Cars are no longer considered a luxury. Thanks to the low cost car models available in the market, almost everyone can afford a car these days. The need for comfortable commuting has become important and hence more and more individuals are investing in a car for themselves and their families.
As the demand for cars is increasing, so is the demand for car insurance policies. The Motor Vehicles Act, 1988 has made it mandatory for car owners to have a valid car insurance policy. If you have a car then you have to get it insured as per the provisions of Motor Vehicles Act, 1988.
Types of Car Insurance Policies in India
Car insurance policies come in two types. These are as follows-
Third Party Liability Policy
It is the policy that the Act mandates. This policy covers the financial liability that you face in case you cause harm to another person. The covered liabilities include the following –
- Liability to be faced if a person dies in a car
- Liability to be faced if a person is physically hurt or injured by a car
- Liability to be faced if a person’s property is damaged by a car
Third party car insurance provides you financial assistance in case of third party damages during an accident. It is also a mandatory requirement by law. To read more about third party car insurance and compare different plans, click here.
This policy is a packaged policy that covers third party liabilities and also covers damages caused to the car. If the car gets damaged and undergoes any kind of repair, the policy pays the cost of repairs. Coverage under comprehensive policies includes the following –
- If a person is hit by a car or is physically hurt, third party liability faces
- If the property of a person is damaged by the car then the liability of the third party is to be faced
- Damage to the car due to natural or man-made calamities like earthquake, flood, fire, theft etc.
- Car got damaged while moving from one place to another
In addition, both third party and comprehensive coverage plans cover personal accident as well. If you suffer from accidental death or disability, you will get a coverage of Rs 15 lakh.
Thus, with comprehensive policy car insurance, you get insurance coverage not only for damages caused to third parties but also for the costs involved in repairing your own damages. You can read more about comprehensive policy car insurance here .
Since car insurance policies are mandatory, almost all general insurance companies offer car insurance plans. Both third party and comprehensive policies are offered by general insurance companies. There are 33 general insurance companies in India and 31 of them offer car insurance policies. Out of so many insurers, how do you choose the best one?
List of Best Car Insurance Companies in India
Here is the list of best car insurance company in India which is qualified on all the above mentioned parameters –
privately owned car insurance companies
|company’s name||Ratio of claims made for the financial year 2018-19||network of cashless garages||car insurance policies offered|
|HDFC ERGO General Insurance Company Limited||76%||6800+ Garages across India|
|Tata AIG General Insurance Company Limited||78%||Major Garages across India|
|ICICI Lombard General Insurance Company Limited||75%||7800+ Garages across India|
|Royal Sundaram General Insurance Company Limited||85%||4600+ Garages across India|
|Bharti AXA General Insurance Company Limited||77%||4500+ Garages across India|
|Reliance General Insurance Company Limited||86%||4450+ Garages across India|
|Bajaj Allianz General Insurance Company Limited||69%||4000+ Garages across India|
|IFFCO Tokyo General Insurance Company Limited||88%||4300+ Garages across India|
|The New India Assurance Company Limited||95.39%||Major Garages across India|
|United India Insurance Company Limited||109.40%||Major Garages across India|
With this new information, you should be in a good position to compare and buy the top car insurance plans from the preferred company. We understand that with the various options available for car insurance in the Indian market, choosing a car insurance policy is not easy which is why we have done most of the work for you.
Enter a few required details and let our system pick the most relevant and suitable insurance policies for you!
Benefits of car insurance companies
Here is the complete list of benefits offered by the best car insurance companies in India
1. HDFC ERGO General Insurance Company Limited
Features and benefits of HDFC ERGO car insurance company are –
- The company has a huge customer base of over 10 million policyholders which shows a lot of trust in the company.
- The company provides overnight car repair services where repairs are done within an night and the car is delivered at your doorstep
- The company provides approval for its claims within 30 minutes through online verification of QR codes, making claim settlement easy
HDFC ERGO has a wide network of 6,800 garages which offer cashless facility which makes repair operations hassle free. The easy application process and multiple policy options also make HDFC ERGO an attractive car insurance option.
2. Tata AIG General Insurance Company Limited
Features and benefits of Tata AIG Car Insurance Company are –
- The company offers a variety of add-ons with its comprehensive car insurance policies that help you increase the scope of coverage
- The company’s claim settlement process is quick and hassle free
Tata AIG Car Insurance is known for quick application process, customer care team is very quick and if you have installed anti-theft devices in your vehicle, you can also avail some discounts. Click on the link below for more details!
3. ICICI Lombard General Insurance Company Limited
Features and benefits of ICICI Lombard Car Insurance Company are –
- The company has a high claim settlement ratio. The company has settled 93.14% of its motor insurance claims during FY19.
