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Key Features of Car Insurance Policy
| Categories |
Key Features |
| Third-party (TP) Liabilities |
Covers third party death, injuries & property damages |
| Own Damages (OD) |
Covers replacement & repair costs for own damages (offered under standalone and comprehensive policies) |
| No Claim Bonus (NCB) |
Up to 50% |
| Car Insurance Premium |
Starting at Rs. 2094* |
| Discounts |
NCB, Anti-theft, ARAI Membership, Deductibles |
| Add-on Covers |
Zero depreciation, Roadside assistance, NCB protect, Engine protection, etc. You can choose from over 10 such add-ons. |
| Buying/Renewal Process |
Online |
| Personal Accident Cover |
Up to Rs. 15 Lakh |
| Cashless Garages/Repairs |
Available |
*TP insurance price for less than 1000cc engines. **All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard terms and conditions apply.
What is Car Insurance?
Car insurance is a type of vehicle insurance that is a contract between you and an insurance company where the insurer provides a safety net for your four-wheeler in exchange for a periodic payment. You can easily buy car insurance online by simultaneously comparing policies from different insurers.
If you are wondering who should buy car insurance, the answer is that it is mandatory for all car owners in India to buy a (third-party) car policy; otherwise, it can lead to hefty fines as well as legal consequences. Buying insurance for car is a great choice because it:
- Is mandatory requirement by Law
- Compensates for third-party damages
- Protects your vehicle from damages
- Covers legal costs
- Provides financial support
- Provides peace of mind
Car Insurance for EVs
With the rapid growth of EV cars in India, car insurance for electric vehicles (EVs) is also becoming popular among people. An EV car insurance policy is specifically designed to provide financial protection to electric four-wheelers by providing extra coverage for charging equipment, batteries, electric motors, etc.
Usually, car insurance for EV cars provides 100% battery coverage, unlike general auto insurance plans where the battery is covered only 50%. You can buy electric car insurance plans online easily after comparing plans from different insurers. It covers the following electric vehicles in India:
- Battery electric vehicles
- Hybrid electric vehicles
- Plug-in hybrid electric vehicles
- Fuel cell electric vehicles
Directly from Experts
At Policybazaar, we strive to make car insurance reach maximum people by offering affordable car insurance premiums. You can compare plans from 20+ car insurance companies to find the best price.
We focus equally on claims resolution with our Assured Delivery Program in 115+ locations, offering 24/7 claims support, dedicated relationship managers, and faster repairs with notifications at every step.
We offer customized insurance plans, like ‘Pay as you Drive,’ where premiums are based on actual kilometers driven. For instance, if you drive less, say 5,000 km/year, you will only pay the premium for the actual distance covered. You can also recharge the driving limit when needed.
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Business Head – Car Insurance
Types of Car Insurance Policies in India
The three types of car insurance in India are third-party, standalone own-damage, and comprehensive car insurance. You can opt for any of these plans that fit your coverage requirements and budget.
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Third-party car insurance or liability-only insurance is a mandatory policy for all car owners in India. Third-party insurance protects you from financial losses and legal liabilities arising from damage caused to 3rd-party property or injury/death of a 3rd-party person by your insured four-wheeler.
Third-party insurance offers coverage of up to Rs 7.5 lakh for property damages and unlimited compensation for third-party injury/death.
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Comprehensive car insurance is a type of motor insurance which covers both third-party liabilities and own damages to the insured vehicle. With a comprehensive car policy, you can secure yourself against damages from theft, fire, vandalism, and natural calamities.
Additionally, you can enhance your coverage with add-ons like roadside assistance and zero depreciation at a small extra premium.
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A standalone own-damage policy compensates for the damages caused to your four-wheeler due to accidents and other losses, including theft and fire. It does not cover damages caused to a third-party property or person.
This car policy can be paired with an active third-party policy. Hence, a standalone policy is usually bought for car age up to three years.
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Most car insurance providers offer two variants of a comprehensive car policy. A simple one and another with the zero depreciation add-on cover, often called Zero Depreciation Policy.
Also called bumper-to-bumper insurance, a zero dep policy eliminates the cost of depreciation when settling a claim. Zero depreciation car insurance lets you get the total value of the car or (covered) damaged car parts without having to pay for their depreciation costs.
Third-party Car Insurance vs Comprehensive Car Insurance
By definition, we now know that the basic difference between the two types of insurance is that a third-party car insurance policy protects you only against third-party liabilities while comprehensive insurance for your car will offer 360-degree protection.
Here is a table comparing coverage offered under third-party and comprehensive car insurance policies in India.
| Coverage Offered |
Third-party (TP) Car Insurance |
Comprehensive Car Insurance |
| Coverage |
Covers damages caused to third-party persons or their property. |
Covers TP liabilities as well as damages caused to own four-wheeler. |
| Third-party Property Damage & Bodily Injury/Death |
Covered |
Covered |
| Own damages |
Not Covered. Covers TP liabilities only. |
Own damages arising from accidents, theft, fire, calamities, etc., are covered. |
| Insurance Premium |
Lower. Decided annually by IRDAI. |
Higher, as it covers both third-party and own damages. |
| Legally Mandatory |
Yes |
No |
| Vehicle Theft |
Not covered |
Partial or total losses arising out of the theft of the insured 4-wheeler are covered up to its IDV. |
| Accidental Damage |
Not covered |
Covered |
| Availability of NCB |
No |
Yes |
| Availability of add-ons |
Not available. |
Available |
It takes a few minutes to buy or renew car insurance online. To get an instant quote, visit Policybazaar.com and enter your car details and contact information. Now, select the right car insurance policy that suits your requirements.
