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Best Car Insurance In India

July 28, 2022

Looking for a Best Car Insurance In India?
Great! You have reached the right place; we are here to help you, make sure to read the article carefully to know the companies for car insurance.

While driving, you might meet with an accident, regardless of how careful you are, and end up with hefty car repair bills.

A car insurance policy is a legal agreement between you and your auto insurance company that grants protection to your four-wheeler against unforeseen financial losses due to accidents and natural calamities.

This policy provides financial protection against damage or loss owing to an accident, which means that you are transferring your risk of accident, car damage, or any injury to another party.

Keep your car insurance policy papers in your vehicle at all times and show them only to traffic cops on request. A complete car insurance policy protects against third-party liability.

It covers any damage to the four-wheeler caused by happenings such as accidents, theft, fire, and natural catastrophes like lightning, storms, and earthquakes, as well as damage caused by incidents like vandalism and rioting.

You can also opt for a personal accident cover that will cover your injuries and severe physical damage in the event of an accident. We recognize several types of four-wheeler insurance, such as third-party car insurance,

That protects you against financial consequences, vehicle damage, or personal or third-party injury. This auto or liability insurance covers the policy only if it does not cover damage to the insured vehicle.

Top 10 Best Car Insurance In India With Buying Guide (Updated 2022)

Types of automobile insurance available in India

If you are purchasing auto insurance, be aware of different auto insurance policies and their coverage to find the appropriate policy for you. Listed below are some of the most common types of automobile insurance and what they cover:

  • Liability protection insurance: Liability insurance is required to drive a car in India. Liability insurance may help cover damages for injuries and property damage to others after a covered accident for which you are legally responsible.
  • Collision coverage: Collision insurance protects your vehicle in the event of a collision with another automobile, and it assists in the repair or replacement of a covered four-wheeler. 
  • Comprehensive insurance that covers everything: Comprehensive coverage may provide additional protection in case of a collision. It may assist in compensation for damage to your car caused by events other than crashes, such as vandalism, certain weather events, and animal accidents.
  • Third-party insurance cover: This basic coverage pays out damages to third parties if the insured vehicle is involved in an accident. It protects you from all third-party legal liabilities that may arise from an accident. It covers bodily injury or death to a third party (as determined by a court of law) and property damage valuation up to Rs. 7.5 lakhs.
  • Insurance for uninsured drivers: You can protect your uninsured driver by protecting yourself and your vehicle. You can combine it with uninsured motorist coverage.
  • Insurance to cover medical charges: Medical bills after an accident can be high. Medical payments coverage can assist in the repayment of medical expenses incurred as a result of a covered accident, regardless of who is at fault.
  • Insurance for personal injury protection: Insurance may cover certain medical expenses and income loss from a covered accident. Depending on the policy limitations, your injury insurance may pay up to 80% of medical and other expenditures arising from a covered accident.
  • Insurance to cover the gap: An auto insurance payout may not be enough to cover the cost of a loan because the value of an automobile depreciates fast. In the case of a total loss or theft, gap insurance may help some drivers afford the amount owing on a car loan.
  • Insurance for towing and labour: Towing and labour insurance, which is available if you already have comprehensive auto insurance, may compensate you for a tow as well as labour charges to fix your four-wheeler. 
  • Insurance for rental reimbursement: Problems may crop up regarding travelling in the wake of an accident. Rental reimbursement insurance may be able to help you pay for a rental automobile if you are unable to drive your car following an accident.
  • Insurance for classic automobiles: Classic vehicle insurance provides specialist coverage tailored to the specific demands of collectors of antique and classic four-wheelers. Determine whether antique automobile insurance is appropriate for you. 

The top 5 car insurance companies in India by claim settlement ratio

The claims settlement ratio is one factor that determines which provider is the best. According to claim resolution ratios for 2021, below is a list of India's top 5 auto insurance providers:

IFFCO-Tokio General Insurance Company:

The company established IFFCO-Tokio General Insurance Company Limited in 2000 as a joint venture between the Indian Farmers Fertilizer Cooperative Limited, the world’s largest fertiliser manufacturer, and Tokio Marine Group, one of the largest insurance groups in Japan.