- The claims are settled within the shortest possible time. 93.14% of claims settled in 2019 were done within 30 minutes of intimation
- The company has won the ‘Claim Leader – General Insurance’ award given by the Indian Insurance Awards
ICICI Lombard car insurance offers many benefits to the policyholders including roadside assistance in case of an accident. It is one of the most trusted brands for insurance solutions in India. You can read about the company’s plans by clicking below.
4. Royal Sundaram General Insurance Company Limited
Features and benefits of Royal Sundaram Car Insurance Company are –
- The company’s car insurance policy promises 100% refund of the invoice value of the car in case of total loss or theft
- Free coverage for flat tires and emergency fuel delivery is available under its car insurance plans
- Extensive add-ons are available for better coverage coverage of your car insurance policy
These are some of the benefits offered by Royal Sundaram Car Insurance Company to the policyholders. You can get detailed information about car insurance plans from Royal Sundaram by clicking below.
5. Bharti AXA General Insurance Company Limited
Features and benefits of Bharti AXA Car Insurance Company are –
- The company has issued over 27 million policies since its inception
- Over 1.3 million claims settled
- The company provides you 24*7 support for your car insurance policy
Known for the great no-claim bonus offered to the policyholder for every zero-claim year, Bharti AXA car insurance company is a great option, especially considering the network of 5000+ cashless garages across the country . Car repair hassle free.
6. Reliance General Insurance Company Limited
Features and benefits of Reliance Car Insurance Company are –
- The company promises hassle-free shopping as the policy gets delivered within 10 seconds
- You will get INR 500. Get free roadside assistance coverage in your car insurance policy of up to
- The company enjoys ISO 9001:2015 certification which makes it dependable
Click on the button below to read the full benefits offered by Reliance car insurance plans
7. Bajaj Allianz General Insurance Company Limited
Features and benefits of Bajaj Allianz Car Insurance Company are –
- Company’s car insurance policy can be purchased in 3 minutes
- Motor on-the-spot feature in the company’s car insurance plans lets you make an instant claim through your smartphone. Hence, small claims can be settled within 20-30 minutes
- The company has a claim settlement ratio of 98%
Bajaj Allianz offers several insurance plans for car insurance. It is one of the most trusted brands in India and offers a lot of flexibility for insurance policies. You can read more and browse their offering by clicking on the link below.
8. IFFCO Tokyo General Insurance Company Limited
Features and benefits of IFFCO Tokio Car Insurance Company are –
- The company provides completely transparent products and services so you know what you are buying
- The company’s claim settlement process is quick and efficient ensuring that you get your claims settled within 4 hours
- The company has many awards in its name which make it a reputed company
IFFCO Tokio Car Insurance offers protection against loss due to accidents and theft, the company has a claim settlement ratio of around 79.19% and is known for quick turnaround time to issue policies with minimal documentation. You can read more about IFFCO Tokio Insurance Company and browse their plans below.
owned by the government of India
9. The New India Assurance Company Limited
Features and benefits of New India Assurance Car Insurance Company are –
- The Company has a sound financial position as its net assets for the quarter ended 30th June 2019 stood at INR 37,483 Crore
- The solvency ratio of the company is 2.13 which further ensures the financial stability of the company
New India Insurance is a specialist in the non-life insurance business and has been in the Indian market for a long time. New India Assurance Company offers comprehensive car insurance plans to cover against risks related to accident and theft along with a host of benefits which you can see below.
United India Insurance Company Limited
Features and benefits of United India Car Insurance Company are –
- The company is a Public Limited Company owned by the Government of India and enjoys immense trust among the policyholders
- The company has more than 1 crore policyholders till date.
United India Car Insurance has a claim settlement ratio of around 91.72, with its policies also offering discounts to companies that install anti-theft devices on their cars. To know more about the company click on the link given below.
How to choose the best car insurance company in India?
There are a few factors to be considered while choosing the best car insurance company in India. These factors include the following –
- Authenticity of the company – The first thing you should check is the authenticity of the insurance company. Each company is registered with the Insurance Regulatory and Development Authority of India (IRDAI) and holds a valid IRDA license. Check the company’s license number to make sure it is authentic. You can be sure of the authenticity of its products only if the company is authentic. A company which is regulated by IRDAI cannot cheat or cheat its customers.
- Financial Position – Once the authenticity of the company is established, look at the financial position of the company. To assess whether the company is financially stable, look at the company’s solvency ratio. The company’s financial records can be viewed on the company’s website as it is mandatory for all insurance companies to publish their financial reports online.
