Diwali 2025: Will your car insurance cover firecracker damage?

Last year, on the night after Diwali, a 35 year old software engineer stepped out of his car and saw a burnt patch on the hood. A stray rocket had landed there during the celebrations. His first thought wasn’t about the damage itself, it was whether his insurance would cover it.That moment of uncertainty is something many car owners experience during the festive season. Every Diwali, thousands of vehicles face damage from firecrackers, burnt paint, cracked windshields, damaged tires, and in worst cases, fires. Yet most people discover what their insurance actually covers only when they need it.

The Reality Most People Miss

Here’s the catch: the mandatory third-party insurance that every vehicle must have does not cover damage to your own car from firecrackers. It protects others if your vehicle causes harm, but when a firecracker damages your car, that basic policy offers no help. The protection needed comes from comprehensive coverage, also called own-damage insurance. Only a comprehensive policy covers damages caused by fireworks. Without it, repair costs come entirely from your pocket.

During Diwali, this distinction becomes critical: streets are crowded, celebrations unpredictable, and parked cars suddenly vulnerable in ways that don’t exist the rest of the year.

What Comprehensive Coverage Actually Protects

Comprehensive insurance is more than just a firecracker safeguard. It covers:

● Fire and explosions

● Theft or burglary

● Accidents causing damage to your own vehicle

During Diwali, this protection matters even more:

● A rocket can land on your car’s roof while it’s parked.

● A ground spinner can roll under your vehicle and ignite.

● Driving through the festive crowd can lead to tire or undercarriage damage.

The difference between having and not having this coverage? One involves a claim form and maybe a deductible. The other? Thousands of rupees leaving your bank account.

When Coverage Doesn’t Apply

Even comprehensive insurance has boundaries:

● Damage from deliberate actions or gross negligence may not be covered.

● If someone intentionally targets your vehicle, proving it wasn’t intentional can be tricky.

● Immediate reporting is crucial; most insurers require damage to be reported within 24 to 48 hours. Waiting too long can jeopardize your claim.

What To Do If Damage Occurs

If you discover firecracker damage, follow these steps to ensure a smooth claim process:

1. Don’t move the vehicle, if possible.

2. Photograph the damage from multiple angles. Capture the surrounding area to establish context.

3. Contact your insurer immediately and most have 24/7 helplines.

4. Wait for a surveyor to inspect the damage before starting repairs. Premature fixes can complicate or invalidate claims.

Preparing for a Safer Diwali

The practical question this festive season isn’t whether to celebrate but whether your protection matches the risks:

● Many families own vehicles worth several lakhs but carry only minimum insurance.

● Parking vehicles in covered areas during peak firecracker hours reduces exposure.

● Using vehicle covers adds a physical barrier against sparks or falling rockets.

Having comprehensive coverage gives something invaluable: the freedom to celebrate Diwali without the anxiety that a single firecracker could create a financial burden long after the festivities end.

(Views are personal; the author is CEO at BajajCapital Insurance Broking Ltd)