If you are not sure which insurance policy is the best for cars in India, here is the full guideline on how to find the best policies for your car.
Buying car insurance is a must for all car owners. There is a wide range of insurance policies for buyers to choose from. However, it is not easy to find a car insurance policy that is suitable for your car and your budget. IndianAuto will give you the complete guideline on how to pick out the best car insurance in India.
What are the types of Car Insurance in India?
There are two major types of insurance available in India, which are comprehensive car insurance and third party insurance.
Third-party Car Insurance
The third-party insurance will cover policyholders from the legal and financial liabilities in case of accidents involving the insured car. The insurer will cover the expense for the damages caused by policyholder’s car to the third party. This insurance is made mandatory by the Government of India. Any plying car on India roads has to be covered by third-party car insurance.
Comprehensive Car Insurance
Unlike third-party insurance, comprehensive car insurance is not compulsory. The comprehensive car insurance offers additional coverage for you and your vehicle in case of an accident, car theft, vandalism, or natural disasters. Especially, the comprehensive policy also covers third party insurance. It means that you will only have to buy either the third-party insurance or comprehensive insurance.
Apart from the third party and comprehensive insurance policy, car owners can also sign for other additional covers. This add-on will give you the extra benefits that are not covered by standard policies.
How to choose the best car insurance policy for you?
Almost every insurance company in India is offering its own car insurance policy. Thereby, there are plenty of options when it comes to car insurance. The biggest concern is which insurance is the best for cars in India. To answer that question, you should take into consideration the following criteria.
Insurance policy type
First of all, insurance buyers have to possess the basic knowledge of the policy types available in the market. Moreover, car owners must do research on what policy type the insurers are offering. It is recommended that customers must take time and compare what each policy can cover, the inclusions and exclusions of the policy. Comprehensive car insurance is highly recommended for luxury cars while the third party cover is suitable for more affordable cars.
For better coverage, you can opt for add-on benefits. You can check to see what add-ons an insurer can provide. Some of the most popular add-ons covers are roadside assistance, zero depreciation, flat tyre assistance and more.
Apart from considering the pros and cons of each policy, it is also important to look over the insurance companies to see if they are reliable and can offer good customer service.
The claim settlement ratio is one important indicator of an insurance company’s reliability. The parameter is the ratio of the total settled or approved claimed against the total claims that were filed. The higher the claim settlement ratio, the higher you chance of getting your claim settled by the insurer. By comparing the claim settlement ratio, you should also evaluate the reputation of an insurance company.
Another important indicator is the incurring claim ratio which is the ratio of the net claim settled by the insurance against the number of premium collected. This parameter bears the same meaning as the claim settlement ratio. The higher ratio indicates the higher claim approval rate.
Fortunately, this figure along with the incurred claim ratio are all published by IRDAI on yearly basis. In the following table, IndianAuto will list out some of the major car insurers in India along with their claim settlement ratio as well as the number of garages.
Claim Settlement Ratio
Networks of garages
Tata AIG Car Insurance
Royal Sundaram Car Insurance
HDFC ERGO Car Insurance
Bharti AXA Car Insurance
New India Assurance Co. Ltd. Car Insurance
IFFCO TOKIO Car Insurance
National Insurance Company Car Insurance
United India Car Insurance
Apart from these parameters, another worth-considering factor is how car insurance handles the claim in terms of transparency and ease of the claiming process. Even when the claim settlement ratio is high, the settlement process might take up to four to six months. A long settlement process might be time-consuming, hassling and not worth the effort. For some people, they would prefer a company that has a hassle-free and easy settlement process. With regards to this aspect, you can look up for reviews and feedbacks from policyholders of the car insurance company online.
One of the biggest concerns for car owner is how much they have to pay for an insurance policy. There are various factors that contribute to the premium amounts. To estimate the premium that you might have to pay, you can check at the insurance provider's website. You can calculate the premium of each policy and compare the premium amount required by different insurers.
If you feel overwhelmed by the massive amount of reading and research that you will have to do to find the best car insurance, IndianAuto will give you quick answer for the question “Which insurance is best for cars in India?”
What are the best car insurance policies in India?
In the following, we will list out the largest and the most reliable car companies in India that can offer attractive insurance policies.
3.1. Tata AIG Car Insurance
Tata AIG General Insurance Company Limited is one of the largest insurance companies in India. The company is the joint venture between Tata Group and the American International Group (AIG).
Tata AIG is offering car insurance policies as follows:
Auto Secure – Private Car policy
3-year Auto Secure – Private Car policy
3-year Standalone Third Party Long Term Auto Secure – Private Car policy
Bundled Auto Secure – Private Car policy
The company provides a handful of add-on covers with their comprehensive car insurance policies, offering high flexibility for customers. Especially, Tata AIG’s no claim bonus is still valid even after the policyholder sells the car. With regard to the services, Tata AIG is well-known for its quick process and hassle-free claim settlement procedure. However, the company has a strict claim approval process, which results in a low incurred claim ratio.
3.2. Royal Sundaram Car Insurance
Royal Sundaram Car Insurance provides some special benefits that are unique in the market. For example, the insurance company offers flat tyre, emergency fuel delivery as well as road assistance services for free. The company also has a large network of over 3300 garages in India, which can assure that policyholder will receive instant help.
Along with these free services, the Royal Sundaram also offers some attractive discounts including Rs 100 reduction for third party property damage and 35 per cent discount for customers who opts for voluntary deductibles of Rs. 15000. Moreover, in case of theft or total loss, the policyholders will receive a full refund of the car’s invoice price.
Royal Sundaram is providing one single plan which is Car Shield Comprehensive Package. Under this policy, the insurance company will cover loss and damage for the car along with personal accident cover for the paid driver, occupants along with owner-driver.
