Car Insurance

Car Insurance is a type of motor insurance policy that protects a car from any unavoidable dangers that may lead to monetary losses. It is a risk-sharing contract between the motor insurance company and the car owner where the former promises to pay for the repairs/ replacement of the car in exchange for a premium. A car insurance policy provides coverage against any risks or dangers arising out of accidents, third party liabilities, theft, manmade calamities, fire, natural hazards, etc. resulting in damages or loss of the car.

Why Should You Buy Car Insurance?

It is mandatory to buy car insurance in India irrespective of the vehicle type, i.e. personal or commercial vehicle. The insurers compensate for the loss or damage caused to the insured vehicle and a third-party from the insured four-wheeler. Here are some of the reasons to buy new car insurance policy in India in addition to it being a mandatory requirement as per the Motor Vehicle's Act:

  • It pays for the car damages as a result of collision, accident, death or natural calamities, which otherwise would need to be paid by the insured
  • It pays for hospitalization expenses in case of an accident
  • It reduces the financial and legal damages that can arise from a third-party laibility or damage
  • With rider benefits like roadside assistance, zero depreciation the expenses are further reduced

Moreover, the premium amount of your 4-wheeler insurance is decided based on the Insured Declared Value or IDV of the vehicle. If you increase the IDV, the premium rises and if you lower it, the premium reduces.

It is important for any policyholder to compare various car insurance plans options before going for 4-wheeler insurance renewal or buying a new policy. Compare various 4-wheeler insurance plans online on Policybazaar and buy the one that fulfills your expectations hassle-free:

  • Get the best car insurance policy from top insurers
  • Instant and easy online car insurance renewal process
  • Comprehensive coverage for four-wheeler vehicle
  • A wide range of Add-on covers for improved protection

Types of Car Insurance Policy in India

There are 3 types of car insurance policy that are available in India –

    • Comprehensive Car Insurance

      A comprehensive car insurance policy provides coverage for third party liability as well as damages caused to your own car. In comparison with third party liability car insurance, a comprehensive four wheeler insurance policy offers extensive coverage, more benefits and covers the damages caused to the insured car in case of an accident, collision, theft, etc.

      A comprehensive policy can be further extended by opting for add-ons like accessories cover, engine protector, zero depreciation cover, medical expenses, etc. This type of coverage is the most popular as it offers end-to-end coverage and thus less stress for the policyholder.

    • Third Party Car Insurance

      Third party car insurance safeguards you from any legal liability due to your own car’s involvement in an accident. Your insurance provider will compensate you for death, disability, injury, or property damage to any third-party. Therefore, you are protected from the financial liability towards the third-party.

      Third-party Liability Car Insurance price is a mandate in India under the Motor Vehicles Act, 1988.

      Engine Capacity Third-party Liability Car Insurance Price Effective June 16, 2019 (Rs.)
      Less than 1000 CC 2,072
      More than 1000 CC & less than 1500 CC 3,221
      More than 1500 CC 7,890
    • Pay as You Drive Insurance

      Also known as usage-based motor insurance, this insurance policy allows the insured to pay the insurance premiums as per the kilometers driven. This newly introduced product likely to be helpful for those with multiple cars not all of which are used so frequently. As per the IRDA guidelines under the Sandbox project, a few insurers such as Bharti AXA, Acko General, ICICI Lombard have started offering Pay As You Drive insurance policy, through their website, online aggregators websites, agents or other distribution channels. The policy offers comprehensive coverage for own damage and third-party liability on a pilot basis for a term of one year. The policy seeker will have to declare the distance he/she expects to travel during a policy year and based on that premiums for Pay As You Drive policy will be decided. However, the insurers have come up with 3 slabs for distance covered -Rs 2,500 km, 5,000 km and 7,500 km.

