Best Car Insurance Companies In India 2022
There are 20+ best car insurance companies in India that provide car insurance policies. Every other insurance company sells unique car insurance policies with different features and add-ons. Below we have compiled the list of best car insurance companies to help you compare and choose the best one for your four-wheeler.
List of Best Car Insurance Companies in India
Here is a list of top car insurance companies in India with the number of network garages, and Incurred claim ratio.
|Car Insurance Company||Network Garages||Incurred Claim Ratio % 2020-21|
|Bajaj Allianz Car Insurance||4000||68.06%|
|Bharti AXA Car Insurance||5200||64.27%|
|Chola MS Car Insurance||4636||74.30%|
|Digit Car Insurance||Repair Anywhere||74.91%|
|Edelweiss Car Insurance||1500||93.38%|
|Future Generali Car Insurance||3500||66.13%|
|IFFCO Tokio Car Insurance||4300||84.04%|
|Kotak Mahindra Car Insurance||2327||74.64%|
|Liberty Car Insurance||4500||59.91%|
|National Car Insurance||3100||78.55%|
|New India Assurance Car Insurance||3000||78.20%|
|Oriental Car Insurance||3100||81.83%|
|Raheja QBE Car Insurance||1000||100.51%|
|Reliance Car Insurance||8200||76.89%|
|Royal Sundaram Car Insurance||3300||87.89%|
|SBI Car Insurance||16000||86.10%|
|Shriram Car Insurance||2000||79.43%|
|Tata AIG Car Insurance||7500||75.41%|
|United India Car Insurance||3100||96.45%|
|Universal Sompo Car Insurance||3500||87.96%|
Disclaimer: *Policybazaar Insurance Brokers Private Limited does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
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How to Choose the Best Car Insurance Company in India?
You can shortlist the Best Car Insurance Companies in India by comparing different car insurers online based on various criteria such as their Claim Settlement Ratio (CSR), policy coverages, premiums, number of cashless garages, etc.
- Analysing Car Insurance Needs – Before you choose a 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 the 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.
- 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.
- Review Add-on Covers: It is always recommended to pay adequate attention to all the add-on covers so that you can pick out the top car insurance policy in India with additional benefits. These add-on covers are necessary to get an enhanced car insurance protection. Some essential add-on covers include Engine Protect Cover, Zero Dep Cover, Roadside Assistance Cover, etc.
- Claim Settlement Ratio – Before moving ahead, you must check the claim settlement ratio (CSR) and incurred claim ratio (ICR) of the car insurance company. 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.
- 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.
- Online Comparisons –If you compare car insurance policies from different motor insurers online, you will be able to analyse their scope of coverage, premium rates as well as the add-on covers. 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. You must choose a car insurance company that has more positive customer reviews than negative ones.
Factors Affecting Your Car Insurance Premium
The list of top factors that affect your car insurance premiums are categorized as under:
- Make, model & Type - The model of your car, cubic capacity, fuel type etc. are a few parameters that determine the car insurance premiums. Some cars such as commercial cars and SUVsoften require higher premiums since their maintenance cost is high. Usually, diesel cars have a 10-15% higher premium than petrol vehicles.
- Geographical Location- This is based on the registration area. Generally, the premiums are higher if the owner of the car lives in an urban, densely populated area, or near highways. If theft or loss of the vehicle is higher in the area where you reside, then the car insurance premium also goes up.
- Age/Profession of the Driver- The profession and age of the driver are taken into consideration. In the case of multiple drivers of the car, you have to pay higher premium.
- No Claim Bonus (NCB)- If you are a responsible driver, and you haven't filed any claim during the policy term, then you get the advantage of the No Claim Bonus (NCB). If you don't register any auto insurance claim for a year, then your car insurer rewards you with a No Claim Bonus at the time of policy renewal.
- Claim Settlement Ratio (CSR)- Claim Settlement Ratio is the number of claims an insurer has settled till date. An average of 85% is considered good enough. You can easily find the Claim Settlement Ratio of various insurers on the website of IRDA, Policybazaar.com or on the Insurer’s official website.
Types of Car Insurance Policies In India
In India, there are three types of car insurance policies available for the car owners. They are explained in detail below:
A comprehensive car insurance policy provides complete protection to the insured car. It protects the car from all kinds of unforeseen risks resulting from 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.
A third-party liability car insurance policy protects against any third-party liabilities of the policyholder arising out of accidental bodily injuries, disability, 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.
Having a third-party car insurance policy is mandatory as per the motor laws of India. Thus, you must at least have this four-wheeler insurance cover to legally drive in India.
A standalone own damage car insurance policy is provided by almost all car insurance companies. It provides coverage for only the own damages sustained by the insured car. It covers any loss or damages caused to the insured four-wheeler due to unfortunate events, such as fire, natural disasters, theft, accidents and manmade calamities.
This type of car insurance plan is available only if the car owner already has a third-party car insurance policy for the insured vehicle. Since 2019, insurance companies have also started offering Bundled car insurance policy for brand new cars. This car insurance policy offers 3-year third party plus 1-year own damages cover to car owners.
Difference Between the Types of Car Insurance Policy in India
Insurance companies mostly offer three types of car insurance policy. Each plan provides a different kind of coverage to the policyholder. Let us tell you the difference between the third-party liability insurance, standalone own damage insurance, comprehensive insurance and zero depreciation insurance:
|Coverage||Third Party Liability Car Insurance||Standalone Own Damage Car Insurance||Comprehensive car Insurance||Zero Depreciation Car Insurance (Additional Cover)|
|Third Party Property Damages||Yes||No||Yes||Yes|
|Third Party Vehicle Damages||Yes||No||Yes||Yes|
|Bodily injuries/ disability/ death of the third party||Yes||No||Yes||Yes|
|Loss/ Damages to the insured car in an accident||No||Yes||Yes||Yes|
|Loss insured due to theft of the insured car||No||Yes||Yes||Yes|
|Loss/ Damages to the insured car in a natural calamity||No||Yes||Yes||Yes|
|Loss/ Damages to the insured car in a fire||No||Yes||Yes||Yes|
|Loss/ Damages to the insured car in a manmade calamity||No||Yes||Yes||Yes|
|Personal Accident Cover (if opted)||Yes||Yes||Yes||Yes|
|Mandatory by the law||Yes||No||No||No|
|Zero depreciation cover (if opted)||No||Yes||Yes||Yes|
|Other Add-on covers||No||Yes||Yes||Yes|
Add-ons for your car insurance
Car Insurance Companies FAQs
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 car insurance companies and select the plan that provides maximum benefits at the lowest rates.
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. Car insurance companies charge higher third party premium to cars with a higher engine CC.
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
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 charged by car insurance companies.
Ans: Yes. You can change your car insurance company if you are unsatisfied with your current insurer at the time of your policy renewal. You can compare different car insurance companies based on the offered coverage, benefits as well as the claim settlement ratio.
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.
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.
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.
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.
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.
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Note: This is your car’s recommended IDV as per IRDAI’s depreciation guidelines.asdfsad However, insurance companies allow you to modify this IDV within a certain range (this range varies from insurer to insurer). Higher the IDV, higher the premium you pay.
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