Insurance is like a spare tyre. You may not require it, but not having one is not an option.

How Car Insurance Works in India?

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Policy Coverage

Customer Service

Claim Experience

Responsiveness

Cashless Garages

Car insurance is an agreement between the insurance company and the car owner wherein, the car owner will pay premiums and the insurance company covers for loss or damage caused to the car. Car Insurance is mandatory in India regardless of whether it is a commercial vehicle or a personal vehicle. Most of the insurance companies in India have tie-ups with car manufacturers and they offer car owners instant quotes.

Types of Car Insurance in India

There are two types of Car Insurances in India. Listed below are the two types of car insurance.

  • Third party liability insurance cover- Third party liability insurance offers limited protection. This type of car insurance protects you only against the costs incurred from the damage done by your vehicle to another vehicle, property or person.
  • Comprehensive insurance cover- Comprehensive car insurance offers cover against damage to the vehicle, death of the driver or passengers and damage caused by the vehicle to a third party vehicle, property or person.

Car Insurance Cover

Listed below are the features that are usually covered under a car insurance policy.

  • Bodily injury- It offers cover for any bodily injury incurred from an accident where the insured car was involved
  • Damage- It offers cover for the damage incurred to the car either due to an accident, theft or certain natural calamities
  • Third party property damage- It pays up for the damage incurred by a third party vehicle involved in an accident with the insured vehicle
  • Death- It also offers cover for the death of the driver/ passengers present in the insured vehicle at the time of accident or calamity

Factors that influence the premium of the car insurance

Listed below are some of the factors that influence the premium of a car insurance

  • Vehicle related factors-The make, type of fuel, model etc, all matter when it comes to determining the insurance for the car premium. Usually diesel cars attract a higher premium when compared to petrol cars.
  • Location-The premium usually tends to be higher in urban areas and near highways.
  • Driver-The age and profession of the driver also plays a role in determining the premium of the car insurance . Multiple drivers leads to higher premiums.

Car Insurance clauses and exclusions

Listed below are some of the car insurance clauses and exclusions.

  • Any issues related to the vehicle due to general aging of the car
  • Consequential loss
  • Mechanical breakdown of the car
  • Wear and tear of car parts such as tires
  • The policy won’t offer any cover for the damages incurred from using the car outside the geographical location of the country
  • No cover will be offered if the person is driving without a license
  • No cover will be offered if the driver was under the influence of alcohol or drugs
  • Damage incurred to the vehicle during a war or nuclear attack
  • The policy does not offer cover if the car was damaged while being used for purposes other than what was mentioned in the policy

How to make a claim?

Given below is the procedure to make a claim in case your car was involved in an accident or in any other valid incident.

  • As soon as the accident occurs, the driver or the passenger should note down the number plate of the other car in case of an accident with another car
  • Contact your insurance company immediately
  • File a claim with the insurance company and note down the claim reference number
  • Submit the documents required by the insurance company in order to make the claim
  • File an FIR at the nearest concerned police station

Advantages of a car insurance

Listed below are the advantages of a car insurance.

  • Car insurance provides benefit in case of death arising out of accidents
  • Covers the repair cost of vehicle repairs due to damage caused in an accident.
  • Covers damage caused by other than an accident for example, theft, fire, etc.
  • Offers cover for damage caused to third party

Car insurance is a very efficient tool that will protect your dream car against damages and mitigate your costs in case of an accident. There is no dearth of options for car insurance schemes on the market. It is always advisable to compare between different plans and choose the one suitable for you best.