Best Car Insurance in India 2020

The following table shows the complete list of the best car insurance providers in India with their personal accident cover and the number of network garages:

Car Insurance Companies Network Garages PA Cover Owner/ Driver
Bajaj Allianz 4000+ Up to Rs. 15 lakhs

View Plan

Bharti AXA 5200+ Up to Rs. 15 lakhs

View Plan

Cholamandalam 6900+ Up to Rs. 15 lakhs

View Plan

Digit 1400+ Up to Rs. 15 lakhs

View Plan

Edelweiss 1000+ Up to Rs. 15 lakhs

View Plan

Future Generali 2500+ Up to Rs. 15 lakhs

View Plan

HDFC ERGO 6800+ Up to Rs. 15 lakhs

View Plan

IFFCO Tokio 4300+ Up to Rs. 15 lakhs

View Plan

Kotak Mahindra 1000+ Up to Rs. 15 lakhs

View Plan

Liberty 4300+ Up to Rs. 15 lakhs

View Plan

National N/A Up to Rs. 15 lakhs

View Plan

New India Assurance 1100+ Up to Rs. 15 lakhs

View Plan

Oriental N/A Up to Rs. 15 lakhs

View Plan

Reliance General 3700+ Up to Rs. 15 lakhs

View Plan

Royal Sundaram 4600+ Up to Rs. 15 lakhs

View Plan

SBI 5400+ Up to Rs. 15 lakhs

View Plan

Shriram 1500+ Up to Rs. 15 lakhs

View Plan

Tata AIG N/A Up to Rs. 15 lakhs

View Plan

United India 700+ Up to Rs. 15 lakhs

View Plan

Universal Sompo N/A Up to Rs. 15 lakhs

View Plan

See More Plans
Disclaimer : *Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.

Benefits of Car Insurance Policy

It is not only because of the law but for the benefit of your vehicle, it is good to get it insured. Whether you purchase a new car or old second-hand vehicle, its insurance is needed always. A third-party car insurance policy provides protection against liabilities (legal and financial) towards a third-party.

However, you can buy a comprehensive cover as well that not only provides third-party coverage but protects your vehicle against damage or loss. Here are a few benefits of having a car insurance policy:

  • It provides personal accident cover: A comprehensive car insurance policy not only provides third-part cover but as well 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.
  • Loss or Damage of the Insured Vehicle: A comprehensive car insurance policy as well provides cover against damage or loss to your car. Reasons for damage like fire, accident, or self-ignition are covered in this plan. In addition to this, if the car faces losses because of theft, burglary, terrorism, riots, then also an insurance policy covers it. Moreover, a car insurance plan covers loss or damage occurred due to transit via train, air, road, inland waterways, or lift.
  • Vast Network of Garages: Most of the car insurance providers have a wide range of network garages that are spread across the country. This feature ensures that you can get the service of your car anywhere in India.
  • No Claim Bonus: One of the best benefits of having a car insurance policy is its No Claim Bonus (NCB) feature. You are eligible to avail of this offer for each claim-free year. The NCB is available as a discount on the next premium and this makes car insurance policy comparatively more affordable.
  • Liabilities of Third-Party: If your car meets with an accident and causes loss or damage to the property of a third-party, then do not worry as it is covered under car insurance. Moreover, if you come across any legal liabilities because of an accident by your car like death or injury to any person or property, then do not worry, your car insurance provides you coverage for the same.

How to Choose the Best Car Insurance?

Finding the best car insurance can be a great deal, as this is a yearly investment that you make to cover the risks while driving on the road. The market is bursting with numerous four wheeler insurance plans providing value-oriented services to its customers. And it can get quite confusing to find the best car insurance policy online?

This checklist of the best car insurance companies in India will help you compare different quotes from various insurance companies online and select the best deal for yourself. You can check out this list of the best four wheeler insurance plans for 2020, by analyzing their features including the incurred claim ratio, network garages, and the coverage benefits.

Points to Consider While Selecting Best Car Insurance

  • Know what is covered- Checkout the inclusions and exclusions of both third party insurance and comprehensive vehicle insurance policy. Only buy third party insurance if you can bear your own damage expenses.
  • Compare Online - Compare car insurance online and select the one that meets most of your financial expectations. You can easily get multiple four wheeler insurance quotes online from the best car insurance companies in India.
  • Claim Incurred Ratio - Higher ICR, indicate satisfied customers and more the chances of your claim being settled.
  • Seek add-on covers - It is always recommended to buy a comprehensive car insurance policy with additional benefits like roadside assistance, zero depreciation, flat tyre assistance, etc.

