Car Insurance

1. Comprehensive & Third-Party Coverage: Car insurance provides coverage for third-party liabilities, such as injury or property damage caused to others, along with own damage protection for your vehicle in case of accidents, theft, fire, vandalism, or natural disasters. A comprehensive policy combines both, offering more extensive protection. 

2. Add-on Covers for Enhanced Protection: Insurers provide a range of optional add-ons such as zero depreciation, engine protection, NCB protect, roadside assistance, windshield protection, towing assistance, and consumables cover, allowing you to customize your policy.

3. Personal Accident Cover: Provides financial coverage of up to ₹15 lakh in case of accidental death or permanent disability of the owner-driver, offering essential personal safety.

4. Affordable Premiums: Car insurance premiums start as low as ₹2094*, depending on the car, location, coverage type, and add-ons selected.

5. No Claim Bonus (NCB): Policyholders are rewarded with up to 50% discount on their premium for every claim-free policy year, promoting safe and responsible driving.

6. Discounts & Savings: Additional discounts are available for installing anti-theft devices, having ARAI membership, opting for higher voluntary deductibles, and maintaining a clean claim history.

7. Voluntary Deductibles: You can reduce your premium by choosing to pay a fixed portion of claim costs out-of-pocket. Higher deductibles lead to lower premium amounts.

8. Legal Liability Coverage: Offers protection against legal expenses in case you're held liable for third-party injuries, death, or property damage following an accident.

9. Easy Online Process: The entire buying and renewal process is online, making it fast, simple, and paperless for policyholders.

10. Cashless Repairs Across Network Garages: Access to a wide network of cashless garages enables hassle-free repairs without upfront payment, saving you time and effort during claims.

Benefits of Car Insurance Policy 

The following is the list of benefits of a car insurance policy:

1. Protection Against Natural Calamities: Car insurance safeguards you from financial losses caused by natural disasters like floods, earthquakes, cyclones, and storms by covering repair or replacement costs.

2. Protection Against Theft: If your car is stolen, the insurer compensates you with the Insured Declared Value (IDV), reducing your financial burden significantly.

3. Return to Invoice Cover: This add-on ensures reimbursement of the full invoice value of your car (including taxes and registration fees) in case of total loss or theft—ideal for new or high-value cars.

4. Coverage for Co-passengers: Some policies extend accident-related coverage to passengers, providing financial protection for medical expenses or compensation in case of injury or death.

5. Financial Security: Car insurance provides a safety net against major out-of-pocket expenses related to repairs, legal claims, or medical emergencies—offering long-term financial stability.

6. Peace of Mind: The overall benefit is the peace of mind it brings—knowing you're covered in the event of theft, accident, or natural disaster allows for confident, stress-free driving.

How Does Car Insurance Work?

Here are the details about how a car insurance work: 

1. Car insurance coverage depends on the type of policy you have. 

1. Without insurance, you bear all repair expenses for your vehicle in case of an accident. 

1. Comprehensive insurance covers repair costs for your vehicle. 

1. If your car damages a third party's property or causes injury, you are responsible for compensation. 

1. Third-party insurance covers damages, injuries, fatalities, and associated legal liabilities. 

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

Top Car Insurance Companies Online in India 2025

Check out the best car insurance policies offered by the top car insurance companies in India.

Types of Car Insurance Policies

Knowing the various types of car insurance coverage is essential for choosing the policy that best suits your needs. In India, these coverage options are designed to safeguard you, your vehicle, and others in case of accidents or unforeseen events. Here are the five main types of car insurance coverage available: 

Car Insurance Add-on Covers & Options

1. Engine Protection: Covers damage to the engine caused by external factors like water ingress or oil leakage. 

1. Roadside Assistance: Offers immediate help in case of breakdowns, including towing and minor repairs. 

1. Consumables Cover: Pays for consumables such as lubricants and bolts used during vehicle repairs. 

1. Key Replacement: Covers the cost of replacing lost or stolen keys. 

1. Return to Invoice Cover: Provides compensation equal to the car's original invoice price if it is deemed a total loss.

1. No Claim Bonus (NCB) Protection: Getting this cover keeps your NCB intact.

1. Road Assistance: This cover offers help during breakdowns, towing, battery-jump start and other similar scenarios. 

1. Daily Cash Allowance: Covers transportation costs if the vehicle is in a garage for 3–4 days, though less common due to shorter repair times.

1. Key Replacement: Compensates for expenses related to replacing lost or misplaced car keys, often covering only partial costs.

Note: Evaluate these add-ons carefully and select only those that suit your needs to avoid unnecessary expenses.

