Car insurance is an insurance policy that offers financial cover to the insured vehicle in the hour of need. With the help of a car insurance policy, the policyholder will get the required cover against loss/damage of the vehicle that is caused by accident, theft, fire, explosion, self ignition, lightning, riots, strikes, act of terrorism, natural calamities (earthquakes, floods, etc) & transit by rail/road/air/elevator.
In India, around 55 road accidents take place every hour. What will you do if the repairing cost is high and you are not able to get it done on time? Who will be responsible for the damages? This is where an effective car insurance policy will do its job. Those who are already insured with a valid car insurance policy can ask their insurer for assistance and get the repairs done on time. In the case of third party liability, if you have a valid car insurance plan, the insurance company will deal with the same without any hassles. However, no one will offer the required cover to you if your vehicle is not insured. You will have to pay for all the damages on your own.
Apart from the benefit of paying for the damage and medical treatments that occur because of any injury, the drivers might face some serious legal liabilities. That's why it is mandatory to carry a valid car insurance as per the Indian law. In India, as per Chapter 11 (Section 145 to 164) of The Motor Vehicles Act, 1988, it is mandatory to have at least one third-party car insurance.
Recently, the government of India has changed many rules and imposed huge penalties to curb the violations for safer traveling. Apart from these penalties, punishment such as jail term is also introduced. For the same, the government has made changes in the Motor Vehicles Act Amendment 2019, which was recently passed by the cabinet.
In India, Car Insurance is broadly categorized in two different forms. Both are effective enough to assist the insured to deal with the expenses of unwanted road emergencies. The two types of car insurance are stated below:-
Third party liability cover states that the insurer will be liable to cover the damages which are caused by him/her to a third party. Third party liability cover is not liable to cover any losses/damages caused to the policyholder. It is basically designed to take care of the minimum risks which are covered under the Auto Vehicles Act 1938.
The third-party liability insurance quote is the mixture of a few components which comprises of:-
Comprehensive cover is the most effective form of car insurance and is designed in a way that can offer wider coverage to the insured and the third party as well. Under the same, you not only get the basic third party liability cover but also the complete coverage to your vehicle as well. It will provide cover against maximum expenses to the insured car and third party liability.
The quote for the comprehensive cover is the sum of its components which include:-
As per the Indian law, it is mandatory to carry a car insurance plan to enjoy a legal drive. But that's not its only catch. A car insurance not only makes you follow the law, it also offers a bag full of benefits that make the car owners happy. Such benefits are listed below:-
The insured get coverage against loss or damage that takes place because of accidents, fire, theft, self-ignition & natural calamities.
In case of an accident, the insurance company will cover the hospital charges of the policyholder.
It is an add-on cover that assists the policyholder in case of a complete loss of the car because of an accident.
When you do not file any claim during the policy tenure, then you will be liable to avail a discount of 5 % to 50 % at the time of renewal.
Roadside assistance offers multiple benefits such as emergency transport, daily allowances, taxi benefits, and many more.
Apart from the basic cover, there are several additional covers as well that you can opt for wider coverage but they vary from insurer to insurer.
Under Zero Depreciation Cover, the insurance company will offer the original cost of the vehicle's part instead of the depreciated value.
If you lose your car key, this feature will cover the expenses of the new lock.
Having a valid car insurance is mandatory in India under the Motor Vehicles Act, 1988. In India, there are several insurance companies that deal with car insurance. With so many options, it becomes quite difficult to choose the best insurance policy. Here at PolicyX.com, we assist you to choose the best plan with the help of free quotes that allow you to save up to 60 percent on the premium of your car insurance.
Several Options: With the list of different options, you can opt for the best insurance policy for your car. By doing a comparison, you will also get to know that there are many insurance companies in the market which have better plans for you.
Convenient: It instantly allows you to compare quotes of top insurance providers. No hassles and ease of use makes it a convenient process.
Transparency: Comparing car insurance online is a better idea to get clarity of each and every detail associated with the product. It keeps complete transparency about the premium & inclusions/exclusions of the policy. It will help in taking the right decision.
