Car Insurance

You have just purchased your dream car – what’s the next step? The first thing you do after buying a valuable asset is to safely secure it. For a car, that is done by getting insured with car insurance. Car insurance or also known as motor insurance or 4-wheeler insurance, is an online insurance policy that will protect your financial well-being and your prized possession. In case you were involved in an accident, and your car caused damages to another person or property, the legal liability and repair damage of the third party will be covered by car insurance.

Disclaimer: *Price for a basic third-party car insurance, set by IRDAI. ** All savings are offered by the insurer in accordance with the IRDAI-approved online car insurance. Standard terms and conditions apply.

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In India, there are three primary types of car insurance: Third-Party Liability Four Wheeler Insurance, Own Damage Four Wheeler Insurance, and Comprehensive Four Wheeler Insurance. Understanding these types of car insurance will help you make an informed decision about which online car insurance to buy.

Third-Party Car Insurance

Third-party car insurance is the most basic and legally required cover that protects you against liabilities arising from damage to someone else's property or injuries to others due to your car. It doesn’t cover your vehicle, but it saves you from hefty legal fines (from ₹2,000 to ₹4,000) and financial penalties that can occur after an accident.

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Comprehensive Car Insurance

Comprehensive car insurance offers complete protection by covering both third-party liabilities and damages to your own vehicle due to accidents, theft, fire, natural disasters, or man-made hazards. It’s ideal for car owners seeking financial peace of mind, especially for newer or high-value vehicles. Add-ons can enhance coverage further.

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Own Damage Car Insurance

Own Damage car insurance protects only your car from damages due to accidents, fire, theft, and natural calamities. It doesn’t cover third-party liabilities. Meant for cars already covered by a third-party policy, this plan ensures your vehicle is financially protected in case of unforeseen mishaps. Own Damage Car insurance is a cost-effective plan.

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We know that third-party four-wheeler insurance covers only third-party coverage, and comprehensive four-wheeler insurance provides complete protection. Apart from that, many features of both make them unique, and cater to different needs. To understand deepyl the differences between TP car insurance and Comprehensive car insurance, refer to the table below:

The following are the inclusions and exclusions of a car insurance policy. Make sure you read them before buying car insurance online:

The growth of EVs in the automobile market in India is increasing exponentially. More and more people are shifting towards the more sustainable option – EVs. With this, having an EV car insurance policy is crucial (and mandatory as well). An EV four-wheeler coverage plan additionally protects charging devices, batteries and electric components like motors in the car financially. Most insurers generally provide 100% coverage for the battery (A non EV car insurance typically covers only 50%). Buying electric car insurance is easy and can be done online at Coverfox. Make sure you protect your prized EVs before you head out for the roads.

Types of electric cars that come under electric car insurance plans:

• Battery operated EVs

• Fuel Cell EVs

• Hybrid EVs

• Plug-in Hybrid EVs

Buying car insurance online is now easier than ever. Whether it’s a brand-new vehicle or an older one, you can easily compare plans and select the right 4-wheeler insurance policy in minutes through Coverfox by following these easy steps:

Documents Required

In order to complete the buying car insurance online process, you will need the following documents:

• Vehicle registration certificate (RC)

• Previous insurance details (if applicable)

• Identity proof (Aadhaar, PAN, or Passport)

• Address proof

Eligibility Criteria for Buying Four Wheeler Insurance

To buy a car insurance plan, you need to meet the following basic requirements:

• The insured car must be registered with the Regional Transport Office (RTO)

• You should possess valid car registration documents

• A valid driving licence is mandatory

• Additional documents such as KYC, previous policy details, invoice copy (for new cars), or RC may be required based on the insurer’s guidelines

Buying the right car insurance online is easy, but only if you understand what is needed and what is not. Structuring an online four-wheeler insurance policy will help you save money and ensure adequate coverage for your insured car. You must consider the following factors while buying the right car insurance online:

1. Coverage Scope

Buyers should select coverage that aligns with their specific needs, such as third-party liability, own-damage coverage, or comprehensive insurance. One should also consider the available add-ons before coming to a decision. Add-ons like Personal Accident cover, Zero Depreciation, Roadside Assistance, etc come in handy at the times of need.