Voluntary deductible cover
Loss of baggage cover
Windshield Glass cover
Full Invoice price insurance cover
Spare car clause
Key replacement cover
Lifetime road tax clause
3.3. HDFC ERGO Car Insurance
HDFC Ergo General Insurance Company is established under the partnership between HDFC Ltd and Ergo International AG. The company provides a wide variety of insurance in different category ranging from Vehicles, Health, Home and Travel.
HDFC has a massive network of 6800 cashless garages across 13 cities in India. With this large system of authorized garages, the insurance company can offer immediate support. With the 24/7 services, you can totally have your car serviced and repaired overnight. Thanks to the QR code verification system, the claim can be approved within 30 minutes.
HDFC ERGO Car Insurance Policies:
Third-party liability car insurance: This policy offers cover for the damages caused by your car to the third party in case of accidents. This is a standard offer for car owners.
Single year Comprehensive car insurance: Under this policy, the customer will be offered with complete coverage against damages for your car as well as the third-party liability. Personal accident cover is also included.
Long term Comprehensive car insurance: This policy offers the same benefit with standard one-year comprehensive car insurance but the validity is expanded to the three years.
Standalone Own Damage Cover – Private car: This policy provides covers against natural calamities or man-made events.
3.4. Bharti AXA Car Insurance
Bharti AXA General Insurance Co. Ltd. Is the joint venture between Bharti Enterprises and AXA. When buying car insurance from these insurance providers, the policyholders can enjoy a set of advantages. Customers can easily buy and renew the policy via Bharti’s online platform.
Bharti AXA is offering two choices, a third party liability option and a comprehensive policy. Along with these two standard options, Bharti also offers a variety of add-on policies. One of them offers covers for ambulance cost, medical charges and hospital expense. The hospital cash add-over can pay Rs 1,000 cash per day for hospitalization of up to 30 days.
Bharti AXA has a network of over 2,500 garages for providing assistance for its policyholder.
Zero depreciation cover
Roadside assistance cover
Invoice Price cover
Engine and gearbox cover
3.5. New India Assurance Co. Ltd. Car Insurance
New Indian Assurance Co. Ltd is wholly owned by the Government of India. The company has expanded its business to 27 countries across the global. It is one of the oldest and largest insurance companies in India. It is rated as a AAA insurer by CRISIL.
New Indian Assurance has an array of policies that could assure that all the essential needs will be met. Also, the company with a long history has a great experience and has established an effective and helpful system that can provide customers with hassle-free experiences. With the well-trained customer service, policyholders will be assisted with strong support in every process including renewal, claim settlement and so on.
This company is offering two different policies:
Liability only policy: It is basically the third party cover that will safeguard the policyholder from the legal liability when your car caused damages or injury to a third party.
Private car Motor Insurance policy: This is the comprehensive covers that offer the coverage for the insured car in case of loss or damage.
Loss or damage to accessories such as stereos, fans and ACs
Personal accident cover for co-passengers and paid driver.
Legal liability to employees
3.6. IFFCO TOKIO Car Insurance
IFFCO TOKIO Car Insurance is a well-known insurance company. The company has received various awards in their respective area, which is a solid proof for the good reputation in the industry. The insurance company is offering two major insurance schemes:
Third-party liability cover
Value Auto Coverage: This offering can be customized with a variety of add-ons cover. The insurer has a network of 43000 garages where policyholders can visit for repairs or call for roadside assistance.
One of the unique offers of the company is the unlimited zero depreciation cover included on the car insurance plan.
Zero depreciation cover
NO claim bonus protection
Return to Invoice
Garage cash cover
Key replacement cover
Windshield glass cover
Loss of personal belongings
Ambulance and medical expenses addon
Accident cover for car passengers
3.7. National Insurance Company Car Insurance
National Insurance is the longest-standing insurance company in India. It also has the highest incurred claim ratio of 121.67 percent, partially indicating an easy claim process. On the downside, the number of add-on offering is not as high as other insurers. The biggest disadvantage is that the company does have a garage network and or provides roadside assistance.
For loss of accessories
Legal liability to paid driver
Personal accidents cover to the occupants
Voluntary consumables cover
3.8. United India Car Insurance
United India Car Insurance is regarded as one of the leading company in the insurance industry. This company provides comprehensive plans that offer assistance for the policyholders in various scenarios. The insurance company has provided policies for more than 1 crore customers until now. Customers can consider the following policies:
United India Motor Package Policy
United India Liability Only Policy
United India Car Insurance allows the policyholders to change the vehicle while keeping the same policy. This company also offers special adds-on for fibreglass fuel tanks. However, similarly to the National Insurance, United India does not set up garages.
Extension of geographical cover
Personal accident cover for named and unnamed person
Addon for electrical and electronic fittings
Addon for CNG/LPG bi-fuel kits
Addon for fibreglass fuel tank
3.9. ICICI Lombard Car Insurance
ICICI Lombard Car Insurance was found in 2001 as the joint between India’s second-largest bank, ICICI Bank and Fairfax Financial Holdings Ltd. In the financial year 2019, ICICI has attained a high claim settlement ratio of 93.14 per cent for motor insurance claims. On top of that, the claims are processed during a short time. It is estimated that 93.14 percent of the claims in the FY2019 was processed in 30 minutes while loss assessment can be done within four hours. ICICI was given the Claim Leader – General Insurance Award at the Indian Insurance Award. Here are car insurance policies provided by ICICI Lombard Car Insurance:
Private Car Package Policy
Stand-alone ơn damage car insurance
Third-party car insurance
These are the basic information about the best car policies in India. However, if any of these insurance policies attract you, you can visit the websites of the car insurance company to get more details.