You May Also Read: Third Party Car Insurance vs Comprehensive Car Insurance
What is Covered & Not Covered Under Car Insurance
- Third-party Liabilities - Covers third-party liabilities, including third-party death, disability and property damages.
- Accidents Covers damages from road accidents, collisions or any external means.
- Theft - Any partial or total loss to the insured four wheeler from theft or burglary is covered up to its IDV (Insured Declared Value).
- Man-made Acts - Damages from riots, strikes, terrorist activities, etc.
- Natural Calamities - Covers damages caused by earthquakes, cyclones, typhoons, hurricanes and other natural disasters.
- Fire - The comprehensive insurance plan covers damages or losses from fire, self-ignition, or explosion.
- Animal Attack - 4-wheeler insurance also covers accidental damages by animal attacks.
- In-transit Damages - Any damages sustained by the insured vehicle while it was in transit via road, water, rail, or air.
- Depreciation - Comprehensive insurance doesn't cover the usual wear and tear of the four-wheeler and its parts.
- Invalid Driving License - Any damages when driving without a valid licence.
- Drunk Driving - Accidental damages when driving under the influence of alcohol or drugs.
- Outside Geographical Area - Damages occurred if driven outside the areas specified in the policy documents.
- Mechanical Failure - Damages caused by mechanical or electrical faults.
- Illegal Driving - Damages to the insured 4-wheeler if driven in a race or for unlawful purposes.
Car Insurance Add-On Covers
Add-ons in motor insurance are additional covers that you can buy with your comprehensive or standalone own-damage policy to enhance its coverage. You can purchase these add-ons for an extra premium.
Let's explore some major add-ons that you can choose with your insurance for car:
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Zero Depreciation Cover
Also called a nil dep policy, this add-on offers a complete payout for coverage without subtracting the depreciating value of the vehicle. It helps you get complete protection by providing full settlement coverage for your insured vehicle and eliminating depreciation costs. It is to be noted that tyres, tubes and batteries are covered 50% even under this policy.
Another significant thing to know is that the zero dep cover applies to certain claims for cars less than 10 years old. The compulsory and voluntary deductibles (if opted for) still apply with the zero depreciation cover.
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No Claim Bonus (NCB) Protection Cover
While NCB provides discounts for not making any claim in the previous policy year, an NCB Protect cover is like an additional protection layer. It helps save you up to 50% on car insurance renewal premiums even if you raised a claim during a policy year. You can purchase this add-on along with a comprehensive insurance policy.
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Engine Protection Cover
A comprehensive car insurance policy provides extensive coverage yet excludes damages to the engine itself. An Engine Protection cover provides coverage for losses due to oil leakage or water ingress, covering key components like the gearbox, engine parts, and differential.
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Pay as You Drive Cover
Pay-as-you-drive (PAYD) car insurance is a type of car insurance cover which is based on the usage-based insurance (UBI) insurance model. It allows you to reduce your own damage premium by charging you based on kilometres driven in a policy tenure. This add-on is ideal for individuals who drive occasionally or own more than one 4-wheeler.
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Consumables Cover
A Consumables Cover add-on covers the costs of replacing essential consumable parts. These small but critical parts include nuts, bolts, screws, AC gas, lubricants, filters, and much more.
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Key Protection Cover
Losing car keys can be a harrowing experience., which you can avoid with a Key and Lock Protect cover. With this add-on, the insurer covers the costs of replacing and repairing keys under key protection cover.
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Daily Allowance Benefit
Daily allowance add-on covers your transportation expenses when your car is being repaired in the garage after an accident. Under this add-on, the insurer provides a daily travel allowance if the damaged four-wheeler is in the garage for more than 3 days.
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Personal Accident Cover
The personal accident cover compensates if the owner-driver suffers injuries, permanent/partial disability or death in an accident. The maximum sum insured in the PA cover for car insurance is Rs. 15 lakhs.
Additionally, extended personal accident coverage for co-passengers is also available, subject to pre-determined limits.
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Roadside Assistance Cover
The RSA cover or Roadside Assistance cover is the emergency helpline service provided by the insurance provider. It helps you with services like towing, fuel delivery, flat tyre repairs, and lockouts minor repairs. Your insurance company sends a mechanic to your location to fix the damage to your four wheeler. Since insurers do not count Roadside assistance coverage as a claim, it will not affect your NCB.
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Return To Invoice Cover
The Return to Invoice add-on cover helps you receive your 4-wheeler's original invoice amount in the event of theft or total loss. This includes the ex-showroom price, road tax, and first-time registration charges. It is to be noted that the RTI coverage may differ from insurer to insurer.
