Best Car Insurance Companies in India

Getting motor insurance is essential for all the car/vehicle owners and drivers in India. It is mandatory to have third party car insurance in India under the Motor Vehicle Act, 1988. But it is recommended to get comprehensive insurance for your vehicle. A comprehensive car insurance plan not only covers a vehicle from any loss/ damage caused by you to a third party (driver/ vehicle/ property) but also protects it from any loss /damage caused by natural/ man-made calamities. To top it up, every insurer offers a host of valuable add-ons on the basic plan to make the coverage even more effective.

Types of Car Insurance Policies In India

In India, car owners can buy two types of car insurance policies. They are:

Comprehensive Car Insurance

A comprehensive car insurance policy provides complete protection to the insured car. It protects the car from all kinds of unforeseen risks resulting out of the fire, accidents, theft, vandalism, natural disasters and manmade disasters. It also covers any third party accidental liabilities that the policyholder is legally bound to pay. Moreover, this type of insurance also provides personal accident cover to the owner-driver of the insured car.


Car insurance save up to 80

Third Party Liability Car Insurance

A third party liability car insurance policy provides protection against any third party liabilities of the policyholder arising out of causing accidental bodily injuries, death or property damages to a third party. This type of insurance does not cover any loss or damages suffered by the insured car or its driver.

Best Car Insurance Companies in India with Incurred Claim Ratio & Network Garages

Check out the top car insurance companies in India below with their Incurred Claim Ratio (ICR) and the number of network garages where you can avail cashless repair facility:

Car Insurance Companies Cashless Garages Incurred Claim Ratio
(2018-19)
Bajaj Allianz Car Insurance 4000+ 62%

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Bharti AXA Car Insurance 5200+ 75%

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Chola MS Car Insurance 6900+ 84%

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Digit Car Insurance 1400+ 76%

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Edelweiss Car Insurance 1000+ 145%

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Future Generali Car Insurance 2500+ 69%

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HDFC ERGO Car Insurance 6800+ 82%

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IFFCO Tokio Car Insurance 4300+ 87%

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Kotak Mahindra Car Insurance 1000+ 74%

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Liberty Car Insurance 4300+ 70%

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National Car Insurance NA 127.50%

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New India Assurance Car Insurance 1100+ 87.54%

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Oriental Car Insurance NA 112.62%

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Raheja QBE Car Insurance 1000+ 102%

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Reliance Car Insurance 3700+ 85%

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Royal Sundaram Car Insurance 4600+ 89%

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SBI Car Insurance 5400+ 87%

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Shriram Car Insurance 1500+ 69%

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Tata AIG Car Insurance NA 70%

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United India Car Insurance 700+ 120.79%

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Universal Sompo Car Insurance NA 88%

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See More Plans
Disclaimer: *Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer. The ICR has been taken from IRDAI Annual Report 2018-19.

Overview of Best Car Insurance Companies in India

Here is a quick rundown of the top car insurance companies that you can consider to secure your car:

Bajaj Allianz Car Insurance

Bajaj Allianz General Insurance Co. Ltd is one of the leading car insurance companies that was awarded as the best Motor Insurance by Money Today in 2020. It offers comprehensive car insurance policy as well as liability-only policy. The plans are affordable, flexible and can be customized as per the distance or day.

Bajaj Allianz Car Insurance provides coverage for third-party legal liabilities as well as for any loss or damage caused to your car due to natural/ manmade calamities or theft. It also comes with personal accident (PA) cover of Rs 15 lakh for the owner-driver. You can also opt for CNG kit coverage, NCB discount, accessories cover and PA cover for co-passenger/ paid driver.

Features Add-On Covers
  • Online policy issuance and renewal
  • Zero depreciation cover available
  • 24x7 spot assistance available
  • Self-vehicle survey and instant claim settlement with Motor-On-The-Spot
  • Voluntary excess discount
  • Anti-theft device installation discount
  • Approved automobile association membership discounts
  • Depreciation shield
  • Key & lock replacement
  • Engine protector
  • Personal baggage
  • Conveyance benefit
  • Consumable expenses

Bharti AXA Car Insurance

Bharti AXA General Insurance Co. Ltd. is a popular car insurance provider in India. It provides coverage for damage/ loss caused to your car due to theft, accidents, natural disasters and man-made disasters. Apart from these, it also covers third-party liabilities and offers personal accident cover of Rs 15 lakh to the owner-driver.

