Car insurance offers financial protection against loss/damage to the vehicle that is caused by accident, theft, fire, explosion, natural calamities, etc. It also takes care of the financial liabilities that occur due to the damage caused by the insured to the third-party individual/property.
In India, around 54 road accidents take place every hour. What will you do if the repair 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. The policyholder can ask their insurer for assistance and get the repairs done on time. In the case of third-party liability, the insurance provider will deal with its aftermath without giving you any trouble.
The Indian government also stresses its importance via The Motor Vehicles Act, 1988. This act makes it mandatory to have at least third-party car insurance to enjoy a legal drive on the Indian roads. Anyone who dares to go against it has to face serious consequences.
It only covers the damages caused to the third-party individual/property. No coverage is provided to the policyholder.
The third-party liability insurance quote is the mixture of a few components which comprises of:-
It is also called the ‘Big Brother’ of third-party liability plans. Why? Apart from covering the third-party damages, comprehensive plans look after the policyholder’s damages as well.
The quote for the comprehensive cover is the sum of its components which include:-
Apart from own & third-party damage cover, car insurance offers other benefits as well. They are listed below for your reference.
It is a discount which is offered to the policyholder for applying zero claims over the previous years. The discount can range between 5-50% at the time of renewal.
Apart from the basic cover, there are several additional covers that you can opt for wider coverage but they vary from insurer to insurer. A brief explanation of them is given in the latter part of the write-up.
You can get the repairs done in one of the network garages which is associated with your insurance provider. Its benefit? You don’t have to pay a single penny. The bill will be settled by your insurance provider.
The 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.
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-
The manufacture year 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 Vehicle: Your residential place and the vicinity in which you got your vehicle registered also has an impact on car insurance premium.
Model of the Vehicle: If the vehicle has steeply-priced or uncommon spare parts, the coverage for the top class of the car might be higher as well.
Use of the Vehicle: Car Insurance providers offer personal and business coverage rules. If a vehicle is used for business functions, it will attract higher coverage rates.
Safety Devices: Today, most of the vehicles 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). Also, the devices must be approved by the Automobile Research Association Of India.
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).
Let’s take the help of the above factors and display a practical example.
|Car Variant||Price of the Car||IDV*||Zero Depreciation (Add On)*||Premium*|
|Hyundai Verna (2017) SX Plus 1.6 VTVT AT (1591 cc)||Rs.13,00,225||Rs.9,79,195||Rs.3,917||Rs.36,095|
Table Data updated on 22-05-2020
*The values are calculated on the basis of the city (Delhi) and year of registration (2020).
The insurance provider will offer financial compensation to you if your bodily injuries (in an accident) leads to partial/total disability or death.
If you opt for this, you will get the necessary assistance if your vehicle is a victim of tire puncher, battery problems, etc.
If you lose your car key, this feature will cover the expenses of the new lock.
Under Zero Depreciation Cover, the insurance company will offer the original cost of the vehicle's part instead of the depreciated value.
If your vehicle is damaged beyond repair (in an accident) or stolen, this add-on will compensate for the gap between the invoice value of your car and its insured declared value.
If an expensive/precious item is stolen from your vehicle, this add-on will compensate you for it (partly/fully).
If your car is stuck in a garage for more than 3 days, you will get a daily allowance to cover your transportation expenses.
In India, there are several insurance companies that deal with car insurance. With so many options, it becomes quite difficult to choose the best among them. By doing an online comparison (based on premiums, network garages, etc), you will be able to find which insurance provider/plan is suitable to meet your needs.
For a quick and convenient comparison, you can log on to PolicyX.com. You just have to provide your basic details and a list of several companies (along with their insurance details) will pop in front of you. The entire process will hardly take 30 seconds and you will get a list of options without spending your hard-earned money. To offer more comfort, PolicyX.com has prepared a list of top 15 insurance providers that offer car insurance. Feel free to check it out to boost your buying process.
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.
Those who buy car insurance online are given certain discounts on insurance premiums 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. You just have to provide basic information and within minutes, several premium payment options will pop on your screen to choose from. The insurance company can anytime verify the provided information for easy approval of your claim.
Comparing and buying car insurance online is a great idea to get clarity of each and every detail associated with the product. It will help in taking the right decision.
A person invests in car insurance to get the required financial cover in the time of need. But what if your claim is cancelled because your provider is not financially capable to process it? The entire concept of car insurance will hold no meaning to you, isn’t it? That's why it is important to choose the right insurer with a high claim settlement ratio.
