Car insurance is a type of motor insurance that covers a policyholder from various damages arising out of unanticipated incidents like accidents, theft, fire, calamities, etc. Known as the private car package policy or comprehensive car insurance, this policy also compensates for damages sustained by the third party and third party property. It also provides Personal Accident Cover to the owner/driver of the insured car.
|Key Features||Benefits Offered|
|Third Party Damages||Covers both third-party injuries & property damages|
|Own Damage Cover||Available under standalone & comprehensive plan|
|Personal Accident Cover||Up to Rs 15 lakh|
|No Claim Bonus||Up to 50%|
|Add-On Covers||More than 10 add-ons depending on the plan|
|Car Insurance Premium||Starting @ ₹2094/year*|
|Buying/Renewal Process||Online & Offline|
*TP price for less than 1000 CC cars.
**All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C apply.
A car insurance policy is a protection shield for your car against any damages caused by natural calamities such as floods, earthquakes, cyclones, accidents, and thefts. There are three types of car insurance policies:
Third-party car insurance provides coverage for third-party financial liabilities such as car damage, physical injury, death, disability as well as property damage. The coverage offered in case of death is unlimited, while for property damage, the coverage is limited to upto Rs. 7.5 lakh.
A comprehensive insurance policy provides coverage for third-party liability as well as damages caused to your own car. In comparison with third-party liability insurance, a comprehensive car insurance policy offers extensive coverage, more benefits & covers the damages caused to the insured car in case of an accident, collision, theft, etc.
Own damage policy provides coverage to the policyholder in case their car sustains any kind of damage. The third-party insurance does not cover your own damage so you have to purchase it separately.
Car insurance price is decided based on several factors. It is also easy to find out the four wheeler insurance premium using an online car insurance calculator. However, the insurance provider takes into consideration the following parameters before fixing the car insurance price:
Car's IDV Calculation Formula:
IDV = Car's Showroom price + Accessories cost – depreciation value
Thus, the formula to calculate OD premium amount is:
Own Damage premium calculation formula:
Insured Declared Value X [Car Premium as per the insurer)] + [ Optional Benefits] – [NCB/Discount etc.]
Car insurance comparison is essential for choosing the best policy for your car. Compare car insurance online from the top four-wheeler insurance companies before renewing. It takes a few minutes to buy or renew car insurance online. You have to enter the vehicle details, contact information, and insured details and choose the covers as per your need.
Buying a car insurance policy is mandatory in India for all cars as per the Motor Vehicles Act, 1988. Car insurance companies compensate for the loss or damage caused to the insured car and a third party from the insured four-wheeler. It can help to:
This information is critical to calculating the base premium. A luxurious, powerful and expensive car will attract more premiums. For e.g., an SUV car will always have a higher premium than a family car.
The manufacture year of your car lets the insurance company assess its Insured Declared Value (IDV) which facilitates the underwriter to decide the annual premium for your car.
Being more vulnerable to combustion, a CNG-fitted car is usually insured at a slightly higher premium than a plain petrol/diesel car.
You need to mention whether you do or do not want to get a cover on electrical and non-electrical accessories fitted in your car. Most insurers provide a cover for your car accessories at an additional premium of 4% on its value.
The following table shows the complete list of the best car insurance policy in India with their personal accident cover and the number of network garages offered by the car insurers:
|Car Insurers||Network Garages||Incurred Claim Ratio % 2020-21|
|Bajaj Allianz Car Insurance||1024||68.06%|
|Bharti AXA Car Insurance||3742||64.27%|
|Chola MS Car Insurance||4636||74.30%|
|Digit Car Insurance||N/A||74.91%|
|Edelweiss Car Insurance||1268||93.38%|
|Future Generali Car Insurance||3194||66.13%|
|IFFCO Tokio Car Insurance||6757||84.04%|
|Kotak Mahindra Car Insurance||2327||74.64%|
|Liberty Car Insurance||4365||59.91%|
|National Car Insurance||456||78.55%|
|New India Assurance Car Insurance||456||78.20%|
|Oriental Car Insurance||456||81.83%|
|Raheja QBE Car Insurance||1000||100.51%|
|Reliance Car Insurance||4779||76.89%|
|Royal Sundaram Car Insurance||3868||87.89%|
|SBI Car Insurance||2613||86.10%|
|Shriram Car Insurance||2071||79.43%|
|Tata AIG Car Insurance||1617||75.41%|
|United India Car Insurance||456||96.45%|
|Universal Sompo Car Insurance||1493||87.96%|
The add-on covers need to be purchased on payment of an extra premium amount. Following are some of the add-on covers - No Claim Bonus Protection cover, Zero Depreciation cover, Engine Protection cover, Key protection cover, etc.
Let's discuss Car Insurance Add-Ons in more detail:
For every claim-free year, the insured is rewarded with a discount on the renewal premium. This discount is called - No Claim Bonus (NCB). It is cumulative and increases every year. It usually ranges from 10% to 50% and can save a substantial amount of money on the premium payable for your auto insurance.