Bharti AXA car insurance provides three types of car insurance plans –

  • Comprehensive car insurance
  • Third-party liability plan
  • Standalone damage plan

Bharti AXA Car Insurance boasts of one of the largest cashless garage networks in India. It also gives you the option to choose coverage for legal liabilities to paid cleaners/ drivers and loss or damage of accessories on the payment of the additional premium amount.

Features Add-On Covers
  • Quick policy purchase online
  • 24x7 claim assistance
  • Cashless claim settlement at network garages
  • Depreciation cover
  • Consumable cover
  • Roadside assistance
  • Key replacement cover
  • Engine & gearbox cover
  • Personal accident cover for co-passenger
  • Ambulance charges
  • Invoice price cover
  • Hospital cash
  • Medical expenses

Cholamandalam Car Insurance

Chola MS General Insurance Co. Ltd. is a well-known car insurance providers in our country. Its car insurance policy protects against third-party personal liabilities and third-party property damage. It also covers own damage due to natural/ manmade calamities or theft and provides personal accident cover for owner-driver for up to Rs 15 lakh. It offers three types of car insurance plans in India –

  • Third party car insurance
  • Zero depreciation car insurance
  • Comprehensive car insurance

Chola MS Car Insurance has the largest network of cashless garages in India. It will reimburse towing charges for up to Rs 3000. It also allows you to opt for personal accident cover for up to Rs 2 lakh for passengers

Features Add-On Covers
  • No claim bonus
  • 24x7 assistance
  • Online policy renewal
  • Vintage car discount
  • Recognised automobile association membership discount
  • Anti-theft device installation discount
  • Specially designed/ modified vehicle discount
  • Voluntary deductible discount
  • On-site minor repair
  • Repairs in preferred workshop discount
  • Waiver of depreciation
  • Roadside emergency assistance
  • Replacement keys
  • Fixed daily allowance
  • Personal belongings cover
  • Reinstatement value
  • Conveyance allowance
  • Monthly instalment cover
  • No claim bonus protection
  • Disabled vehicle coverage
  • Insurance cost cover
  • Registration certificate lost cover
  • Consumables cover
  • Franchise benefit
  • Auto extension of policy
  • License loss cover
  • Loss of key cover
  • EMI cover
  • Vehicle replacement advantage cover
  • Chola value-added services

Car Insurance Renewal

Digit Car Insurance

Digit Car Insurance is a leading start-up insurance company that offers comprehensive protection to the insured car. It covers any losses/ damages caused to your car due to accidents, fire, theft, natural disasters along with third-party losses. It also provides personal accident cover to the owner-driver. Digit car insurance offers two types of car insurance plans for you to choose from –

  • Third party car insurance
  • Comprehensive car insurance cover
Features Add-On Covers
  • Easy online policy issuance
  • No claim bonus
  • 24x7 support
  • Doorstep pickup and repairs
  • Cashless repairs
  • Smartphones-enabled self-inspection
  • Super-fast claims
  • Zero depreciation cover
  • Breakdown assistance
  • Passenger cover
  • Consumable cover
  • Return to invoice cover
  • Tyre protect cover
  • Engine and gear-box protection cover

Edelweiss Car Insurance

Edelweiss Car Insurance is another private insurer in India that provides motor insurance solutions. It covers third party liabilities as well as any loss/ damage caused to your car. It also provides personal accident cover of Rs 15 lakh to the owner-driver. You can buy two types of Edelweiss car insurance plans –

  • Private car package insurance
  • Private car liability only insurance

Edelweiss car insurance gives you the option of enhancing your coverage by opting for personal accident cover for passengers and legal liability cover for paid drivers.

Features Add-On Covers
  • No Claim bonus (NCB)
  • Priority service at cashless garages
  • Faster claim settlements
  • Depreciation protect
  • Roadside assistance
  • Engine protect
  • Consumable expenses protect
  • Mandatory deduction protect
  • Invoice value protect
  • NCB protect
  • Personal belongings protect
  • Keys and locks protect

Future Generali Car Insurance

Future Generali India Insurance Co. Ltd. is a popular car insurance company in India. It provides comprehensive coverage for third party liabilities and car damage along with personal accident cover of Rs 15 lakh to owner-driver. You can also opt for additional legal liabilities coverage for paid driver, cleaner or passengers on additional premium payment.

