– A Promise of Security and Peace –
Protect your vehicle with our comprehensive car insurance policies. Compare plans and choose the best coverage. Apply now today to find the best coverage to get started.
| Car Loan Details | |
|---|---|
|
Interest Rate (Monthly reducing balance) |
Starts from 8.70% p.a. |
|
Guarantor Requirement |
Varies with bank |
|
Pre-closure Charges |
Varies with bank |
|
Loan Tenure |
1 year to 8 years |
|
Processing Fee |
Depends on the bank |
– On This Page –
Car insurance offers vital financial protection against a variety of risks, including road accidents, fire accidents, theft, human-caused disasters, natural calamities, and total loss. It significantly reduces the costs associated with car repairs and replacement of automobile parts, providing valuable support to policyholders in these circumstances.
Car insurance is essential for protecting yourself and your vehicle in the event of an accident. The type of coverage you possess significantly influences how costs are handled.
Without Car Insurance: If you don’t have car insurance and are involved in an accident, you’ll be responsible for all repair expenses to your vehicle out of pocket.
With Comprehensive Motor Insurance: Having comprehensive motor insurance means your policy will cover the costs of repairs to your vehicle if it’s damaged in an accident. This coverage provides peace of mind, knowing you’re protected against significant repair bills.
Third-Party Damage and Liability: If your vehicle causes damage to another person’s vehicle or property, you are liable to compensate them for the damages. In accidents resulting in injuries or fatalities, you could also face legal expenses.
With Third-Party Car Insurance: Third-party car insurance covers expenses related to damages to other vehicles and property, as well as legal liabilities arising from an accident. This type of insurance ensures you’re not financially burdened by third-party claims and legal fees.
Having the right car insurance coverage is crucial for financial protection and peace of mind on the road. Ensure you choose a policy that fits your needs and offers adequate protection against various risks.
Understanding the various types of car insurance coverage can help you choose the best policy for your needs. Here’s a breakdown of the common coverage options:
Third-Party Liability Coverage:
This coverage is essential as it covers damages to third-party property or injuries to third parties caused by your car. It ensures that you are financially protected against liabilities arising from accidents involving others.
Own Damage Coverage:
Own damage coverage protects your vehicle against damages due to accidents, theft, vandalism, fire, or natural calamities like floods and earthquakes. This coverage is crucial for safeguarding your vehicle from a wide range of potential risks.
Comprehensive Coverage:
Some policies offer comprehensive coverage, which combines third-party liability and own damage coverage. This type of policy provides broader protection, ensuring that both third-party liabilities and damages to your own vehicle are covered.
Add-on Covers:
Insurers offer additional covers that can be added to the base policy for enhanced protection. Common add-ons include:
Personal Accident Cover:
Car insurance policies often include coverage for personal accidents, providing financial protection in case of accidental death or disability of the owner/driver. This is vital for ensuring personal safety on the road.
No Claim Bonus (NCB):
Policyholders are rewarded with a discount on the premium for every claim-free year, known as the No Claim Bonus. This incentive encourages safe driving and proper vehicle maintenance, leading to reduced insurance costs over time.
Voluntary Deductibles:
These are amounts that policyholders agree to bear themselves in case of a claim. Opting for a higher deductible can lower the premium cost, making insurance more affordable while still providing essential coverage.
Choosing the right car insurance policy involves understanding these coverage options and selecting the ones that best meet your needs for protection and cost-effectiveness.