What’s Covered in Car Insurance Policy

  • The car insurance policy covers
  • Loss or damage to the insured vehicle.
  • Loss or damage to your vehicle caused by accident, theft, fire, explosion, self-ignition, lightning, riots, strikes or act of terrorism, natural calamities.
  • Financial liability caused by the injury/death of a third party or damage to the property.
  • Personal accidental insurance cover.

Add-On Covers in Car Insurance

Add-on covers are the additional covers or protection that you include in your 4 wheeler insurance plan to keep your car safe from any damages or total loss. The add-on covers need to be purchased on payment of extra premium amount. Following some add-on covers are No Claim Bonus Protection cover, Zero Depreciation cover, Engine Protection cover, Key protection cover, etc.

  • No Claim Bonus Protection Cover

    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.

    Let's take an example if a policyholder doesn't make a claim during the tenure of his auto insurance policy, he becomes eligible for No Claim Bonus, on the basis of which, a certain rebate is offered on the payable premium. With No-claim-bonus protection cover you can retain your NCB even after registering a claim during the policy term. The terms and conditions vary from one insurer to another.

  • Engine Protection Cover

    An engine is one of the most important parts of a car. And engine protection cover compensates the cost of fixing the indirect damage 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.

  • Zero Depreciation Cover

    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.

  • Consumables Cover

    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.

    There are certain terms and conditions that are applicable to this add-on cover that varies from one insurance provider to another. It is mostly valid on private cars and is subjected to a particular number of claims during the policy period. You can check with the insurance company before making the purchase.

  • Key Protection Cover​

    Once in a lifetime everyone would have lost or misplaced their car keys. In such cases, the insurer can offer you the financial help by covering the costs incurred on replacement and repair of your car keys. Here’s was Key Protect Cover​will offers.

    • You will be permitted for a fixed number of claims during your policy period
    • Any case related to theft or burglary should be supported by a Police FIR
    • The replaced keys will be of the same type as the ones that were lost or stolen
    • Any broken or damaged keys will be replaced by the insurer
    • In case of misplacement or theft of car keys, the insurer will replace the entire set of keys including h lockset, after submission of all the other keys to the insurer
  • Daily Allowance Benefit​​​​​

    ​​​In case of accidental damage, you might have to leave your car in the workshop and travel on your own. 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 daily travel allowance if the vehicle requires has to be in the garage for more than 3 days (varies from insurer to another).

  • Personal Accident Rider Benefit

    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.

  • Cover for Car Accessories

    By simply opting for separate add-on policy, you can avail the coverage for your car accessories, which a normal 4 wheeler insurance policy may not cover. Such additions may increase the premium, but it is always beneficial and cost-effective rather fitting a new car accessory.

  • Save Through Paying High Deductibles

    Deductibles are a certain percentage of the claim amount that the insured has to pay from this 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 premium later on.

What’s Not Covered in Car Insurance Policy

Following features are usually not covered in car insurance:

  • Loss or damage if a policy is not in force.
  • Gradual wear and tear of car and its parts.
  • Loss or damage to the vehicle when driven by a person without a valid driving license.
  • Loss or damage to the vehicle as a result of intoxication due to drugs, alcohol etc.
  • Loss or damage to the engine as a result of oil leakage.
  • Loss or damage to the vehicle as a result of abuse of car manufacturer's guidelines.

How to Calculate Car Insurance Price

Car insurance cost is decided based on several factors. It is also easy to find out the car insurance premium using an online car insurance premium calculator. However, the insurance provider takes into consideration the following parameters before fixing the car insurance price:

  • IDV (Insured Declared Value) of the vehicle
  • Age and Type of Car
  • Engine's Cubic Capacity
  • Geographical zone
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.]

How to Renew Car Insurance Online?

It's mandatory to renew your car insurance to avail of the policy benefits without a break. Therefore, you should ensure your car policy before it gets expired. Follow the steps given below to renew your car insurance policy online:

  • Go to the renewal section.
  • Enter the details required on the page, such as your policy number, mobile number, date of birth, etc. and submit them
  • Choose the car insurance plan that you want to purchase
  • Select the riders or add-on covers that you want to buy or drop (if any)
  • The premium amount that you need to pay will be shown on the page
  • Pay the insurance premium online with the help of a credit card, debit card or through net banking
  • Once the payment is complete, your four wheeler insurance policy will be renewed

You will receive the policy document for your renewed 4 wheeler insurance on your registered email id. You can also download a copy of the policy document and get a printout anytime you want.

