Cheap and Affordable Car Insurance

Looking for a cheap car insurance policy? Finding a low cost insurance plan for your car doesn't have to be a complicated process. With a variety of car insurance providers and policies available, having a plan that fits your budget while offering optimal coverage is possible. Hence, when choosing affordable car insurance, it is advised to carefully select the coverage after understanding its benefits & features.

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How to Get Cheapest Car Insurance Online?

Here are some valuable tips that will help you choose the lowest car insurance in India:

1. Compare Car Insurance Quotes

   You can easily compare car insurance quotes online through Policybazaar.com. Typically, you can save up to 91%* on your insurance premium, hence getting an affordable car insurance policy for your four-wheeler.

2. IDV

   This is the maximum compensation you can get in case of total loss. A higher IDV can also increase your premium amount. Thus, make sure to choose your IDV wisely.

3. Voluntary Excess

   Say, in case of an accident, you voluntarily agree to pay for the first 5 thousand rupees. Then, this amount can be reduced from your premium. But there can be a problem if your agent does this without informing you. This is what happens quite a bit, so watch out.

4. No Claims Bonus (NCB)

   Please ensure you get the right NCB in car insurance. If you raise a claim during the policy year, you may lose your NCB benefits, thus losing any discount on your future renewal premium.

5. Cashless Facilities

   Most car insurance companies have a cashless settlement process with multiple partners in every city. An insurance broker like Policybazaar.com can guide you regarding which companies have a cashless settlement tie-up with which garage. Also, make sure to look out for cashless garages near your location before purchasing a policy.

6. Pay as You Drive Car Insurance

   If you are an occasional driver, you can also opt for the Pay as you drive car insurance offered by many car insurance companies. This affordable car insurance plan offers you a discount on OD premium based on the number of kilometres driven in a year and the driver's driving behaviour.

7. Opt for PA Cover

   You can also get additional Personal Accident Cover for passengers and drivers with your vehicle insurance plan. This is a great way to insure people who travel in the car with you. It offers a compensation of up to Rs. 15 Lakh in case of death or disability.

8. Be Truthful

   Be truthful in your declarations on the proposal form. This will ensure that your genuine claims will be paid by the insurance company. There is a lot of misinformation in the market. So, get everything in writing or cross-check every piece of information before purchasing a plan. Always drive safely. Never drive under the influence of alcohol. Over time, this will reduce your premium while covering the risk.

9. Ask For Discounts

   Car insurance providers also offer anti-theft discounts, NCB discounts, AAI Membership discounts, voluntary deductibles, etc. So, ask for these discounts while purchasing a low premium car insurance policy.

Car Insurance Rates from Different Car Insurance Companies in India

Let us look at how the premium for the same car varies for different car insurance providers due to the factors mentioned above. The table below shows the list of best car insurance companies offering a 1+3 Bundled plan (1-year own damage + 3-year third party) for a brand new Tata Tiago XE Petrol (1199cc) in (2025) New Delhi, India:

*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 comprise of insurance products offered by all the insurance partners of Policybazaar. For complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website www.irdai.gov.in

(The above figures (As of 12-11-2024) are for reference purposes only. Auto insurance premiums vary from one insurer to another since car make and model, IDV, manufacturing year, add-on coverage, policy type, etc. Your discretion is required at the time of purchase.)

Factors that Determine Car Insurance Premium

Here are the key factors that determine the insurance premium of your vehicle. Have a look:

1. Driving Records

   When deciding car insurance premium costs, the insurance providers take your driving history and claim records into consideration. If you have a history of being involved in road accidents and violating traffic rules, car insurance companies can charge a higher premium.

   Also, if your car insurance shows frequent registration of claims, the insurer will presume that you will be more likely to raise a claim in the future. This will eventually reflect in your car insurance price. On the other hand, maintaining a clean driving record and claim history will help you avail yourself of a no-claim bonus reward.

2. Car Age and Coverage

   All insurance companies consider the age of your four-wheeler when calculating the final car insurance price. A newly purchased car will likely attract more premium than an old car. Thus, if you want to minimise your out-of-pocket expenses, it is recommended that you buy a comprehensive car insurance policy.

3. Type of Car and its Features

   The type of car you own is an essential factor in determining policy coverage and its premium amount. You can get affordable car insurance quotes for base model cars, but for luxury cars, the premium is usually higher because of the cost involved in the repair and replacement of parts and their availability.

   Some insurers also consider the safety features installed in your car. Installation of ARAI-approved anti-theft devices can further lower your policy premium.

4. Deductibles

   Deductibles refer to a certain claim amount that you need to pay at the time of claim, and the rest of the amount is paid by the insurance company. Once you choose the amount deductible that you will pay, the policy premium automatically reduces. You can also opt for higher deductibles to reduce your car insurance premium price if you can bear a certain percentage of the claim.

5. Location of Car

   The geographical location of your four-wheeler also affects the motor insurance premium. The car insurance provider evaluates the weather pattern, crime rate, traffic, the severity of claims in your area, and the risk it can impose on your car. The higher the risk, the higher the premium and vice versa.

6. Car Usage

   The purpose of using your car will also decide the insurance premium. Whether the insured car will be used for commercial purposes or personal purposes needs to be disclosed to the insurer. Misinformation can also lead to the rejection of claims in the future.

7. Add-on Benefits

   You can also get add-ons in car insurance, which are additional benefits that help enhance your coverage. These include zero depreciation cover, emergency roadside assistance, NCB protection cover, etc. These add-ons come with a nominal cost. Thus, your final car insurance premium slightly increases.

Evaluate Premium Using Car Insurance Premium Calculator

To find the cheapest car insurance in India, it is a smart option to calculate your car insurance premium online using a car insurance premium calculator. To get an estimate of low-cost car insurance online, you need to submit the following details -

• Year of Manufacturing
• Make and model of the car.
• Car Model Details
• Car's ex-showroom price

Last and most importantly, do not forget to compare quotes from car insurance companies from Policybazaar.com before you make the final purchase.

Limitations of Buying Cheap Car Insurance

Buying cheap car insurance has its own shortfalls. First, low cost policies provide less coverage, which means you get inadequate protection in case of an unfortunate accident.

Second, cheap insurance might lack benefits that can help you after an accident- You might miss out on roadside assistance cover.

Additionally, car insurance companies that offer policies at reduced premiums might have poor customer support, which may lead to difficulties or long wait times at the time of a claim.

Finally, some low cost car insurance policies might include hidden fees that can arise unexpectedly. Hence, always carefully go through the policy terms & conditions to avoid any sudden expenses.