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

How Much Car Insurance Is Really Needed?

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You often spend a lot of time deciding on a health or life insurance policy; but have you given that much thought to the coverage under your car insurance? What if your vehicle is damaged in an accident that may or may not be your fault? Will you have enough money to avoid having legal liabilities and a financial mess on your hands?

Whatever be the model of car you drive, it is imperative that you have adequate insurance coverage, so that your life and vehicle are protected. Hence, it is important to be aware of the different types of car insurance plans available to you in the market, how each plan works, and how much insurance is too much!

Types Of Auto Insurance Covers:

There are two types of car insurance plans available in India. These have been explained below:

  1. Third-party liability insurance plan - This is a plan that offers protection from legal liabilities arising out of events such as accidental third-party injuries, death, or property damage. In other words, this plan protects your vehicle from legal repercussions if you are responsible for an accident in which a third party has suffered some losses. This coverage is also the minimum level you need to have to be able to drive in India. If you are caught driving without this insurance cover, you are liable to face heavy penalties or even prison term.
    1. It is important to note that this insurance plan does not offer coverage to the insured vehicle itself. So, if your vehicle has also been damaged in the aforementioned accident, you cannot claim for the damage repair expenses.
    2. Some insurance companies in India offer a Personal Accident cover for the owner/driver of the vehicle along with the third-party liability insurance plan.
    3. The third-party liability insurance policy is also referred to as a liability-only plan or act-only policy, and is usually cheaper than other forms of car insurance.
  2. Comprehensive car insurance plan - A comprehensive car insurance policy is inclusive of the following coverage:
    1. Own-damage cover - This insurance cover protects the insured vehicle from the following damages:
      1. Natural calamities such as floods, landslides, lightning, etc.
      2. Man-made disasters such as theft, strikes, riots, etc.
      3. In-transit damages to the vehicle - This includes damages while the car was transported via rail, road, lift, inland waterways, etc.
    2. Third-party liability insurance - This insurance cover is similar to that explained above for the standalone policy.
    3. Personal Accident cover for the owner/driver - The comprehensive car insurance policy protects the owner/driver of the insured vehicle from accidental injuries and death. However, this coverage is not extended to the passengers.

In addition to the above, the comprehensive policy can be enhanced through add-on covers that can be bought separately from the insurance company. So, you can buy add-on insurance coverage such as engine damage cover, No Claim Bonus (NCB) protect cover, zero depreciation cover, and many more this way. The comprehensive auto insurance policy is also referred to as a package plan, as it is a bundle of insurance coverage that protects the car and its owner from various incidents.

So Which Car Insurance Plan Do You Really Need?

The answer to this question depends on various factors such as your budget, your driving abilities, and your area of residence, to name a few. There is no one-size-fits-all solution as far as auto insurance is concerned. You will have to assess your specific insurance needs and come to a decision.

  • Take into account the possibility of car theft or accidents in the area where you reside.
  • You should also assess your confidence as a driver. New drivers should ideally opt for a comprehensive insurance plan so as to avail extended coverage.
  • In case your vehicle is not used all that much, you may limit its insurance coverage to a liability-only plan.
  • If you are on a shoestring budget, you can consider taking a third-party liability standalone plan. You can also consider using public transport till things are looking up on the financial front.
  • You should also check whether you need add-on coverage and select only the ones that are really necessary. For instance, if you live in a flood-prone area, it makes sense to buy an engine protect add-on insurance cover for your vehicle. You should not opt for extended insurance unless you are prone to the risks covered under the add-on plan. Otherwise, this may cause an unnecessary hike in your car insurance premium.
  • When deciding on voluntary deductibles, choose wisely. If you are an experienced driver, you can afford to opt for high voluntary deductibles.

You can compare car insurance plans between insurance providers and arrive at a cost-effective solution. This facility is available at neutral financial websites, free of extra charges. So, make use of this facility as much as possible. This not only eases your journey of picking the right insurance for your needs, it also helps you save a significant amount of money in the long run.