Check out the best car insurance policies offered by the top car insurance companies in India.
| Insurance Provider | Claim Settlement Ratio | Number of Cashless Garages |
|---|---|---|
| Royal Sundaram Car Insurance | 92.66% | 3,300+ |
| HDFC ERGO Car Insurance | 91.23% | 6,800+ |
| IFFCO Tokio Car Insurance | 92.65% | 4,300+ |
| The Oriental Car Insurance | 91.76% | 3,100+ |
| Tata AIG Car Insurance | 90.49% | 5,400+ |
| Bajaj Allianz Car Insurance | 88.83% | 4,000+ |
| SBI Car Insurance | 92.05% | 16,000+ |
| Reliance Car Insurance | 98.0% | 3700+ |
| Kotak Mahindra Car insurance | 82.81% | 1000+ |
*Note – GST Update: GST of 18% is applicable on car insurance effective from the 1st of July, 2017
In India, various types of car insurance coverage cater to different needs. Along with these basic coverages, you can choose several add-ons to enhance your protection.
1. Third-Party Liability Only Cover:
This is the minimum legal requirement for car insurance in India. It covers damages to third-party property and injuries caused to others in an accident involving your vehicle. This coverage ensures you are protected against legal liabilities.
2. Collision Damage or Own Damage (OD) Cover:
This coverage protects your vehicle against damages resulting from accidents, theft, vandalism, fire, and natural disasters. It provides financial security for repairs or replacement of your car.
3. Personal Accident Cover:
Most car insurance policies include personal accident cover, which offers financial protection in the event of accidental death or disability of the owner/driver. This ensures that you and your family are safeguarded against unforeseen circumstances.
4. Zero Depreciation Cover:
Zero depreciation cover ensures that you receive the full claim amount without depreciation deductions for vehicle parts. This add-on is crucial for getting the complete repair cost, especially for newer vehicles.
5. Comprehensive Car Insurance:
Comprehensive car insurance combines both third-party liability and own damage coverage. This policy offers extensive protection against various risks, making it an ideal choice for those seeking maximum coverage.
In addition to the basic coverage options, you can select various add-ons tailored to your specific needs. These add-ons provide extra security and peace of mind, allowing you to customize your policy according to your requirements.
Choosing the right combination of car insurance coverage and add-ons is essential for ensuring comprehensive protection on the road.
The Equated Monthly Installments (EMIs) that you will pay will depend on a few key factors.
The higher the loan amount, the higher your EMI will be. Similarly, the shorter the loan tenure the higher the EMI.
To calculate the EMI on your car loan, you can use the formula:
EMI=P×R×(1+R)N(1+R)N−1\text{EMI} = \frac{P \times R \times (1+R)^N}{(1+R)^N – 1}
where:
Manual calculations can be error-prone, complex, and time-consuming, so using an online personal loan EMI calculator is preferable. This calculator requires only a few basic details such as the interest rate, loan amount, and loan tenure.
Once these details are entered, the EMI amount is calculated instantly. Additionally, the calculator provides the total interest amount and an amortization schedule for easy reference.
| Insurance Company | Claim Settlement Ratio | Cashless Garages | Key Features | Premium Starts At |
|---|---|---|---|---|
| Royal Sundaram General Insurance | 92.66% | 3300+ | Quick claim settlement, affordable premiums, minimal documentation, personal accident cover up to ₹50 lakh, 24x7 assistance, add-on covers | Not specified |
| HDFC ERGO General Insurance | 91.23% | 6800+ | Quick claim settlement, overnight repair assistance, add-on covers | ₹2,072 |
| IFFCO Tokio General Insurance | 92.65% | 4300+ | Affordable plans, 24x7 assistance, claims settled within 4 hours | Not specified |
| The Oriental Insurance Company | 91.76% | 1800+ | Discounts on premiums, third party cover, add-on covers | Not specified |
| Tata AIG General Insurance | 90.45% | 5400+ | Save up to 75% on premiums, 13 add-on covers, extensive network | Not specified |
| Inclusions | Exclusions |
|---|---|
| Cover for damages to your vehicle | Damages to vehicle when it was being used for illegal purposes. |
| Cover for damages caused by natural calamities | Accidents that are deemed fraudulent by the insurer. |
| Personal accident cover | Damages incurred by the vehicle when it was being driven by someone who was under the influence of alcohol or drugs. |
| Cover for damages incurred due to man-made disasters | Damages incurred by the vehicle when it was being driven by someone who does not have a valid driving license and who has not attained the legal driving age. |
| Theft | Damages incurred by the vehicle when the driver was breaking traffic rules. |
| Damages to property | -- |
*Note – Each policy has its own list of exclusions that you are expected to read carefully at the time of purchasing one.