Future Generali Car Insurance also allows you to choose personal accident cover for passengers for up to Rs 2 lakh.

Features Add-On Covers
  • No Claim bonus (NCB)
  • Priority service at cashless garages
  • Faster claim settlements
  • Depreciation protect
  • Roadside assistance
  • Engine protect
  • Consumable expenses protect
  • Mandatory deduction protect
  • Invoice value protect
  • NCB protect
  • Personal belongings protect
  • Keys and locks protect

HDFC ERGO Car Insurance

HDFC ERGO General Insurance Co. Ltd. is amongst the best-notch car insurance companies in India. Its car insurance policy offers coves third-party liabilities as well as loss/ damage caused to your vehicle in accidents, theft, fire & explosion, natural disasters and theft. Besides, it also offers personal accident cover to the owner-driver. It offers three types of insurance plans for your car –

  • Third-party liability plan
  • Comprehensive car insurance plan
  • Standalone car insurance plan

HDFC ERGO Car Insurance has one of the largest networks of garages. The motor policy also reimburses towing charges up to Rs 1500.

Features Add-On Covers
  • No claim bonus
  • Cashless claims at network garages
  • Overnight car repair services
  • Claims approval within 30 minutes
  • Unlimited claims facility
  • Zero depreciation cover
  • No claim bonus protection
  • Emergency assistance cover
  • Return to invoice
  • Key replacement cover
  • Engine and gearbox protector
  • Loss of use – downtime protection
  • Cost of consumable items

IFFCO Tokio Car Insurance

IFFCO TOKIO General Insurance Co. Ltd. is one of the leading car insurance providers in the country that provides extensive protection to the insured car. It will offer coverage against loss/ damage to the car following a natural calamity, manmade calamity as well as for third-party legal liabilities. It also provides personal accident cover to owner-driver which can be extended to cover the passengers on the payment of the additional premium amount.

IFFCO Tokio Car Insurance is available in two plan variants –

  • Comprehensive car insurance
  • Third-party car insurance

You can also opt for CNG/ LPG fuel kit cover and damage/ loss of accessories cover by paying extra premium.

Features Add-On Covers
  • 24x7 roadside assistance
  • No claim bonus
  • Cashless claims at network hospitals
  • Zero depreciation cover
  • Engine protection
  • No claim bonus protection
  • Roadside assistance
  • Return to invoice

Car Insurance Fines

Kotak Mahindra Car Insurance

Kotak Mahindra General Insurance Co. Ltd. is amongst the most popular car insurance providers in India. It offers all-round protection to your car with its comprehensive private car insurance plan. It provides coverage for loss or damage to your car due to natural or manmade calamities along with third-party legal liabilities, bi-fuel systems and electrical/ non-electrical accessories.

Features Add-On Covers
  • Cashless service at network garages
  • No claim bonus benefit
  • Recognised AAI membership discount
  • Voluntary deductible discount
  • Roadside assistance
  • Consumables cover
  • Depreciation cover
  • Engine protect
  • Tyre cover
  • Return to invoice
  • Daily car allowance
  • Loss of personal belongings
  • NCB protect
  • Key replacement

Liberty Car Insurance

Liberty Car Insurance is another motor insurance company that you can consider to purchase insurance for your car. It provides accidental covers, third party covers, own damage cover against theft, natural/ manmade calamities and personal accident cover to the insured car. It provides two types of car insurance plans –

  • Package policy
  • Liability only policy
Features Add-On Covers
  • Transfer of no claim bonus from the existing insurer
  • Cashless claim services at network garages
  • Telephonic assistance
  • Claim settlement within 7 days
  • Renewal discounts
  • Depreciation cover
  • Gap value cover
  • Consumables cover
  • Roadside assistance cover
  • Key loss cover
  • Passenger assistance cover
  • Engine safe cover

National Car Insurance

National Insurance Co. Ltd. is one of the leading car insurance providers in India. It provides protection against third-party liabilities, loss/ damage to the car due to natural disasters, theft and manmade disasters. It also covers towing charges for up to Rs 1500. There are two types of car insurance plans at National Car Insurance for you to choose from –

  • Annual liability-only policy
  • Annual package policy

National Car Insurance enjoys the highest incurred claim ratios amongst car insurers in India.

