Car insurance companies exist primarily to provide financial protection and support to vehicle owners in case of unforeseen events or accidents involving their cars. Here are the key reasons why they exist and the benefits they offer:
Mandatory Requirement: In many countries, including India, having car insurance is mandatory by law. It ensures that vehicle owners take responsibility for any damages or injuries caused by their vehicles. In India, third-party liability insurance is compulsory under the Motor Vehicles Act, covering liabilities towards third parties for injury, death, or property damage caused by the insured vehicle.
Financial Protection: Car insurance provides financial coverage against various risks associated with owning and driving a vehicle. It covers expenses related to repairs or replacement of the vehicle due to accidents, theft, fire, natural disasters, or vandalism.
Additional Benefits: Apart from the primary coverage, car insurance often offers additional benefits such as roadside assistance, coverage for accessories, no claim bonus (NCB) for every claim-free year, cashless claim settlement, and options for add-on covers to enhance the policy's scope.
20+ Best Car Insurance Companies in India December 2024 (IRDAI Approved)
India has 25 of the world’s best general insurance companies catering to the various general insurance needs of the Indian population. Here is a list of the best car insurance companies in India:
ICICI Lombard General Insurance: Renowned for comprehensive coverage, a wide range of add-ons, and a vast network of partnered garages for repairs.
Bajaj Allianz General Insurance: Offers innovative policies, 24x7 roadside assistance, cashless claims, and a variety of valuable add-ons.
HDFC ERGO General Insurance: Known for zero depreciation cover, quick emergency assistance, and access to an extensive network of garages for cashless services.
New India Assurance: A government-backed insurer providing comprehensive plans covering third-party liabilities and offering various add-on options.
Reliance General Insurance : Provides 24x7 helplines, hassle-free cashless claims, and diverse add-ons like key protectors and engine coverage.
United India Insurance : Offers comprehensive plans with third-party liability coverage, personal accident cover, and additional beneficial add-ons.
Raheja QBE General Insurance: Offers comprehensive policies, cashless claims, and beneficial add-ons to improve coverage.
Magma HDI General Insurance: Provides comprehensive coverage, prompt claim settlements, and various beneficial add-ons.
ACKO General Insurance: Known for its digital-first approach, easy claim processes, and innovative policies designed for consumers.
Top Car Insurance Companies
Cashless Garages Network
Incurred Claim Ratio 2021-22 (%)
Bajaj Allianz Car Insurance
4000+
68.53
Cholamandalam Car Insurance
6900+
65.05
Digit Car Insurance
1400+
79.54
Zuno (Edelweiss) Car Insurance
1000+
84.61
Future Generali Car Insurance
2500+
62.43
HDFC ERGO Car Insurance
6800+
74.66
IFFCO Tokio Car Insurance
4300+
84.12
Kotak Mahindra Car Insurance
1000+
82.67
Liberty Car Insurance
4300+
62.84
National Car Insurance
NA
90.68
New India Assurance Car Insurance
1100+
91.00
Oriental Car Insurance
NA
97.95
Universal Sompo Car Insurance
NA
91.32
Reliance Car Insurance
3700+
75.57
Royal Sundaram Car Insurance
4600+
85.76
SBI Car Insurance
5400+
93.58
Shriram Car Insurance
1500+
72.97
Tata AIG Car Insurance
NA
74.51
United India Car Insurance
700+
98.90
Raheja QBE Car Insurance
1000+
92.55
Update Date: Network Garages List Last updated on 05th January 2023. Note: All information has been sourced from the official website of the respective insurance companies. The Incurred Claim Ratio has been sourced from the Insurance Regulatory and Development Authority of India (IRDAI) Annual Report.
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How to Select The Best Car Insurance Company in India?
Choosing the right insurance policy can be a bit overwhelming with so many options available these days. But don't worry, we’re here to help! Let's work together to find the best policy for your needs.
Assess Your Needs: Begin by evaluating your specific requirements. Consider factors like the type of coverage needed—third-party liability, comprehensive coverage, or specific add-ons. For instance, if your car is new, zero depreciation cover might be crucial.
Research and Compare: Explore multiple insurance providers. Coverfox gives you the ability to review hundreds of policies, coverage details, premium rates, and claim settlement ratios. Online comparison tools and customer reviews can provide valuable insights into the company's reputation and service quality.
Track Record: Check the insurer's financial strength. Look for their claim settlement track record and solvency ratios. A financially stable company ensures timely claim settlements and long-term reliability.
Network of Garages: Assess the insurer's network of garages for cashless claims. A wider network ensures accessibility to authorized garages for repairs and a smoother claims process.
Overview of Top 10 Car Insurance Companies
Now that you have a better understanding of the factors that you must look out for in a Car Insurance Policy, here is our unordered list of the 10 Best Car Insurance Companies in India.
ICICI Lombard General Insurance:
Comprehensive Coverage: Offers extensive coverage for various car-related risks with Doorstep cashless repairs.
Vast Network: Wide network of 12,000+ partnered garages for cashless repairs.
Claim Settlement Ratio: 97.07%
Bajaj Allianz General Insurance:
Innovative Policies: Offers innovative insurance policies catering to diverse needs.
Roadside Assistance: Provides 24x7 roadside assistance for policyholders.
Customer Service: Known for quality customer service and support.
Claim Settlement Ratio: 96.59%
HDFC ERGO General Insurance:
Emergency Assistance: Quick and efficient emergency assistance services.
Wide Network: Access to a broad network of garages for cashless repairs.
Claim Settlement: Known for prompt and hassle-free claim settlements.
