Car Insurance

What is a Car Insurance Policy?

Car Insurance, also well known as vehicle or motor insurance, provides financial protection to you & your car against any losses arising due to accidents, thefts, or other damages to the insured vehicle or third-party person or property.

Key Features of Car Insurance Policy

*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.

Types of Car Insurance Policies in India 

Car insurance is one of the primary financial protections that a car owner should have. Despite the compulsion to buy a vehicle insurance policy by law, a car insurance policy is necessary to get adequate insurance protection for your car. There are three basic types of car insurance policies available in India:

• Third Party Car Insurance

  A third-party liability car insurance policy safeguards the car insurance owner from any type of legal liabilities that arise because of the involvement of the insured car in an accident. Under this policy, the insurer compensates against disability, injury, death, or property damage to any third party. In this way, a policyholder gets protection from the financial liability towards a third party.

• Comprehensive Car Insurance

  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. 

  It 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 & thus less stress for the policyholder

• Pay as You Drive Insurance

  Pay As You Drive Insurance is also known as usage-based vehicle insurance. It allows a policyholder to pay the premium of the insurance according to the kilometers driven by the insured car. This will be useful for those who have multiple cars and hence do not use each of these very frequently. Currently, there are only a few insurers only who are offering this policy. It provides comprehensive coverage for own damage and third-party liability coverage is provided on a pilot basis for a term of a year.

How to Buy and Renew Car Insurance Online?

Compare & buy the right car insurance policy online from top four wheeler insurers. It takes a few minutes to buy or renew car insurance online from Policybazaar. Buying a car insurance policy is mandatory in India for all cars as per the Motor Vehicle 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. Here are some of the reasons to buy a new car insurance policy in India:

• It pays for the car damages as a result of a 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 liability or damage
• With rider benefits like roadside assistance, zero depreciation the expenses are further reduced

Moreover, the premium amount of your car 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 car insurance plans before going for 4-wheeler insurance renewal or buying a new policy. Compare various car insurance plans online on Policybazaar and buy the one that fulfils your expectations hassle-free:

• Get the best car insurance policy from top Car 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

Best Car Insurance Plans in India 2021

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:

Points to Consider While Selecting Car Insurance Policy

• 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 Car Insurance 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.

• Incurred Claim Ratio

  Higher ICR, indicate satisfied customers and more the chances of your claim being settled.

• Add-on Covers

  It is always recommended to buy a comprehensive car policy with additional benefits like roadside assistance, zero depreciation, flat tyre assistance, etc.

What’s Covered in Car Insurance Policy?

The four-wheeler insurance policy covers the following:

• 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.

What’s Not Covered in Car Insurance Policy?

Following features are usually not covered in a 4-wheeler insurance policy:

• 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.

Standalone OD vs Third-Party vs Comprehensive Car Insurance Cover

Add-On Covers in Car Insurance Policy

Add-on covers are the additional covers or protection that you include in your car insurance policy to keep your car safe from any damages or total loss. 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:

• 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 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.

• 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.

• Personal Accident Cover:

  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.

• Loss or Damage of the Insured Vehicle:

  A comprehensive car policy provides coverage 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, it also covers loss or damage occurred due to transit via train, air, road, inland waterways, or lift.

• Vast Network of Garages:

  Most of the motor 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.

• 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 four wheeler insurance policy. 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 policy provides you coverage for the same.

How to Calculate Car Insurance Premium?

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:

• 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 the car policy benefits without a break. Therefore, you should ensure your car insurance before it expires. Follow the steps given below for online car insurance renewal.

• Go to the car insurance 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 4 wheeler 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 car insurance policy will be renewed

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.

Benefits of Renewing Car Insurance Policy Online

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 your car 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 renewing your car policy online.

• Quick and Easy Process: For renewing your online car policy, all you have to have is good internet. With the help of a good internet connection, you can renew your 4-wheeler 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 car policy renewal process is paperless or requires very minimal paper-work. 
• Simple Customization of Policy: You can easily customize your car 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. 
• Secure 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 Process to Switch the Insurer: 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 make car insurance comparison online and select the best-suited plan 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 Process Method: Since in online car insurance policy purchase or renewal everything is available in front of the policy aspirant's eyes. This simply means that nothing is hidden or no one like an agent is hiding something related to a car insurance policy. So, the online car insurance policy purchase and renewal process are transparent. 

Benefits of Buying Car Insurance Policy Online

Buying an online car insurance policy 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 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. 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.

• 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

  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.

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

• Online Premium Payment 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 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.

• 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.

How to File an Online Car Insurance Claim?

All the car owners, at some point in time, need to file an 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 with 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 him/ her about the requirement of the claim processing team to settle your 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 Car Insurance Claim

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 Compare Online Car Insurance Quotes at Policybazaar?

Buy & Compare Car Insurance plans online for your four-wheeler vehicle at Policybazaar. You can compare Car Insurance quotes online in just 30 seconds & get the lowest premium for your car. You have to fill in a few simple details like make of the car, model, variant, year of manufacture, etc. You will then get car insurance prices 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.