Purchasing car insurance online is a straightforward process. Follow these steps to secure the best coverage for your needs:
Step 1: Research and Choose a Provider
Start by researching different car insurance providers. Compare their policies, coverage options, and customer reviews to select the one that best suits your needs.
Step 2: Visit the Provider’s Website
Go to the website of your chosen car insurance provider. Browse through the available plans to find the one that fits your requirements.
Step 3: Fill in the Necessary Details
Once you’ve selected a plan, fill out the online form with all the required details. This may include personal information, vehicle details, and any additional coverage options you wish to include.
Step 4: Submit Your Application
After completing the form, submit your application and proceed to the online payment page to finalize your purchase.
Step 5: Complete the Payment
Make the payment using your credit or debit card. Ensure that the payment page is secure to protect your financial information.
Step 6: Receive Your Policy Document
Once the payment is successful, you will receive the policy document from the insurer via your registered email address. Make sure to keep this document safe for your records.
By following these simple steps, you can easily buy car insurance online and enjoy peace of mind on the road.
Renewing your car insurance online is a quick and easy process. Follow these steps to ensure a smooth renewal:
Step 1: Visit the Renewal Section
Go to the car insurance renewal section on your insurer’s website to begin the process.
Step 2: Enter Your Details
Fill in the required information, such as your name, date of birth, policy number, and other relevant details. Once completed, submit the form.
Step 3: Choose Your Car Insurance Plan
Select the car insurance plan you wish to renew. Make sure it aligns with your current needs and preferences.
Step 4: Select Add-Ons or Riders
If desired, choose any add-on covers or riders that you wish to purchase for enhanced protection.
Step 5: View Premium Amount
The premium amount payable for your renewed policy will be displayed on the screen. Review it carefully.
Step 6: Complete the Payment
Make the premium payment using net banking, debit card, or credit card. Ensure that the payment process is secure.
Step 7: Confirmation of Renewal
After completing the payment, your car insurance will be renewed. You will receive confirmation and policy documents via your registered email.
By following these straightforward steps, you can efficiently renew your car insurance online and maintain your coverage without any hassle.
The following table shows the difference between third party insurance and comprehensive car insurance:
| Coverage Offered | Third Party Car Insurance | Comprehensive Car Insurance |
|---|---|---|
| Third party bodily injury | Yes | Yes |
| Third Party Property Damage | Yes | Yes |
| Own damages of Car | No | Yes |
| Personal Accident Coverage | Yes | Yes |
| Car Theft | No | Yes |
| Availability of Add Ons | No | Yes |
When selecting car insurance, it’s essential to keep several factors in mind to ensure you make an informed decision:
1. Compare Car Insurance Plans:
Utilize online tools to compare various car insurance policies. Most insurers offer free quotes, enabling you to assess different plans based on coverage, services, and features. Choose the plan that best fits your requirements.
2. Assess Your Requirements:
Evaluate your insurance needs based on your car type, driving habits, and potential risks. This will help you choose an appropriate policy without incurring unnecessary costs.
3. Check for Add-on Covers:
Explore additional coverage options that can enhance your policy. When purchasing online, be selective and opt only for add-ons that you genuinely need for better protection.
4. Verify the IDV (Insured Declared Value):
Understand the approximate market value of your car and the maximum reimbursement amount in case of total loss or irreparable damage. Checking the IDV is crucial before finalizing your policy.
5. Review Customer Support:
Select an insurer that provides round-the-clock customer service, ensuring you can receive assistance whenever needed.