Claim Settlement Ratio: 98.49%
New India Assurance:
Government-Backed: A government-owned insurer ensuring reliability.
Longevity: Long-standing presence in the insurance industry.
Claim Settlement: Known for efficient claim settlement processes.
This type of insurance is mandatory under the Motor Vehicles Act, 1988. It covers the insured individual against legal liabilities arising from damages caused to a third party involving their vehicle. It includes compensation for injury, death, or property damage to others caused by your car.
This is a more extensive form of coverage that includes both third-party liability and coverage for damages to your vehicle. It covers expenses arising from accidents, theft, fire, natural calamities, vandalism, and more. It also includes personal accident cover for the owner-driver.
This type of insurance specifically covers damages to your vehicle due to accidents, theft, fire, natural disasters, or malicious acts. It's usually combined with a third-party liability policy to create comprehensive coverage.
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Boost the Protection of your Car with these Add-ons
Accidents are uncertain. In case of damages caused to car due to an accident, don’t panic as with car insurance you are covered
Theft
In case of theft of the vehicle, coverage is offered up to the insured declared value mentioned in the policy
Natural and Man-made Calamities
Your car is protected against man-made and natural calamities like fire, earthquake, landslide, vandalism, terrorist attack, etc.
Personal Accident
Provides coverage up to Rs. 15 lakh in case of death or disability caused to the owner-driver due to an accident.
Third Party Liability
Get protection against death, disability or injury caused to the third party due to your car
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What's Not Covered under Car Insurance?
Electrical breakdown
Mechanical breakdown
Normal wear and tear
Driving without valid driving license
Consequential loss of car
Driving under influence of drugs/alcohol
Using car for illegal purpose
Commercial use of private car
Depreciation of car parts
Damages due to contributory negligence
View More +
Important Factors Affecting Car Insurance Premiums
When you Buy Car Insurance Online on Coverfox, you will be prompted to fill out a few basic details about your car. These details are then used to determine the premiums. Some of the factors investigated include the following:
Vehicle Type: The make, model, and age of the car impact premiums. Expensive or high-performance vehicles generally have higher premiums due to higher repair or replacement costs.
Insured Declared Value (IDV): The IDV, the current market value of the car, affects premiums. Higher IDV leads to higher premiums and vice versa.
Age and Experience of the Driver: Young and inexperienced drivers pose higher risks, leading to higher premiums. Additionally, senior drivers may also face higher premiums due to age-related factors.
Driving History: A history of accidents or traffic violations often results in increased premiums as it indicates a higher risk of future claims.
Location: Areas prone to theft, vandalism , and accidents, or with higher traffic density may have higher premiums.
How to Buy / Renew Car Insurance Online at Coverfox?
1
Enter Car Details
Fill in your Car registration number and other basic details
2
Compare & Select Right Plan
Go through the shortlisted plans, their premiums and choose the best plan
3
Add Additional Covers
Increase the protection by attaching add-ons like Zero Dep. Engine Protection, etc.
4
Make Online Payment
Pay premium online through a secure gateway from your credit/debit card, internet banking, wallet, etc.
Filing a car insurance claim involves several steps:
Inform the Insurer: Immediately inform your insurance company about the incident. Contact their helpline or visit their website to
initiate the claim process. Provide necessary details like policy number, location, and nature of the incident.
File an FIR (if necessary): In case of theft, vandalism, or major accidents, file a First Information Report (FIR) at the nearest police station. Obtain a copy, as it's often required for claim processing.
Document the Incident: Collect evidence by taking photos of the accident or damages. Note down the details of involved parties, witnesses, and the scene. Keep all relevant documents like the policy copy, registration certificate, and driving license handy.
Inform the Insurer’s Surveyor: If required by the insurer, an appointed surveyor will assess the damages. Schedule an inspection of the vehicle at a designated garage or location.
Claim Form Submission: Fill out the claim form provided by the insurer. Include accurate details of the incident, damages, and other necessary information.
Submit Required Documents: Provide documents like the claim form, copy of the FIR (if applicable), registration certificate, driving license, repair estimates, and any other documents as per the insurer’s requirements.
Vehicle Inspection: The surveyor inspects the vehicle to assess the damages and ascertain the claim amount.
Repair Process: After claim approval, the vehicle can be repaired. If the garage is within the insurer's network, you might benefit from cashless repair services.
Claim Settlement: Once the repairs are complete, the insurer settles the claim. It can be either cashless (where the insurer directly settles the bill with the garage) or reimbursement (where you pay and then get reimbursed by the insurer).
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Car Manufacturers in India
Here are some quick links to find out more about car insurance in detail
The best car insurance company in India may not be the same for everyone and it differs from person to person. Every car owner has individual needs depending on which he/she purchases the policy. If you are looking for a car insurance company online, you need to make online comparisons and choose the company based on the coverage and benefits offered.
HDFC ERGO, Edelweiss, Reliance General are among the top car insurance companies in India. It is advisable to check the claim settlement ratio of the insurer.
Yes, you can change your car insurance company in case you are not satisfied with the existing insurer through the process of porting. You can compare various car insurers online based on various factors such as claim settlement ratio, coverage, benefits, premium, etc.
Yes, car insurance companies will pay for all the damages caused due to an accident including property damage, damage caused to your own car or that of the third party.
In case of car damage, a surveyor is appointed by the insurance company to check on the damages who gives an estimate of the repair costs based on the existing market value of the car.
If you switch car insurance company within 90 days of policy expiry then you can retain the NCB benefits i.e. still be eligible to receive NCB discount.