- Claim Ratio – There are two types of claim ratios that you should check. There is a Claims Settlement Ratio (CSR) which measures the percentage of claims settled by an insurance company. CSR above 90% is recommended as it shows that the insurance company has settled more than 90% of its claims. A higher ratio will also increase the chances of your car insurance claims being settled. The second ratio that you should check is the Incorporated Claims Ratio (ICR) of the company. ICR refers to the percentage of premium utilized by the company in settlement of its claims. It is calculated as the amount of claim made against the amount of premium collected. If the ICR is more than 100%, it shows that the company is paying more in claims than it is earning in the form of premiums. This position is not financially viable as it shows that the company is making losses. An ICR much less than 40% indicates that the company is making very high profits and may have high premiums. So, look for companies that have an ICR of 50% to 90% which will ensure that the company is profitable and is not charging more than the premium.
- Claims Turn-around-Time (TAT) – Claims TAT is also an important consideration when choosing the best car insurance company. Companies which settle your claims at the earliest are the best as you get the benefit of quick claim settlement. So, check the claim TAT of the company and choose the one that takes minimum time to settle its car insurance claims.
- Network of cashless garages – You should also check the network of cashless garages of the insurance company. The wider the network of garages, the easier it will be for you to settle your car insurance claims cashless.
If you keep these factors in mind, you can find the best car insurance company in India to buy your car insurance policy.
How to buy the best car insurance policy
Now that you know the best car insurance companies in India, you can also buy the best car insurance policy. However, all companies offer one or more car insurance policies and hence choosing the best policy can prove to be a challenge. Therefore, you must compare the available policies to choose the best one. Compare and contrast car insurance policies offered by the above mentioned car insurance companies in India and then choose one. To make a comparison, you should consider the following parameters –
- When comparing coverage car insurance policies to the premium charged , many individuals only look at the premium amount. It is a mistake. The policy should be compared with the coverage that it provides with the premium that is being charged. The best policy would be the one which has an optimum coverage amount, offers comprehensive coverage features and yet is at a reasonable cost.
- Claim Process
The policy that offers the simplest claim settlement process should be chosen. When the claim settlement process is simplified, you can get your claims settled easily.
- Offering Premium Discounts
Car insurance policies offer a variety of premium discounts for different factors. For example, you may get an exemption if you are a member of an approved automobile association or if you install safety equipment. Although discounts are offered by all companies, rates vary. Choose a policy that offers the maximum possible discount so that your premium is lower.
- Add-ons Available
Add-ons are additional coverage benefits that can be added to a comprehensive car insurance policy to increase the scope of coverage. Check out the variety of add-ons offered by car insurance policies. The best policy would be the one that provides you the required add-ons and that too at an affordable premium rate.
So, consider these factors, compare the available car insurance policies offered by major insurance companies and then buy the best plan. Turtlemint is an online platform that allows you to compare and buy car insurance policies from major insurance companies. You can find a list of all the major car insurance plans available in the market on Turtlemint’s website. You can also check the coverage benefits and premiums of the plans and then choose the best policy. Therefore Turtlemint’s platform provides you an easy way to compare and buy the best car insurance policy.
We understand that choosing car insurance can be quite a daunting task which is why we have made the job easy for you, just click on the link below, enter few details and let our system know about the most relevant car insurance policies. allow to show. you at competitive prices!
So, if you are buying a new car or when your existing car insurance policy is up for renewal, choose the best car insurance policy from leading car insurers. Compare and shop the plans offered by major insurance companies so that you can get the best policy.
questions to ask
- What is personal accident cover in car insurance policies?
Personal accident cover in car insurance policies covers accidental death or disability. The cover pays a lump sum amount in case the owner/driver of the car dies suddenly or becomes completely or partially disabled in an accident. The sum insured for personal accident cover is INR 15 lakhs and the premium is INR 750.
- What are the add-ons available under car insurance plans?
There are a variety of add-ons available under car insurance plans. Popular ones include the following –
- Roadside Assistance – Round the clock assistance in case of breakdown
- Zero Depreciation – No deduction for the cost of depreciation from car insurance claims
- Engine Protect – Coverage against engine damage due to water seepage
- NCB Protect – Protection of No Claim Bonus accumulated even after claim
- Return on Invoice – Payment of invoice value of the car in case of total loss or theft
- Consumables Cover – Coverage for the cost of consumables such as engine oil, lubricants, etc., used in car repairs.
- Personal Accident Cover for Designated Passenger – Extension of Personal Accident Cover to Designated Passenger, etc.
- What is a long term car insurance policy?
A long-term car insurance policy is one that lasts for more than a year. As per the latest changes, cars purchased on or after 1st September 2018 should have long term liability cover for three years. Keeping this mandate in mind, there are long term car insurance plans available for new cars these days.
- What happens if the car insurance policy is not renewed?
If the car insurance policy is not renewed on time, the coverage will lapse. If you are found driving without valid car insurance cover you will be fined.
- How is third party premium calculated?
The premiums for liability only are determined by IRDA and they depend on the cubic capacity of the car.