No Claim Bonus, roadside help, and cashless claims at network garages are some of the benefits of IFFCO Tokio car insurance plans

Features

  • You can also encompass add-on covers under your IFFCO Tokio car insurance plans, including engine protection, zero depreciation cover, roadside help, No Claim Bonus protection, and return to the original bill value.
  • In 2019–20, IFFCO showed a claim settlement ratio of 95.30%
  • IFFCO Tokio General Insurance is the best insurance company in India.
  • You can also involve add-on covers under your IFFCO Tokio car insurance plans, including engine protection, zero depreciation cover, roadside assistance, No Claim Bonus protection, and return to the invoice value.
Royal Sundaram General Insurance Co. Limited

The IRDA licensed Royal Sundaram General Insurance Co. Limited, formerly known as Royal Sundaram Alliance Insurance Company Limited, as the first private sector general insurance company in India in October 2000.

Sundaram Finance is one of India’s most respected non-banking financial institutions (NBFC). 

Royal Sundaram General Insurance is ranked second on the list with a claim settlement ratio of 92.66%. The insurance company protects your car in an unforeseen event. 

Features

  • Some benefits offered under Royal Sundaram car insurance plans are free roadside help and an automobile association of India membership discount.
  • These plans encompass a variety of add-on covers from which you can select the one most suited to your needs
  • Their plan includes car tyre coverage, key protector, No Claim Bonus protector, full invoice price cover, depreciation waiver cover, loss of baggage cover, windshield glass cover, spare car clause, voluntary deductible cover, and lifetime road tax clause.

Indian insurance enthusiasts started the Oriental Insurance Company Ltd. on September 12th, 1947, in Mumbai.

They formed the company to carry out the general insurance business, which became a wholly-owned subsidiary of The Oriental Government Security Life Assurance Company.

The company was a subsidiary of LIC India from 1956 to 1973

Features

  • Oriental Insurance Company has a claim settlement ratio of 91.76%
  • It is a public insurance company that offers complete protection for your car.
  • It involves discounts for anti-theft devices, No Claim Bonus, online policy renewal, Automobile Association Membership Discount, etc. You can also purchase an add-on with the plans for an additional fee.
  • The Oriental Insurance Company offers alternate car benefits, nil depreciation cover, and loss of personal effects.
HDFC ERGO GI Company Ltd

The HDFC ERGO GI Company Ltd. is part of the ERGO International Group and is the primary insurer of the Germany-based Munich Re Group.

They provide a complete range of general insurance products ranging from motor, health, travel, home, and personal accident in the retail space to customised products like property, marine, and liability insurance in the corporate sector.

Features

  • HDFC Ergo General Insurance is another famous insurance company with an acceptable claim settlement ratio of 91.23%.
  • With policy plans, you can buy beneficial add-on protection as well.
  • They have some USPs, such as zero depreciation cover, No Claim Bonus protection cover, return to invoice, downtime protection, engine and gearbox protection, emergency help cover, etc.
  • You can enjoy more coverage with a higher premium.
Universal Sompo General Insurance Co. Ltd

Being a joint venture of multiple banks, this insurance company is a prominent Japanese general insurer.

In November 2007, the company received its IRDA licence.

Features

  • Universal Sompo General Insurance also has a claim settlement ratio of 90.78%. It showed among the best car insurance companies in India in 2021.
  • Universal Sompo General Insurance offers exclusive benefits to policyholders, such as a no-claim bonus and a voluntary excess discount.
  • Nil depreciation cover, return to invoice, secure towing, NCB protector, roadside help, and accidental hospitalisation clause are some of the add-on benefits offered under the plans.

The top five car insurance companies in India based on cashless garage network

Listed below are the top five insurance companies in India that have an outstanding cashless garage network:

  • Cholamandalam Car insurance

  • HDFC ERGO Car Insurance

  • SBI Car Insurance

  • Bharti Axa Car insurance

  • Royal Sundaram Car Insurance 

Top five car insurance companies

Cashless Garage Network

            Claim settlement ratio  

Cholamandalam Car insurance

6900+

85.89%

HDFC ERGO Car Insurance

6800+

  91.23%.  

SBI Car Insurance

5400+

89.51%.

