From which Company Can I Buy the Cheapest Car Insurance in India?

All of us pay our car insurance premium annually, but how do car insurers calculate the premium cost? How is the final car insurance quote derived? Check it out here...

The cost of car insurance premium is determined by several factors. Mentioned below are some of the factors that how the premium for your car insurance policy is determined and then you can select the cheapest car insurance policy as per your requirements-

Factors that Determine Your Car Insurance Price

1.  Driving Records

The insurance providers takes into consideration your driving history and claim records. If you have a history of getting involved in road accidents, and violating traffic rules or received any tickets, then eventually you are going to pay for it. Car insurance companies consider the applicants claim history and you get a car insurance quote based on the information provided by the applicant.

Also, if your car insurance shows frequent registration of claims, then also the insurer will presume that you are more likely to claim in future, and it will increase the car insurance price. On the other hand, maintaining a clean driving and claim history will help you avail the benefit of No-claim-bonus.

3. Car Age and Coverage

Another important factor is your car age. All the insurance companies take it into consideration while calculating the final car insurance price. It can be expensive to get a new car repaired or replaced. And if you want to minimize your out-of-pocket expenses; it is recommended that you buy a comprehensive car insurance policy. To enhance the policy coverage benefits and especially for new cars a comprehensive car insurance is the safest option.

4. Type of Car and its Features

The type of car you own is an important factor in determining policy coverage and it amount. You can get cheap car insurance for basic cars but for luxury cars the premium is usually on a higher side because of the cost involved in repair and replacement of parts, and their availability. For example, car insurance premium of Diesel cars is higher than Petrol cars.

Some insurance providers also take into consideration if you have safety features installed in your car. Installation of car safety accessories can reduce your policy premium.  

5. Deductibles

Check your car insurance policy for deductibles. It is the cost that you need to pay at the time of claim and the rest will be paid by the insurance company.  Once you enter the deductible percentage in the car insurance premium calculator, the policy premium will be automatically reduced.

You can also opt for higher deductibles to reduce your car insurance premium price if you can bear a certain percentage of the claim.

Check out the Car Insurance Price from Different Motor Insurance Companies in India

Let us have a look at how premium of the same car varies for different car insurance providers due to the factors involved. The below table shows the list of vehicle insurance companies offering a  1- year standard comprehensive car insurance policy for a brand new Swift Diesel VDI (1248cc) registered in New Delhi, India:

Car Insurance Company Insured Declared Value (IDV) in (Rs.) Zero Depreciation Add-on (Rs.) Third Paryt Insurance (Rs.) Estimated Car Insurance Premium (Rs.) Without Zero Dep Estimated Car Insurance Premium (Rs.)
Bajaj Allianz Car Insurance 2,99,477 3,409 3,221 7,148 10,557
Bharti AXA Car Insurance 2,90,832 2,036 3,221 7,422 9,458
Cholamandalam Car Insurance N/A N/A N/A N/A N/A
Digit Car Insurance 3,39,360 2,376 3,221 7,677 10,053
Edelweiss Car Insurance 3,36,940 1,516 3,221 7,646 9,162
Future Generali Car Insurance 2,51,450 1,634 3,221 9,891 11,525
HDFC Ergo Car Insurance 3,82,247 2,676 3,221 8,242 10,918
IFFCO Tokio Car Insurance 3,36,300 2,534 3,221 9,224 11,758
Kotak Mahindra Car Insurance N/A N/A 3,221 N/A N/A
Liberty Car Insurance N/A N/A N/A N/A N/A
Magma HDI 2,99,074 1,944 N/A 5,204 7,148
National Car Insurance N/A N/A 3,221 N/A N/A
New India Assurance Car Insurance 3,42,090 2,395 3,221 5,319 7,714
Oriental Car Insurance 2,90,369 2,336 3,221 5,613 7,949
Raheja QBE Car Insurance N/A N/A N/A N/A N/A
Reliance General Car Insurance 3,27,344 2,455 3,221 5,065 7,520
Royal Sundaram Car Insurance 3,01,472 2,578 3,221 4,602 7,180
SBI Car Insurance N/A N/A N/A N/A N/A
Shriram Car Insurance 3,43,606 3,951 3,221 13,216 17,167
Tata AIG Car Insurance 3,29,490 1,812 3,221 4,870 6,682
United India Car Insurance 2,39,580 2,360 3,221 4,336 6,696
Universal Sompo Car Insurance 3,81,781 3,245 3,221 4,990 8,235
See More Plans

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

(The above figures are for reference purpose only. Car 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.)

Other Factors that Determine your Car Insurance Price

Geographical Location

The geographical location also affects the car insurance premium. The car insurance provider evaluates the pattern of weather, crime rate, and the severity of claims in your area and the risk it can impose. Higher the risk, more will be the premium and vice versa.

Car Usage

The purpose of using your car will also decide cheap car insurance policy premium or not. Whether the insured car will be used for commercial purpose or personal purpose, this needs to be disclosed to the insurer. Misinformation can also lead to rejection of claims in future.

Add-on Benefits

You can get additional benefits to enhance your car insurance policy coverage. It includes additional benefits like zero depreciation, emergency roadside assistance, etc. And if you opt for these benefits the premium slightly increases but your out-of-pocket expenses also become negligible.

Use Car Insurance Premium Calculator

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

  • Year of Manufacturing
  • Make and Model of the car
  • Car Model Details

And the rest of the details will follow.

Last and most important do not forget to compare all the options before you make the purchase.

Top 10 Cheap Car Insurance Tips

  • Compare car insurance quotes before buying. You can easily do this through Policybazaar.com. Typically you can save up to 55% on you insurance premium.
  • Compare both prices and features.
  • Watch-outs:
    • IDV : This is the maximum money you can get in case of total loss. To reduce your premium your agent can reduce this amount.
    • Voluntary excess : Say in case of an accident, you opt 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. Which is what happens quite a bit, so watch-out.
    • No claims bonus : Please ensure you get the right no-claims bonus. In case you take more than you are entitled to, your claim if any may not be processed.
  • Your cover note : This is valid for the first 60 days, after that you must get the final policy document. If you do not receive this, you may not be insured. Please ensure your broker / agent provides you this
  • Cashless : Do not get over excited by this. Most companies have a cashless settlement process with multiple partners in every city. A broker can guide you regarding which companies have a cashless settlement tie-up with which company, and garage.
  • Always buy insurance from an insurance broker. Ask for the broker’s license number and cross check it on the IRDA website. These brokers are paid same amount irrespective of the company’s policy they sell. So they are not biased to any particular insurance company. An Insurance agent on the other hand can sell policy of just one company and hence will always push that company and its benefits.
  • You can get additional personal accident Insurance for passengers and driver. This is a great way to insure people who travel in the vehicle with you.
  • Be truthful in your declarations on the proposal form. This will ensure that your genuine claims will be paid.
  • There is a lot of mis-information in the market. So get everything in writing or cross check it on a reputed website like policybazaar.com.
  • Always drive safely. Never drive under the influence of alcohol. Over time this will reduce your premium while covering the risk.

Bottom-line

If you are looking for a cheap car insurance policy in India, well do not just go by the premium if you want to enjoy comprehensive coverage benefits. While driving your vehicle various risks can arise and an adequate car insurance plan can save you from the troubles that may arise. Therefore, it is suggested that you even when choosing the cheapest car insurance policy, you do not compromise on selecting the coverage benefits.

Written By: PolicyBazaar - Updated: 28 August 2020
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