Consider these car insurance add-ons to make your policy more comprehensive and effective:
1. Zero Depreciation Cover:
This add-on ensures full reimbursement for any car parts that need replacement after an accident. Typically available only for the first three years, this coverage can become more expensive as your car ages.
2. Roadside Assistance Cover:
This cover provides access to services in emergencies while driving in remote areas, ensuring prompt assistance for any issues you may face.
3. Personal Accident Cover:
Personal accident cover protects the car owner in case of an accident. If the owner suffers irreparable damage or death, 100% of the claim amount will be provided.
4. No-Claim Bonus:
The no-claim bonus rewards policyholders who do not make claims during the policy year with discounts of up to 50% on the premium for the following year.
5. Engine and Electronic Circuit Cover:
This add-on protects your vehicle’s engine and electronic circuit. Traditional policies often do not cover damage from operating a flooded engine.
6. Loss of Belongings Cover:
This add-on allows you to claim for the theft or loss of personal belongings left in your car. If your laptop or expensive items are stolen from your locked vehicle, this cover can provide partial reimbursement.
7. Daily Cash Allowance:
If your vehicle is in the garage for repairs, the daily cash allowance cover provides compensation for transportation costs. However, this cover is less popular among Indian car owners due to the typically short repair duration.
8. Key Replacement Cover:
With a key replacement policy, you can be compensated for the cost of replacing lost or misplaced car keys. Note that insurers may not cover the full expense of a new key.
Considering these add-on covers can protect you from unexpected expenses and potential losses. However, not all add-ons may be relevant to your situation, so it’s advisable to carefully review your options and select those that will be most beneficial for you.
Understanding the factors that influence your car insurance premium can help you make informed decisions. Here are the key elements that impact your premium:
1. Insured Declared Value (IDV):
The IDV represents your car’s current market value, accounting for depreciation. A higher IDV typically results in higher premiums, as it reflects the greater amount the insurer would need to pay in case of a total loss.
2. Car Owner’s Driving Record:
The driving history of the car owner significantly influences premiums. A clean driving record with no accidents or claims often leads to lower insurance costs, while a history of accidents can increase premiums.
3. Make and Model of the Car:
Insurance premiums vary based on the car’s make, model, and class. Generally, sports cars and luxury vehicles attract higher premiums compared to standard models due to their higher repair costs and risk factors.
4. Safety Features:
Vehicles equipped with advanced safety features and anti-theft devices may qualify for reduced premiums. Insurers often offer discounts for cars that have modern safety technologies, which can lower overall insurance costs.
5. Coverage Needed:
The level of coverage you choose directly affects your premium. Comprehensive insurance policies typically require higher premiums, and opting for additional add-ons will further increase costs.
6. Frequency of Claims:
Policyholders who do not file claims during the policy term are often rewarded with a No Claim Bonus (NCB). This bonus results in discounts on future premiums, encouraging safe driving and fewer claims.
By considering these factors, you can better understand how your car insurance premium is calculated and make choices that may help lower your costs. Always evaluate your options to ensure you get the best coverage at a competitive price.
Car insurance is essential for several important reasons. Here are the key factors that highlight its necessity:
1. Mandatory by Law:
According to the Motor Vehicles Act, 1988, car insurance is compulsory for all vehicles on Indian roads. Driving without insurance can lead to penalties and potential suspension of your driving privileges.
2. Protection for You and Your Vehicle:
Comprehensive car insurance provides coverage for third-party damages, injuries, and damages to your own vehicle due to incidents such as fire, natural disasters, or vandalism. This protection ensures you are safeguarded against various risks.
3. Financial Support for Family:
Many car insurance plans include personal accident cover, which offers compensation in the event of the policyholder’s or family members’ death due to an accident. This coverage helps meet financial needs during challenging times.
4. Coverage for Legal Costs:
Car accidents can result in lengthy legal proceedings and associated expenses. With car insurance, legal costs are typically covered by the insurer, alleviating the financial burden on the policyholder.
