Car Insurance

A car insurance policy is a type of insurance that offers comprehensive insurance protection for insured vehicle in case of damages due to natural and man-made calamities. Car insurance online helps you to insure your car in a hassle-free manner.

What is Car Insurance?

Car insurance is a contract between the insured and the insurers to ensure financial protection against any loss or damage in case of an accident, theft, and death or third party liabilities. The sum assured amount of car insurance policy is the compensation amount that the insurance company pays to the policyholder as per the IDV of the car.

Why you should Buy Car Insurance?

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

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

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

• Get the best plans from top Insurance Providers
• Instant and paperless renewal
• Comprehensive coverage for vehicle
• A wide range of Add-on covers for improved protection

Benefits of Buying Car Insurance Online

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

• No More Agents

  Offline purchase of insurance policies involve agents who try to sell their own product rather than suggesting you a better policy from another insurance provider. Online purchase of car insurance will eliminate such agents and you can buy the best policy after comparing various plans offered by different insurance companies.

• Zero Paperwork

  Another benefit of buying car insurance policy online is zero paperwork. Contrary to the offline mode which requires you to fill multiple forms, the online mode allows you to fill up all the forms online. You can also upload the required documents online making the application process digital and free of any paperwork.

• Convenient & Saves Time/strong

  As compared to the offline modes, buying car insurance online is very convenient. You don’t have to travel to a branch of the insurance company or take out time to meet the agent. You can get your car insured from the comforts of your home, hence, saving a lot of time and efforts.

• Payment Reminders

  Missing policy payments or renewals can cost you a great deal. Not only will you lose out on the renewal discounts but also have a break in policy. But if you purchase your car insurance policy online, you will receive timely reminders ahead of your due date ensuring that you do not miss out on the payments.

• Cashless Facility

  Buying car 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 car insurance, you can easily compare the plans offered by different companies. Online aggregators allow you to compare the coverage and the premium quotes provided in different plans before selecting an ideal insurance policy for your car.

• More Cost-Effective

  Buying insurance policy online is more economical as you save a lot of in-between costs. Your premium reduces due to elimination of agents, zero paperwork and you get discounts that further reduce the amount of premium you pay.

• Easy Endorsements

  Endorsement refers to any changes in the information provided in the policy document. in case of online endorsements, you just have to give a self-declaration as opposed to the filling up the endorsement form manually and submitting all the documents.

• Soft Copy of the Document

  Another benefit of applying for car insurance online is that you have a soft copy of your policy document in your email. This makes it easy for you to access it from any place without the need to carry a hard copy with you.

Types of Car Insurance Policy in India

There are primarily 2 types of car insurance policy that are available in India –

Comprehensive Car Insurance

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

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

Third Party Car Insurance

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

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

Below is the third party car insurance premium rates effect from June

Best Car Insurance Companies with Claim Settlement Ratio 2018-19 

Disclaimer: The ranking of the insurance companies in this content is not in any particular order. The list is not compiled as per the IRDA ranking.

How to Select the Best Car Insurance?

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

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

Points to Consider While Selecting Best Car Insurance

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

Best Car Insurance Policy in India

Mentioned below are some of the best car insurance providers in India with their policy features, Incurred claim ratio, and the number of network garages:

( the above table does not represent any chronological order)

• TATA AIG Car Insurance

  Tata AIG Car Insurance has an Incurred claim ratio of 79.31%. The company offers a comprehensive car insurance plan that includes various add-on covers like PA cover, roadside assistance, No-claim-bonus protection, engine secure cover to offer maximum protection in case of accidental injuries or collision. The insurer gives an option to avail cashless repair in more than 3000 network garages, and claim settlement or reimbursement within a week.

• Bharti AXA Car Insurance

  Bharti AXA car insurance policy purchase and claim settlement is a quick and hassle-free procedure. They are one of the most trusted names in the insurance industry with an Incurred ratio of 81.74%. The insurer provides a digitally enabled process with the PAN India service. cashless repair services are available in more than 4000 network hospitals.

