10 Best Car Insurance In India For 2024

• HDFC ERGO: Best for Comprehensive Coverage
• Bajaj Allianz: Best for Flexible Coverage Plans
• Reliance General: Best for Large Number of Networked Garages
• IFFCO Tokio: Best for Large Number of Optional Add-on Riders
• TATA AIG: Best Overall Car Insurance Rates
• SBI General: Best for Low Level of Complaints
• Digit Car: Best AI Enabled Process
• ICICI Lombard: Best Claim Settlement Process
• The New India Assurance: Best Renewal Discount
• ACKO: Best Premium Online Discount

Buying the best car insurance can be a daunting task without knowing the features that come with the policy. Below are the parameters that we considered in selecting the best car insurance policies in India.

Type of Policy Coverage (30%): Each policy (like mentioned above) comes with its own coverage and benefits. There are mainly comprehensive plans that give you enhanced coverage along with damages and third-party coverage. There’s third-party plans, which only cover your damages arising out of third-party liabilities and thus giving basic protection. We have already mentioned that a third party plan is mandatory for every car owner in India.

Add-ons Benefits (20% of the score): We also evaluated the number of add-on benefits tagged along with the basic plan.  One needs to be practical enough before choosing the add-on covers. Covers such as zero depreciation, no claim bonus benefits, consumables cover and others can drastically reduce your car repair expenses. It is to be noted that one cannot buy any add-on features along with the third party plan.

Cashless Network Garages (20% of the score): We have listed the number of tie-ups these car insurance companies have with garages for cashless car repairment expenses. Some companies including HDFC ERGO, Reliance general and TATA AIG have as many as 8,000 network garages.

Customization of IDV (20% of the score): IDV refers to the Insured Dealer Value of your car which is close to the current market value of the car. The insurance company allows you to select or customize the car’s IDV from a selected range. And, if one chooses a lower IDV, then they will have to pay a comparatively lower premium to insure the car and vice versa. This simply means more the value of the car, higher the premium payable to insure it. Although, it is highly recommended to select a high IDV for maximum coverage.

Online Insurance (10% of the score): With the advent of online and digital technology, buying an insurance policy is just a matter of a few minutes. We have listed those policies which can be easily purchased online with zero paperwork. Certain companies are also offering discounts on premium, if the policy is purchased online.

Also Read: Average Cost of Car Insurance

Buying the best car insurance policy requires car owner to consider the following parameters, namely:

Assess Your Needs. Select the car insurance policy that suits your budget you can spare for the protection of your car as well as third-party damages.

Authenticity/Reputation of Car Insurer. It is important to check if the insurer is registered with the country’s insurance policy regulator, Insurance Regulatory and Development Authority of India (IRDAI), for authenticity.

Claim Settlement Ratio (CSR). Crucial, as it represents the number of claims raised to the number of claims settled in a given financial year. Forbes Advisor India advises to select an insurer that has a CSR at least above 90%.

Cashless Garage Network: Car insurance policies we’ve selected for this best-of have a minimum of 500 to more than 8,500 cashless garage networks. Depending on how you prefer to use your conveyance, it is important to choose the insurer with a good record of maintaining a great tie-up with cashless garages.

Compare Different Car Insurers Online: Once you’ve known features that insurers offer, you can narrow down your search for the best car insurance companies online based on their premium quotes, add-ons available, customer reviews.

Car insurance premium refers to an amount which is paid by the car owner or insured periodically to the insurance company for purchasing a car insurance policy. The car insurance policy provides financial protection to your four-wheeler against any physical damage or injury arising out of collisions and against third-party liabilities for which the insured pays the premium.

A car insurance premium is affected by lot of different factors such as:

Engine Cubic Capacity: The car which one owns or drives also is a major deciding factor for your car insurance premium. The engine cubic capacity (cc) of the vehicle varies and this decides the premium of the car insurance coverage. As per thumb rule, higher the cc of your car the higher will be the premium.

Age: There will be more premium charged for the new car as compared to an old vehicle. This is simply because more coverage would be required for insuring a new car as compared to any old vehicle.

Fuel: Premium charged for petrol or diesel cars is less than CNG cars because of the latter’s higher maintenance cost.

Insured’s Declared Value (IDV): The IDV refers to the current market value of the vehicle, which is further administered by depreciation. So if the IDV is higher, then there are chances of higher premium and vice-versa.

Coverage Type: Car insurance policy with comprehense policy that covers expenses of repairs or damages caused to your car as well as third-party’s car or property. In India, it is compulsory for every car owner to have at least a third-party car insurance policy.