Car Insurance Reviews

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  • HDFC Ergo Car Insurance
    "Need to reduce the premium"
    0.5 4.5/5 "Excellent!"
    I had a car insurance with HDFC Ergo and I felt the premium is very high hence I changed my insurance provider. The customer service is very good. There was no claim experience. The policy period is one year. It is a zero dep policy which includes bumper to bumper and RSA. It is a first party insurance.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Jan 23, 2019
  • New India Car Insurance
    "Good"
    0.5 5.0/5 "Blown Away!"
    My car insurance was recently purchased with New India Assurance through online. When I logged into the online site it gives better option with multiple insurer and I felt New India Assurance is good with reasonable premium and better benefits. I have paid 13,500 rupees for a year. I got the insurance paper. The claim experience is very good.
    Was this review helpful? 0
    , hyderabad
    Reviewed on Jan 23, 2019
  • ICICI Lombard Car Insurance
    "Good Policy."
    0.5 3.0/5 "Satisfactory"
    I have bought my car insurance with ICICI Lombard for last 5 years which I'm continuing for with the same company. The claim experience was better and when i applied for the same, they have given upto 80%. Its covered with bumper to bumper facility. They have given the claim in 1 week.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jan 22, 2019
  • Royal Sundaram Car Insurance
    "Good policy "
    0.5 5.0/5 "Blown Away!"
    My car insurance was purchased in the year 2014 with Royal Sundaram. My dealer has recommended me about this policy. I pay the premium amount of Rs. 14000 with the coverage value of Rs. 6.27 lakhs which covered with the bumper to bumper facility.
    Was this review helpful? 0
    , ahmedabad
    Reviewed on Jan 22, 2019
  • Bajaj Allianz Car Insurance
    "Good Policy"
    0.5 3.0/5 "Satisfactory"
    I had taken this insurance policy a while back and the premium amount has been quite good and not too high. The payment method has been easy and there has not been any sort of charges, and the policy covers bumper to bumper. Their customer support has also been responsive and was helpful as well.
    Was this review helpful? 0
    , mumbai
    Reviewed on Jan 22, 2019
  • ICICI Lombard Car Insurance
    "Its Good"
    0.5 4.0/5 "Great!"
    There was no claim experience for my Tata Tiago with ICICI Lombard. I have renewed the car policy at last june, I paid the amount around Rs. 10,600 because its around 1.5 year old vehicle. I took comprehensive plan which includes loss , damage, ICICI Lombard got tie up many showroom.
    Was this review helpful? 0
    , new delhi
    Reviewed on Jan 21, 2019
  • ICICI Lombard Car Insurance
    "Best cover"
    0.5 4.0/5 "Great!"
    Very recently I took policy from Car insurance for my new Baleno car, it was done by ICICI bank, they deducted insurance fee from the loan. The loan department issued the policy copy on time. For first year its 100% coverage available its a bumper to bumper with ex showroom.
    Was this review helpful? 0
    , new delhi
    Reviewed on Jan 21, 2019
  • ICICI Lombard Car Insurance
    "Good Car Insurance policy"
    0.5 4.0/5 "Great!"
    I have selected the ICICI Lombard for my car since the dealer has given me this insurance. I have been paying the premium amount of Rs. 15000. This is not covered for the bumper to bumper facility. They have given me a IDV value of Rs, 3.10 lakhs. They are providing the good garage facility all over the city.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jan 21, 2019
  • United India Car Insurance
    "Yet to experience the policy"
    0.5 3.0/5 "Satisfactory"
    I have applied the claim for my car recently. I have given the car into the showroom and they have asked me to inform in the insurance company. When i visited other branch they have asked me to the home branch. They have given me a sufficient IDV value. Its covered with a bumper to bumper facility.
    Was this review helpful? 0
    , chennai
    Reviewed on Jan 21, 2019
  • ICICI Lombard Car Insurance
    "Reliable Policy"
    0.5 5.0/5 "Blown Away!"
    Purchased my car insurance through ICICI Lombard and They have given me a low premium since i have taken a loan from ICICI bank. They have given me a good IDV value. This is a bumper to bumper covered policy. They have given me a road side assistance, no claim bonus benefits.
    Was this review helpful? 0
    , chennai
    Reviewed on Jan 21, 2019