Minimal Documentation: If you think that for an online purchase, the documentation process will be a hassle then you are mistaken here. We allow you to buy car insurance without much documentation and deliver a soft copy of your policy documents to your email address.
Investing in a car insurance policy online is the most convenient and effective medium. These days, insurance companies have come out with several innovative ideas which have made the whole buying process easier. Investing in a car insurance policy do carry several benefits such as:-
Easy To Access
With the online medium, you are free to access a company's website/app from any location. If you have an internet connection then place and time is not a constraint for you. With the same, you can visit any insurance company's website/app from your home and easily buy an effective plan. Moreover, you take help of an online insurance web aggregator to compare plans to choose the best of the lot.
Easy, Hassle-free and less Time-consuming
The entire process of buying insurance has become a lot easier. You can log into the same any time and can make your purchase. The entire process of purchase is hassle free and takes a very little time as compared to an offline insurance policy. It requires less documentation and you don't have to stand in the long queues of offices.
Comparing Several Options
With the online platform, you will be able to compare several plans provided by top insurance companies of India. You can compare the plan on the basis of your requirements, coverage, budget, etc. With the online facility, you are basically getting the freedom of choosing the best insurance plan according to your needs.
Affordable Cost and Less Documentation
When it comes to investing in car insurance online, you can buy the same easily at a lower price as compared to the offline plans. Also, those who buy car insurance through online modes/online are given certain discounts on insurance premium as paperless documentation cuts down the insurance company's expense too.
Instant Premium Calculation and Approval
The insurance company comes out with a built-in tool which is popular by the name of insurance premium calculator. The insured just have to provide some basic information and the rest is upon the calculator. The insurance company can verify the provided information anytime for an easy approval of your claim.
What comes before buying a car insurance plan? Choosing the best one. And how can you do that? Compare all the features of the plans to make an informed decision. When it comes to premium, the same depends upon the Insured Declared Value (IDV) of your car. The more the IDV, the more will be the premium amount and visa-versa.
At PolicyX.com, you can compare policies from top insurance companies with the help of free quotes in a few minutes which will help you in buying the best. Auto insurance policy majorly covers the loss that occurs because of theft, scratch or accidents. With an effective car insurance plan, you will get bumper to bumper coverage.
Brand : When it comes to investing in car insurance policy, the reputation of the insurer plays a vital role. You must take a look at the company's record and claim ratio. An insurance company which carries a bad reputation is a 'no-go' for business.
Voluntary Excess : As per the industry expert, the voluntary excess should be less as compared to the NCB amount.
Safety Features : If your car has safety features (alarm, immobilizer, etc), you will be liable for a great discount.
NCB : It is advised to not file a claim for minor damages. It's better to pay from your own pocket as it will help you in getting NCB which will be great for your future requirements and the benefit will be high as compared to the minor repair cost.
Network Garages : You invest in a car insurance policy to deal with the financial emergency that occurs because of any damage/loss to your vehicle. These days, many insurance companies are offering cashless service with the network garages. Hence, search for the insurance companies that carry a big list of network garages.
There is no doubt that a person invests in a car insurance plan so that he/she can get the required financial cover easily. But, how will it help if you are not going to get the claim amount easily? That's why it is important to choose the right insurer with a high claim settlement ratio.
But how you can file the claim and how the whole claim settlement process work is equally important for you to understand.