Location of the Car Registration: Location is one of the crucial factors that determines the premium amount. This means, if a car insured belongs to an urban area or a highly populated city such as any metro city, then the premium rates would be higher because of high chances of claims due to traffic, congestion, vandalism and other issues.

There are mainly three types of car insurance policy, namely:

Comprehensive Insurance

Comprehensive car insurance is an extensive insurance policy for private cars that offers protection to the vehicle from all kinds of risks, such as accidents and collisions, theft, third party liabilities and natural calamities like flood, landslide etc. The insured also has the option of adding add-on covers to enhance the scope of coverage.

Third Party Insurance

Third-party car insurance is a standard vehicle insurance policy which is mandatory to be taken in India. It covers you up to a maximum of INR 7.5 lakh against third-party liabilities and offers insurance coverage against damages caused by your car to a third party or third property. It also provides coverage in case of the death of a third party.

Standalone Own-Damage Car Insurance Policy

Standalone own damage cover provides coverage for own damages, which has caused loss to the policyholder’s car. It is to be noted that this kind of policy does not offer coverage for third-party car insurance. Standalone own-damage car insurance policy is effective in India from September 2018.

Here is the list of the key differences between a comprehensive policy and a third-party cover car insurance policy, in a table given below:

Renewing the car insurance policy on time is as crucial as purchasing a new car insurance policy. If someone does not renew their policy on time, they might have to face huge inconvenience as the policy becomes void and then one has to buy a fresh policy from an insurer which is a bit more expensive and time consuming. So, if your policy is due for renewal, here are a few tips to keep in mind:

• Renew your car policy within one year after purchasing it.
• The insurance companies remind about the car insurance renewal via call, SMS alerts or an email well in advance before the policy expires.
• If policy is not renewed on time, then you might lose the benefits of No Claim Bonus (NCB). NCB is a discount on premium which an insurance company provides to its policyholders on making no claims in the previous years.
• No grace period is provided in case of a car insurance policy. That is why one must immediately pay it to avoid the cancellation or expiry of the policy.
• If you plan to change your car insurance, then purchase a new policy before your existing policy expires in order to avoid any risks.
• You can also opt for a long-term car insurance policy offered up to three years and can also avail certain discounts upon it.

In India, your car insurance is the sum of three major components, which are:

Third Party Premium: This kind of premium totally depends on the car engine capacity and is declared by the insurance regulator of India, IRDAI.

Own damage Cover Premium: This coverage is optional but very beneficial. Here, the premium is computed on the basis of the car’s IDV. Higher the Insurance Declared Value, higher the premium and vice versa. So, as your car grows older, the IDV automatically decreases.

As per the Indian Motor Tariff, formula to calculate car’s IDV is:

IDV = Showroom price of your car + cost of accessories (if any) – depreciation value as per (IRDAI)

Thus, formula to calculate own damage (OD) premium amount is:

OD premium = IDV X [Premium Rate (decided by insurer)] + [Add-Ons (zero depreciation cover)] – [Discount & benefits (free towing, free car check-up)]

Add-on Riders Premium: If you opt for any additional add-on riders such as engine protection cover, bumper to bumper coverage or any other, the premium cost will increase as per the riders chosen along with the main car insurance policy.

One can easily renew their car insurance policy in minutes with the convenience of the internet and can save a lot of time. Here are the benefits of renewing your auto insurance policy online:

• Paperless or requires minimal paperwork.
• Hassle-free and smooth process.
• Affordable and easy to compare.
• Easy to switch the car insurance company.
• Policy gets renewed quickly in minutes.
• Safe and secured payment process without the involvement of third-party agents.
• Easy transfer of NCB at the time of renewal of your car insurance policy.

The car insured can settle their claims hassle-free and with in minutes via online services. Below is the step-by-step claim settlement process for car insurance policies:

• Fill the claim submission form online via the company’s webiste.
• Then the insurer will inspect the insured vehicle.
• Submit necessary documents as asked by the company.
• Once approved, the claim amount would be notified to the network garages.
• Lastly, payment is made to the company’s network garages directly and the insured vehicle would be repaired.

Detailed Article – How to Claim Car Insurance

Signed insurance claim submission form.

Identity proof such as PAN card, Aadhar card or passport.
Address proof such as electricity bill or Aadhar card.
One passport sized photograph.
Driving license copy.
Registration certificate of the vehicle.
Pollution certificate.