Benefits of Renewing Car Insurance Policy Online

A car insurance plan has a validity period and after its expiry, you need to renew it for keeping your car insured. You can renew your 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 policy renewal is better. Here are a few benefits of renewing your car insurance policy online:

  • Easy and Quick Process: For renewing your car insurance policy online, all you have to have is good internet. With the help of a good internet connection, you can renew your car insurance plan at the convenience of your home anytime. In this way, online renewal is easy and fast as you do not have to go to a branch of the insurance provider or call an agent for renewal. Moreover, the online renewal process is paperless or requires very minimal paper-work.
  • Simple Customization of Policy: You can easily customize your car insurance policy while renewing it online. You can enhance the coverage of your policy by adding add-ons to it. However, before topping your policy with an add-on, you must keep in mind that the premium majorly depends on the cover type that you are taking.
  • Secured Renewal / Purchase Process: Car insurance renewal online is an easy process because of the availability of all the required information over the web. This transparency enables you to make an informed decision. In addition to this, payment through secured gateways of payments ensures that your personal and critical information is not leaked anywhere. Therefore, it safeguards you from exposing to any fraudulent risks.
  • Simple Insurance Provider Switching Process: In addition to all the above benefits, you can very easily switch your insurance provider while renewing your policy online. Since information regarding all the insurance providers is available online, thus it is very easy to compare different policies online and select the best suited to you in terms of premium and features.
  • Easy No Claim Bonus Transfer Process: You should always transfer your NCB or No Claim Bonus at the time of policy renewal. While for the online renewal process, it is really easy and quick in comparison to offline renewal.
  • A Transparent Method: Since in the online renewal process everything is in front of your eyes. This means nothing is hidden or no agent or someone is hiding any information from you. Whether it is a comparison of policies or switching of plans or payment processing everything is selected by you and happens in front of you. So, we can easily say that this method of policy renewal is completely transparent.

Benefits of Buying Car Insurance Online

Buying car insurance online is a common practice today. If you are wondering why most people prefer to purchase four wheeler insurance online, check out its benefits below:

  • No More Agents

    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. Online purchase of new car insurance will eliminate such agents and you can buy the best policy after comparing various plans offered by different insurance companies.

  • Zero Paperwork

    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.

  • Convenient & Saves Time/strong

    As compared to the offline modes, buying 4  wheeler insurance online is very convenient. You don’t have to travel to 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.

  • Payment Reminders

    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 four wheeler insurance policy online, you will receive timely reminders ahead of your due date ensuring that you do not miss out on the payments.

  • Cashless Facility

    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.

  • Easy Comparison

    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.

  • More Cost-Effective

    Buying 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.

  • Easy Endorsements

    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.

  • Soft Copy of the Document

    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.

Third-Party Car Insurance Cover Vs Comprehensive Car Insurance Cover

The main difference between third-party car insurance and comprehensive car insurance is the cover they offer. On one hand where third-party insurance covers your car against any loss or damages to third-party. On the other hand, comprehensive car insurance provides coverage for own vehicle damage as well. Let us compare these two types of motor vehicle insurance policies:

Parameter Third-Party Car Insurance Comprehensive Car Insurance
Coverage This insurance plan covers damages and losses caused to third-party person, place, or property by the insured vehicle. This insurance plan offers damages or losses incurred to the insured vehicle along with the third-party cover.
Is the coverage sufficient? No, because the insured vehicle is still exposed to risks. Yes, being comprehensive you can even add add-ons to make it more elaborative.
Is the facility of add-on provided? Here the only add-on that is provided is – a personal accident. You can add many add-ons in your car insurance comprehensive policy like roadside assistance, zero depreciation, cover for accessories, etc.
Which is affordable? Third-party car insurance is the cheapest one because of its limited coverage. The price of third-party vehicle insurance policy is finalized by IRDAI, which is based on the cubic capacity of the vehicle. The price of comprehensive car insurance is comparatively higher because of its vast coverage. The price of this policy is finalized by the insurance provider itself because of the inclusions and terms and conditions of the plan.

Therefore, comprehensive car insurance is better than a third-party insurance cover because of the vast coverage provided by it. Moreover, you can customize your coverage by adding add-ons in your plan while a third-party car insurance plan leaves you exposed to risks like damaging your vehicle.

