If you own a car, then it’s mandatory to have a Motor Vehicle Insurance Cover as per the Motor Vehicles Act in India. You must at least have a ‘Third Party Liability’ motor insurance cover with the basic car insurance you are purchasing.
Having a Car Insurance policy reduces your stress of driving as you may get involved in accidents with no fault of yours. You may choose to avoid buying other insurance which you may not need but you shall not avoid Car insurance if you have a vehicle as it covers Uncertainty which is the most crucial benefit you can get.
Types of Car Insurance in India
A car insurance policy acts as a shield for your car against damages caused due to accidents, natural calamities like floods, earthquakes, cyclones and events like theft too. Car insurance policies mainly fall into 4 types of categories.
- Comprehensive Car Insurance – This cover provides cover for damages caused to your car including third-party liabilities. This is the extensive coverage for your car for events like accidents, collisions, theft etc.
- Third-Party Car Insurance – This covers the financial liabilities incurred for Third Party such as car damage, physical injury, death, property damages as well as disability and death.
- Own Damage – This policy provides cover to the insured in case their car suffers any damage. However, this cover only provides insurance for your vehicle. Third-party cover is not included.
- Pay as You Drive Insurance – This is otherwise called usage-based insurance. This is calculated based on the number of kilometres driven by the car which is insured. Only a few insurers offer this kind of policy in India. This cover is normally useful for people who have multiple cars.
Top 10 Car Insurance Policies in India With Affordable Premium
Checking the claim settlement ratio of an insurance company and the number of garages that fall under the network of the insurance company is very crucial to avail the maximum stress-free policy for your vehicle.
You may also look for types of Add-on covers, and what exactly is covered under each Insurance company before buying the policy yourself. The higher the CSR the more satisfied the policyholders will be. You may compare the insurance policies based on all the factors in consideration and according to the type of car you own.
We have a list of the top 10 Car Insurance plans based on the high profile of Car Insurance Companies and Claim settlement ratios with the number of Network Garages for each of them.
| Car Insurance Company | Basic Premium Starting From Amount. | Claim Settlement Ratio | Number of Network Garages |
| Digit Car Insurance | Rs.2962 (Comprehensive Cover)changes as per the vehicle | 74.91% | 5800 |
| Royal Sundaram Car Insurance | Rs.2072 (Comprehensive)changes as per the vehicle | 87.89% | 3868 |
| SBI Car Insurance | Starts at Rs.2072 per year depending on the value of the car. | 86.10% | 2613 |
| Chola MS Car Insurance | Rs.3,722/yr depending on the make and model of the car. | 74.30% | 4636 |
| Edelweiss Car Insurance | Premium Starts at ₹2072 (Third Party Cover)changes as pre the vehicle | 93.38% | 1268 |
| IFFCO Tokio Car Insurance | Rs. 5,268 (third party cover) changes as per the vehicle | 84.04% | 6757 |
| Kotak Mahindra Car Insurance | Rs.2702 changes as per the vehicle | 74.64% | 2327 |
| Oriental Car Insurance | Rs.3005 (Comprehensive Cover) | 81.83% | 456 |
| Raheja QBE Car Insurance | Rs.2072 (Third party cover) changes as per the vehicle | 100.51% | 1000 |
| United India Car Insurance | Rs.2072/yr (Third party cover) changes as per the vehicle | 96.45% | 456 |
Apart from the above-mentioned list, there are more Car Insurance companies that provide excellent service and cover benefits for the policyholder. Some of the best ones after the top 10 are as mentioned below.
- Shriram Car Insurance
- Tata AIG Car Insurance
- United India Car Insurance
- Universal Sompo Car Insurance
- Reliance Car Insurance
- New India Assurance Car Insurance
- National Car Insurance
- Bharti AXA Car Insurance
- Bajaj Allianz Car Insurance
Whichever insurance company you choose for your vehicle it is very important to renew the policy without a break or you may end up in trouble and lose the benefits of the tenure of the policies too.
What should you consider before buying Car insurance from an Insurance company?
Before you buy Car Insurance from a particular insurance company you must consider some things which will help you choose the correct company for you and take care of your financial savings too.
Here are some important points to be taken into consideration before you buy the insurance cover for your car.
- Check for What is covered like the inclusions and exclusions on both Third-party covers as well as Comprehensive covers.
- You may compare the different types of car insurance available in the market online and choose the one that suits your needs
- Check for the CSR (Claim Settlement Ratio) of each insurance company because that’s the exact reason why we get car insurance in the first place.
- It’s highly recommended to get add-on cover along with a comprehensive policy that may provide many benefits like flat tyre assistance, roadside assistance, zero depreciation, etc.