Features Add-On Covers
  • Towing assistance
  • No claim discounts
  • Quick renewals
  • Nil depreciation
  • Invoice protect
  • Nil depreciation plus
  • NCB protect
  • Engine protect

New India Assurance Car Insurance

The New India Assurance Co. Ltd is a best insurance company with a presence in about 28 countries across the world. It is a well-known provider of car insurance that offers both liability-only policy as well as a package policy. It provides coverage for the personal accident of owner-driver, third-party liabilities as well as any loss/ damage caused to your car due to theft, natural and manmade calamities.

New India Assurance Car Insurance also covers towing charges for up to a maximum of Rs 1500.

Features Add-On Covers
  • No claims discount
  • Towing assistance available
  • Cashless claims at approved garages
  • Loss of accessories
  • Personal accident cover for passengers and paid drivers
  • Legal liability to employees

Car insurance save up to 80

Oriental Car Insurance

Oriental Car Insurance is a public insurer that provides comprehensive protection to your private car. Its private car insurance policy has been designed to cover accidental damage/ loss to the vehicle, third-party liabilities as well as loss/ damage caused during the theft, natural disasters, fire/ explosion/ lightning/ self-ignition or while in transit. Moreover, it also provides personal accident cover to the owner-driver.

Besides offering several discounts and add-on covers, Oriental Car Insurance also allows you to opt for CNG/ LPG fuel coverage and electrical & electronic items coverage on the payment of additional premium.

Features Add-On Covers
  • Anti-theft device discount
  • Voluntary deductible discount
  • No Claim Bonus (NCB)
  • Automobile Association Membership discount
  • Online policy renewal
  • Nil depreciation cover
  • Alternate car benefit
  • Loss of personal effects
  • Free emergency service benefit through TVS

Raheja QBE Car Insurance

Raheja QBE Car Insurance is a trusted motor insurance provider in India offering car insurance plans. It provides complete protection from any damages/ losses caused to your car following an accident, natural calamities or theft along with covering third party legal liabilities. In addition, it also provides personal accident cover for the owner-driver.

Raheja QBE car insurance offers four types of car insurance plans for you to choose from –

  • Private car package policy
  • Liability only – private car policy
  • Standalone own damage policy – private car
  • Private car policy – bundled

You can also buy additional covers, such as electrical/ non-electrical accessories cover, personal accident (PA) cover for occupants and legal liability to the cleaner/ paid driver.

Features Add-On Covers
  • No Claim Bonus
  • Higher voluntary excess discount
  • Automobile association membership discount
  • Approved anti-theft devices discount
  • Zero depreciation
  • Consumable expenses
  • Engine protector
  • Key protect cover
  • Daily conveyance benefit
  • Return to invoice
  • Loss of personal belongings
  • NCB retention cover
  • Tyre and rim protector

Reliance Car Insurance

Reliance General Insurance Co. Ltd is another extremely popular car insurer offering quick insurance solutions for your four wheeler. It offers a comprehensive policy that will protect your car against third-party liabilities as well as from any losses or damages caused due to collisions, manmade/ natural disasters or theft. It also offers personal accident cover of Rs 15 lakh to the owner-driver.

Reliance General  Car Insurance offers two types of plans –

  • Third-party liability car insurance policy
  • Comprehensive car insurance policy
Features Add-On Covers
  • No claim bonus
  • Voluntary deductible discount
  • Automobile Association of India membership discount
  • Security device installation discount
  • Instant renewal sans paperwork
  • Nil depreciation
  • Consumables cover
  • NCB retention cover
  • Engine protector cover
  • Daily allowance benefit
  • Key protect cover
  • EMI protection

Royal Sundaram Car Insurance

Royal Sundaram Car insurance promises total protection for your car against any unforeseen exigencies. Its Car Shield Insurance policy offers comprehensive car insurance coverage that includes personal accident cover for owner-driver, indemnity for third party property and unlimited third-party liabilities. It provides loss or damage protection from accidental & external damage, natural disasters, fire & explosion, burglary & theft, malicious act and manmade disasters.