Here's an exhaustive list of the companies that offer car insurance plans with best settlement ratio -
|S.No.||Insurance Company||Claim Ratio |
|Claim Ratio |
|1||Bajaj Allianz Insurance Co Ltd||78.50%||77.61%|
|2||Bharti AXA General Insurance Company||76.88%||98.50%|
|3||Cholmandalam Insurance Company||40.07%||39.96%|
|4||Future Generali Insurance Company||78.93%||87.42%|
|5||HDFC ERGO Health Insurance Company||50.76%||52.58%|
|6||Iffco Tokio General Insurance Company||104.30%||90.69%|
|7||Liberty Videocon General Insurance Company||74.37%||74.58%|
|8||Magma HDI General Insurance Company||181.20%||34.93%|
|9||National Insurance Company||126.98%||115.55%|
|10||New India Assurance Company||102.94%||103.19%|
|11||Oriental General Insurance Company||118.23%||113.86%|
|12||Raheja QBE General Insurance Company||126.70%||18.19%|
|13||Reliance General Insurance Company||91.39%||106.54%|
|14||Royal Sundaram General Insurance Company||62.09%||61.41%|
|15||SBI General Inusrance Company||53.43%||52.93%|
|16||Shriram General Insurance Company||38.57%||50.83%|
|17||Star Insurance Company||60.51%||61.76%|
|18||TATA AIG General Insurance Company||57.20%||60.68%|
|19||United India Insurance Company||138.51%||110.95%|
|20||Universal Sompo General Insurance Company||86.14%||104.17%|
Source: IRDA (Insurance Regulatory and Development Authority of India)
Apart from the being mandate feature, car insurance carries a wide range of benefits for you, which makes it a way better product for car owners in India. Some of these benefits include:-
Step 01: Visit quote section which is available at the top of this page.
Step 02: Fill basic details to get free car insurance quotes & Click on the ‘Proceed' tab.
Step 03: Compare quotes on the basis of features, cover, benefits, facilities, premium, etc.
Step 04: Choose the right plan that can go well with your needs.
Step 05: Click on the ‘Buy' tab & Make the payment using different payment modes.
Step 06: Bingo, you are insured now.
By now, the importance of having car insurance must be imprinted in your brain. It is no surprise that several insurance companies in the market have started their business because of the rising demand for car insurance. So, in the pool of options, why should you bet on PolicyX? Let's find out.
For the renewal, you can simply visit our quote section which is present at the top of this page. Our renewal process is easy and hassle free. You will have our constant assistance while renewing your policies or you can opt for portability as well for wider coverage.
Car insurance premium is the amount that you have to pay to keep your policy active. It usually varies from insurer to insurer & model to model. To calculate car insurance premium, you can use the below-stated formula and also have a look at various factors that affect the premium amount.
Premium = Own Damage Premium – (No claim bonus + discounts) + Liability Premium as Fixed by the IRDA + Cost of Add-ons.
On the basis of the below-mentioned points, the company determines the car insurance premium
Year of Manufacture of the Vehicle: This determines the age of the car. Older vehicles have low insurance rates in contrast to automobiles which might be especially new.
Vicinity of Registration of the Automobile: Your residential place and the vicinity in which you got your vehicle registered also has an impact on car insurance premium.
Model of the Auto: If an automobile has steeply-priced or uncommon spare parts, the coverage top class of the car might be higher as well.
The Motive of the Auto: Automobile insurance carriers offer personal and business coverage rules. If a vehicle is used for business functions, it will attract higher coverage rates.
Safety Devices: Present-day motors are geared up with safety capabilities and anti-theft devices. You're eligible to get a discount on the premium of up to 2.5% if your vehicle is secure.
Claims Records: If you raise a claim against your vehicle insurance, the premium is likely to head up. If you abstain from raising claims, you may be rewarded with a No-claim Bonus (NCB).
For e.g, If you owned a Swift Dezire the premium will be following as per Bajaj Allianz General Insurance Company for 1 - year tenure - Comprehensive insurance plan.
|2018||MARUTI SWIFT DZIRE||LXI (1298 cc)||7586|
Update - As per the New IRDAI Notification, thinking about the compulsory feature of third-party insurance, insurance companies have to make sure that the third-party insurance is made available at their underwriting offices via all available channels of distribution inclusive of online medium as well.
Due to the new notification, the premiums are also increased for the car third-party liability covers with effect from June 16, 2019.
|Description of vehicle||Premium Percentage increase|
|Private cars with engine capacity|
|Exceeding 1000cc but not exceeding 1500cc||12.50%|
|Exceeding 1500cc||No change|
|Not exceeding 1000cc*||12%|
In case of an accident or an emergency, it is important for you to inform the insurer as soon as possible. There are two ways - either go for cashless or ride with reimbursement.
It is the most preferred option to get the claim. With the help of network garages, the company starts offering a cashless claim facility under which you don't have to pay a single penny for your repairs. All you have to do is to follow the below-stated steps.