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Personal Baggage Cover
With Personal possession add-on cover, you get coverage if your personal belongings get damaged in an unfortunate event or stolen when your four-wheeler is parked in authorised parking. The coverage amount is limited and varies from insurer to insurer.
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Tyre Protection Cover
A comprehensive insurance policy excludes tyre or tube damages in an unfortunate accident. A Tyre Protection cover covers expenses related to repairing or replacement of tyres or tubes.
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Driver and Passenger Cover
This add-on cover provides financial protection against accidental injuries to passengers riding in the insured car. The insurer covers financial aid for medical expenses, with a maximum coverage of up to Rs. 2 lakh.
Secure your vehicle with affordable Car insurance
*Standard T&C Apply. UIN/ADV/1368/Banner/August/2022-23
Accidents are unpredictable, make car protection predictable
+Standard T&C Apply.
PBIB/Print&DM/Motor Insurance/Ad No.304
Car Insurance Add-ons Based on Your Coverage Requirements
Here is a summary of who should buy which add-on cover depending on its benefit.
| Add-on Cover |
Benefit |
Who Should Get It? |
| Zero Depreciation Cover |
Full claim amount without depreciation deduction |
Ideal for new and expensive cars |
| NCB Protection Cover |
No Claim Bonus (NCB) remains intact even after a claim |
Those who want to retain NCB despite making claims during the policy year |
| Engine Protection Cover |
Covers engine damage due to waterlogging and other factors |
Best for people living in flood-prone areas |
| Roadside Assistance Cover |
24x7 support if your car breaks down |
Ideal for long-distance travelers & highway drivers |
| Return to Invoice Cover |
Full on-road price reimbursement in case of theft or total loss |
Best for new or expensive car owners |
| Tyre Protection Cover |
Covers repair and replacement of damaged tires |
Ideal for those who often go on adventures or drive on rough, bumpy roads |
List of Car Insurance Companies in India 2025
Here is the list of leading car insurance companies in India including their claim settlement ratio and the number of network garages they cover. You can also get car insurance quotes from the below table.
Disclaimer: The table mentioned above is according to the alphabetical order of the insurance company. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprises insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India, refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in.
How to Choose the Right Car Insurance Policy?
While buying car insurance online, consider these factors to get the right coverage at the best price:
- Appropriate Policy Coverage: While third-party insurance is sufficient to avoid traffic fines, a comprehensive policy offers complete protection to you and your vehicle.
- Insurer Claim Settlement Ratio (CSR): A higher claim settlement ratio (CSR) of the insurer implies there are greater chances of your claims being settled.
- Cashless Garages: Choose an insurer with an extensive network of cashless garages. It will broaden the scope of availing of a cashless repair facility without paying cash from your pocket.
- Know the Claim Process: Go for an insurance company with an easy claim process, 24x7 claim support, and a faster claim settlement.
- Select the Suitable IDV: Choose the IDV that matches your car's market value. While a lower IDV can help you save on your premium costs, you may incur higher out-of-pocket expenses during claims.
Note: You can also use an IDV calculator online to get the right IDV for your car.
- Compare Car Plans Online: Compare multiple 4-wheeler insurance plans online to find the best-suited plan within your budget. You can easily compare car insurance plans from 20+ insurance companies at Policybazaar.com.
- Customer Assistance: When buying insurance for a car, consider the customer service and additional benefits the insurer provides. An insurance company that offers 24/7 customer assistance is essential. This will help you to settle your queries and claims conveniently.
How to Calculate New Car Insurance Prices Online?
The IRDAI decides the third-party insurance rates for all 4-wheelers based on their engine capacity. Here are two ways to calculate the own damage premium for a new car:
Using Car Insurance Calculator
The easiest method to calculate the insurance amount for a new car is to use a free online Car Insurance Premium Calculator. If you want to calculate car insurance premium online, simply visit the calculator on Policybazaar.com and enter a few basic details of your four-wheeler, like make, model, variant, and ex-showroom price. The calculator will instantly show the estimated new car insurance price along with the IDV.
Calculating New Car Insurance Cost via Formula
An OD insurance premium for a new four-wheeler can also be calculated by using the following formula:
OD Premium = IDV * Premium Rate (decided by the insurer) + Add-Ons - Discount & benefits (no claim bonus, theft discount, etc.)
IDV or the Insured Declared Value can be calculated by using the following formula:
Insured Declared Value = (Current market value - the depreciation value) + (Cost of accessories - their depreciation value)
What Factors Impact Insured’s Declared Value (IDV)?
When you buy a car, its Insured Declared Value (IDV) is 5% less than its ex-showroom price. IDV is the maximum amount your insurance company will pay in case of theft or total loss of your car. Have a look below at various factors based on which the insurer decides your car’s IDV:
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Age of the Vehicle
As your car gets older, its market value and IDV decrease accordingly.
| Vehicle Age |
Depreciation (%) |
| 0 - 6 months |
Up to 5% |
| 6 months - 1 year |
Up to 15% |
| 1 - 2 years |
Up to 20% |
| 2 - 3 years |
Up to 30% |
| 3 - 4 years |
Up to 40% |
| 4 - 5 years |
Up to 50% |
| 5+ years |
Based on insurer & market value |
Note: Choosing a very low IDV might reduce your premium, but it will also lower the claim amount in case of a loss.