• HDFC Ergo Car Insurance

  HDFC Ergo is trusted by more than 75 lakhs customers and is one of the most reputed insurance companies in our country with an Incurred Claim ratio of 84.37%. HDFC Ergo car insurance is a viable option as it offers a multitude of benefits including 24*7 assistance and cashless claim settlement in more than 6800 network garages PAN India.

• Cholamandalam Car Insurance

  Cholamandalam car insurance policy is easily available online for both personal and commercial vehicles. The insurance provider is a known name in the motor insurance sector with an Incurred claim ratio of 84%. The company offers a number of car insurance benefits ranging from third-party cover, own damage cover, and PA cover. There are more than 4500 network garages where the insured can avail cashless repair services.

• Bajaj Allianz Car Insurance

  Bajaj Allianz has its presence in more than 800 cities across India. Bajaj Allianz claims payment ability has been recognized was recognized with iAAA rating by ICRA  for 11 years consecutively. It reflects positively on companies' incurred claim ratio, which is 62.20 % for the year 2018-2019. There are optional covers available, wherein you can opt for roadside assistance, conveyance benefits, repairing assistance in more than 4000 network garages and lot more. 

• Royal Sundaram Car Insurance

  The insurer provides a hassle-free claims settlement and damage repair facility in more than  4500 network garages. The insurer's ICR for the year 2018-2019 is a good 84%. The policy offers financial protection against any loss or damage that is caused to your vehicle. It covers loss or damage resulting in third-party injuries, death, PA Cover and property damage from the insured vehicle. You  can get personal accident cover and enhance the quantum of protection with add-on covers.

• Reliance Car Insurance

  Enjoy a hassle-free claim settlement under any circumstances causing damage or loss to your vehicle. Though, it does not include the routine abrasion to your vehicle. It provides you legal cover against critical circumstances of death, whereas, impairment of a person as well as any destruction or loss of property, is also included. The company’s incurred claim ratio is 85 percent and they have a network of more than 3800 garages where they offer cashless services.

How to Renew Car Insurance Policy Online?

Car insurance renewal is mandatory to avail of the policy benefits without a break. The insurance owner can renew car insurance online by visiting the official websites of respective insurers.

Below are the common steps to be followed while renewing your car insurance policy online:

• To renew car insurance online, go to the official website of the insurer.
• The next step is to navigate the website through the ‘Renew’ option
• While clicking on the renew option you will be redirected to a page asking for some information regarding your car insurance policy
• Provide the necessary information, such as policy number, contact number etc. and click on the submit button
• The premium to be paid will be reflected on your computer screen. You can pay the amount online by using credit or debit card or through net banking
• The renewed policy will be mailed to your registered Id.
• You can download the hard copy anytime you prefer and stay covered.

Benefits of Car Insurance Renewal Online

Is your car insurance renewal due date approaching?

If you are nodding your head in YES, the next question that might come to your mind is- how to renew car insurance?

The answer is ‘Online’! Here’s why you should go online, while renewing your motor insurance:

• Switch Insurer Easily

  With the online renewal, switching from one insurer to another is no more difficult now. More often than not, usually first time insurance is bought from the dealer itself. Hence, the coverage may not suffice your requirements. Renewal is the best time when you can review your policy coverage or switch the policy for a better alternative. Everything can be possible online.

• Restore NCB Benefits

  No Claim Bonus or NCB is a bonus offered by the insurance company for not claiming your insurance. While renewing your policy online, you can avail the NCB and get a discount on the premium. This can be done in just a few clicks.

• Add-ons

  If you feel your existing policy coverage is not performing the way you want it to or if you need more, this is the time to go for add-on covers. These covers boost basic policy coverage. An online application is enough to add a rider. However, the process may differ from insurer to insurer. Doing this offline may lead to tedious paperwork.

• Security

  Security is the foremost concern while buying or renewing the policy online. When you renew the policy online, the security of the transaction is ensured in an optimum manner. The transaction is done through a secured payment gateway, which keeps your details confidential.