  • National Insurance Car Insurance
    "Good Insurance"
    0.5 3.0/5 "Satisfactory"
    My Honda amaze car got insured with National insurance for one year of tenure period. I think my old premium amount was around Rs.30,000. I took first party comprehensive plan it covers for loss, damage, theft. The customer support is good even the IDV is good.
    Was this review helpful? 0
    , bhubaneshwar
    Reviewed on Jan 21, 2019
  • ICICI Lombard Car Insurance
    "Competitive price"
    0.5 5.0/5 "Blown Away!"
    I have taken a car insurance from ICICI Lombard and the service is really good. I spoke wtih the customer care once for the claim. The garage people taken care of the full settlement process. The premium amount is nominal. They have given me a best claim what they can offer according to their norms.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jan 21, 2019
  • Royal Sundaram Car Insurance
    "Economic offering and wide accessibility"
    0.5 5.0/5 "Blown Away!"
    Because it was good comparison between other companies hence i have chosen the Royal sundaram. The premium amount is reasonable. The IDV value is good. This a comprehensive policy which covers third party insurance. They have tie up with most of the garages. They have cashless facility in most of the places.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jan 21, 2019
  • Royal Sundaram Car Insurance
    "Average"
    0.5 3.0/5 "Satisfactory"
    I took my car insurance with Royal Sundaram. I never contacted the customer service. It is a default insurance from the showroom. The premium is high because I go for bumper to bumper offer, road side assistance, zeo dep. It is a first party insurance and no claim. The policy period is one year.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jan 19, 2019
  • SBI General Car Insurance
    "Good Policy"
    0.5 4.0/5 "Great!"
    The showroom people has offered me a car insurance policy with SBI. I have made a premium amount of Rs. 22000. They have given me a coverage value of 100%. Total IDV value is 90% of the car value. I have no claim experience till now. The documentation process was done by showroom.
    Was this review helpful? 0
    , new delhi
    Reviewed on Jan 19, 2019
  • National Insurance Car Insurance
    "Smart protection with National"
    0.5 4.0/5 "Great!"
    The major factor to chose National Insurance because of the premium is economic, I took the policy for 3 years the IDV value remains the same for the whole tenure. The customer support is good on time they activated the policy. I have Tata Tiago , its around four months vehicle. Its zero depreciation comprehensive plan. I taken the policy through showroom.
    Was this review helpful? 0
    , lucknow
    Reviewed on Jan 19, 2019
  • ICICI Lombard Car Insurance
    "Satisfied with the policy"
    0.5 5.0/5 "Blown Away!"
    My car insurance is with ICICI Lombard. The customer services are good and I got the policy documents on time. The policy coverage is good and there are features of a road side assistance is there. The premium is economical too. Good overall.
    Was this review helpful? 0
    , bangalore
    Reviewed on Jan 19, 2019
  • ICICI Lombard Car Insurance
    "Need to reduce the premium"
    0.5 3.0/5 "Satisfactory"
    I had a car insurance from ICICI LOMBARD which was offered by the showroom at the time of purchasing the vehicle. I felt the insurance premium is very high compared to others. I got a reminder call from the customer service at the time of renewal. It has zero dep for one year.
    Was this review helpful? 0
    , new delhi
    Reviewed on Jan 19, 2019
  • Tata AIG Car Insurance
    "Excellent"
    0.5 5.0/5 "Blown Away!"
    I took my car insurance from TATA AIG through online channel. They have given lesser premium with zero dep and it includes road side assistance. The customer service is very good. The policy period is one year. I have no claim experience. It is a first party insurance.
    Was this review helpful? 0
    , new delhi
    Reviewed on Jan 19, 2019
  • Tata AIG Car Insurance
    "Satisfied policy"
    0.5 5.0/5 "Blown Away!"
    TATA AIG is the best company to take the car insurance. Since long time i have taken this insurance. The customer care people used to call me to renew the policy and they used to policy renewal letter. I will do payment through online. Several times i have claimed the policy and i have received very good response.
    Was this review helpful? 1
    , hyderabad
    Reviewed on Jan 18, 2019
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