publishes a motorcycle rate, so this estimator declines to produce a figure and points you to the provider instead.

What is an insurance deductible or excess?

The amount you pay yourself on each covered claim before the insurer pays the rest. A higher excess generally lowers the premium and raises your out-of-pocket cost at claim time. Pakistani insurers do not publish comparable excess structures, so this estimator applies no numeric effect for it.

How can I reduce my car insurance cost?

Compare rates as percentages across at least three or four providers — the spread between 1.75% and 3.5% is far larger than any discount you will negotiate. Do not over-declare your vehicle's value. Maintain a clean claims record for the no-claim discount. Consider a higher excess. For an older, low-value car, ask whether third-party or a theft-and-total-loss product is more proportionate than comprehensive.

Disclaimer

This tool provides an indicative estimate based on publicly available 2026 market information and provider terms. It is not an insurance quotation, policy document, financial guarantee, or binding offer. Actual premium or contribution may vary according to the insurer or Takaful operator, vehicle inspection and valuation, underwriting, coverage, deductibles, claims history, vehicle age, location, policy terms, taxes and other applicable charges. Always confirm the final price and coverage directly with the selected provider.

SignTest.pk is an independent informational website. It is not an insurance company, Takaful operator, broker, agent or government department, and has no commercial relationship with, and receives no payment from, any provider mentioned on this page. Provider and regulator websites are linked as references only.

Nothing here is financial, legal or Shariah advice. For a Shariah opinion on a specific Takaful product, consult the operator's Shariah governance disclosures or a qualified scholar.