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Make & Model of the Car
Luxury and premium cars have a higher IDV, whereas regular sedans and hatchbacks have a comparatively lower IDV. In case of expensive cars, it is important to choose the right IDV to ensure you get adequate compensation in case of damages or losses.
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City of Vehicle Registration
Metropolitan cities like Delhi, Mumbai, & Bangalore have a higher risk of accidents and theft, which results in higher IDV and car insurance premiums. On the other hand, tier-2 & tier-3 cities and rural areas generally have a lower IDV. If you live in a high-risk area, maintain an appropriate IDV to ensure sufficient coverage.
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Depreciation Rate
As your car ages, the value of its components also reduces, which reduces its IDV. The table shows the rate of depreciation at which the car components are calculated:
| Car Components |
Rate of Depreciation (%) |
| Fiberglass Parts |
30% |
| Plastic, Rubber, Nylon Parts |
50% |
| Metal Parts |
5% to 10% per year |
You can opt for a zero depreciation or nil depreciation add-on cover to avoid this depreciation.
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After-Market Modifications
If you have installed any accessories in your car, your IDV may increase. While buying insurance, include the value of these add-ons to ensure full coverage. By understanding these factors, you can make an informed decision about your car insurance and ensure maximum protection at the right cost.
Third-party Car Insurance Price List As Per IRDAI
As per IRDAI, the third-party premium rates of car insurance are based on the car engine’s cubic capacity (cc). Here are the car insurance premium rates per the latest IRDAI notification.
| Engine’s Cubic Capacity (CC) |
Third-party Car Insurance Renewal Premium |
Third-party Car Insurance Premium for 3 Years (for New Four-wheeler) |
| Less than 1,000 |
Rs. 2,094 |
Rs. 6,521 |
| More than 1,000 and less than 1,500 |
Rs. 3,416 |
Rs. 10,640 |
| More than 1,500 |
Rs. 7,897 |
Rs. 24,596 |
Factors Affecting Car Insurance Premium
Several factors affect car insurance prices. You can easily check your insurance premium using an online car insurance premium calculator. However, you must keep in mind certain factors that can affect the insurance price for car.
- Type of Policy Coverage: The car insurance premium price is decided based on the type of coverage you opt for. Basically, third-party insurance carries the lowest premium as it only covers third-party damages. The premium becomes higher if you purchase own-damage or comprehensive insurance.
- Insured Declared Value (IDV): IDV, the current market value of the insured four wheeler, significantly affects car insurance premiums. It is the maximum amount a policyholder receives in case of a total loss or theft. Usually, the higher the IDV, the higher its insurance premium.
- Car Model: A four-wheeler’s make, model, and variant significantly affect its insurance premium. Typically, insuring high-end models costs more than base models because of the higher repair or replacement costs.
- Location: Usually, the 4-wheeler insurance premium is higher in metropolitan cities because of denser traffic and, consequently, higher chances of accidental damage.
- Vehicle Age: The manufacturing year of the four wheeler is also considered when deciding the car insurance premiums. Insuring newly launched cars can be expensive since their spare parts might not be available in the market.
- Add-on Covers: Though enhancing the policy coverage with add-on covers provides wider protection, it will increase the premium, too. Hence, you must choose the add-ons for your policy wisely.
- No Claim Bonus: If you have not filed claims during the policy term, the insurer provides a discount in terms of the No Claim Bonus (NCB). You can use this reward to reduce the policy premium at the time of car insurance renewal.
- Driving Record: Many insurers check your driving history when deciding the four-wheeler insurance premium prices. Traffic infractions and accidents can affect this amount.
How Can You Save on Your Car Insurance Premium?
Now that you know the factors that affect the prices for four-wheeler insurance, it is worthwhile to know about the tips through which you can lower the premium cost. Follow the below-mentioned points to save on car insurance premium while ensuring optimum coverage.
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Compare Car Insurance Plans
Car insurance premium rates vary based on the coverage options and benefits the insurer offers. Hence, you should compare car insurance policies online to select the one with a cost-effective premium.
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Install Anti-theft Devices
Another way to save on your insurance premium for cars is to install an ARAI (Automotive Research Association of India)-certified anti-theft device in your four-wheeler. If you have installed security devices in your car, insurers provide a discount of up to 2.5% of OD premium or Rs. 500, making your premium more affordable.
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Avoid Modifications
It is important to understand how modifications affect car insurance premiums. Every modification done to your four-wheeler increases its value and, in turn, its premium cost. Hence, you must not make any unnecessary modifications to avoid high premiums.
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Choose the Right Add-ons
You should take some time to identify the add-on covers tailored to your vehicle's type and requirements. It ensures optimum coverage and helps lower your overall car insurance premium. You may consider some beneficial add-ons such as zero deprecation, roadside assistance, and engine protection for a great driving experience.