2. Premium Rates

Comparing different car insurer’s premium rates before making a decision is a wise choice. You can get car insurance quotes from top insurers in the country through Coverfox.

3. Claim Settlement Ratio

This indicates the percentage of claims settled by the insurer compared to the total claims received. A higher ratio means a greater likelihood of hassle-free claim approvals.

4. Network Garages

The number of garages associated with the insurance company where cashless repairs can be availed. A wider network ensures greater convenience in case of repairs.

5. Customer Reviews and Customer Service

Consider checking customer reviews of the insurer before buying an insurance policy for your car, it can get you unscripted insights about the insurer. Also make sure you have excellent customer service from the insurer side like you get from Coverfox.

6. NCBs and IDV

Having No Claim Bonuses (NCBs) help reduce the insurance premium amounts. Also make sure that you get a suitable IDV for your car, it should be around the market value for your vehicle.

Renewing your four-wheeler insurance on time is important as it ensures continuous coverage. A timely car insurance renewal also helps avoid legal penalties, such as fines for driving without valid insurance. Moreover, it allows you to retain benefits like the No Claim Bonus (NCB), which significantly reduces premium costs. Being proactive about car insurance renewal not only keeps you legally compliant, but also ensures peace of mind while driving.

Car insurance renewal online is crucial for staying protected and complying with legal requirements. Here’s why:

• Legal Compliance: Driving without a valid car insurance policy is illegal in India and can result in hefty fines or penalties.

• Uninterrupted Coverage: A lapsed policy leaves you unprotected against financial losses due to accidents, theft, or natural disasters.

• Third-Party Liability: Car insurance policy renewal ensures you meet mandatory third-party liability coverage, safeguarding you from legal issues in case of accidents.

• Avoid Premium Hikes: Renewing car insurance policy on time helps maintain your No Claim Bonus (NCB), reducing your premium cost.

• Comprehensive Protection: Keep your car protected against damages caused by accidents, fire, theft, and other unforeseen events.

• Eligibility for Add-Ons: Car insurance policy renewal is a great time to include or update add-ons like Zero Depreciation Cover or Roadside Assistance.

• Peace of Mind: Timely four-wheeler insurance renewal ensures you're always prepared for unexpected incidents, whether on the road or off it.

• Avoid Policy Lapse: A lapsed four-wheeler insurance policy may require a fresh inspection, leading to additional hassle and costs.

Grace Period and Consequences of Policy Lapse

If your car insurance policy expires and is not renewed on time, insurers may offer a short grace period, usually up to 30 days, during which you can renew your policy without losing your accumulated No Claim Bonus (NCB). However, it’s important to note that this grace period does not extend your insurance coverage. Your vehicle remains uninsured during this time.

Consequences of a Policy Lapse

• No Coverage

You are not financially protected in case of accidents, theft, or third-party damages.

• Loss of NCB

Failing to renew within the grace period may result in the loss of your No Claim Bonus, affecting your premium discounts.

• Vehicle Inspection

Insurers may require a physical inspection of your car before renewing a lapsed policy.

• Legal Penalties

Driving an uninsured vehicle is illegal and can attract fines or legal action under the Motor Vehicles Act.

• Higher Premiums

Car insurance policy lapse can lead to increased premiums when you reapply for coverage.

To avoid these consequences, always renew your policy before it expires or set reminders for timely renewals

The best part about getting car insurance online is that the claim process can be done online as well. If you are in an accident, or your vehicle is stolen/damaged, you will need to file a claim with your car insurance company. The process for filing a claim online is simple, and if you need any help you can contact Coverfox support for the best helping hand in your claim process. Follow these steps to file a claim with your insurer:

• File an FIR (If required)

The very first thing to do after you check for any damages caused by an accident is to call the police and file an FIR. The same goes for thefts. Preserve this FIR as it will be required while filing your claim.

• Notify Your Insurer

Inform your car insurance company immediately via their website, app, or helpline. Provide details of the incident.

• Log In to Your Account

Access your four-wheeler insurer’s portal or app using your registered credentials.

• Initiate the Claim

Fill out the online claim form with details like date, time, location, and a brief description of the incident. Submit the required documents with the form.

• Inspection and Repairs

Schedule a vehicle inspection or upload photos for assessment. Choose between cashless repairs at a network garage or reimbursement options.