Here's an exhaustive list of companies that offer car insurance plans with best incurred claims ratio -
|Serial Number||Insurance Provider||Incurred Claims Ratio (2018-2019)|
|1||Bajaj Allianz Insurance Co Ltd||62%|
|2||Bharti AXA General Insurance Company||75%|
|3||Cholamandalam Insurance Company||84%|
|4||Future Generali Insurance Company||69%|
|5||HDFC ERGO General Insurance Company||82%|
|6||IFFCO Tokio General Insurance Company||87%|
|7||Liberty Videocon General Insurance Company||70%|
|8||Magma HDI General Insurance Company||65%|
|9||National Insurance Company||127.5%|
|10||New India Assurance Company||87.54%|
|11||Oriental General Insurance Company||112.62%|
|12||Raheja QBE General Insurance Company||102%|
|13||Reliance General Insurance Company||85%|
|14||Royal Sundaram General Insurance Company||89%|
|15||SBI General Insurance Company||87%|
|16||Shriram General Insurance Company||69%|
|17||ICICI Lombard General Insurance Company||74%|
|18||TATA AIG General Insurance Company||70%|
|19||United India Insurance Company||120.79%|
|20||Universal Sompo General Insurance Company||88%|
(As per IRDA Annual Report 2018-19) Table Data updated on 22-05-2020
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.com? Let's find out.
We are unbiased
Let's make it very clear. We only care about our customers. This means unbiased advice is always on the table. So, there is no scope of confusion.
Our support team is always on the watch
Our customer service team is also known by a code name- The Watch Guard. Surprisingly, this name was given to them by our loyal customers. No matter how many queries you throw at them, they will always guard (offer assistance) you until the end.
We have IRDAI's support
Every insurance company needs IRDAI (Insurance Regulatory and Development Authority) approval to freely operate in the market. Very few of the insurance providers are able to win the heart of IRDAI. Luckily, we are one of them. Registration number (IRDA/WBA 17/14), just saying.
There are two ways to renew your existing car insurance policy- log on to the website of your respective insurance provider and carry out the renewal process or visit PolicyX.com and get done with the policy renewal within a few minutes. Just stick to the below-stated steps for the same.
To apply for a claim, you can go by two modes- cashless and reimbursement. A detailed explanation of both is given below.
Take a note of the below-mentioned documents which you have to submit along with the claim form-
A Thing To Remember If your claim is rejected, please ask your insurer to highlight the reason for it so that you are careful in the future.
1. I have to sell my car. Can I transfer my existing car insurance policy to the buyer?
Yes, you need an endorsement form along with the necessary documents (old RC copy, NCB recovery amount, etc) to transfer the existing policy to the buyer of the vehicle.
2. What is Constructive Total Loss in car insurance policy?
It 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).
3. If I have CNG or LPG kit fit in my car, is it important to inform the Insurance Company about the same?
Yes. It is highly important to inform 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 premium that you have to pay for the same.
4. 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.
5. Is it possible to get a discount on the premium if I stay with a single insurer for several years?
No, insurance companies don’t offer any discount if you are loyal to them.
6. I want to buy car insurance for Hyundai Creta. If I check quotes after every 20 minutes, will I get a better deal?
No, that’s not how it works. Insurance companies update their premium prices after every 15 days. Refreshing the quotes after every few minutes won’t help you out.
7. I have checked the quotes but I need some time to make the decision. Can you send me the latest quotes via mail to review later (if required)?
No, that's not possible. You can bookmark PolicyX.com and check the quotes as per your convenience.
8. Can I move my commercial vehicle from the actual spot of the accident?
You have to wait for a spot survey done by the insurance company. Only after that can you move your vehicle.
9. I have an electric car. Will I get a discount on its premium?
According to IRDA, you will get a 15% discount on the insurance premium.
10. Can I buy two policies for a single car?
Legally, you can but it is not recommended.
11. Can I cancel my car insurance policy?
Yes, you need a few documents (request letter, copy of the original policy, sale proof of the vehicle, etc) to cancel the insurance.
12. The repair damage to my vehicle cost around Rs.20,000 but my cover is of Rs.15,000. Do I have to pay Rs.5,000 from my pocket?
Yes. The additional expense needs to be paid by you.
13. If I buy roadside assistance cover, will I get unlimited assistance?
No, you can avail this add-on a maximum of 4 times in a policy year.
14. If I buy car insurance, will I get tax benefits?
Only if you use your car for commercial purposes, you will be liable for tax deductions.
15. Will I get the duplicate copy of my car insurance if I lose the original one?
Yes. You need to visit the branch office for your respective provider, submit a written request and pay a nominal fee to get the duplicate copy.
16. Do I need to file an FIR to buy car insurance?
No. An FIR is required if you meet with an accident including the third-party.
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Last updated on 22-05-2020