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icon Car Insurance icon Telematics Or Usage Based Insurance In India
  • Overview
  • What is Telematics?
  • How it works?
  • Benefits of Telematics
  • Types of Telematics Insurance
  • Types of Car Insurance
  • Addons
  • Inclusions
  • Exclusions
  • How to Buy
  • How to Claim
  • All Manufacturers

Telematics or Usage Based Car Insurance in India

With technological advancement, the way people purchase insurance has changed. Today, it has become possible for people to buy insurance in just 3 easy steps in less than 2 minutes. The focus is now telematics car insurance which is now gradually picking up in India. With the help of telematics, premium calculation is done. Read on to know all about telematics or usage based car insurance in India.

What is Telematics?

Telematics is defined as technology that makes use of informatics and telecommunication. The telematics system stores and helps in transmission of the user’s driving related data.

The three main components include:

  • Telematics Control Unit

    This unit consists of a GPS that tracks the location of the vehicle. The control unit also helps in storing information about the vehicle such as its speed, fuel consumption, braking, faults, etc

  • Cloud server

    Using a wireless or cellular network, the data collected in the telematics unit is transmitted to a cloud server. The data is stored in the form of packets

  • Mobile Interface

    The cloud server transmits the data to a mobile interface through a web server. Information from the vehicle is stored and transmitted through a wireless network to a master database

The telematics system can be implemented with the use of different technologies including:

  • OBD based: A small electronic device is installed in the vehicle which stores the information through a wireless network and transmits it to a master database
  • App based: The app is used with the phone’s GPS and telematics that help in fetching the data
  • Blackbox-based: This refers to an electronic device mounted in the vehicle to store the data related to the trip. This is a high cost installation compared to other devices

Usage based car insurance in India

Last year in 2022, IRDA permitted usage based car insurance that permits usage of pay as you drive and pay how you drive insurance cover.

How does Usage Based Car Insurance Work?

It is simple to understand how usage based car insurance works. A telematics device is installed in the car to track the vehicle i.e. when, where and how the vehicle was driven. The device can be used to check the speed of the vehicle, its usage, to check whether the driver followed the speed limit or not, etc. This information is analyzed by the insurance company to arrive at the risk profile of the driver and the premium as well.

Telematics Car Insurance Benefits

Usage based car insurance in India is a boon helping insurance companies create personalized insurance offers. Given below is how telematics car insurance can benefit drivers.

  • Driving data can make the driver aware of his or her driving habits
  • It ensures safe driving, encouraging people to drive cautiously and follow the speed limit
  • People with good driving skills will be able to save premium
  • Vehicle owners who do not use their vehicle will pay less premium

Types of Usage Based Insurance

  • Pay as you drive: Premium is charged based on the amount of driving done
  • Pay as you go: This model requires installation of a telematics device
  • Pay how you drive: The premium is charged based on the driving skills such as braking, acceleration, etc.
  • Distance based insurance: This is nothing but the number of miles covered during the policy period.

Types of Car Insurance

third party car insurance

Third Party

This type of car insurance provides coverage to third party life and property and does not cover the insured vehicle

comprehensive car insurance

Comprehensive

This type of car insurance provides coverage to your vehicle as well as third party and property

standalone own damage car insurance

Standalone / Own Damage

This type of insurance provides coverage for your car’s damages and losses including events caused due to man made, natural calamities, and theft.

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Boost the Protection of your Car with these Add-ons

subtitle
No Claim Bonus

No Claim Bonus

No claim bonus is retained despite making multiple claims in one policy year.
Zero Depreciation

Zero Depreciation

Depreciation on parts made up of glass, plastic, rubber, nylon, etc. is is not taken into consideration at the time of claim.
Roadside Assistance

Roadside Assistance

Also known as breakdown cover, roadside assistance cover provides you with assistance like towing service, minor repair, spare key arrangements, etc.
Personal Accident Cover

Personal Accident Cover

This type of cover provides compensation up to Rs. 15 lakh in case the owner-driver dies, becomes disable or is injured due to an accident.
Engine Protection Cover

Engine Protection Cover

Provides coverage in case of loss or damages caused to the engine due to issues such as water ingression, oil spill, etc.
Daily Allowance Cover