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Avoid Small Claims
If you face minor issues with your car and the cost is manageable, you should avoid making claims for them since this can affect your NCB and, ultimately, the premium. Hence, this small, mindful step of not making claims for minor damages can help you save big on your car insurance premium.
Did you know you can save from 20 to 50% with an NCB discount? Read this guide to know how NCB is calculated in a car insurance policy?
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Opt for Pay as You Drive (PAYD) Insurance
Pay-as-you-drive (PAYD) or pay-as-you-go insurance is usage-based car insurance policy. Under this, you pay the policy premium only for the number of kilometres you drive. Hence, if you don't drive frequently or long distances, you should opt for PAYD to save on your policy premium.
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Avoid Policy Lapse
If you renew car insurance after its expiry, it leads to a policy lapse. It, in turn, increases the renewal premium and cancels NCB. So, you should get your car insurance renewal on time to avoid hefty premium amounts.
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Increase Deductibles
Deductible is the amount that you agree to pay out-of-pocket when making a claim. When you increase your share of deductibles, the insurer offers you some discount on the car premium as you agree to pay more when you have a claim.
Car Insurance for Popular Brands in India
Benefits of Buying Car Insurance Online from Policybazaar
Buying car insurance online is a time-saving and more economical process. Most online car insurance policies involve zero paperwork, making the documentation process convenient and fast.
If you buy a car insurance policy from Policybazaar.com, you get additional benefits, which are as follows:
- Self-video Claim: You can easily raise a claim to your insurer by submitting a self-shot video of your insured four-wheeler through the PB Claim app. Within 2 hours, a garage will be given the approval to start the repair.
- Free Pick-up and Drop: In accidental cases, you can avail of the free pick-up & drop service. Your insured car will be picked up, if within a 20 km radius, and dropped to the nearest garage.
- 3-day Repair Assurance: For most cases, your car will be repaired within 3 working days across any insurer.
- Cashless Assurance: With this advantage, you can avail of a 100% cashless claim facility. Though it is applicable to PAN India; however, it is available in limited cities. If an insurer does not offer this facility, they will provide reimbursement claims within 24-48 hours.
How to Buy Car Insurance Online?
If you are looking to buy car insurance policy for new car or have an old car, you can choose the most suitable policy simply by following the below steps:
- Visit Policybazaar’s official website. Click the 'Car Insurance' tab on the homepage.
- Enter your car number or click on ‘Brand new car?’ and specify your car details like city RTO, make, model, variant, fuel type, and registration year.
- Fill in the registration form to proceed.
- You will be shown a list of different insurance plans from various car insurance companies. Choose the plan that meets your coverage requirements and budget.
- You can also choose the ‘add-ons’ for wider coverage if you are buying a comprehensive car plan.
- Make the payment online. You will receive the policy copy on your registered email ID.
Benefits of Car Insurance Renewal Online
Car insurance policies have a validity and need to be renewed for continued coverage. Renewing your four-wheeler insurance online offers several advantages other than saving the policy from getting lapsed. It is a more convenient and time-saving process. Let us look at some major benefits of car insurance renewal online:
- Easy Comparison: When you renew car insurance online, you can easily compare plans offered by multiple insurers in just a click. This helps in easily understanding the policy features and additional services offered by different insurers.
- Seamless Customisation: Another benefit of online 4-wheeler insurance renewal is the feasibility of personalising the policy based on the coverage requirements. You can easily modify the four wheeler insurance coverage during renewal by adding or removing add-ons.
- Easy to Switch the Insurer: If you are dissatisfied with your current insurer or find some other insurer’s offerings more appealing, you can switch car insurer at the time of renewal.
- Secured & Transparent: Secured payment gateways make car insurance online renewal a safe and transparent process. Premium payment can easily be done using credit cards/debit cards/and UPI.
How to Renew Car Insurance Online?
To renew car insurance online from Policybazaar.com, follow the below steps:
- Click the 'Car Insurance' tab on the homepage.
- Enter your Car Number.
- Select city RTO, make, model, variant, fuel type, and registration year.
- Fill in the registration form and proceed further.
- Now, from the list of various insurance plans of the car insurance companies, choose the one that meets your coverage requirements and budget.
- If buying a comprehensive car insurance policy, you can also choose the ‘add-ons’ for wider coverage. However, you must remember this can increase the car insurance renewal price.
- Make the payment online via debit/credit cards, UPI, or net banking.
- The insurer will send the policy documents to your registered email ID.
You can complete your car insurance renewal in just a few clicks by following the above-mentioned steps.
Documents Required for Buying/ Renewing Car Insurance
You do not need any documentation or paperwork when you purchase or renew car insurance online from Policybazaar.com. However, there are some details that you will need to have handy during the process. These include:
- Vehicle Registration Certificate - Owner name, make/model/variant, engine no., chassis no., engine’s CC, fuel type, vehicle class
- Previous Year Policy - NCB, insurer name, policy no, the policy period, Add-on info
- KYC - Proof of Residence and Proof of Identification (Pan Card/Aadhar/DL/Voter ID/Form 16/Passport)
Why Should You Renew an Expired Car Insurance Policy Immediately?
