Car insurance, also known as vehicle insurance or motor insurance, provides financial protection to you & your four-wheeler against any loss or damages resulting from accidents, theft, fire, calamities and third-party person or property. Major types of motor insurance covers include Third-Party car insurance, Standalone Own-Damage (OD) car insurance, and Comprehensive car insurance.
The insured can also buy a Personal Accident Cover to cover under both third-party liabilities cover and own-damage cover. Ensure that you are the registered owner of the car and hold a valid driving license to avail the coverage of Rs. 15 lakh.
|Third-party damages||Death, injuries & property damages|
|Own damage cover||Available under standalone and comprehensive|
|No Claim Bonus||Up to 50%|
|Car insurance premium||Starting at ₹2094*|
|Add-on covers||More than 10 add-ons such as Zero dep, NCB protect, Roadside assistance, etc.|
|Personal accident cover||Up to ₹15 lakh|
*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.
In India, there are three types of car insurance policies offered by the general insurance companies i.e. third-party car insurance, comprehensive insurance, and stand-alone insurance. You can choose a car insurance plan according to your budget and need.
Third-party or liability only policy is mandatory for all the car owners to drive on the Indian roads. Compensation is provided for damages/injuries caused to a third-person, and property (up to Rs 7.5 lakh). However, it does not cover damages caused to the insured car. Therefore, it is recommended to buy a comprehensive or standalone car policy.
A comprehensive car insurance policy covers both third-party liabilities and own damages. Under this plan, the insured person can avail cashless repair services at the network garages. Furthermore, the policyholder can enhance the policy coverage with add-on benefits or riders such as roadside assistance cover, zero depreciation cover, etc. by paying a nominal amount of extra premium.
A standalone own damage car policy financially covers the accidental damages caused to the insured car. It can be purchased with an active third-party insurance policy. In India, as per the Motor Vehicles Act, it is mandatory to hold at least a third-party liability cover for all car owners. However, having stand-alone insurance offers financial help in case of own-damages to the insured car and third-party liabilities as well.
Add-ons in motor insurance are covers that can be used to enhance the coverage of your existing policy. You can purchase these add-ons by paying some extra premium. Following are some of the add-on covers offered under car insurance - No Claim Bonus Protection cover, Zero Depreciation cover, Engine Protection cover, Key protection cover, etc.
Let's discuss Car Insurance Add-Ons in more detail:
For every claim-free year, the policyholder is rewarded with a discount on the renewal premium. This discount is called - No Claim Bonus (NCB). It is cumulative and increases every year. It usually ranges from 10% to 50% and can save a substantial amount of money on the premium payable for your auto insurance.
An engine is one of the most important parts of a car but it is not covered under a comprehensive plan. With an engine protection cover, you can get compensated for the cost of fixing the indirect damages that are caused to the engine due to lubricating oil leakage and water ingression. It covers the Gearbox parts, Engine parts, and differential Parts.
This additional feature offers compensation even for the depreciating value of your car. With this feature, you will not have to pay for the depreciation value of your vehicle’s parts. It is mostly valid on private cars and is subjected to a specific number of claims during the policy period. Compulsory and voluntary deductibles (as per the case) will be applicable despite zero depreciation cover.
Sometimes, a bunch of unforeseen expenses can drain all your savings. Consumables Cover includes all the expenses incurred on consumable items for any perils that are covered under the policy. Consumable items include screws, nuts and bolts, washers, AC gas, grease, lubricants, bearings, clips, engine oil, distilled water, oil filter, brake oil, and fuel filter are mostly covered.
Once in a lifetime everyone would have lost or misplaced their car keys. In such cases, the insurer can offer help by covering the costs incurred on the replacement and repair of your car keys under this cover.
This add-on cover comes to your rescue when your vehicle is parked in the garage after an accident for repair. If you have this add-on cover the insurer will provide you a daily travel allowance if the damaged vehicle has to be in the garage for more than 3 days.
A comprehensive car policy not only provides third-party cover but as well as offers cover against personal accidents. In personal accident cover, you get a pre-defined amount against death because of the accident and permanent total disability. In addition to this, one can purchase this cover for co-passengers as well even on an unnamed basis, which will be maximum as per the seating capacity of the vehicle. However, the amount of coverage is pre-determined even in this case.
In case you get stuck somewhere in the country within the specified distance as mentioned in the insurance policy, the insurer provides you with roadside assistance and sends a mechanic to your location to fix the damage caused to your car. Roadside assistance is not counted as a claim, thus your NCB stays the same.
Under Return to invoice add-on, if your car gets stolen or gets damaged beyond repair that is known as a total loss then the insurer will have to provide coverage as per the amount of invoice that you paid at the time of purchasing the car. This cover includes ex-showroom price, road tax and first-time registration charges.
With this add-on cover, you get the coverage in case your personal possessions get damaged in an unfortunate car accident or get stolen from the car when it is parked in authorised parking, There is a limit on a coverage amount that varies from insurer to insurer.
A comprehensive plan does not provide coverage in case the tyres of the car get damaged. Thus, a tyre protection cover can be purchased to cover any damages sustained by your car’s tyres and tubes.