Bharti Axa Car insurance (Now ICICI Lombard)

5200+

87.99%

Royal Sundaram Car Insurance

4600+

92.66%

1. Cholamandalam Car insurance

1. Cholamandalam Car insurance

Cholamandalam General Insurance's comprehensive car insurance policy includes all of the features.

They provide users with a degree of security and complete peace of mind.

Cholamandalam car insurance covers accidents, losses, and damages caused by natural disasters like cyclones, earthquakes, floods, and tragedies like riots.

Features

  • Cholamandalam MS General Insurance, commonly referred to as Chola MS, is a major general insurance company in India.
  • It is a joint venture between the Murugappa Group, an Indian conglomerate, and the Mitsui Sumitomo Insurance Group, a Japanese insurance company.v
  • %.Cholamandalam MS General Insurance Company Ltd has a cashless garage network with more than 6900 garages, and they maintain a claim settlement ratio of 85.89

2. HDFC ERGO Car Insurance

HDFC ERGO Car Insurance

HDFC ERGO offers an extensive range of general insurance products, including auto, health, travel, home, and personal injury insurance for consumers, as well as specialised goods like property, marine, and liability insurance for the profession.

HDFC ERGO has a network of 6,800+ cashless garages across India. HDFC ERGO has a vast network of cashless garages, and they will be your friend in need.

Additionally, their 24x7 roadside help ensures that assistance is just a phone call away, and HDFC Cargo will take care of your car anywhere, anytime.

Features

  • HDFC ERGO Car Insurance has a network of 6800+ cashless garages and maintains a claim settlement ratio of 91.23%

3. SBI Car Insurance

SBI General Insurance is a general insurance joint venture. The State Bank of India is India's largest state-owned banking and financial services firm.

SBI owns 70% of the total capital of the company.

Features

  • Axis Bank Asset Mgt Co, Premji Investments, and Warburg Pincus are among the prominent stakeholders in the funv
  • SBI Car Insurance has a network of over 5,400 cashless garages and a claim settlement ratio of 89.51%.

4. Bharti Axa Car insurance

ICICI Lombard General Insurance Company has acquired Bharti Axa General Insurance.

Some key features of the ICICI Lombard private car package insurance policy include low premiums, simple renewals, and quick claim settlement.

ICICI Lombard also has a network of certified workshops that offer digital surveys for faster claim processing, pick-up and drop-off, a dedicated customer service manager, and quality assurance on services.

You can save a lot of money on renovation if you choose add-ons in your car insurance policy.

Features

  • Bharti Axa Car insurance or ICICI Lombard Car Insurance has a network of over 5,200 cashless garages and a claim settlement ratio of 87.99%.

5. Royal Sundaram Car Insurance

In October 2000, the IRDA licensed Royal Sundaram General Insurance Co. Limited, formerly known as Royal Sundaram Alliance Insurance Company Limited, as India's first private sector general insurance company.

Features

  • Royal Sundaram Car Insurance has a network of over 4600 cashless garages and a claim settlement ratio of 92.66%.

What are the steps to purchasing car insurance online?

There are six online steps to buying new car insurance:

  1.  You may start by doing extensive research on four-wheeler insurance. Three crucial factors, as shown below, must be included in your investigative effort:
    • The policy's price tag
    • Adequate insurance coverage for the company's four-wheeler
    • Customer service of the company
  2.  You can choose either third-party or comprehensive insurance as an alternative.
     
  3. You should keep your information close at hand, and the document must have:
    • Your four-wheeler registration number.
    • Your four-wheeler's make and model details
    • Your details, including your address, photo, and Adhar card details.
    • Your preferred payment details, such as bank account details
    • Your preferred choice for four-wheeler insurance type and other details
    • Your add-on details coverage details, if any
    • You can share your four-wheeler details and your expected car delivery schedule
  4. You can add all the necessary details. Make sure that you fill in all the data accurately.

  5. You can enter your insured declared value or IDV and choose the appropriate add-ons that are applicable for comprehensive car insurance policies. You can select the Regional Transport Office spot where your vehicle will be registered.

  6. Make the payments and download your new car insurance policy.

How can you pick the best insurance firm in India?

The best auto insurance business response is subjective because it varies from person to person, depending on their needs. For some, the vehicle insurance company has a good claim settlement ratio.