Here are the top 4 reasons why you must renew your expired car insurance policy immediately:
- Legal Requirement: Motor insurance is mandatory for all four-wheeler owners in India. Hence, if you are caught driving without four wheeler insurance, you could incur fines of up to Rs. 4,000 and face imprisonment as well.
- Continued Coverage: If your four-wheeler insurance has expired, you do not get policy coverage. This means you become financially vulnerable to bear the repair costs yourself in case of accidents, theft, fire, etc.
- Save the Loss of NCB: If you do not renew your expired car policy within 90 days, you will lose your benefits of No Claim Bonus (NCB), which can otherwise help in getting big discounts on insurance renewal premium.
- Save yourself from 4-wheeler Inspection: A four-wheeler with an expired policy may have to undergo a mandatory inspection before the car policy renewal. If the insurer finds it ill-maintained or in bad shape, it may lead to a higher premium.
How to Raise a Car Insurance Claim Online?
It is critical to understand the car insurance claim process for own damage to avoid any claim rejections. Follow the below-mentioned steps to raise a valid car insurance claim conveniently:
- Inform the Insurance Company: The first step is to inform your insurer immediately and share details of the accident/event with them. Fill out the claim form.
- File FIR: File a police report at your nearest police station, if required.
- Record Evidence: Make sure you document and share photographic evidence with the insurer to support your case.
- Submit Required Documents: Attach the documents in case of an online claim for car insurance or keep the required documents handy for claim verification once the insurer’s surveyor visits you for inspection.
- Damage Assessment: After the claim registration, the insurer sends a surveyor for damage evaluation.
- Repair: Once the inspection is complete, you can send your 4-wheeler to a network garage for repairs.
- Claim Settlement: With a cashless claim, the insurer will directly settle the repair bills with the network garage. However, for a reimbursement claim, you will need to first pay the bills and ask your insurer for reimbursement.
Documents Required for Filing a Car Insurance Claim
Whether you are making a claim for car theft, accident, or third-party damages, the insurance company requires several documents. Mentioned below is the list of important documents that you will need when raising a claim for your 4-wheeler insurance:
- Duly filled and signed claim form
- Insurance policy copy
- Driving license
- RC copy
- Copy of police FIR (in case of theft claims)
- Original repair bills and payment receipts
- Estimated repair bills
How to Download Your Car Insurance Policy Copy Online?
When you purchase car insurance online, your insurer sends your policy documents to your registered address. Moreover, you also receive a digital copy of your policy at your email address. However, if you lose your policy documents, you can download your policy copy from the official website of Policybazaar. Here are the steps to download your four-wheeler insurance policy copy online:
- Visit Policybazaar.com and select the ’Sign in’ tab.
- You can sign in via OTP or through your Google account.
- You will now be redirected to your account dashboard.
- From the ‘Your Policies’ section, you can easily download your policy copy online.
Top Reasons to Buy Car Insurance Policy
When you buy insurance for your car, it reduces the tension and provides peace of mind by providing financial and legal protection:
- Legal Requirement: 4-wheeler insurance is compulsory under the Motor Vehicles Act of India. All vehicle owners need third-party coverage to drive on public roads. While this is the basic required coverage, you can opt for comprehensive car policy for enhanced protection.
- Third-party Liabilities: A car insurance policy offers protection against 3rd party injuries, fatalities, and property damages arising from road accidents by the insured vehicle. While it offers up to Rs. 7.5 Lakh coverage for property damages; there is no limit on death claims.
- Own-damage Protection: Own damage insurance or OD insurance covers accidental damages and losses to your own vehicle.
- Personal Accident (PA) Cover: The mandatory PA cover under car insurance policy provides accidental coverage to the insured in the unfortunate event of permanent disability or death from accidents.
- Convenience: Buying your four-wheeler insurance online is a convenient process as it lets you buy a car policy in just a few minutes without any hassle of hefty paperwork.
Important Car Insurance Terminologies You Must Know
Check out some of the commonly-used car insurance terminologies:
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IDV
IDV or Insured Declared Value is the current market value of the insured four-wheeler. If it suffers total loss, IDV is the maximum compensation that the insured person will get from the insurer.
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Premium
Premium is the amount the vehicle owner pays to the insurer in exchange for the financial protection of the four-wheeler.
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No Claim Bonus
No Claim Bonus or NCB is a discount on the motor insurance renewal premium. This reward is given by the insurer to the policyholder for safe driving and not raising any claims in the previous policy year.
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Zero Depreciation Cover
Zero depreciation is an add-on cover in car insurance that prevents the depreciation deduction on the four-wheeler and its parts during claims.
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Own Damages
Damages from an accident, natural calamity, fire, man-made disaster or burglary.
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Personal Accident Cover
Personal accident cover in car insurance provides compensation to the owner-driver in case he/she becomes disabled or dies in an accident.
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Cashless Claims
These claims are filed when the insured 4-wheeler is taken for repair at a network garage authorised by your insurer.
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Voluntary Deductible
A voluntary deductible is the amount the policyholder chooses to pay out of pocket when making a car insurance claim.