Let us elaborate these two to understand the difference more clearly:

  • Third-Party Car Insurance: A third-party car insurance is a four-wheeler insurance policy that provides financial protection to the insured car’s owner against any loss or damage to some third-party, which can be another person or another person’s property. According to the Motor Vehicle Act, 1988, it is mandatory to have at least a third-party car insurance policy. So, this policy provides:
    • Legal Liabilities
    • Third-party Liabilities
    • Compensation for death of another person from the insured four-wheeler.
  • Comprehensive Car Insurance: A comprehensive car insurance policy provides a vast coverage that includes both – liabilities of third-party and own damage. Purchasing a comprehensive plan is not mandatory as per the law, but because of its vast coverage, many car owners prefer this insurance policy. The inclusions of this policy are:
    • Provides coverage against own damage.
    • Has a vast range of coverage.
    • The provision of add-ons improves insurance coverage as well.

Methods of Purchasing Comprehensive and Third-Party Car Insurance:

It is not at all difficult to get a car insurance policy. You can purchase it by any of the below-mentioned three methods:

  • Online: For purchasing a comprehensive or third-party car insurance policy all you have to do is to go to the website of your selected car insurance provider and with minimal to no paperwork you can buy a car insurance policy online.
  • Visiting the Nearest Branch of the Insurance Provider: Once you select the insurance provider, you can visit its nearest branch and get your car insured.
  • With the Help of an Insurance Agent: Last way is through an insurance agent. An insurance agent is the affiliate of the insurance provider. An agent provides the application form with other details.

How to File a Car Insurance Claim?

All the car owners, at some point in time need to file a car insurance claim for a certain loss or damage. To avoid any confusion while filing a 4 wheeler insurance claim, here are a few points that you need to consider:

  • Make sure that you have the following Information ready with you at the time of claim Intimation
  • Time & date of the accident
  • Name of the driver and contact details along with driving license details
  • Four Wheeler Insurance Policy number
  • Estimated loss
  • A brief description of the incident
  • Survey location to support the investigation process
  • Insured contact details
  • Claim intimation should be provided at the customer help desk. They will take you through the claim process
  • Once you have informed, the insurer's customer support team will provide you the claim reference number
  • Upon claim registration, a surveyor will be assigned for your case
  • You will receive the confirmation notification on text along with the details of the loss assessor
  • You can coordinate for a suitable time with the surveyor and he will conduct the survey as per your convenience
  • There are certain documents that you need to provide to the assessor, such as vehicle type and severity of the damage
  • You also need to inform about the requirement of the claim processing team to settle own
  • damage claim
  • Coordinate with the surveyor again if re-inspection of the vehicle was advised by him.
  • Based on the survey claim settlement will be done

Documents Required for Filing a Claim for Car Insurance

Keep the following documents ready while registering a claim with the Insurer-

  • Copy of Police FIR
  • Claim form duly signed by the policyholder
  • Fitness Certificate for commercial vehicles
  • Driving License
  • Car Registration Certificate (RC)
  • Insurance documents with the endorsement

The insurer will settle your claim within a week from the date of submission of all the required documents.

How to Get your Car Insurance Quotes Online at PolicyBazaar?

On PolicyBazaar you have to fill a few simple details like make of the car, model, variant, year of manufacture, etc. You will then get car insurance quotes from various insurance providers. This way you will get customized quotes, one which saves money on premiums and is also the best fit as per your needs.

You must be familiar with the following terms while filling the form:

  • Car Make, Model and Variant

    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.

  • Year of Manufacture

    The manufacture year of your car lets the insurance company assess its Insured Declared Value (IDV) that facilitates the underwriter to decide the annual premium for your car.

  • CNG Fitted Car

    Being more vulnerable to combustion, a CNG fitted car is usually insured at a slightly higher premium than a plain petrol/diesel car.

  • Additional Covers

    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.

FAQs About Car Insurance Policy

  • Q: Does a car insurance policy cover the person driving the car?

    Ans: A car insurance policy offers insurance coverage to the car only, not the owner or driver. Hence, you’ll require a Personal Accident insurance cover clubbed with your comprehensive car insurance policy that covers the driver for injuries/permanent disablement/death etc./div>
  • Q: When should you renew car insurance?

