Police, Punjab or ISB can check your ID, Your car's papers (incase if its stolen)
BUT...they cannot search your vehicle (but they do ofcourse)
Now its not about keeping your cool or be decent etc, its about rules and rule of law. Right is right and wrong is wrong, terrorism or no terrorism.
P.S. Police mainly search our cars for drugs/alcohol. As far as i know, both these things aren't related to terrorism.