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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.
How to Get Cheapest Car Insurance Online?
To get the lowest car insurance in India, follow these valuable tips:
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.
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.
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.
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.
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.
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 your driving behaviour.
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.
Be Truthful
Another crucial tip to get the lowest car insurance is to 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.
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 car insurance premium for the same car varies for different insurers 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:
| Car Insurance Company | 1+3 Coverage (Without ZD) | Zero Depreciation (ZD) Add-on |
|---|---|---|
| New India Assurance Car Insurance | Rs. 12,117 | Rs. 991 |
| United India Car Insurance | Rs. 12,067 | Rs. 1,427 |
| National Car Insurance | Rs. 11,940 | Rs. 1,956 |
| Oriental Car Insurance | Rs. 12,007 | Rs. 1,057 |
| Car Insurance Company | 1+3 Coverage (Without ZD) | Zero Depreciation (ZD) Add-on |
|---|---|---|
| ICICI Lombard Car Insurance | Rs. 15,634 | Rs. 1,087 |
| Tata AIG Car Insurance | Rs. 13,850 | Rs. 2,423 |
| Bajaj General Car Insurance (Formerly known as Bajaj Allianz Car Insurance) | N/A | N/A |
| Digit Car Insurance | N/A | N/A |
| Cholamandalam Car Insurance | Rs. 20,629 | Rs. 1,087 |
| SBI Car Insurance | N/A | N/A |
| Reliance General Car Insurance | N/A | N/A |
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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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.
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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.
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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.
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Deductibles
Deductibles refer to a certain amount that you need to pay at the time of car insurance claim, and the rest of the amount is paid by the insurance company. Once you choose the 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.
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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.
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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.
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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 insurance quotes from car insurance companies onPolicybazaar.com before you make the final purchase.
Limitations of Buying Cheap Car Insurance
When you buy cheap car insurance, it 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 for cars 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.
FAQs on Affordable Car Insurance
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Q1. When does car insurance get cheaper for young drivers?
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Q2. How to find affordable insurance for a car online?
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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.