Car Insurance Online
You don’t have to wait in queues or meet insurance agents to get a car insurance policy now. It’s as easy as a piece of cake as everything related to buying, checking for the best insurance company according to your needs and even renewing the Car insurance policy can be done online.
- Just check on the search engine for Car Insurance policies in India
- Pick a few plans and compare them with each other
- Check the terms and conditions in your desired plans and of course always check what is covered and what has not covered sections very carefully.
- Check for available add-ons if you plan to purchase a comprehensive cover.
- Once all steps are thoroughly checked proceed to purchase and make the payment online according to your convenient payment modes.
- Once the premium is paid the policy is yours.
This way you can buy the policy with no paperwork formalities and no involvement of agents.
How can you Compare Car Insurance Online?
As discussed previously it takes only minimal time to buy a car insurance policy or renew the same. But the comparison of car insurance online is very essential to choosing the best policy for your car. As all car insurance providers cover the risks differently you have the option to choose from them according to what you need for your car,
Here are some things to consider while comparing car insurance online.
- The make, Model, and Variant of your car – A very critical information for calculating the premium as a luxurious vehicle will always have more premium when compared to a normal family car.
- YOM (Year of Manufacture) – This information lets the insurer decide if it’s Insured Declared Value (IDV), to further help the underwriter to decide the yearly premium for your car.
- Additional Covers – Based on what has fitted additionally on your car other than the standard manufacturer’s fittings the insurers provide cover for your car. Usually, you may have to pay an additional 5% to the actual premium.
- CNG (Compressed Natural Gas) Fitted Car: The insurers always check for this as the cars fitted with CNG are more prone to combustion so it attracts a higher premium.
Car Insurance Renewal
It’s not only buying car insurance that is mandatory as per law and for your peace, renewing the same policy on time without a break, is also a crucial step to keep it alive and keep going. You must ensure to renew your car insurance policy before it expires.
Car Insurance Renewal can be done online in very easy steps.
- You may visit the official website of your Car Insurer
- Go to the car insurance renewal section
- There you will be asked to enter the basic details like your policy number, date of birth, policy number, etc.
- Once you submit the details you will choose a 4-wheeler insurance plan that you have purchased.
- You can avail benefits as per the providers’ terms during your tenure with them and also choose to add on covers if you want to buy or also drop off any add-ons which are no longer required and you can click on renew by paying the premium.
- You will receive the confirmation in your email and then the premium receipt can be downloaded for your records.
HDFC Ergo Car Insurance Renewal
To renew existing Car insurance with HDFC Ergo all you have to do is –
- Visit the official website of HDFC Ergo
- Enter details that are required to submit to access your existing policy
- You can choose to buy/drop off your Add covers based on your requirements at the time of renewal.
- The renewed policy will be sent to your registered email ID only.
Tata AIG Car Insurance Renewal
To renew an existing car insurance policy with Tata AIG you need to just follow three steps.
- Enter your vehicle registration number and click on Renew.
- You may fill up all the required details like personal details as provided to the insurer. Select suitable add-ons of your choice and you may choose to change the insurance plan too.
- Now you get your vehicle insurance premium instantly and you may pay it online as per your desired secure payment mode.
Common FAQs
- What do they mean by Zero depreciation cover in my Car Insurance Policy?
This refers to an add-on cover that allows the insured to get the compensation amount up to the Insured declared value or current market value of the car, no matter the depreciation. - How many claims in a year can we make in our car insurance policy?
The limit of filing several claims varies from one insurer to another, however many insurance companies take multiple claims in one year. But it’s always better to check the policy documents to confirm if there is a limit. - Is an Online Car Insurance Policy document Valid?
Yes, it is a 100% valid document as it’s issued online under the motor laws of India. All you need to make sure is to confirm the policy is purchased from an IRDAI registered insurance company or an insurance broker. - What is the penalty charged for driving a car without a valid insurance document for my car?
In case you get caught driving your car without a valid insurance policy you shall be liable to pay a penalty of Rs.2000 or will be jailed for up to 3 months. If the same scenario happens a second time, the penalty amount goes up to Rs.4000, and again has to serve 3 months in jail. - What happens to my car insurance policy if I sell my car?
If you choose to sell your car the insurance policy needs to be transferred to the new owner’s name by following the proper steps which will be instructed by your insurance company. - What should I do if I lose my Car insurance policy?
You have to immediately inform your insurance company to get a duplicate copy for the same as its mandatory insurance policy as per law. - Does car insurance cover passengers in my car?
Yes, passengers are covered but only if you choose the add-on cover for the requirement. Usually, only the owner-driver of the car is covered by default in a personal accident cover.