FAQs About Car Insurance
General
Buy/Renew Policy
Policy Coverage & Premium
Claims
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Q1. Why do I need to insure my car?
Ans: Car insurance is important for the financial and legal protection of car owners. A valid motor insurance policy protects from losses arising from unforeseen events while providing four-wheeler owners peace of mind as they drive on roads.
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Q2. Are offline and online car insurance policies the same?
Ans: Both offline and online car insurance policies are the same in terms of policy coverage. The difference lies in the purchasing mode, documentation process, and customer experience.
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Q3. Where can I check my car insurance details?
Ans: You can check your car insurance details in your policy document on different platforms, such as the insurer’s website, VAHAN portal, and IIB portal. You can also check the details of your motor insurance on the Policybazaar app or contact the customer support team.
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Q4. Are there any discounts offered on electric car insurance policy?
Ans: The IRDAI has proposed a 15% discount on third-party premium rates for electric vehicles. Some insurers also offer additional discounts to EV owners to encourage eco-friendly transportation.
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Q5. How can I check the car insurance expiry date?
Ans: The expiry date of your car insurance policy can be found in your policy documents. You can also check your four wheeler insurance status online by visiting the insurer's website or government sites like VAHAN, IIB, Parivahan Seva, or RTO portals.
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Q6. Can I buy car insurance on EMI?
Ans: Yes. Policybazaar.com provides you with an option to buy car insurance online with easy monthly installments using EMI payment. The option is found on the payments page.
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Q7. Which insurance plan is compulsory for a new car?
Ans: According to the Indian Motor Law, it is compulsory for car owners to have a valid third-party car insurance policy. Hence, if you buy a new car, you must immediately get a third-party car policy to avoid any financial or legal consequences.
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Q8. What is the validity of new car insurance?
Ans: As per IRDAI regulations, you must have a new car insurance policy for three years. You can buy a bundled policy of mandatory three-year third-party insurance along with one year of own-damage insurance.
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Q9. What if there is a mistake in my car insurance policy?
Ans: If you have made a mistake while buying your car insurance policy, you must contact your insurer immediately and get it rectified by giving proof of correct information.
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Q10. What if I lost my policy document?
Ans: You must immediately inform your insurer if you lose your car insurance policy document. You can request the issuance of a duplicate policy. For this, you must submit the application along with FIR, advertisement and indemnity bond.
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Q11. Will my car insurance policy cover previous damage?
Ans: No. Pre-existing damage is usually excluded from car insurance policy coverage. This is because any insurance is meant to provide financial protection against unforeseen events after the policy has become effective.
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Q1. How to renew my expired car insurance online?
Ans: You can easily renew your expired car insurance online by visiting Policybazaar.com. Just enter your registered car’s number, compare plans, choose the add-ons, and pay the premium amount.
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Q2. Can I skip buying PA cover under new car insurance?
Ans: No. Personal Accident (PA) coverage in car insurance is mandatory according to Indian motor laws.
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Q3. How quickly can I buy/renew car insurance online?
Ans: Buying or renewing a car insurance online takes only a few minutes. All you need to do is log in to Policybazaar.com or the insurer’s website, enter the required details, and pay the premium; your policy will be issued instantly.
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Q4. Is it safe to renew car insurance online?
Ans: Yes. Online car insurance renewal is absolutely safe. Ensure you purchase it from an IRDAI-registered website, such as Policybazaar.com or directly from the insurer’s official website. You can find the IRDAI registration number at the bottom of the website.
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Q5. I want to buy a fresh policy for my second-hand 4-wheeler. What is the process?
Ans: To buy a fresh policy for your second-hand four-wheeler, you must first fill out form 29/30, available at the RTO and get an acknowledgement slip to buy the policy. Submit these documents along with a fresh proposal form to the insurance provider. A fresh policy will be issued once the insurer has inspected your four-wheeler.
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Q6. Is there any limit on add-ons I can purchase with my four-wheeler insurance policy?
Ans: No, there is no limit on the number of add-ons you can purchase with a car insurance policy. However, you must remember the more add-ons you include, the higher your car insurance premium will be.
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Q7. When should I renew car insurance?
Ans: You should renew your car policy well before it expires. It is usually advised to raise a renewal request within 15 to 30 days before the expiry date.
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Q8. What do I do with my car insurance policy if I sell my car?
Ans: When you sell your car, you must transfer the existing car insurance policy to the new owner within 14 days of the vehicle.
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Q9. How to buy a car insurance policy after my existing policy expires?
Ans: If your existing car insurance policy has expired, you must buy new four-wheeler insurance immediately. You can buy it from the same insurer or from a new one after comparing car insurance quotes online.
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Q10. Will my premium increase if I choose only one add-on?
Ans: Yes. If you opt for add-ons in your standard car insurance policy, it will increase the premium amount. You must thoroughly evaluate the benefits of the add-ons you choose and the additional costs that they contribute to choose the right car insurance.
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Q11. When will I get my policy document if I buy/renew a car insurance policy online?
Ans: As you buy or renew your car insurance online, the policy document will be emailed to you immediately after the successful payment. The insurer may take up to 7 days to send the hard copy; however, the soft copy also serves as a valid legal document.