Royal Sundaram Car insurance also provides you with the choice of opting for additional cover including personal accident cover for paid drivers and unnamed passengers, CNG kit/ bi-fuel system cover, legal liabilities for paid drivers & employees and electrical/ non-electrical fittings.

Moreover, Royal Sundaram Car insurance has the highest Incurred Claim Ratio (ICR) amongst private car insurance companies in India.

Features Add-On Covers
  • Free roadside assistance
  • Automobile association of India membership discount
  • Voluntary deductible discount
  • Full invoice price cover
  • No Claim Bonus (NCB) protector
  • Tyre cover
  • Key protector
  • Depreciation waiver cover
  • Loss of baggage cover
  • Windshield glass cover
  • Spare car clause
  • Voluntary deductible cover
  • Engine (Aggravation) protector cover
  • Lifetime road tax clause

SBI Car Insurance

SBI Car Insurance is a popular motor insurance company offering comprehensive policies to protect your car. It offers coverage for accidental damage to the vehicle, personal accident to owner-driver for up to Rs 15 lakh and third party liabilities. Cover for insured vehicle damage or loss is available against fire, natural disasters, self-ignition, explosion and accidents.

You can also opt for bi-fuel kit cover, legal liabilities for employees & paid drivers and personal accident cover for passengers under your SBI Motor Private Car Insurance policy.

Features Add-On Covers
  • No claim bonus
  • Voluntary excess discount
  • Faster claim settlement process
  • Return to invoice
  • Engine guard
  • Depreciation reimbursement
  • Roadside assistance
  • Key replacement
  • Consumables cover
  • Loss of belongings
  • NCB protection
  • Inconvenience allowance
  • Hospital daily cash cover
  • Tyre and rim guard
  • EMI protector

Shriram Car Insurance

Shriram Car Insurance is a well-known motor insurer offering protecting solutions for your car. Its comprehensive car insurance policy covers third party property damage, third party liabilities and loss or damage caused due to natural calamities, accidents, theft, malicious acts, fire, manmade calamities and explosion.

Besides, you can also opt for additional coverage, such as personal accident cover for owner-driver for up to Rs 15 lakh, bi-fuel system, electrical & electronic accessories and PA cover for paid driver & unnamed passenger, under your car insurance policy by Shriram.

Features Add-On Covers
  • Instant policy issuance
  • Roadside assistance
  • Cashless repair
  • No claim bonus
  • Voluntary deductible discount
  • Anti-theft device discount
  • Automobile association discount
  • Zero depreciation cover
  • Return to invoice
  • Daily reimbursement
  • Personal belongings cover
  • Key replacement
  • NCB protection cover
  • Emergency transportation and hotel expenses reimbursement
  • Multi-car rebate

Car Insurance Renewal

Tata AIG Car Insurance

Tata AIG Car Insurance is one of the most preferred motor insurance providers in the country. It pledges to provide your car with all the care that it deserves. Its Auto Secure-Private Car Package policy protects the car from any external loss/ damage due to theft, natural or manmade calamities. It also covers any liabilities arising from third-parties and provides personal accident cover of Rs 15 lakh to the owner-driver.

The policyholder can get personal accident cover for paid drivers, car cleaners and passengers as well as electric/ electronic fittings cover on the payment of the extra premium amount.

Features Add-On Covers
  • No Claim Bonus (NCB) Protection available
  • Emergency roadside assistance
  • Recognised automobile association membership discount
  • Anti-theft device installation discount
  • Modified/ specially designed vehicle discount
  • Depreciation reimbursement
  • Courtesy/ hire car
  • Daily allowance
  • Return to invoice
  • Repair of glass, plastic, fibre and rubber parts
  • NCB protection cover
  • Loss of personal belongings
  • Key replacement
  • Emergency transport and hotel expenses
  • Engine secure
  • Consumable expenses
  • Tyre secure
  • Roadside assistance

United India Car Insurance

United India Insurance Co. Ltd. is a public sector insurer that provides motor insurance policies for private cars. It provides own damage cover, third-party liability cover as well as personal accident cover for owner-driver. Own damage includes any damage/ loss to your car due to fire, accidents, self-ignition, theft, lightning, natural calamities and manmade calamities along with loss/ damage to car accessories.

