Cheap and Affordable Car Insurance
Finding a cheap car insurance plan for your vehicle doesn't have to be a complicated process. With a variety of motor insurance providers and policies available, you can select an affordable car insurance plan that fits your pocket and serves the insurance purpose as well. So, whether you are looking to buy a new car insurance policy or renew an existing plan, this guide will help you understand how to find a pocket friendly insurance plan without compromising on the scope of insurance cover.
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Insurance Premiums for Different Types of Car Insurance Plans
Here is a comparison of how car insurance premiums can change for a same car:
| Plan Type | Annual Premium Starts from* | Coverage | Best for |
|---|---|---|---|
| Third-Party | ₹2,094 | Basic, 3rd Party liability-only | Budget Buyers / Older Cars |
| Comprehensive | ₹12,066 | Own-Damages + Third Party | Value Seekers |
| Zero Depreciation | ₹13,492 | Maximum protection with no or minimal deductions | Premium / New Car Owners |
Zone-Wise Car Insurance Costs as per IRDAI
Among many factors, car insurance premiums also depend on where the vehicle is registered. According to the Insurance Regulatory and Development Authority of India (IRDAI), there are two zones, Zone A and Zone B, when it comes to vehicle registration. Cars registered in Zone A experience more accidents & theft rates due to heavy traffic. Thus, the insurance prices for cars are higher in these cities compared to those registered in Zone B.
Here is a table showing the estimated car insurance premium for a brand-new Maruti Swift LXI variant across both zones for a bundled policy (1-year OD + 3-year TP):
| Parameters | Zone A (Metropolitan Cities) | Zone B (Rest of India) |
|---|---|---|
| RTO | Delhi-NCR, Mumbai, Bengaluru | Jaipur, Shimla, Lucknow, Indore |
| IDV | ~Rs. 5,50,000 | ~Rs. 5,50,000 |
| OD Premium (after discounts) | Rs. 3,346 | Rs. 2,240 |
| TP Premium (for 3 years) | Rs. 10,640 | Rs. 10,640 |
| Est. Insurance Cost (without add-on) | Rs. 13,986 | Rs. 12,880 |
| Price Difference | - | Rs. 1,000 - Rs. 1,100 lower |
How to Get the Cheapest Car Insurance Online?
To get the lowest car insurance price in India, follow these valuable tips:
Compare Quotes Online
The most effective way to get the cheapest policy is to view different quotes online from multiple car insurance companies. Compare prices, features & coverage, and then select the most appropriate plan for your four-wheeler.
Review IDV
IDV (Insured Declared Value) is the maximum compensation you can get in case of total loss of your vehicle. A higher IDV increases your premium amount, while a lower value means a lower premium but also a reduced payout in case of a claim. Thus, make sure to choose your IDV wisely.
Opt for Voluntary Excess
Lets assume, in case of an accident, you agree to pay a certain amount, known as the voluntary deductible. Then, this amount can be reduced from your premium. But there can be a problem if your insurer does this without informing you. This is what happens many times, so watch out.
Leverage No Claims Bonus (NCB)
If you do not raise any claim in your previous policy year, you earn a No Claim Bonus in car insurance. It is a discount that helps you reduce your own damage (OD) premium cost by up to 50% at the time of renewal. So, if you plan to change your car or the insurer, make sure to transfer your NCB along.
Avail Cashless Facilities
Most insurers have a cashless claim settlement process with partner garages in every city. So, before purchasing a policy, look out for cashless garages offered by insurers near your location to ensure hassle-free settlement if you need to make a repair claim.
Consider Pay as You Drive (PAYD) Car Insurance
If you are an occasional driver, you can also opt for the Pay as you drive car insurance offered by many car insurers in India. This affordable car insurance plan offers you a discount on your OD premium based on the number of kilometres driven in a year and your driving behaviour.
Install Anti-theft Devices
Another way to secure a low-cost four-wheeler insurance plan is to install anti-theft devices, approved by ARAI (Automotive Research Association of India), in your car. When you have these installed, insurers consider you as a low-risk profile and offer a policy at a reduced price.
Drive Responsibly
Always follow traffic rules and safe driving behaviour. Never drive under the influence of alcohol or drugs. Over time, this will reduce your premium while offering the required coverage for your car.