• Track and Settle

Monitor your claim status online. The insurer settles bills directly with the garage for cashless claims or reimburses approved amounts for reimbursement claims.

In order to file a successful four-wheeler insurance claim, you will require the below mentioned documents:

• Car Insurance policy document
• Vehicle Registration Certificate (RC)
• Driver’s licence
• First Information Report (FIR) – mandatory for theft or severe accidents
• Photos of the damaged vehicle or accident site
• Repair invoices and payment receipts (for reimbursement claims).

Car insurance claims can be rejected due to various avoidable reasons. Understanding these can help ensure your claim is accepted without hassle, and you get your claim amount.

• Incomplete or Incorrect Information

Providing false, inconsistent, or incomplete details while filing the claim can lead to rejection.

• Policy Expired

Claims filed after the policy has lapsed or during a grace period (which doesn’t offer active coverage) are not valid.

• Delayed Intimation

Not informing the insurer about the incident within the required time frame may result in a claim denial.

• Lack of Proper Documentation

Missing essential documents like the FIR (if required), repair bills, or photographs can weaken your claim request.

• Illegal Driving

If the driver involved didn’t hold a valid driving licence at the time of the accident, or was under the influence, the claim will be rejected.

• Non-Covered Damages

Damages not covered under your policy—such as mechanical breakdowns or wear and tear—are not eligible for claims.

Getting your car insurance claims rejected is unsettling and distressing to you. Follow these simple tips to improve your chances of a smooth claim settlement:

• Provide Accurate Information

Always give correct details when buying motor insurance and filing a claim, and always avoid exaggerations or omissions.

• Report Incidents Promptly

Inform your insurer about any accident or damage as soon as possible, ideally within 24 hours.

• Keep Documents Handy

Maintain updated copies of your insurance policy, RC, driving licence, and other relevant paperwork.

• Avoid Unauthorised Repairs

Don’t start repairs before the insurer’s inspection unless explicitly permitted.

• Follow the Law

Never drive under the influence or without a valid licence—claims under such circumstances are automatically invalid.

• Stick to Policy Terms

Understand what is covered and what isn’t under your car insurance plan—file claims only for eligible damages.

Once you have bought the car insurance policy online, the policy document will be mailed to your registered email address. There, you can download the car insurance policy document for future reference. You can also access your policy document from the Coverfox website, by logging in to your registered account using your registered email address or mobile number. Here is a detailed procedure for downloading your four-wheeler insurance policy online through Coverfox or through your Insurer:

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Step 1: Visit the Coverfox website

Head over to Coverfox or your Insurer’s website.

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Step 2: Log in to your account

Log in using your registered credentials that has your car insurance policy details.

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Step 3: Go to the “My Policies” tab

Navigate to “My Policies” to download your car insurance document.

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Step 4: Select your desired car insurance policy

From the list, choose the car insurance policy you want to download.

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Step 5: Click on “Download”

Click on Download or View PDF to save a copy of your policy document.

Purchasing a new car insurance policy is essential as buy a new car. You do not want to be uninsured as you are driving your new prized possession. Repair costs and maintenance for newer cars are more expensive – calling a need for new car insurance. Here’s how you can buy new four-wheeler insurance online:

• Visit Covefox, Navigate to Car Insurance Tab.
• Click on “Bought a New Car?”.
• Add your New Car details (Model, Variant, Powertrain and Registration Details).
• Choose a suitable Car Insurance plan from the list of insurers displayed.
• Select Add-ons.
• Pay using secure payment gateway and instantly get your new car insurance policy emailed to you.

It is easy to find the premium price amount using a Car Insurance Calculator online. Companies calculate car insurance premiums after taking into account various aspects. The basic premium calculation formula is: Insurance Premium = Own Damage Premium (Includes all the factors) - (NCB + Discounts) + Third-party Liability Premium.

For Example, for a Wagon R 2020 Model, which hadn’t made any claims in the previous insurance policy:

Insurance Premium = Own Damage Premium (₹752) + Add-ons (₹299 + ₹495) – NCB Discount (₹376) + Third-Party Premium (₹3,416) = ₹4,586.