Car Insurance Inclusions

The car insurance policy covers

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

Car Insurance Exclusions

Following features are usually not covered in car insurance:

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

How to File a Car Insurance Claim?

All the car owners, at some point in time need to file a car insurance claim for a certain loss or damage. To avoid any confusion while filing a car 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
• Car Insurance Policy number
• Estimated loss
• A brief description of the incident
• Survey location to support the investigation process
• Insured contact details
• Claim intimation should be provided at the customer help desk. They will take you through the claim process
• Once you have informed, the insurer's customer support team will provide you the claim reference number
• Upon claim registration, a surveyor will be assigned for your case
• You will receive the confirmation notification on text along with the details of the loss assessor
• You can coordinate for a suitable time with the surveyor and he will conduct the survey as per your convenience
• There are certain documents that you need to provide to the assessor, such as vehicle type and severity of the damage
• You also need to inform about the requirement of the claim processing team to settle own
• damage claim
• Coordinate with the surveyor again if re-inspection of the vehicle was advised by him.
• Based on the survey claim settlement will be done

Documents Required for Filing a Claim for Car Insurance

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

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

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

How to Determine Car Insurance Price?

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

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

Car's IDV Calculation Formula:

IDV = Car's Showroom price + Accessories cost – depreciation value

Thus, the formula to calculate OD premium amount is:

Own Damage premium calculation formula

 Insured Declared Value X [Car Premium as per the insurer)] + [ Optional Benefits] – [NCB/Discount etc.]

How to Save Premium on Your Car Insurance Policy?

A smart customer is in a constant hunt for discounts which will reduce the burden on his pocket. If you are one among them then here are a few tips that will help you get a discount and save money on the premium value of your car insurance.

• Voluntary Access

  Voluntary deductible is the minimum amount that you declare to bear at the time of claim. The higher deductible you opt for, the lower will be your premium. Simply put it means that the financial burden on the insurance provider is less and you will also chip in when an accident or car damage happens.

• Anti-theft Discount

  In case your car is fitted with an ARAI approved anti-theft device, your insurer will offer an additional discount (2.5% on the OD Premium). This discount is provided for the simple reason that an anti-theft device will make your car less liable to theft.

Why Compare your Car Insurance Policy Online?

Compare car insurance online to ensure that you buy a car policy that offers substantial coverage options. With the help of comparison, you can get best car insurance quotes and save up to 80% on insurance premiums including additional riders. You can make an informed decision by comparing car insurance online from different insurance providers. 

But before digging into comparing different car insurance plans, ascertain the kind of coverage you need. A liability policy is inexpensive than the comprehensive car insurance policy but only if you are ready to compromise on some benefits because the facilities offered by the latter are undoubtedly the best. 

How to Compare Car Insurance Online?

Compare car insurance online on the basis of the Incurred claim ratio of the insurer and the number of garages where the insured or the policyholder can avail cashless repair services. In addition to this, there are a number of factors like add-on covers, PA cover limit, easy renewal, No-claim-bonus etc. Comparing different car insurance quotes on these factors would help to make an informed decision.

• Compare Car Insurance Policy Features

  While purchasing your renewing your car insurance policy online it is imperative to compare the policy features. Because it may vary from one car insurance policy to another. Compare the features and benefits that different insurers are providing along with the add-on covers to enhance the coverage benefits. You can select the policy that meets your requirements along with affordable premium rates. 

• Comparing Car Insurance Premiums and Deductibles

  Car insurance comparison should be done online on the basis of the deductibles and the premium. Car insurance premium also varies on the basis of the deductibles. Deductible refers to the amount that the insured has to pay at the time of claim settlement.

  For instance, if the claim amount is Rs. 25000 for accidental repairs and our voluntary deductible are Rs. 5000, then the insurer will pay off Rs. 20000 at the time of claim. Deductibles certainly reduce the premium rates. However, choose deductibles only when you can pay the cost. Also, check-out discounts at the time of purchasing car insurance policy such as No Claim Bonus and any other rewards.