Factors that Determine Car Insurance Premium
Here are the key factors that determine the car insurance premium of your four-wheeler. Have a look:
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Claim History
When deciding premium costs, insurers take your driving history and claim records into consideration. If you have a history of being involved in road accidents and violating traffic rules, the insurer can charge a higher premium.
Also, if you have made a lot of claims, the insurer will presume that you are more likely to raise a claim in the future as well. This will eventually reflect in your car insurance and affect your premium cost.
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Age of the Car
All motor insurance companies consider the age of your four-wheeler when calculating your policy premium. A newly purchased car will likely attract more premium than an old car. To see exactly how your car's age affects your premium, you can use the car insurance calculator online and get an instant estimate.
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Type of the Car
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, as well as their availability.
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Registration Location of the Car
The geographical location of your four-wheeler also affects the motor insurance premium. The insurer 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.
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Car Usage
The purpose for which you use your car also decides its insurance premium. Whether the insured car will be used for commercial purposes or personal purposes needs to be disclosed to the insurer, as any misinformation can lead to the rejection of claims in the future.
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Add-on Selected
You can also get add-ons in car insurance, which are additional benefits that help enhance your coverage. Some of the most important onces include zero depreciation cover, emergency roadside assistance, NCB protection cover, etc. These add-ons come with a nominal extra cost.
Limitations of Buying Cheap Car Insurance
When you buy cheap car insurance, it has the following shortfalls:
- Low-cost policies provide less coverage, which means you get inadequate protection in case of an unfortunate accident.
- Second, cheap insurance for cars might lack benefits that can help you after an accident. For example, you might miss out on the roadside assistance cover when you buy a low-cost policy.
- Additionally, four-wheeler 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.
- Some low-cost policies might include hidden fees that can arise unexpectedly. Hence, always carefully go through the policy terms & conditions to avoid any sudden expenses.
FAQs on Affordable Car Insurance
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Q1. When does car insurance get cheaper for young drivers?
Ans: A car insurance premium can be reduced for young drivers when they drive smoothly and safely. When they drive safely, follow all the traffic rules, have no accidents, and have no claims in the first policy year, the insurer reduces the premium amount at the time of car insurance renewal. -
Q2. How to find affordable insurance for a car online?
Ans: To find affordable insurance for vehicles, calculate insurance premiums using a car insurance premium calculator. You can also compare insurance quotes on Policybazaar.com and find an affordable car insurance policy for your four-wheeler. -
Q3. What is the best way to get cheap car insurance?
Ans: The best way to buy cheap car insurance in India is to compare quotes from multiple insurers. Increase your deductible and remove unnecessary add-ons. Maintain a clean driving record to earn NCB. Moreover, you can opt for PAYD car insurance if you drive less and utilise premium discounts for safe driving. -
Q4. Are antique cars cheaper to insure?
Ans: No. Antique or vintage cars are more valuable than new cars, thus having a higher insurance premium. -
Q5. Are electric cars affordable to insure?
Ans: Since electric cars are more expensive than conventional fuel cars, the electric car insurance premium rates are higher. However, after the recent notification by the IRDAI, there is a 15% discount offered on the premium of electric car insurance. -
Q6. Which auto insurance company provides affordable car insurance in India?
Ans: There are many insurance companies in India that offer car insurance at lower rates. You can compare car insurance quotes at Policybazaar.com and choose the one that offers lower premiums.
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#Rs 2094/- per annum is the price for third-party motor insurance for private cars (non-commercial) of not more than 1000cc
*Savings are based on the comparison between the highest and the lowest premium for own damage cover (excluding add-on covers) provided by different insurance companies for the same vehicle with the same IDV and same NCB. Actual time for transaction may vary subject to additional data requirements and operational processes.
+Savings are based on the maximum discount on own damage premium as offered by our insurer partners.
^Lowest Price Guaranteed is based on certifications shared by insurers with us. Policybazaar will facilitate price matching subject to the terms and conditions of select insurers.
##Claim Assurance Program: Pick-up and drop facility available in 1400+ select network garages. On-ground workshop team available in select workshops. Repair warranty on parts at the sole discretion of insurance companies. Dedicated Claims Manager. 24x7 Claim Assistance.