    Ans: The policyholder should renew his car insurance 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.
  • Q: What is zero DEP in car insurance?

    Ans: Zero DEP refers to Zero depreciation Cover in 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.
  • Q: How many times we can claim car insurance in a year?

    Ans: The limit to filing a claim for car 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.
  • Q: What is bumper to bumper car insurance?

    Ans: Bumper to bumper car insurance refers to the insurance policy that provides complete protection to the insured car without considering 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.
  • Q: What is IDV (insured declared value) in Car Insurance?

    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.
  • Q: If I fit CNG or LPG kit in my car, is it necessary to inform the Insurance Company?

    Ans: If you have LPG or CNG fitted in your, you have to get it endorsed in your Registration book or RC. Then, inform your insurer about the change to get it endorsed in your four-wheeler insurance policy. As the cost of premium will differ basis on the fuel type of your car.
  • Q: How can I add/delete hypothecation in my car insurance policy?

    Ans: Hypothecation is used for creating charges against the security of movable assets. The possession of goods remains with borrower. For instance, in car loan, vehicle remains with the borrower but the ownership is hypothecated to the bank. It means bank has a right to sell the vehicle if there is any default in repaying car loan. To add hypothecation in four-wheeler insurance policy: Letter from the bank or financer/endorsed RC copy has to be submitted at the office of insurance company. To delete hypothecation in motor insurance policy: No objection certificate (NOC)/endorsed RC copy has to be submitted at the office of insurance company. In case of a hypothecated vehicle, it is important to obtain NOC from the financer if the payment has to be obtained by the insured. Otherwise claim amount will be paid to the financer for losses other than theft.
  • Q: What are the risks covered by the comprehensive car insurance policy?

    Ans: Your comprehensive insurance policy covers- Liability to third party Accident by external means Fire, explosion, self ignition, lighting Riots, strikes, terrorism, malicious acts Earthquake, flood, storm, landslide Transit by rail, road, waterways, air or lift Burglary, theft or housebreaking
  • Q: What is cashless facility?

    Ans: Cashless facility means you don’t need to pay anything for repair work and your insurance company will directly pay it to the garage. If you have signed up for the cashless facility, all you have to do is take your vehicle to the preferred workshop of the insurance company. The workshop will contact the insurer and settle the claim.
  • Q: How IDV is calculated?

    Ans: An IDV is calculated on the basis of the manufacturer’s listed selling price of the brand and model, which will include local duties/taxes, excluding registration and insurance. Different depreciation slabs for arriving at IDV are detailed below:
    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

    For those vehicles which are obsolete or aged over 5 years, the depreciation applied varies from one insurer to another.

  • Q: What is a no claim bonus (NCB) in Car Insurance?

    Ans: No claim bonus (NCB) is a discount in premium offered by insurance companies if the owner of a vehicle has not made a single claim throughout the motor insurance policy term.
  • Q: What is the cheapest car insurance?

    Ans: No single policy is the most economical for everyone. Different people can find different insurance policies economical depending on the coverage and the add-on covers. You should compare the coverage and the premium quoted by different insurance providers to find out the most affordable plan for you.
  • Q: What happens to the car insurance policy, if I sell my car?