An engine is one of the most important parts of a car. And engine protection cover compensates the cost of fixing the indirect damages that are caused to the engine due to lubricating oil leakage and water ingression. It covers the Gear Box Parts, Engine Parts, and Differential Parts.
This additional feature offers compensation even for the depreciating value of your car. With this feature, you will not have to pay for the depreciation value of your vehicle’s parts. It is mostly valid on private cars and is subjected to a specific number of claims during the policy period. Compulsory and voluntary deductibles (as per the case) will be applicable despite zero depreciation cover. You can check with the insurance company for any terms and conditions before making the purchase.
Sometimes, a bunch of unforeseen expenses can drain all your savings. Consumables Cover. Includes all the expenses incurred on consumable items for any perils that are covered under the policy. Consumable items include screws, nuts and bolts, washers, AC gas, grease, lubricants, bearings, clips, engine oil, distilled water, oil filter, brake oil, and fuel filter are mostly covered.
Once in a lifetime everyone would have lost or misplaced their car keys. In such cases, the insurer can offer help by covering the costs incurred on the replacement and repair of your car keys.
This add-on cover comes to your rescue when your vehicle is parked in the garage after an accident for repair. If you have this add-on cover the insurer will provide you a daily travel allowance if the vehicle requires has to be in the garage for more than 3 days (varies from one insurer to another)
Personal Accident Rider is an optional add-on benefit that can be added to the comprehensive auto insurance by paying an extra premium. This rider provides the policyholder with the coverage of medical expenses due to damage, personal injury or disability caused due to an accident.
By simply opting for separate add-on policy, you can avail coverage for your car accessories, which a normal 4 wheeler insurance policy may not cover.
Deductibles are a certain percentage of the claim amount that the insured has to pay from their own pockets. A policyholder can save by paying higher deductibles. At the time of filing a claim, if you choose to pay higher deductibles against your claim, your auto insurance provider manages to give you some discount on the premium later on.
A comprehensive car policy not only provides third-party cover but as well as offers cover against personal accident. In personal accident cover, you get a pre-defined amount against death because of the accident and permanent total disability. In addition to this, one can purchase this cover for co-passengers as well even on an unnamed basis, which will be maximum as per the seating capacity of the vehicle. However, the amount of coverage is pre-determined even in this case.
In case you get stuck somewhere in the country within the specified distance in the insurance policy, the insurer provides you with roadside assistance and sends a mechanic to your location to fix it.
Under Return to invoice add-on, if your car gets stolen or gets damaged beyond repair that is known as a total loss then the insurer will have to provide coverage as per the amount of invoice that you paid at the time of purchasing the car.
With this add-on cover, you get the coverage in case your personal possessions get damaged in an unfortunate car accident or sets stolen from the car. There is a limit on a coverage amount that varies from insurer to insurer.
A comprehensive plan does not provide coverage in case the tyres of the car get damaged. You will have to purchase a separate tyre protection add-on to cover your car’s tyres.
In case the rim of the car gets damaged then this add-on cover will come in handy. Under rim damage add-on cover, the insurer provides coverage for the replacement of the damaged rims.
Under this add-on, you get coverage in case any of the passengers get injured in the accident. The insurer will provide financial aid for the medical expenses.
|Coverage||Standalone OD Cover||Third-Party Cover||Comprehensive Cover|
|Third-Party Property Damage||No||Yes||Yes|
|Third-Party Bodily Injury||No||Yes||Yes|
|Own Damages of Car||Yes||No||Yes|
|Personal Accident Cover||Yes||Yes||Yes|
|Availability of Add-Ons||Yes||No||Yes|
To Buy a car insurance policy online. Follow the steps given below:
Buying car insurance online is a common practice today. With the buying of 4-wheeler insurance policy online, you can insure your car against any damage due to an accident, theft, fire etc within 2 minutes. If you are wondering why most people prefer to buy four wheeler insurance online, check out its benefits below:
Offline purchase of insurance policies involve agents who try to sell their own product rather than suggesting you a better policy from another insurance provider. Purchase of new car insurance policy online will eliminate such agents and you can buy the best policy after comparing various plans offered by different insurance companies.
Another benefit of buying four wheeler insurance policy online is zero paperwork. Contrary to the offline mode which requires you to fill multiple forms, the online mode allows you to fill up all the forms online. You can also upload the required documents online making the application process digital and free of any paperwork.
As compared to the offline modes, buying 4 wheeler insurance online is very convenient. You don’t have to visit a branch of the insurance company or take out time to meet the agent. You can get your car insured from the comforts of your home, hence, saving a lot of time and efforts.
Missing policy payments or renewals can cost you a great deal. Not only will you lose out on the renewal discounts but also have a break in policy. But if you purchase your car policy online, you will receive timely reminders ahead of your due date ensuring that you do not miss out on the payments.
Buying 4 wheeler insurance online offers cashless facility and involves zero cash transaction. You can make payment of your insurance premium online through online modes such as debit card, credit card and internet banking.