United India Car Insurance also allows you to extend your coverage by opting for personal accident cover for named & unnamed drivers, electrical/ electronic fittings cover, fibreglass fuel tanks cover and CNG/ LPG bi-fuel kit cover.

United India Car Insurance also enjoys one of the highest Incurred Claim Ratio (ICR) in India.

Features Add-On Covers
  • Vintage car discount
  • Automobile Association membership discount
  • No claim bonus
  • Anti-theft devices discount
  • Specially designed/ modified vehicle discount
  • Courtesy car
  • Medical expenses

Universal Sompo Car Insurance

Universal Sompo General Insurance Co. Ltd. offers comprehensive motor private car insurance for non-commercial cars. It offers extensive coverage against third party legal liabilities for injuries and property damage as well as loss/ damage to the insured car due to fire, theft, explosion, manmade disasters, self-ignition and natural disasters. It also offers personal accident cover for the owner-driver.

Optional covers such as loss of accessories, personal accident to the occupants, legal liabilities to paid driver/ cleaner and increased legal liability for third-party property damage, are also available with Universal Sompo Car insurance.

Moreover, Universal Sompo Car insurance enjoys one of the highest claim settlement ratios amongst private motor insurance companies in India.

Features Add-On Covers
  • No Claim Bonus
  • Anti-theft device installation discount
  • Voluntary excess discount
  • Specially designed/ modified vehicle discount
  • Nil depreciation cover
  • Daily cash allowance
  • Return to invoice
  • Accidental hospitalization clause
  • Roadside assistance
  • Key replacement
  • Cost of consumables
  • Hydrostatic lock cover
  • Secure towing
  • NCB protector
  • Engine protector

Disclaimer: *Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer. The ICR has been take

Key Points to Consider while Choosing best Car Insurance Policy in India:

While buying a top car insurance policy, you must consider the following key points:

Compare the Key Features Provided by the Insurance Coverage:

Draw a comparison of your shortlisted motor insurance policies to analyze if they all are providing the same kind of insurance coverage. Your insurance plan should include all the key inclusions in terms of a car (such as own damage cover) and provide you with coverage against a personal accident as well as for the injuries succumbed by a third-party.

Review Add-on Riders as the Part of the best Car Insurance Policy in India:

It is always recommended to pay adequate attention to all the add-on riders so that you can pick out the top car insurance policy in India with additional benefits. For your convenience, we have listed below a few crucial motor Insurance riders.

Engine Cover:

It provides an extra layer of protection by safeguarding you against additional expense incurred due to car engine damage.

Third-Party Liability Coverage:

Third-party Liability coverage ensures the protection of the car owner against any financial liability that could be because of any bodily injury, death, and damage repair cost of a third-party motor.

Roadside Assistance Cover:

In case you are stranded because of the engine failure or an accident or if your car’s tire is punctured, you are provided with the option of availing roadside assistance. It will enable you to call your insurer and make a request to send a car mechanic at your location.

Zero Depreciation Cover:

When you make a selection to add zero depreciation cover to your car insurance policy, the depreciation on substituted car parts is waived off by your insurance company. It signifies that you are eligible for getting a higher amount of claim.

Personal Accidental Cover:

Personal accidental coverage ensures the financial protection to the vehicle owner against unexpected and unfortunate events that might induce physical trauma, or cause the accidental death, or the person might end up being a totally disabled permanently because of a road accident.

Consider Reviews of the Car Insurers:

Make sure you ask your extended family members and friends regarding their experiences with any specific motor insurance company. The feedback coming directly from your near and dear ones may provide you better insights about how its customer support and claim procedure work. It will help you to make an informed choice.

Options for a Flexible Car Insurance Coverage:

While buying the top car insurance policy in India, a flexible coverage is always significant. As the consumer base is varied, there is no ‘one-size-fits-all’ kind of policy. You must choose a car insurance policy depending on certain insurance needs. An insurance provider, which offers the flexi-coverage facility, must be given priority over other needs. This involves that if the insurance provider offers a pre-existing package that is tailor-made as per your needs and requirements, you must take a positive sign into consideration.

Compare Insurance Premium Online:

The Internet is flooded with so-called great deals. Don’t fall for them; they could be nothing but a trap. You can come across a decent deal online when you take some time out of your hectic schedule and search across the Internet.