    Ans: If you sell your car, you need to transfer the four-wheeler insurance policy on the name of the new owner. Follow the steps given below to transfer the insurance to the new owner:
    • You need to get a sale affidavit made with details of the transfer, details of the new owner and details of payment. It should be notarized and signed.
    • Fill up the RTO transfer forms and obtain a clearance certificate from your Regional Transport Office (RTO).
    • Fill up the new proposal form
    • Attach the documents listed above
    • Submit it to your insurer
    • The policy will be transferred within 14 days
Written By: PolicyBazaar - Updated: 04 August 2020
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
Average Rating
(Based on 214 Reviews)
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Car Insurance Reviews & Ratings
4.6 / 5 (Based on 214 Reviews)
(Showing Newest 15 reviews)
Chainpur, August 05, 2020
Pays money for the damages
Recently my car met with an accident so I took the car to the nearest service station which is in the association of my insurance provider. I called the customer care to help me into the same and my car was repaired in next 3-4 working days. Also, I got the payment of claim into my bank account. Great work team.
Chabhal, August 05, 2020
Cashless claim services
I really like the car insurance policy which I have found into the website of policybazaar. A great place to make your car safer and secured. I got the cashless claim treatment with the help of the policybazaar customer service team. Really helpful. Thank you team.
Chabhal, August 04, 2020
A good and mandate policy
I have taken the car insurance policy from policybazaar.A good plan which has been specially designed for my car insurance what I feel. I really like the plan and the services which is been provided by the policybazaar company. I really like the plans and policies and would love to recommend to people. Thanks team.
Sabang, August 04, 2020
Online purchase of the policy
I have taken the car insurance policy from the policybazaar and it is one of the best decision which I could have made. I really like it buying it online because it is quite simple and easy. One of the best thing is that you can compare all kind of plans and policies under one website. Thank you team Policybazaar and its services.
Vadali, July 31, 2020
Top insurers
I have made the best decision of my life while taking the car insurance policy from the website of the policybazaar. It is amazing to know that you get the car insurance policy from the top insurers and with better facilities and the services. Thank you team.
G.mahisani, July 31, 2020
Pays for the damages
I have taken the motor car insurance policy for my car and it was the best thing I did for myself and my car. It helps me to live the life happily and peacefully. Not only this my car insurance policy helps me to get the coverage for my car and the driver at the time of any bad circumstances.
Dadengiri, July 30, 2020
Less premium prices
I am really happy that I have taken the car insurance policy from policybazaar. I can easily find the affordable car insurance policy under the website of the policybazaar. The premium price is quite less and one can afford it easily. I found it relevant and easy to use the policy. Thank you team for such great plans and policies and for such wonderful services.
Nabapally, July 30, 2020
No claim bonus
Recently, I took the no claim bonus certificate from the policybazaar website. It is only taken when you haven’t claimed for any during last year. So, I didn’t file for the claim for my car insurance policy. And I asked for the no claim bonus certificate from them. Immediately the team started working on the same and next day I received my no claim bonus certificate. Thank you team for such wonderful services.
K.singpur, July 29, 2020
Compare the plans easily
I have recently taken the car insurance policy from policybazaar website. It is a good website where you can compare the plans and policies according to premium price, add on covers, benefits and many more. I am really happy that I have got to know about various plans at one platform and do not have to hop from one place to another. Thank you team for such great work and plans given.
Udaipur, July 29, 2020
Online purchase of the policy
I am really happy that I have taken the car insurance policy online. My friend has taken the car plan online and suggested me the same. So, I checked the website of policybazaar and found various plans and policies. I got to know about various plans for my car and I selected the best one. Thank you team for such best services.
K.c. Pur, July 28, 2020
Claim accepted in fast pace
Last year I filed for the claim for my car insurance policy. It was a good experience. My claim was immediately accepted and 4-5 days I got the claim amount into my bank account. My car was sent to the nearest network garage for repair work. And it was also done very quickly. Thank you team.
G.mahisani, July 28, 2020
Third party insurance policy
I have recently took the third party insurance policy from policybazaar. It is a nice policy plan and quite understandable. It will not only accept my damages and injuries but it will also help the person with whom I met with accident. They will take care of its repair and injuries during the time of the accident. Thank you team for handling the legal liabilities.
K.c. Pur, July 27, 2020
Riders benefits
I have taken the car insurance policy from policybazaar. It has given me few of the riders benefits which I have taken along with my car insurance policy. The riders benefits are very important such as roadside assistance, zero depreciation and personal accident cover. It is a good plan for those who really care about their car and family. Such a good services. Thank you team Policybazaar.
Oachira, July 27, 2020
Pay for hospitalization expenses
Recently I took the car insurance policy for my car and I got to know about various features. My car insurance plan covers the hospitalization expenses too at the time of crisis or the accident. It is easy and you have to inform to the customer care of policybazaar and insurer provider for the same. Thank you team for wonderful services.
Babhleshwar, July 24, 2020
Natural calamities coverage
I have taken the car insurance policy from the policybazaar website. A great plan where I can take care of my car and myself. I have taken this insurance last year and also I got the natural calamities coverage under the same such as earthquake, floods, landslides, cyclone etc. It is really much comfortable plan and you can claim easily. Thank you team policybazaar.