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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.
In India, car owners can buy two types of car insurance policies. They are:
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.
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.
A standalone own damage car insurance policy 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 uncontrollable 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.
In India, people can buy three types of car insurance plans for their vehicles. These plans are way different from each other when it comes to policy coverage. Refer to the table below to understand the difference between a comprehensive, third party liability and standalone own damages car insurance plan:
| Coverage | Third Party Liability Car Insurance | Standalone Own Damage Car Insurance | Comprehensive car Insurance | Zero Depreciation Car Insurance |
| 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 |
Check out the best 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% |
| Bharti AXA Car Insurance | 5200+ | 75% |
| Chola MS Car Insurance | 6900+ | 84% |
| Digit Car Insurance | 1400+ | 76% |
| Edelweiss Car Insurance | 1000+ | 145% |
| Future Generali Car Insurance | 2500+ | 69% |
| IFFCO Tokio Car Insurance | 4300+ | 87% |
| Kotak Mahindra Car Insurance | 1000+ | 74% |
| Liberty Car Insurance | 4300+ | 70% |
| National Car Insurance | NA | 127.50% |
| New India Assurance Car Insurance | 1100+ | 87.54% |
| Oriental Car Insurance | NA | 112.62% |
| Raheja QBE Car Insurance | 1000+ | 102% |
| Reliance Car Insurance | 3700+ | 85% |
| Royal Sundaram Car Insurance | 4600+ | 89% |
| SBI Car Insurance | 5400+ | 87% |
| Shriram Car Insurance | 1500+ | 69% |
| Tata AIG Car Insurance | NA | 70% |
| United India Car Insurance | 700+ | 120.79% |
| Universal Sompo Car Insurance | NA | 88% |
Here is a quick rundown of the top car insurance companies that you can consider to secure your car:
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.
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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 –
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.
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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 –
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
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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 –
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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 –
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.
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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.
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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 –
You can also opt for CNG/ LPG fuel kit cover and damage/ loss of accessories cover by paying extra premium.
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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.
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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 –
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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 –
National Car Insurance enjoys the highest incurred claim ratios amongst car insurers in India.
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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.
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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.
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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 –
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.
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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 –
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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.
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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.
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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.
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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.
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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.
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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.
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Disclaimer: *Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer. The ICR has been take
While buying a top car insurance policy, you must consider the following key points:
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.
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.
It provides an extra layer of protection by safeguarding you against additional expense incurred due to car engine damage.
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.
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.
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 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.
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.
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.
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:
The factors determining the car insurance premium depend on the risks, which the insurance provider underwrites. These factors are categorised as under:
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.
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.
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.
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.
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.
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.
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:
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.