GST Update: GST of 18% is applicable on car insurance effective from the 1st of July, 2017

Claim Reviews

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  • Royal Sundaram Car Insurance
    "Not satisfied with the service"
    0.5 1.0/5 "Really Bad"
    I had taken this insurance policy a while back and the experience with them has not been that good. For making the claim it had taken almost 20 days which was not good and it was not convenient. The services of then has to be improved and their customer care has to be improved and the staffs should be more responsible.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Feb 13, 2019
  • HDFC Ergo Car Insurance
    "Excellent Policy"
    0.5 3.5/5 "Pretty good"
    I had taken this insurance policy a long time back and i had been paying the premium on an annual basis. The premium amount was around 30,000 and the payment method has been simple. There has been a single claim which i had made so far and the services where very good and there has not been any difficulty faced.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Feb 13, 2019
  • Royal Sundaram Car Insurance
    "Satisfactory"
    0.5 4.5/5 "Excellent!"
    I have chosen Royal Sundaram for car insurance and done a online comparison. I have received the insurance paper. The premium was reasonable and the policy period is one year. They have good garages and also they are giving me n-number of claims can be done in a year. It is a comprehensive plan.
    Was this review helpful? 0
    , ghaziabad
    Reviewed on Feb 13, 2019
  • review Car Insurance
    "Average "
    0.5 3.0/5 "Satisfactory"
    I took my car insurance in Kotak General Insurance because I have account with them. The premium was reasonable. The claim experience was bit tough and it was not beneficiary. The customer service was good but need to improve the garages for cashless. The policy coverage was good but my experience was not satisfactory.
    Was this review helpful? 0
    , ghaziabad
    Reviewed on Feb 13, 2019
  • Shriram Car Insurance
    "Good"
    0.5 3.0/5 "Satisfactory"
    I took my car insurance in Shriram General Insurance before 3 years. Its not purchased based on the premium because one of my relative is working here. The customer service was good. The policy coverage is also good. It is a one year policy and first party insurance.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Feb 13, 2019
  • Reliance General Car Insurance
    "GOOD POLICY"
    0.5 4.0/5 "Great!"
    I have taken the car insurance policy with the RELIANCE GENERAL INSURANCE where the premium is nominal when compared to the others also the IDV value is good with this policy. They have provided the policy coverage of bumper to bumper with this policy.
    Was this review helpful? 0
    , namakkal
    Reviewed on Feb 12, 2019
  • United India Car Insurance
    "GOOD"
    0.5 4.0/5 "Great!"
    I have taken the car insurance policy with the UNITED INDIA INSURANCE where i have no claim experience with this insurance policy. I am using it since from last 3 years where the premium is lower compared to the others along with that they offers good IDV value.
    Was this review helpful? 0
    , new delhi
    Reviewed on Feb 12, 2019
  • review Car Insurance
    "Smart protection"
    0.5 4.0/5 "Great!"
    My showroom guy issued car policy from Bharati Axa, I didn't compare the cost of the policy. Its zero depreciation plan, bumper to bumper protection is there. They give 24 hours service, road side assistance its all standard. With best IDV on my Honda I20 car.
    Was this review helpful? 0
    , thane
    Reviewed on Feb 12, 2019
  • New India Car Insurance
    "Best policy"
    0.5 5.0/5 "Blown Away!"
    I took car insurance with New India Assurance for 1 year, a premium of Rs 5000 has to be paid for this insurance policy. There was no claim experience so far with this insurance. This policy has full coverage and the customer service is very good.
    Was this review helpful? 0
    , nasik
    Reviewed on Feb 11, 2019
  • Bajaj Allianz Car Insurance
    "Its Good but they need to provide less claim settlement"
    0.5 5.0/5 "Blown Away!"
    Bajaj Allianz cost of the car policy is reasonable, last year I paid the amount of Rs. 9000, now I need to pay Rs. 10,000 it has the benefits of zero dep and two times I have claimed it, first time my front mirror got damaged then second time back bumper got damaged. Only I paid the fine of Rs. 1000. Remaining they have taken care but claim settlement value is less, it should be 100%.
    Was this review helpful? 0
    , new delhi
    Reviewed on Feb 11, 2019