1. What is the best way to lower your car insurance premium?
The best way is to use an online insurance web aggregator at the time of purchase or renewal. Online insurance web aggregator will provide free quotes and comparison services so that you can take advantage of the same and choose the best insurance policy for yourself. Through this, you will be able to buy the cheapest policy for yourself.
2. What are some of the most customer-friendly car insurance companies in India?
There are many customer-friendly car insurance companies such as Iffco Tokio car insurance, SBI, Bajaj Allianz and many more. Just search for the best one on the internet and insure your vehicle today.
3. What are the cons of not paying car insurance?
In India, if you own a car, then it is mandatory to have car insurance with you. There are several cons of not paying for car insurance. It will be illegal to run a vehicle without it. If you do not pay for car insurance then it will not protect you from unwanted incidents. This is something that will provide the needful coverage to you. You must insure your vehicle today, there are many insurers such as IFFCO Tokio car insurance, Bajaj Allianz and much more.
4. My car insurance was rejected. What to do now?
If any company rejects your car insurance policy or renewal of the same, then you can take help of online insurance companies that can provide you the needful service easily. There are many companies such as New India assurance, Bajaj Allianz and many more. So don't lose hope you will surely get the best one for yourself.
5. Which is the best website for car insurance?
There are several websites of top insurance companies such as New India Assurance, Oriental Insurance Company and many more. If you are confused which is the best for you then choose an online insurance web aggregator, compare quotes and get the best plan from the top insurance company in a few minutes.
6. Which is the best car insurance company?
See if you are looking for the best car or home insurance companies in India then there are several options such as Oriental Insurance Company, New India Assurance, Bajaj Allianz and many more. It will be good if you can take help of an online insurance web aggregator which can provide free quotes and comparison service. With it, you will be able to get the best plan in a few minutes.
7. I bought car insurance last month. Now I am getting a better option at an affordable price.
Yes, you can switch insurance company whenever you want. But you have to keep in mind that most of the companies will not pay you back. You can ask your insurer about the refund system before switching your policy or check your policy documents carefully. There are many insurance companies that offer car insurance at a cheap price such as Bajaj Allianz, New India Assurance and many more.
8. Is there a list of documents that must be kept in the vehicle while plying in public places?
The following documents are needed while plying in public places-
9. If my vehicle owns Anti-theft alarm and locking system, then would I get any discount?
Yes, in the case has anti-theft devices, approved by the Automobile Research Association of India (ARAI), then you will be liable to get discount on own damage premium.
10. What is Constructive Total Loss in Car Insurance Policy?
Constructive Total Loss refers to the accidental loss/ damage to your car/bike where the aggregate cost of repairs amount is more than 75% of the Insured Declared Value (IDV).
11. In Car Insurance Policy, does the insured have to pay the difference if the actual expenses are more than the cover?
Yes. For example, if the insured has a cover of Rs.10,000 and incurs an expense of Rs.15,000, then the insured will have to pay Rs.5,000.
12. What is ARAI stands for in Car Insurance Policy?
ARAI is the short form of Automotive Research Association of India. If you have an anti-theft device in your vehicle which is approved by ARAI then you are eligible for a 2.5% discount on the Own Damage (OD) premium.
13. What is meant by premium bearing endorsement in a car insurance policy?
A premium bearing endorsement is a form of endorsement for which additional premium is charged. For an example, transfer of ownership, an addition of LPG/ CNG kit, change of RTO location, etc. are premium bearing endorsements.
14. Which documents are required to cancel your car insurance policy?
The documents required to cancel the policy by the customers are as follows:
15. What are salvage and total loss?
The value of damage in the case where a vehicle meets with an accident is known as salvage. The retrieval of the damaged vehicle to its initial condition is not possible is considered a total loss.
16. What are the documents required to buy car insurance online?
When it comes to the online platform, the buying procedure becomes simple and hassle-free. However, in case the company ask for the document, you need to keep a few documents ready such as
17. How to compare car insurance plans?
We all know that too many options will always lead to confusion. Because of the same, it is always advisable to compare plans on the basis of a few things such as
18. Is online car insurance only for a new car?
No, online car insurance is not limited to a new car. You can also renew your existing policies with the same.