With the online purchase of four wheeler insurance, you can easily compare the plans offered by different companies. Online aggregators allow you to compare the coverage and the premium quotes provided in different plans before selecting an ideal insurance policy for your car.
Buying an insurance policy online is more economical as you save a lot of in-between costs. Your premium reduces due to elimination of agents, zero paperwork and you get discounts that further reduce the amount of premium you pay.
Endorsement refers to any changes in the information provided in the policy document. in case of online endorsements, you just have to give a self-declaration as opposed to the filling up the endorsement form manually and submitting all the documents.
Another benefit of applying for car insurance online is that you have a soft copy of your policy document in your email. This makes it easy for you to access it from any place without the need to carry a hard copy with you.
It's mandatory to renew car insurance to avail the benefits without a break. Therefore, you should ensure your car insurance before it expires. Follow the steps given below for online car insurance renewal.
You will receive the policy document for your renewed car insurance on your registered email id. You can also download a copy of the policy document and get a printout anytime you want.
A new car insurance policy has a validity period and after its expiry, you need to renew it for keeping your car insured. You can renew car insurance policy either offline or online. Even though many of us still follow the traditional method of offline renewal of the policy but opting for online car policy renewal is better. Here are a few benefits of car insurance renewal online:
Understanding the right steps to raise a car insurance claim is critical as your insurer can reject your claim for a lot of reasons. So make sure you understand what all is required to be done while raising a car insurance claim. Follow the below mentioned steps to conveniently raise a valid 4 wheeler insurance claim:
Step 1: Raise a claim request – Immediately share details of the accident with your insurer after the accident occurs. Make sure that you properly document and share photographic evidence to support your case.
Step 2: Inspection – After the claim is registered, the insurer will send an inspector for surveying the claimed damage.
Step 3: Sending the car for repair – Once the inspection is complete, you can send the car to a partner garage for conducting the repairs.
Step 4: Claim Settlement – If you have a cashless claim policy, the insurer will directly settle the repair bills with the network garage. However, if you have opted for reimbursement claims, you will be first required to pay the bills and then raise a reimbursement claim.
Keep the following documents ready while registering a claim with the insurer-
The insurer will settle your claim within a week from the date of submission of all the required documents.
Ans: Car Insurance is a type of four wheeler insurance policy that provides financial coverage to the beneficiary of the car policy if your car is damaged in an accident or natural calamity. A car insurance policy helps to save you money if you're involved in an accident or the vehicle is damaged in some way.
Ans: The policyholder should renew his car policy before the expiry of his existing policy. This will ensure that there is no break in policy and you can continue to avail benefits such as no claim bonus.
Ans: Zero Dep refers to Zero depreciation car insurance. It is an add-on cover that allows the policyholder to get compensation up to the insured declared value (IDV) or current market value of the car without taking depreciation into account. You need to pay an extra premium amount to avail benefits of zero DEP in your 4 wheeler insurance policy.
Ans: The limit to filing a claim for 4-wheeler insurance per year varies from one insurance provider to another. Most insurance companies allow multiple claims in a year until the IDV is not exhausted. You should check your policy document to know the exact number of times you can claim your four wheeler insurance policy in a year.
Ans: Bumper to bumper car insurance refers to the insurance policy that provides complete protection to the insured car without considering the depreciation of its parts. In other words, this type of four wheeler insurance allows the policyholder to obtain compensation up to the market value of the car in case of damage or loss to the car. However, it attracts about 20% higher premiums than your regular 4-wheeler insurance policies.
Ans: Insured declared value (IDV) is the maximum amount to be paid by an insurer at the time of a claim if the vehicle is a total loss or stolen. It is the sum insured and is fixed at the commencement of the policy period for each insured vehicle.
In case of a hypothecated vehicle, it is important to obtain NOC from the financer if the payment has to be obtained by the policyholder. Otherwise claim amount will be paid to the financer for losses to the car other than theft.
|Age of the vehicle||Depreciation value in %|
|Not more than 6 months||5|
|More than 6 months but below 1 year||15|
|More than 1 year but below 2 years||20|
|More than 2 years but below 3 years||30|
|More than 3 years but below 4 years||40|
|More than 4 years but below 5 years||50|
Ans: To know the status of your four-wheeler insurance policy, you can check the policy start date and expiry date mentioned in your policy document. Your policy will be active or valid in the period between the policy start and expiry date. On the other hand, your policy will be inactive before the start date and expire after the expiry date.
You can also check the status of your policy online on the website of the Insurance Information Bureau (IIB) or VAHAN e-services. You only have to enter the details of your car on either of the websites and submit them. The details of your car insurance policy, including the policy expiry date, will be displayed.
The policy will be transferred to your name and a new policy document will be issued to you.
The insurer will process your claim and pay the IDV of your car in about 90 days.
Note: This is your car’s recommended IDV as per IRDAI’s depreciation guidelines.asdfsad However, insurance companies allow you to modify this IDV within a certain range (this range varies from insurer to insurer). Higher the IDV, higher the premium you pay.
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