While comparing car insurance plans online, keep the following points in your mind:

  • Compare various insurance plans offered by the different insurance providers.
  • Ensure that the comparison site computes the premium on the fixed IDV (Insured Declared Value).
  • Compare the insurance premium on at least 3 online insurance comparison sites.

Factors Affecting Your Car Insurance Premium:

The factors determining the car insurance premium depend on the risks, which the insurance provider underwrites. These factors are categorised as under:

Risks Related to Car:

The model of your car, cubic capacity, and fuel type etc. are a few parameters that determine the premium for your car insurance. Some care such as commercial cars and SUV, i.e. Sports Utility Vehicle, often require higher premiums as insurance providers get a large number of claims on these cars. Usually diesel cars have a 10-15% higher premium than the petrol vehicles.

Risks Related to the Location:

This is based on the registration area. Generally, the premiums are higher if the owner of the car lives in the urban area, densely populated area, or near highways. If theft or loss of vehicle is higher in the area where you reside, then the car insurance premiums go up.

Risks Related to Driver of the Car:

The profession and age of the driver are taken into consideration. In case of multiple drivers of the car, you have to pay higher premiums.

Negotiation is the Key:

When it comes to buying motor insurance, negotiate with your existing insurance provider. You never know you might end up getting an additional advantage if you have been a responsible driver and have not made way too many claims or filed too many accidents.

Safeguard Your No Claim Bonus (NCB):

If you are a responsible driver, and you haven't filed any claim, then you get the advantage of No Claim Bonus (NCB). If you don't register any auto insurance claim for a year, then your car insurer rewards you with No Claim Bonus. This is the discount that is subtracted from your insurance premium during policy renewal. As an option, you can go for NCB.

Check out the Claim Settlement Ratio (CSR):

Before you finalize a car insurer, last but not the least, consider the insurer’s previous record of claim settlement. Claim Settlement Ratio is the time taken by an insurer to settle down the claims from its clients. Proceed only when it is good. Don’t even think of buying a best car insurance policy in India if the CSR is not good. You can easily find the Claim Settlement Ratio of various insurers on the website of IRDA of India.

How to Choose Best Car Insurance Company in India?

Choosing the best car insurance company is not a mammoth task. But you need to be aware of the kind of protection you want for your car. With that, here are a few tips that will help you choose the top car insurance company in India. Take a look:

  • Analysing Car Insurance Needs – Before you choose the top car insurance company, you need to analyse your car insurance needs. You must know the level of coverage you are looking for as well as any specific add-ons that you want to buy. You should also be clear about the Insured Declared Value (IDV) of your car that you wish to get. Moreover, you should also be aware of the maximum premium that you can afford to pay for the policy.
  • Authenticity of the Motor Insurance Company – Now that you know your car insurance needs, you need to find authentic motor insurance companies in the market. You can check the authenticity of a car insurance company by checking its IRDA Registration Number. IRDA is the regulatory authority for insurance companies in India and It grants registration numbers to only genuine insurance providers.
  • Financial Ability of the Company – Besides checking the authenticity of the car insurance company, you must also check its financial standing. This will help you to understand the financial stability of the company and determine how likely it is to pay you the claim amount in the need of the hour. You can determine the financial stability of the company by going through its annual financial records and checking its solvency ratio.
  • Claim Settlement Ratio – Before moving ahead, you must check the claim settlement ratio (CSR) and incurred claim ratio (ICR) of the car insurance company. The CSR refers to the total percentage of claims settled by the insurance company. On the other hand, ICR refers to the total percentage of premium utilised by the insurance company against the total amount of premiums collected. You should look for a company with a higher CSR and ICR as it depicts a lesser chance of your claims getting rejected by the insurer.
  • Claim Settlement Speed – Besides claim ratios, you should also determine the claim settlement speed of the car insurance company. You should go for a company with a faster claim settlement speed as it represents that the insurer will pay you the claim amount as soon as possible.
  • Cashless Garage Network – Next, you should find out about the network of cashless garages available with the car insurance company. Cashless garages are the approved garages of the insurance company where you can get your car repaired on a cashless basis. A company with a larger cashless garage network is better as it ensures that you have a higher probability of finding a cashless garage in your city or neighbourhood.
  • Customer Service – The customer service of the car insurance company should also be determined while choosing the best motor insurer. The customer service enables you to get an idea about how easily will you be able to get in touch with the insurer and seek help. You must choose a company that provides round the clock services to its customers as you can contact them 24x7.
  • Online Comparisons – Online comparisons is the best way to find a car insurance company that best fulfils your insurance needs. If you compare car insurance plans by different motor insurers online, you will be able to analyse their coverage level, premium rate as well as the benefits offered. The ideal insurance company will provide you with maximum coverage without making you pay an exceptionally high premium price.
  • Customer Reviews – It is always better to check the customer reviews of various motor insurance companies before choosing any one of them. Reviews by existing or previous customers will help you get an idea of the kind of insurance experience you are going to have with the company. You must choose a car insurance company that has more positive customer reviews than negative ones.