  • ICICI Lombard Car Insurance
    "Good"
    0.5 4.0/5 "Great!"
    I have purchased car insurance with ICICI Lombard. The premium was less when compared to others. I am using the service for one year. It is a third party insurance and it has bumper to bumper offer with zero dep and road side assistance. I have no claim and the hard copy have not received. I paid 13K through online to purchase the policy.
    Was this review helpful? 1
    , chennai
    Reviewed on Feb 09, 2019
  • Iffco Tokio Car Insurance
    "Good"
    0.5 3.5/5 "Pretty good"
    I am having a car insurance with Iffco Tokio. There is no claim experience. I have paid almost 10K for an insurance. My car is 3 to 4 years old, I think road side assistance is available. It is a first party insurance. The online payment is okay and very tedious.
    Was this review helpful? 1
    , gurgaon
    Reviewed on Feb 09, 2019
  • HDFC Ergo Car Insurance
    "Its Good"
    0.5 4.0/5 "Great!"
    When I was with HDFC Ergo, at the time the premium was reasonable for the car insurance, I have availed comprehensive third party with zero depreciation plan. Means its covered from front bumper to back bumper. I don't have any claim. However it has the 24 hours service , road side assistance.
    Was this review helpful? 0
    , bangalore
    Reviewed on Feb 09, 2019
  • HDFC Ergo Car Insurance
    "Smart Protection"
    0.5 4.0/5 "Great!"
    I have comprehensive plan its covers 100% of vehicle parts, I have renault duster, the IDV value is based on the year that I have purchased. They insurer got tie up with many showroom and centers in my area. 24 hours service available for breakage, no claim benefits are also applicable.
    Was this review helpful? 1
    , bangalore
    Reviewed on Feb 08, 2019
  • Iffco Tokio Car Insurance
    "Good"
    0.5 4.0/5 "Great!"
    I do have a car insurance with Iffco Tokio and my car is 5 years old. This is the only insurance company who can provided me a zero dep. The customer service was good. There was no claim experience till now. They do give a reminder call at the time of renewal. It is a first party insurance. Their policy coverage is also good.
    Was this review helpful? 0
    , new delhi
    Reviewed on Feb 08, 2019
  • Tata AIG Car Insurance
    "Need Improvement"
    0.5 4.0/5 "Great!"
    Last year I had policy from Tata Aig, the cost wise they are higher, I got 40% cheaper price in ACKO insurer for my car policy. However the benefits are same like idv and the pre pick up from t he zone, tyer claim and complete interior, zero dep, bumper to bumper benefits. Tata Aig claim percentage is low, two year back I had claim it was small accident they delayed the process, at last I got the vehicle after 15 days it was cashless I done lots of follow up.
    Was this review helpful? 0
    , bangalore
    Reviewed on Feb 07, 2019
  • HDFC Ergo Car Insurance
    "Trusted Insurer"
    0.5 5.0/5 "Blown Away!"
    Long back I had HDFC Ergo for my car, at the time they gave me best insured declared amount for my Maruthi car and the insurer got tie up with many centers. I never met any claim with them. During renewing or purchasing the plan the customer support is very helpful.
    Was this review helpful? 0
    , bangalore
    Reviewed on Feb 07, 2019
  • Bajaj Allianz Car Insurance
    "Good Experience"
    0.5 5.0/5 "Blown Away!"
    The claim process was good, the response is very good with Bajaj Allianz . My car got damaged in the first portion they done some painting, then I paid the nominal charges of Rs. 1000, remaining the insurer took care. I have VOLKSWAGEN AMEO, the premium amount was Rs.15,000 for one year. Its a normal third party insurance for my car.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Feb 07, 2019
  • National Insurance Car Insurance
    "Good"
    0.5 5.0/5 "Blown Away!"
    I had a car insurance with National insurance for one year and it was good. I had no claims with them. There was no reminder call from the customer service at the time of reasonable. The premium was okay but its quite high when compared to Bajaj Allianz.
    Was this review helpful? 0
    , ahmedabad
    Reviewed on Feb 04, 2019
  • Bajaj Allianz Car Insurance
    "Excellent"
    0.5 5.0/5 "Blown Away!"
    I am having my car insurance in Bajaj Allianz because the premium is less compared to others. Also they have given good IDV value. The policy period is one year. The customer service was better. I don't have any claim experience. It is a third party comprehensive plan.
    Was this review helpful? 0
    , ahmedabad
    Reviewed on Feb 04, 2019
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