5. Coverage for Third-Party Damages or Injuries:
Basic third-party insurance covers expenses related to damages or injuries to others involved in accidents. This includes hospital bills and repair costs, ensuring that you are protected against potential liabilities.
Having car insurance is not just a legal requirement; it also provides essential protection for you, your vehicle, and your family. Ensure you choose the right policy to safeguard against unforeseen events.
Insurance providers consider various factors when calculating car insurance premiums. Understanding these factors can help you make informed choices. Here are the key elements they evaluate:
1. Type of Car:
The make and model of the car significantly impact the premium. Luxury and sports cars usually attract higher premiums due to their increased repair costs and risk factors.
2. Age of Car:
The age of your vehicle also plays a crucial role. Newer cars typically have higher premiums because their market value is greater, while older cars may have lower premiums due to reduced IDV.
3. Geographical Zone:
The location where the vehicle is primarily used affects the premium. Areas with higher traffic density or higher rates of theft and accidents may result in higher insurance costs.
4. Insured Declared Value (IDV):
The IDV represents the current market value of the car, accounting for depreciation. A higher IDV leads to higher premiums, as it indicates a greater amount the insurer would need to pay in case of a total loss.
5. Cubic Capacity of the Engine:
The engine’s cubic capacity (CC) can influence the premium amount. Vehicles with larger engines often attract higher premiums due to their increased power and potential risk factors.
6. Regional Transport Office (RTO) Factors:
The registration details and RTO classification of the vehicle can also impact the premium. Different regions may have varying rates based on local regulations and risk assessments.
By understanding these factors, you can better navigate the car insurance market and make informed decisions that suit your needs and budget.
Understanding the car insurance claim process is essential for smooth handling of damages or losses. Below are the step-by-step procedures for different types of claims.
If your car is damaged, follow these steps to file a claim:
Step 1: Inform Your Insurer
Immediately notify your insurance provider by calling them if you’re involved in an accident or notice any damage to your car.
Step 2: Complete the Paperwork
Fill out the necessary paperwork, including a claim form, which can usually be obtained from the insurer’s website.
Step 3: Damage Assessment
The insurance provider will send a surveyor to assess the damage to your car. A report will be created for the insurer, and you will also receive a copy.
Step 4: Submit Documents
Collect the duly signed forms and documents from the garage and provide them to the surveyor, who will send them to the insurer.
Step 5: Receive Delivery Order (DO)
Once your documents and claims are approved, the insurer will issue a Delivery Order (DO) for cashless claims. After settling your car repair bills, you can retrieve your vehicle.
Step 6: Reimbursement Process
If you take your car to a repair shop, you will need to pay the fees upfront and can later get reimbursed by your insurer.
Step 7: Refund Eligibility
Depending on your auto insurance policy’s terms and conditions, you may receive a refund for the amount you paid out of pocket.
If you need to file a third-party claim, follow these steps:
Step 1: Inform Your Insurer
Notify your insurer immediately upon receiving a legal notice from a third party seeking compensation for damages you are liable for. Do not engage with the third party or agree to any settlements before contacting your insurance provider.
Step 2: Send Legal Notice
Forward a copy of the legal notice to your insurance company.
Step 3: Submit Required Documents
Provide copies of the FIR, your driving license, and the RC book of your vehicle to the insurance company.
Step 4: Insurance Company Review
The insurance company will review the records and specifics of the accident. If everything is satisfactory, they will assign a lawyer to represent you.
Step 5: Payment to Third Party
If the court determines that you are responsible for the damages, the insurer will make the payment to the third party.
If your car is stolen, follow these steps to file a claim:
Step 1: File an FIR
Lodge an FIR at the nearest police station to report the theft of your car.
Step 2: Submit FIR to Insurer
Provide a copy of the FIR to your insurance company.
Step 3: Final Police Report
Once you receive the final police report, send a copy to your insurance company. An investigator will be assigned by the insurer.