Bottom-line

While purchasing a car insurance policy it is important to check the policy features, the number of network garages offering cashless repair, add-on cover along with the incurred claim ratio of the company. You can select from any of the above-mentioned car insurance companies and choose the best motor insurance in India that offers you maximum coverage benefits at a nominal premium.

FAQs

  • Q1. Which is the best company for car insurance in India?

    Ans: The best car insurance company may not be the same for everyone. Every car owner has individual needs and the insurer that fulfils his requirements optimally will be the top car insurance company for him. If you are looking to find the top car insurance company in India, you must make online comparisons between different motor insurers based on their coverage and benefits. Besides, you can also use a car insurance calculator to estimate the premium for different insurers and select the plan that provides maximum benefits at the lowest rates.
  • Q2. How is the third party premium for car insurance calculated?

    Ans: The third party premium for car insurance is fixed by the IRDA or Insurance Regulatory & Development Authority of India every fiscal year. It depends on the engine cubic capacity (CC) of the car.
  • Q3. What are the documents required to buy car insurance in India?

    Ans: A car owner is required to possess the following documents to buy car insurance in India:
    • Car insurance proposal form
    • Copy of the Registration Certificate of RC of the car
  • Q4. Do I need to inform my car insurance company if I change the CNG in my car to LPG?

    Ans: Yes. If you change your car’s fuel type from CNG to LPG, you need to contact your motor insurer and get the information updated in your policy document. This is important because the fuel type of your car is one of the factors that affect the premium price of your car insurance policy.
  • Q5. Is it possible to change my car insurance company?

    Ans: Yes. You can change your car insurance company if you are unsatisfied with your current insurer at the time of your policy renewal.
  • Q6. Will my car insurance company pay me compensation equal to the IDV of the car?

    Ans: Your car insurance company will pay you a compensation amount equivalent to the IDV of your car only in case of total loss claims or if the total repair costs exceed your car’s IDV.
  • Q7. What will happen to my NCB if I switch my car insurance company?

    Ans: If you decide to change your car insurance company, your No Claim Bonus will be transferred to your new car insurance policy. However, you will be unable to use it until the next renewal.
  • Q8. What does partial claim settlement mean?

    Ans: Partial claim settlement refers to the situation where a motor insurance company pays a part of the claim amount to the policyholder because the repair cost is lower than the total IDV or claim amount for the car. It usually happens when the damaged car is inspected by a surveyor appointed by the car insurance company who infers that the damage cost will not be equal to the total IDV of the car.
  • Q9. What will happen if my car insurance policy has lapsed?

    Ans: In case your car insurance policy has lapsed, you will be provided with a grace period by your motor insurer to renew your policy. If you do not renew your policy even within the grace period, you will have to buy a new car insurance policy and will also lose out on your NCB.
  • Q10. Will I lose my NCB if I don’t renew my car insurance policy before expiry?

    Ans: No. Your No Claim Bonus will be protected for up to 90 days from the expiry date of your car insurance policy. If you still don’t renew your car insurance policy within these 90 days, you will lose out on your NCB.
Updated: 12 October 2020
Author | 4 Posts

Sajja, heads the Motor Insurance business unit. He has been with Policybazaar for over 11 years and continues to look for areas of improvement to further scale the business up. He is not only an expert in leading the Motor insurance business unit but also works hand in hand with the Product & Technology team, to continually improve user experience and much more. Having a futuristic vision and the ability to take the right decision is surely what Sajja is known for at Policybazaar. What’s more, he has impeccable culinary skills.

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