Under this add-on, you get coverage in case any of the drivers or passengers get injured in the accident. The insurer will provide financial aid for the medical expenses.
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:
The following table shows the complete list of the best car insurance companies in India with their incurred claim ratio and the number of network garages offered by the car insurers:
|Car Insurers||Network Garages||Incurred Claim Ratio % 2020-21|
|Bajaj Allianz Car Insurance||4000||68.06%|
|Bharti AXA Car Insurance||5200||64.27%|
|Chola MS Car Insurance||4636||74.30%|
|Digit Car Insurance||Repair Anywhere||74.91%|
|Edelweiss Car Insurance||1500||93.38%|
|Future Generali Car Insurance||3500||66.13%|
|IFFCO Tokio Car Insurance||4300||84.04%|
|Kotak Mahindra Car Insurance||2327||74.64%|
|Liberty Car Insurance||4500||59.91%|
|National Car Insurance||3100||78.55%|
|New India Assurance Car Insurance||3000||78.20%|
|Oriental Car Insurance||3100||81.83%|
|Raheja QBE Car Insurance||1000||100.51%|
|Reliance Car Insurance||8200||76.89%|
|Royal Sundaram Car Insurance||3300||87.89%|
|SBI Car Insurance||16000||86.10%|
|Shriram Car Insurance||2000||79.43%|
|Tata AIG Car Insurance||7500||75.41%|
|United India Car Insurance||3100||96.45%|
|Universal Sompo Car Insurance||3500||87.96%|
Buying car insurance online is a common practice today. By purchasing a 4-wheeler insurance policy online, you can insure your car against any damage due to an accident, theft, fire etc. within 2 minutes. Offering quick comparisons and safe payment modes, online buy has a clear win over offline mode because of the following reasons-
|Categories||Buying Car Insurance Online||Buying Car Insurance Offline|
|Buying Process||Can be purchased online from the insurer’s official website or Policybazaar.com using a smartphone or laptop.||Requires physical visit to the insurer’s office or by connecting with the agent|
|Insurance Premium||Lower premiums due to the absence of intermediaries.||Higher premiums due to higher operational costs and involvement of agents.|
|Convenience||More convenient as it only requires a smartphone and a good internet connection.||Less convenient as customers need to meet with the insurance agent.|
|Transparency||More transparent as there is no role of an agent or intermediary.||There is less transparency as agents play a big role.|
|Customer Support||Easy to connect with the customer support team 24x7 via emails and calls.||Policyholders can connect with the customer support team or the agent during office hours.|
|Paperwork||Minimum to zero paperwork.||May require a lot of paperwork.|
|Renewal Process||Easy to renew as the policyholder’s details are auto-saved with the insurer||The renewal process is cumbersome and takes time.|
While selecting a car insurance policy, there are multiple factors like policy scope of coverage, claim settlement ratio, cashless repairs, etc. that can help you select the right policy. Some of them are listed below-
Third-party insurance is a mandatory cover that every car owner needs to buy. However, if you are looking for extensive coverage, it is recommended to choose comprehensive coverage. Moreover, check all the inclusions & exclusions of the vehicle insurance policy before buying it.
You can compare various car insurance plans online and choose the one which fulfills all your requirements. You can compare the plans based on premium, IDV, network garages, claim settlement ratio, customer support services, etc.
The claim settlement ratio shows the number of claims settled by the insurer against the total number of claims raised by the customer. Thus, checking the ratio online will help you gauge the insurer's ability to settle the claim.
Before availing the services offered by the insured, check the number of cashless network garages registered in the area where you reside. It will broaden the scope of availing the cashless facility without paying the cash from your own pocket.
The insurance companies offer add-on covers with the comprehensive insurance policy to enhance the policy coverage and maximise the policy benefits. Depending upon the requirement and budget, you can choose the add-ons with your plan.
24x7 customer assistance is one of the vital factors to look at while choosing an insurance company. This will help you to settle your queries and claims at your convenience.
Based on the insured car’s market value the IDV is calculated. And with routine wear and tear, a cars market value reduces. Therefore, the newer the car is the higher will be the market value and vice versa. The newer a car is, the higher is its value, and also the sum insured and the premium. But a new car is less susceptible to risks, whereas if your car is old, the insurer will conduct an inspection before insuring it.
The car policy premium will vary as per your car’s IDV, make, model, fuel type, and also policy tenure that you will choose. The premium for two insurers for the same coverage benefits can also vary. Therefore, it makes sense to compare and choose the best one.
Compare car insurance plans online from the top four-wheeler insurance companies before renewing. Here is a table that can help you compare the features offered under different types of car insurance plans:
|Coverage Offered||Third-party Car Insurance Cover||Standalone OD Cover||Comprehensive Car Insurance Cover|
|Third-party property damage||Yes||No||Yes|
|Third-party bodily injury||Yes||No||Yes|
|Own damages of car||No||Yes||Yes|
|Personal accident coverage||Yes||Yes||Yes|
|Availability of add-ons||No||Yes||Yes|
To get an instant quote, It takes a few minutes to buy or renew car insurance online. You need to enter your vehicle details, personal contact information and other asked details to choose the car policy as per your need on Policybazaar.com.