• Add-ons added were Zero Depreciation and Roadside Assitance
• NCB Discount = 50% of OD Premium
• TP Premium = Basic premium rate set by IRDAI

By understanding and adjusting these factors that affect car insurance premiums, you can structure your car insurance policy without compromising on coverage:

While purchasing a car insurance policy, the Insured Declared Value (IDV) is generally 5% of the ex-showroom price of the car. IDV is the maximum amount paid to you as settlement if your car is stolen or completely totalled. IDV is affected by the following factors:

1. Vehicle’s Age

The age of the vehicle determines the IDV of the car. As the car gets older, its IDV also depreciates. Here is a table showcasing how age affects IDV

2. Model of the Car

IDV is also affected by the model and variant of the car. High–end luxury cars have higher IDV than a regular car. SUVs and Sports cars generally have higher IDV than a regular sedan or a hatchback.

3. Registration City of the Car

IDV is also determined by where the car is registered. For example, Mumbai will have a higher IDV than another town in Maharashtra

4. Depreciation of Car Components

As a car gets old and depreciates, its components also depreciate. Thus it affects the overall IDV. To avoid this, a zero-depreciation cover add-on is opted. This table showcases how different components depreciate over time.

5. After Market Customizations

After market customisations add to the overall iDV of the car. Make sure to include them while buying insurance to increase the IDV and ensure protection of these extra accessories.

The Insurance Regulatory and Development Authority of India (IRDAI) annually reviews and sets the premium prices for third-party vehicle insurance. Here are the third-party automobile insurance premium rates given by IRDAI

• For Four-Wheelers (Non EVs)

• For Electric Vehicles (EVs)

Lowering your car insurance premium doesn’t have to mean compromising on coverage. Follow these tips to save money while staying protected:

• Compare Car Insurance Policies Online

Shop around and compare car insurance quotes from multiple insurers to find the best deal. Don’t just look at the premium—compare coverage benefits, add-ons, claim settlement ratios, and customer reviews. This ensures you get the best value and not just the lowest price.

• Opt for Higher Deductibles

Agree to pay a higher voluntary deductible to lower your car insurance price. While this means more out-of-pocket expenses during claims, it signals financial responsibility to insurers and can significantly reduce annual premiums.

• Claim No Claim Bonus (NCB)

Maintain a claim-free record to earn discounts of up to 50% on your premium. NCB is cumulative and increases with every consecutive claim-free year, making it one of the most effective ways to save on car insurance over time.

• Choose Add-Ons Wisely

Only select add-ons that you truly need, like Zero Depreciation or Engine Protection. Avoid loading your policy with unnecessary extras, which can inflate your premium without adding meaningful value.

• Install Safety Devices

Anti-theft devices certified by the Automotive Research Association of India (ARAI) can fetch you discounts. These devices not only deter theft but also lower your risk profile, making you eligible for premium reductions.

• Bundle Policies

Combine your car insurance policy with other policies like home insurance to get multi-policy discounts. Insurers often reward loyal customers who consolidate their coverage with one company.

• Drive Safely

Maintain a clean driving record by avoiding accidents and traffic violations. Safe driving lowers your risk profile, which can lead to fewer claims and reduced premiums over time.

• Opt for Long-Term Policies

Multi-year car insurance policies often come with discounted rates and protect you from yearly price hikes. They also save you from the hassle of annual renewals and potential lapses in coverage.

• Reduce Coverage for Older Cars

For older vehicles, consider dropping comprehensive coverage if the repair cost exceeds the car’s market value. Third-party insurance may suffice, especially if your car is rarely used or has a low resale value.

• Avoid Small Claims

Retain your No Claim Bonus by not filing minor claims and covering small damages out of pocket. This helps you qualify for greater NCB discounts in the long run and keeps your premium from rising.

• Choose the Right Car

Premiums are lower for vehicles with smaller engines and those with good safety ratings. If you're budget-conscious, opt for models that are inexpensive to repair and have lower theft risk.

• Review Policy Periodically

Regularly reassess your coverage needs to avoid overpaying for unnecessary features. Your driving habits, vehicle condition, or life situation may change—make sure your policy reflects those changes.

Implement these strategies to maximize savings on your car insurance premium without sacrificing essential coverage.

Check the list of cashless garages by insurer to make car insurance claims hassle-free. Easily locate authorised service centres for quick repairs without any upfront payments. Compare networks across insurers and choose the best coverage for seamless claim settlements.