Step 4: Submit RC Book
After your claim is approved, submit the stolen car’s RC book to your insurer.
Step 5: Ownership Transfer
The ownership will be transferred from you to the insurance company.
Step 6: Provide Necessary Documents
Deliver the replica car keys and a letter of subrogation to the insurance provider. You must also submit a notarized indemnification on stamp paper.
Step 7: Claim Disbursement
Once all formalities are completed, the insurance company will disburse the claim amount.
| Circumstances | Documents Required |
|---|---|
| In case of making a claim | - Name of the insured individual - Policy number - Contact number - Date and time of the accident - Number of the vehicle - Make and model of the car - Location and extent of loss - Name of the garage along with contact information - Brief description of the accident |
| In case of accident damages | - Proof of insurance – cover note or policy copy - Registration book copy and original tax receipt - Driving license copy along with the original (of the individual driving the car at the time of the accident) - FIR or police panchanama (for bodily injuries or death or damage to third party and/or his/her property) - Estimate of the cost of repair - Payment receipts and repair bills following the completion of repairs |
| In case of theft of the car | - Original policy document or certificate - Registration book along with theft endorsement from the concerned Regional Transport Office plus tax payment receipt - Details of the insurance policy, such as policy number, period of insurance, and the insurance company - All sets of service booklets, keys, and warranty cards - FIR or police panchanama along with JMFC report or final investigation report - Acknowledged copy of letter addressed to the Regional Transport Office intimating theft |
No Claim Bonus (NCB) is a reward given to policyholders for not making any claims during the previous policy period. Currently, this bonus can range from 20% to 50% on the Own Damage premium, but it does not apply to the liability premium.
Zero Depreciation Cover is an add-on that provides full settlement on claims without deductions for depreciation. This coverage ensures that you receive the full value of vehicle parts replaced due to accidents, avoiding the common depreciation deductions seen in standard car insurance.
If you lose your insurance policy, obtaining a duplicate copy is straightforward. You can either visit your insurer’s office or, if you purchased your policy online, print the soft copy that was sent to you.
The easiest way to calculate your car insurance premiums is by using a Car Insurance Premium Calculator. Most lending banks offer this tool on their websites, and several reliable third-party calculators are also available online.
Yes, third-party cover is mandatory for all car owners, which includes coverage for medical expenses related to injuries or death of passengers. This insurance is essential for safeguarding against unforeseen incidents on the road.
If your application is rejected, consider comparing different insurance policies online and applying with another provider. Third-party insurance is mandatory for all vehicles in India, so you can secure this coverage even if faced with a rejection from one insurer.
For vehicles purchased on or before 31 March 2010, the Pollution Under Control (PUC) Certificate must be renewed quarterly. New cars, purchased on or after 1 April 2010, have a validity of one year for the PUC Certificate.
There is no limit on the number of claims you can raise within a policy year, as long as the policy is active. However, some add-on covers may have limits on the number of claims, which you can find detailed in the policy documentation.
Total Loss: A vehicle is considered a total loss when it is severely damaged or destroyed to the point where it cannot be repaired.
Salvage Loss: If a vehicle is declared a total loss but can be restored and made roadworthy, it receives a salvage loss designation. This rebuilt vehicle is often tagged as a ‘restored’ or ‘reconstructed vehicle.’
The policy term refers to the duration for which the insurance policy is active. This period starts from the inception date of the policy and is typically valid for one year, after which it must be renewed to maintain coverage.
Yes, you can retain your accumulated NCB if you renew your policy within 90 days of its expiry. However, if you renew the policy after this period, you will lose the NCB.
The Automotive Research Association of India (ARAI) was established in 1966 and is headquartered in Pune. ARAI plays a crucial role in developing rules and regulations for creating efficient, safe, and less polluting vehicles in India. They conduct testing, research, homologation, and frame regulations for vehicles manufactured in the country.