Popular Car Insurance Policies in India

Royal Sundaram General Insurance

1. Royal Sundaram General Insurance provides a range of insurance products across its 158 branches nationwide in India.
2. Its key features include quick claim settlement, affordable premiums, and 3300+ cashless garages to its policyholders.
3. Royal Sundaram Car Insurance has a Claim Settlement Ratio of 98.6%.
4. It comes with minimal documentation, affordable premiums, extensive coverage, 24x7 assistance, and add-on covers.

HDFC ERGO General Insurance

1. HDFC ERGO General Insurance offers car insurance for as low as Rs.2,072.
2. The insurer has widespread network of 8700+ cashless garages across the country.
3. It offers third party car insurance, comprehensive car insurance, private bundle car policy, and standalone own damage cover.
4. With a Claim Settlement Ratio of 97%, HDFC ERGO’s car insurance offers quick settlement of claims, overnight repair assistance, add-on covers, and many other benefits.

IFFCO Tokio General Insurance

1. IFFCO Tokio General Insurance provides a host of insurance plans to cater to the requirements of every individual.
2. With its affordable car insurance plans and 24x7 assistance, it settles claims within four hours.
3. IFFCO Tokio car insurance has a Claim Settlement Ratio of 95.82%.
4. The insurer has a widespread network of 4,300+ cashless garages.

The Oriental Insurance Company

1. The Oriental Insurance Company was incorporated in 1947 and has 1800+ operating offices across the country.
2. It offers niche products to meet the distinct needs of the country's urban and rural populations.
3. It has a Claim Settlement Ratio of 94%.
4. The Oriental Insurance Company’s car insurance comes with discounts on premiums, third party cover, and add-on covers.

Tata AIG General Insurance

1. Tata AIG General Insurance offers a wide range of insurance products to its customers.
2. Its car insurance plans let you save up to 75% on premiums.
3. The insurer has a high Claim Settlement Ratio of 99%.
4. It offers 13 add-on covers and has an extensive network of 6900+ cashless garages to ensure easy and quick claim settlement.

What is Covered & Not Covered Under Car Insurance Policy?

Here are the details of what a car insurance covers and does not cover: 

Note: Each policy has its own list of exclusions that you are expected to read carefully at the time of purchasing one.

How to Buy Car Insurance Online? 

To buy a car insurance online follow the steps mentioned below - 

Step 1: Research and select the car insurance provider that best suits your needs. 

Step 2: Visit the car insurance provider’s website and pick the best plan for yourself. 

Step 3: Once you select the plan, follow the steps of filling all the necessary details asked by the website. 

Step 4: Submit the form and proceed to the online payment page. 

Step 5: Complete the payment with your credit or debit card. 

Step 6: After the payment is done, you will get the policy document from the insurer through your registered email id. 

How to Renew Car Insurance Online?

Given below are the steps to renew your car insurance online:

Step 1: Visit the car insurance renewal section of your insurer.

Step 2: Enter the details like your name, date of birth, policy number, etc., and submit.

Step 3: Select the car insurance plan you wish to buy.

Step 4: Choose the add-on covers or riders that you wish to purchase (if required).

Step 5: The premium amount payable will be displayed on the screen.

Step 6: Make the premium payment via net banking, debit card, or credit card.

Step 7: Your car insurance will be renewed after you complete the payment.

Comparison Between Third-Party & Comprehensive Car Insurance:

The following table shows the difference between third party insurance and comprehensive car insurance: 

Points to Consider When Choosing a Car Insurance Policy

The following are the few things that you need to consider while choosing a car insurance:  

1. Compare Plans: Use online tools to compare car insurance policies based on quotes, services, and features. Choose a plan that best meets your needs. 

1. Evaluate Your Needs: Assess your car type, driving habits, and potential risks to select a policy tailored to your requirements without overspending. 

1. Consider Add-ons: Explore optional coverage to enhance your policy but choose only those add-ons that are truly necessary. 

1. Review IDV (Insured Declared Value): Verify your car’s market value and ensure the insurer provides adequate reimbursement for total loss or irreparable damage. 

1. Check Customer Support: Opt for an insurer with 24/7 customer service for reliable assistance whenever needed. 

Factors Affecting Car Insurance Premium

The following are the factors which affect a car insurance premium: 

1. Insured Declared Value (IDV):  IDV reflects your car's current market value, adjusted for depreciation. Higher IDV leads to higher premiums.

1. Car Owner: Premiums are influenced by the car owner's driving record. A clean record often results in lower premiums.

1. Make and Model: Premiums vary based on the car's make, model, and class. Sports cars generally have higher premiums than standard ones.

1. Safety Features: Vehicles equipped with anti-theft devices may qualify for reduced premiums. Modern safety features can also impact insurance costs.

1. Coverage Needed: Premiums depend on the coverage level. Comprehensive coverage typically requires higher premiums, with additional add-ons increasing costs.