Others believe that the insurance provider has a broad network of cashless garages. Thus, several parameters make an insurance company the best for an individual. When choosing a car insurance company, take into account the following factors:

  1. Network of cashless garages: To facilitate cashless insurance claims, insurance companies may create networks of cashless garages. When selecting an automobile insurance provider, you must consider the reliability of the insurance company's network of cashless garages. It is also a good idea to check any cashless garages in the area.

  2. The ratio of claim settlement: A claim settlement ratio informs us how many claims an automobile insurance company settled out of all the assertions it received during a fiscal year. It is always preferable to work with an insurance provider that has a high claim settlement ratio.

  3. Availability of add-ons: Check if users can exercise add-ons optional items to auto insurance policy to boost coverage. Add-ons are available with both own-damage and comprehensive auto insurance policies. Users can go for policy purchases or car insurance renewal. 

Customer support service: It is also necessary to investigate the availability and quality of an insurance company's customer support service. While some insurance companies provide 24x7 customer support, some offer 5-day customer assistance services.

Benefits Of Purchasing Car Insurance

With the insurance industry gaining traction, the number of people looking for answers online is increasing. When it comes to four-wheeler insurance, possibly you may get the same thing related to coverage and risk:

  1. It is cheaper and has paperless transactions

  2. You can submit the necessary details online without an insurance agent. 

  3. Easy, time-saving, and convenient

  4. Faster Instant Policy

  5. Easy endorsements in the policy

  6. You directly deal with responsive portals.

  7. You can do an online comparison with other car insurance establishments. 

  8. All your policy documents are backed up or saved in one place.

  9. You can relax with review policies and read others' reviews.

  10. You will receive confirmation reminders, and you will not be required to fill in all of the information at the time of renewal

Frequently Asked Question

Q1. How do you switch from one car insurance company to another?

We believe that staying with a single insurance provider over an extended period is not a good idea. According to insurance industry experts, switching auto insurance policies every few years is the best way to get the best cost.

When you switch insurance providers, you may save money on your rates. You have the option of changing automobile insurance companies at any moment. At the time of renewal, you have the option of switching from one auto insurance carrier to another.

While doing so, you can follow the steps listed below:

  • Look for a good auto insurance policy on the internet.
  • Examine your needs or requirements. 
  • Keep your current insurer informed.
  • When choosing a new insurer, be cautious.
  • You can plan on future advantages


Q2. Will car insurance companies pay for all the damages in a car accident?

A car insurance claim is reimbursement for damage or expenses resulting from an unfortunate occurrence. Your car insurance company may determine the amount and scope of your claim value based on your insured declared value (IDV)

And the type of car insurance policy you purchased, such as third party, own damage, or comprehensive coverage.

Q3. How does a car insurance company provide coverage without checking the condition of the car in India?

The insurance company does not demand a car inspection for third-party car insurance because only third-party liabilities are covered. When you switch to a more complex auto insurance policy, such as third-party to comprehensive coverage, your insurance provider will evaluate your vehicle.

In addition, if you choose zero depreciation coverage or renew your auto insurance policy within 90 days of the policy expiry date, the insurance company will inspect your limousine


Q4. How do insurance companies estimate car damage?

The insurance company does not demand a car inspection for third-party car insurance because only third-party liabilities are covered. When you switch to a more complex auto insurance policy, such as third-party to comprehensive coverage, your insurance provider will evaluate your vehicle.

In addition, if you choose zero depreciation coverage or renew your auto insurance policy within 90 days of the policy expiry date, the insurance company will inspect your limousine.

I hope you liked our article on Best Car Insurance In India, and it must have solved your queries such as "is tata aig insurance good/tataaig", new India assurance renewal, acko car insurance review/acko insurance review


Soon we will be covering the article on how to tata aig policy download

if you have any comments or suggestions do share them in the comments below.

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About the Author

Babita takes care of Informational Content Writing Expert at ankuraggarwal.in. She has started her career as a video-editor with a reputed news magazine Punjab Kesari in the year 2018.

Though after joining the ankuraggarwal.in, she is living up her passion by getting herself acquainted with latest fashion trend. She is a fashionista who loves shopping. Her favorite past time is reading fashion blogs and binge watch Netflix.

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