Daily Allowance Cover

In case the insured’s car is damaged and is being repaired at a garage, then this type of cover provides travel allowance to take care of day to day expenses
Consumable Cover

Consumable Cover

A regular car insurance policy does not provide coverage for cost of consumables such as oil, nuts and bolts, lubricants, etc. But with this type of add-on such costs are covered.
Accessories Cover

Accessories Cover

With this add-on, you get coverage for car accessories such as vacuum cleaner, anti-theft device, battery charger, fire extinguisher, etc.
Passenger Cover

Passenger Cover

In case if the passengers traveling in the car get injured then this cover provides coverage for cost of hospitalization, ambulance charges, etc.
Invoice Cover

Invoice Cover

In the event of total loss, constructive loss or theft of the car, return to invoice cover provides the car owner up to the amount mentioned in the invoice.
Key Replacement Cover

Key Replacement Cover

This add on provides coverage for expenses arising from replacing the keys of the insured car.
Loss of Personal Belonging

Loss of Personal Belongings

With Loss of personal belongings Cover, your insurer will pay for any type of damages or losses to most of your personal belongings kept in the car.
Paid Driver Cover

Paid Driver Cover

Paid Driver Cover is quite helpful when you have an employed driver as it pays for any injuries caused to your driver in case of an accident.
Tyre Damage Cover

Tyre Damage Cover

Tyre Damage Cover comes in handy and provides a great deal of assistance in case of a flat tire while you are traveling.
RIM Damage Cover

RIM Damage Cover

Any warping or damages caused to rim is covered when you have purchased the Rim Damage Cover Add-on.
Voluntary Deductible

Voluntary Deductible

A Voluntary Deductible refers to a precise portion of the claim money that the policyholder agrees to pay out of his own pocket. This makes premium cheaper.

What's Covered under Car Insurance?

Accidents
Accidents
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
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
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
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
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
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How to Buy / Renew Car Insurance Online at Coverfox?

  • 1 Enter Car Details
    Enter Car Details
    Fill in your Car registration number and other basic details
  • 2 Compare & Select Right Plan
    Compare & Select Right Plan
    Go through the shortlisted plans, their premiums and choose the best plan
  • 3 Add Additional Covers
    Add Additional Covers
    Increase the protection by attaching add-ons like Zero Dep. Engine Protection, etc.
  • 4 Make Online Payment
    Make Online Payment
    Pay premium online through a secure gateway from your credit/debit card, internet banking, wallet, etc.

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Future Generali Insurance

How to Claim Car Insurance?

  • Contact the insurance company within 48 hours of the accident or theft
  • File an FIR in case of third party damage or theft of the bike
  • Submit the required documents
  • The insurance company will appoint a surveyor to check on the extent of damages
  • The car will be sent to the garage for repair
  • Cashless service will be provided in case the car is being repaired at a network garage
  • In case of theft, insured declared value will be given to the policyholder after the police shares non traceable report
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Car Manufacturers in India

Here are some quick links to find out more about car insurance in detail
Ashok Leyland Car Insurance
Aston Martin Car Insurance
Audi Car Insurance
Austin Car Insurance
Bentley Car Insurance
BMW Car Insurance
Bugatti Car Insurance
Chevrolet Car Insurance
Citroen Car Insurance
Daewoo Car Insurance
Datsun Car Insurance
DC Car Insurance
Ferrari Car Insurance
Fiat Car Insurance
Force Motors Car Insurance
Ford Car Insurance
Hindustan Motors Car Insurance
Honda Car Insurance
Hyundai Car Insurance
ICML Car Insurance
Isuzu Car Insurance
Jaguar Car Insurance
Jeep Car Insurance
KIA Car Insurance
Lamborghini Car Insurance
Landrover Car Insurance
Lexus Car Insurance
Mahindra Car Insurance
Maruti Suzuki Car Insurance
Maserati Car Insurance
Mercedes Benz Car Insurance
MG Car Insurance
Mini Cooper Car Insurance
Mini Cooper S Insurance
Mitsubishi Car Insurance
Nissan Car Insurance
Porsche Car Insurance
Premier Car Insurance
Renault Car Insurance
Rolls Royce Car Insurance
Skoda Car Insurance
Ssangyong Car Insurance
Tata Car Insurance
Toyota Car Insurance
Volkswagen Car Insurance
Volvo Car Insurance
View More +
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