19. What is Personal Accident Add-on Cover?
The personal accident cover that is available with the compulsary Third Party Insurance is up to Rs 1 lakh. However, a person can easily increase the cover with the help of an optional Personal Accident add-on cover by paying an additional premium. It offers the cover for temporary or permanent disability and death caused because of an accident.
20. Is there any add-on cover for car accessories?
Yes, there are add-on covers for the car accessories. Basically, it is an attractive idea that you can easily attract customers to it. By paying an additional premium, you can make sure that you are covered of the cost incurred on your car accessories that basic car insurance do not cover.
21. Is it possible to renew car insurance online?
Yes, it is possible and a far better way as compared to the offline process. For the same, you can visit the insurer's website. After reaching there, you must provide your previous year car insurance policy details. You will get the chance to compare different policies by several top insurers of India and can renew the same easily from the same page.
22. How does PolicyX.com assist me with car insurance comparison?
When you compare car insurance quotes online on PolicyX.com you will get free quotes for your car from different insurance companies. In case of any query regarding the plan that you choose, then you can speak to our experts who will to guide you through the process.
23. What a basic car insurance covers?
With an effective car insurance policy, the insured will get the coverage against loss or damage of the vehicle that is caused by Accident, theft, fire, explosion, self ignition, lightning, riots, strikes, Act of terrorism, Transit by Rail, Road, Air & Elevator and natural calamities, (Earthquake, Flood and more).
24. What will happen in case of theft?
In case of Theft, the insurance company will provide an amount which will be equal to your IDV.
25. How can I get an estimate of the car insurance premium?
The insurance company comes out with a built-in tool which is popular by the name of insurance premium calculator. The insured just have to prove some basic information and the rest is upon the calculator. The insurance company can verify the provided information anytime for the easy approval of your claim on time.
26. What is IDV and why is it important?
Insured Declared Value(IDV) is your car's current market value. It is also an idea about the highest amount that you receive from a car insurance claim. This includes situations where you have incurred a total loss or damaged beyond repair.
The insurance company will arrive at the IDV by assessing the following information:
27. What is meant by endorsement in Car Insurance Policy?
It will be written evidence of an agreed change in the policy. It is basically a document that incorporates changes in terms of the policy. For the same, an additional premium is charged.
28. What are the documents required while plying on the public roads of India?
The following documents are needed while plying in public places-
Certificate of Insurance
Xerox copy of Registration Certificate
Pollution under Control Certificate
Photocopy of Driving Licence of person who is driving the vehicle
29. Can I transfer my insurance to the purchase of my vehicle?
Yes, you can easily transfer the insurance in the name of the buyer. For the same, you have to inform the insurance company about the same. For the same procedure, a fresh proposal form has to be filled in this case. There is a nominal fee charged for transfer of insurance with pro-rata recovery of NCB.
30. If I have CNG or LPG kit fit in my car, is it important to inform the Insurance Company about the same?
As you fit the CNG / LPG kit, it is highly important to inform about the same to the Road Transport Authority (RTA) where the vehicle is registered and your Insurance Company. The RTA will make changes in the Registration Certificate (RC) accordingly, and the Insurance Company will inform you about the additional pay that you have to pay for the same otherwise the company can reject the claim in the hour of need.
31. Is it possible to submit bills at the end of the year for all small repairs of my vehicle?
No, you have to inform the insurer about the claim immediately without any delay otherwise the insurer will not be able to pay the claim amount.
32. There are any discounts for handicapped people?
Yes, the company offer 50% discount on the damage premium to the handicapped people.
33. What is the benefit of choosing zero dep cover?
If you choose the zero depreciation cover then you will get the original cost of the part and not the depreciated one from the insurer. Usually, the companies offer these add on the cover to those cars which are 2 to 3 years old. For taking advantage of this add-on-cover you have to pay an extra small amount apart from the basic premium.
34. Does Regular mechanical expenses due to consistent wear and tear are liable for cover?
No the basic car insurance policy will not provide cover against regular mechanical expenses due to consistent wear and tear. You can get the cover against the same by buying an additional rider.
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Last updated on 26-03-2020