Add-On Covers in Car Insurance

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

• No Claim Bonus Protection Cover

  For every claim free year, the insured is rewarded with a discount on the renewal premium. This discount is called - No Claim Bonus (NCB). It is cumulative and increases every year. It usually ranges from 10% to 50% and can save a substantial amount of money on the premium payable for your auto insurance.

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

• Engine Protection Cover

  An engine is one of the most important parts of a car. And engine protection cover compensates the cost of fixing the indirect damage that are caused to the engine due to lubricating oil leakage and water ingression. It covers the Gear Box Parts, Engine Parts, and Differential​Parts.

• Zero Depreciation Cover

  This additional feature offers compensation even for the depreciating value of your car. With this feature, you will not have to pay for the depreciation value of your vehicle’s parts. It is mostly valid on private cars and is subjected to a specific number of claims during the policy period. Compulsory and voluntary deductibles (as per the case) will be applicable despite zero depreciation cover. You can check with the insurance company for any terms and conditions before making the purchase.

• Consumables Cover​​

  Sometimes, a bunch of unforeseen expenses can drain all your savings. Consumables Cover​​. Includes all the expenses incurred on consumable items for any perils that are covered under the policy. Consumable items include screws, nuts and bolts, washers, AC gas, grease, lubricants, bearings, clips, engine oil, distilled water, oil filter, brake oil, and fuel filter are mostly covered.

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

• Key Protection Cover​

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

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

• Daily Allowance Benefit​​​​​

  ​​​In case of accidental damage, you might have to leave your car in the workshop and travel on your own. This add-on cover comes to your rescue when your vehicle is parked in the garage after an accident for repair. If you have this add-on cover the insurer will provide you daily travel allowance if the vehicle requires has to be in the garage for more than 3 days (varies from insurer to another). 

• Personal Accident Rider Benefit

  Personal Accident Rider is an optional add-on benefit that can be added to the comprehensive auto insurance by paying an extra premium. This rider provides the policyholder with the coverage of medical expenses due to damage, personal injury or disability caused due to an accident.

• Cover for Car Accessories

  By simply opting for separate add-on policy, you can avail the coverage for your car accessories, which a normal car 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.

How to Get your Car Insurance Quotes Online at PolicyBazaar?

On PolicyBazaar you have to fill a few simple details like make of the car, model, variant, year of manufacture, etc. You will then get car insurance quotes from various insurance providers. To get better discounts you must fill the form carefully. This way you will get customized quotes, one which saves money (up to 80%) 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.

Process Steps for Acquiring a New Four Wheeler Insurance Policy:

Step 1: Log in to www.policybazaar.com and click on the product icon.

Step 2: If you want a fresh comparison of four wheeler insurance plans, click on ‘Begin your comparison’. In case you have searched before, you can retrieve your previous searches and continue from where you left off by clicking on ‘Get previous searches’.

Step 3: Before you start the comparison, keep a few details handy such as the city of your car’s registration, make and model, fuel type, and the car’s variant.

Step 4: To get new insurance quotes, key in all the above-mentioned details in the form and click on the ‘Next’ button.

Step 5: On the next page, fill in your personal information such as your full name, email address, and mobile number. Click on ‘View Quotes’ to proceed.

Step 6: In the quotes section, you’ll have a list of different auto insurers with a discounted price, add-ons, and final price. You can view each plan details and compare it with other plans well.

Step 7: To get a discount on the premium, click on the ‘Get Discount’ button on the left side of the page. After clicking the button, a form will appear where you have to fill in your details. After completing the form, click on ‘Apply Discount’.

Step 8: Click on ‘Select add-ons’ to tick the list of added extras in your car such as 24*7 roadside assistance, No Claim Bonus (NCB) protector, engine protector, key and lock replacement, and consumables.

Step 9: If you want to include passengers under the plan, click on ‘Passenger/driver cover’.

Step 10: To find the nearby motor garage, click on the ‘Garage locator’ on the bottom left of the page.

Fill in these details carefully then sit back and relax for a while. You will be presented with a list of insurance plans that suits your requirement at best possible rates.