To buy a car insurance policy online from Policybazaar.com, follow the steps given below:
A new car insurance has a validity period after which it needs to be renewed. Thus, to continue receiving coverage from your existing car policy, you need to renew car insurance online before its expiry date. Here are some major benefits associated with online car insurance renewal-
When you renew your car insurance online, you can easily compare the plans offered by multiple insurers. This will also help you understand the additional services offered by the plan, such as a free pick-up and drop facility, 3-day repair assistance, cashless assurance, and self-video claims.
You can easily modify the coverage of your car insurance policy during renewal by adding or removing the add-on covers. However, before tailoring your policy with an add-on cover, remember that your car's premium depends on it.
If you are not satisfied with your current insurer or want to enhance your coverage benefits you can switch to another insurer at the time of renewal. Moreover, if you find another insurer offering better features and services at a premium that suits your pocket then you can do that from the comfort of your home.
Secured payment gateways make renewing a car insurance policy a secure and transparent process. Premium payment can easily be done using credit cards/debit cards/and UPI.
Car insurance renewal online is an easy process and can be done in a few simple steps. Follow these steps for online renewal of your four-wheeler insurance policy from Policybazaar Insurance Brokers Private Limited:
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.
Understanding the right steps to raise a car insurance claim is critical as your insurer can reject your claim for a lot of reasons. So make sure you understand what all is required to be done while raising a car insurance claim. Follow the below mentioned steps to conveniently raise a valid four wheeler insurance claim:
Step 1: Raise a claim request – Immediately share details of the accident with your insurer after the accident occurs. Make sure that you properly document and share photographic evidence to support your case.
Step 2: Car Inspection – After the claim is registered, the insurer will send a surveyor for surveying the claimed damage. You will be required to submit some documents to the surveyor for claim verification process. Make sure you keep them handy.
Step 3: Sending the car for repair – Once the inspection is complete, you can send the car to a network garage for conducting the repairs.
Step 4: Claim Settlement – If you have a cashless claim settlement, the insurer will directly settle the repair bills with the network garage. However, if you have opted for reimbursement claims, you will be first required to pay the bills and then raise a reimbursement claim.
Whether it is a theft claim, accidental claim or a third-party claim, the insurance company requires a host of documents to be submitted. Mentioned below is the list of different documents that you would require when registering a claim under your four-wheeler insurance:
Ans: Car Insurance is a type of four wheeler insurance policy that provides financial coverage to the beneficiary of the car policy if your car is damaged in an accident or natural calamity. A car insurance policy helps to save you money if you're involved in an accident or the vehicle is damaged in some way.
Ans: The policyholder should renew his car policy before the expiry of his existing policy. This will ensure that there is no break in policy and you can continue to avail benefits such as no claim bonus.
Ans: Zero Dep refers to Zero depreciation car insurance. It is an add-on cover that allows the policyholder to get compensation up to the insured declared value (IDV) or current market value of the car without taking depreciation into account. You need to pay an extra premium amount to avail benefits of zero DEP in your 4 wheeler insurance policy.
Ans: The limit to filing a claim for 4-wheeler insurance per year varies from one insurance provider to another. Most insurance companies allow multiple claims in a year until the IDV is not exhausted. You should check your policy document to know the exact number of times you can claim your four wheeler insurance policy in a year.
Ans: Bumper to bumper car insurance refers to the insurance policy that provides complete protection to the insured car without considering the depreciation of its parts. In other words, this type of four wheeler insurance allows the policyholder to obtain compensation up to the market value of the car in case of damage or loss to the car. However, it attracts about 20% higher premiums than your regular 4-wheeler insurance policies.
Ans: Insured declared value (IDV) is the maximum amount to be paid by an insurer at the time of a claim if the vehicle is a total loss or stolen. It is the sum insured and is fixed at the commencement of the policy period for each insured vehicle.
In case of a hypothecated vehicle, it is important to obtain NOC from the financer if the payment has to be obtained by the policyholder. Otherwise claim amount will be paid to the financer for losses to the car other than theft.
|Age of the vehicle||Depreciation value in %|
|Not more than 6 months||5|
|More than 6 months but below 1 year||15|
|More than 1 year but below 2 years||20|
|More than 2 years but below 3 years||30|
|More than 3 years but below 4 years||40|
|More than 4 years but below 5 years||50|
Ans: To know the status of your four-wheeler insurance policy, you can check the policy start date and expiry date mentioned in your policy document. Your policy will be active or valid in the period between the policy start and expiry date. On the other hand, your policy will be inactive before the start date and expire after the expiry date.
You can also check the status of your policy online on the website of the Insurance Information Bureau (IIB) or VAHAN e-services. You only have to enter the details of your car on either of the websites and submit them. The details of your car insurance policy, including the policy expiry date, will be displayed.
The policy will be transferred to your name and a new policy document will be issued to you.
The insurer will process your claim and pay the IDV of your car in about 90 days.
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