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Q1. How do you lower your car insurance premium?
Ans: You can reduce the policy premium of your 4-wheeler insurance by:
- Opting for a higher deductible
- Installing an anti-theft device
- Avoiding unnecessary add-ons
- Building your No Claim Bonus percentage
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Q2. What is an endorsement in car insurance?
Ans: An endorsement is a document incorporating any agreed-upon changes made to existing car insurance policy terms or the policyholder's personal details.
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Q3. Do you cover rat bites in four-wheeler insurance?
Ans: Yes. Damages from rat bites are usually covered under a 4-wheeler insurance policy. However, you must carefully read this in your policy document, as not all insurers cover rat bites.
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Q4. Do you cover damage from a hit by a coconut or cricket bat?
Ans: Yes. Car insurance covers any damages from a coconut or cricket bat hit.
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Q5. Are theft and fire covered under third party insurance?
Ans: Usually, theft and fire damages are not covered under third-party insurance. However, some insurers offer customised third-party plans that provide coverage for theft and fire.
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Q6. Is the engine covered in zero dep?
Ans: Engine damages are not covered under the standard zero depreciation cover. For this, you must purchase an Engine Protect add-on separately from your four-wheeler insurance policy.
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Q7. Are passengers covered by car insurance?
Ans: A basic car policy does not cover the passengers sitting in the four-wheeler. However, you can purchase a Passenger Cover to get compensation in case any passenger suffers injury or dies at the time of the accident.
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Q8. Is my No Claim Bonus (NCB) transferable in car insurance?
Ans: The NCB can be transferred from one insurer to another. However, NCB cannot be transferred to another person as this reward is provided to the policyholder and not the vehicle.
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Q9. How to pay for car insurance online?
Ans: You can pay for your car insurance policy online via UPI, credit/debit cards, or net banking.
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Q10. Will the premium decrease if I opt for a lower Insured Declared Value (IDV)?
Ans: Yes. If you opt for a lower IDV, your premium will be reduced; however, you must be aware that you will get a lesser claim value in case of theft or total loss.
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Q11. I am married. My spouse has a car insurance policy. Do I also need to buy a car insurance policy?
Ans: Even if your spouse has car insurance, you must buy a separate car policy if you are the vehicle owner. This is because it is a legal requirement for every car owner to have an individual motor insurance policy.
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Q1. Is there a need to file a First Information Report (FIR) to raise a claim?
Ans: While it is not mandatory to file an FIR for every car insurance claim, you must file an FIR in events of theft, road accident, or fire.
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Q2. Can we take unlimited claims under zero dep?
Ans: The number of times you can make a claim under a zero depreciation policy varies from insurer to insurer. It can range from two to unlimited claims, depending on the insurer.
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Q3. How many times can we claim under car insurance in a year?
Ans: There are usually no restrictions on the number of car insurance claims you can make in a year. While you can make an unlimited number of claims in a policy year, you must remember that each claim affects your NCB and can lead to potentially higher premiums at the time of policy renewal.
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Q4. What is a cashless claim and a non-cashless/reimbursement claim?
Ans: You can file a cashless claim when your insured four-wheeler is repaired at the insurer’s network garage. Under such claims, the insurer pays the repair bill directly to the garage.
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Q5. How many times can I claim Roadside Assistance service during the policy period?
Ans: The number of claims allowed for roadside assistance service during a policy period varies from one insurer to another. You can go through your policy document to know the exact number of claims allowed in a year. Depending on the insurer, it can vary from up to 4 claims in a policy year to unlimited claims.
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Q6. Will my NCB be impacted if I claim for Loss of Personal Belongings and Key Protect?
Ans: If you raise a claim for Loss of Personal Belongings and Key Protect cover, your NCB may or may not be impacted, depending on your insurer. You can contact your insurer to determine if a claim for these add-on covers will impact your NCB.
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Q7. How can I file a car insurance claim in case of theft?
Ans: You can file a car insurance claim for theft-related incidents by following the below steps:
- First, visit the nearest police station and lodge an FIR.
- Next, inform your insurer of the loss of your four-wheeler
- Submit all the required documents
- After this, your insurer will proceed with the claim process.
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Q8. Can I get my 4 wheeler repaired in my choice garage?
Ans: Yes. You can get your four-wheeler repaired in the garage of your choice or a non-network garage. In this case, you must take the vehicle to the garage and get the repairs done by making an out-of-pocket payment. You can then raise a claim with your insurer for reimbursement by submitting the required documents and bills.
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Q9. How long does it usually take for a car insurance claim to be settled?
Ans: A car insurance claim is mostly settled within 10 working days. However, this time depends on the insurer and the extent of the claim. You must also note that the time limit set by the IRDAI for claim settlement is within 30 days of receiving the necessary documents.
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Q10. What happens if there are more passengers in my car than the allowed limit and we get into an accident? Can I raise a claim for it?
Ans: If you get into an accident when there are more passengers in your car than legally allowed, you can still raise a claim for it. However, it is to be noted that the insurer can closely scrutinise the claim and has the right to deny it or reduce the compensation amount.