1.   Frequency of Claims: No Claim Bonus (NCB) discounts are offered to policyholders who haven't filed claims during the policy term, reducing future premiums.   

Why Do You Need a Car Insurance?

The following are the reasons for Car Insurance:

1. Mandatory by Law: The Motor Vehicles Act, 1988, requires car insurance for all vehicles in India. Non-compliance can lead to penalties and suspension of driving rights. 

1. Protection for You and Your Vehicle: Comprehensive insurance covers damage to your vehicle, third-party damages, and incidents like fire, natural disasters, or vandalism. 

1. Financial Protection for Your Family: Personal accident cover in car insurance offers monetary compensation to the policyholder or their family in the event of death or serious injury resulting from an accident. 

1. Coverage for Legal Expenses: Car insurance helps cover legal costs incurred due to an accident, easing the financial burden of legal proceedings. 

1. Third-Party Liability Coverage: A standard third-party insurance policy covers expenses related to injuries or property damage caused to others, including medical and repair costs. 

How to Calculate Car Insurance Premium?

There are various factors that the insurance provider takes into account while calculating the car insurance premium. These factors are mentioned below - 

1. Type of car 

1. Age of car 
2. Geographical zone 
3. Insured Declared Value (IDV) of the car 
4. Cubic capacity of the engine Regional Transport Office

Car Insurance Claim Process for Damages to Your Own Car

For damage occurred to your car, the car insurance claim process is as follows: 

1. Step 1: Report the theft at the nearest police station as soon as possible and obtain an FIR that includes all necessary details about the incident and your vehicle. 

1. Step 2: Contact your insurance company and inform them about the theft. Share a copy of the FIR, vehicle details such as make, model, and registration number, along with any witness information if available. 

1. Step 3: The insurer will review your claim by examining the FIR and may conduct an investigation, which could include speaking to witnesses and verifying the facts.

1. Step 4: Submit Documentation Provide required documents like the FIR, vehicle RC, driving license, car keys (if available), and any other insurer requests.  

1. Step 5: Loss Assessment The insurer calculates the claim amount based on the vehicle’s Insured Declared Value (IDV) and depreciation.  

1. Step 6: Claim Settlement The insurer processes the claim and settles it, minus any applicable deductible.

Car Insurance Claim Process for Third Party Claims

The car insurance claim process for a third-party claim is as follows:

Third-party motor insurance claim for disability, injury, or death:

Step 1: File an FIR with the police immediately after the accident and obtain a copy. 

Step 2: Get the third-party motor insurance details from the car owner. 

Step 3: Obtain a copy of the charge sheet filed by the police against the car owner. 

Step 4: Hire a motor claims lawyer and file a compensation case in the Motor Accident Claims Tribunal. 

Step 5: The case must be filed in the tribunal court where the accident occurred or where you reside. 

Step 6: Out-of-court settlement may be proposed, but involving authorities is advised.   

Third-party car insurance compensation claims for property damage: 

Step 1: File an FIR and get a copy, along with the charge sheet. 

Step 2: File the claim in the local tribunal court. 

Step 3: Compensation will be assessed based on submitted documents and statements. 

Step 4: The maximum compensation limit for property damage is Rs. 7.50 lakh.   

Car Insurance Claim Process for Stolen Car

The car insurance claim process for stolen car is as follows:

1. Step 1: File a Police Report Report the theft immediately at the police station and get an FIR with details of the theft and vehicle. 

1. Step 2: Inform Your Insurance Company Notify your insurer with the FIR, vehicle details (make, model, registration), and any available witness info. 

1. Step 3: Insurer’s Investigation The insurer will verify the claim, investigating the FIR and possibly interviewing witnesses. 

1. Step 4: Submit Documentation Provide required documents like the FIR, vehicle RC, driving license, car keys (if available), and any other insurer requests. 

1. Step 5: Loss Assessment The insurer calculates the claim amount based on the vehicle’s Insured Declared Value (IDV) and depreciation. 

1. Step 6: Claim Settlement The insurer processes the claim and settles it, minus any applicable deductible. 

Documents Required for Filing a Car Insurance Claim 

The following is the list of documents required for filling a car insurance claim: 

How to Avoid Car Insurance Claim Rejection

The following are some of the vital points that should be remembered to avoid rejection of car insurance claim: 

1. Renew policy on time otherwise the insurer will reject your claim request. 

1. Declare every detail related to car modification to avoid rejection of claim in case you inform during processing your claim. 

1. Keep mandatory documents handy to process your claim and avoid rejection. 

1. For hassle-free claim settlement read policy terms and conditions thoroughly. 

1. Always keep your driving license while driving to avoid claim rejection. 

1. While purchasing a car insurance policy, declare the NCB (No Claim Bonus) correctly otherwise your claim request may get rejected. 

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