Importance of Car Insurance in India

A Smart Way to Financially Cover Your Car

Car insurance is the smartest way to financially secure yourself and your car. Let’s say, you own a 1-year-old standard hatchback with Insured Declared Value (IDV) of Rs. 4,00,000, but sadly, don’t have car insurance. Following are the approximate expenses that you might incur if your car was to meet with an accident of “medium impact”:

DAMAGES	EXPENSES
Frontal Damages	Rs. 25,000
Windshield Damages	Rs. 6,000
Bumper Damages	Rs. 5,000
Bonnet	Rs. 6,000
Fender	Rs. 5,000
Headlight	Rs. 3,000
Total	Rs. 50,000

Car insurance policy would have costed you a certain premium:

Without zero dep: Rs. 6,000
With zero dep: Rs. 8,000

Now, a car insurance can’t help you pay for medical bills in case you were injured in an accident. However, paying a miniscule amount like Rs. 8,000 every year can still help you cover those Rs. 50,000 [or more] worth of accident-related damages to your car.

No Car Insurance = Financial Expenses + Emotional Torture + Stress + Inconvenience

Third party property damage covered up to 7.5 Lakh and in case of physical injuries/death of third party, it will be taken into court tribunal.

For a premium of Rs. 100, Personal Accident Cover for the owner driver gets compensation up to a maximum Sum Insured of Rs. 2 Lakh in case of:

NATURE OF INJURY	SCALE OF COMPENSATION
Death	100%
Loss of two limbs or sight of two eyes or one limb and sight of one eye.	100%
Loss of one limb or sight of one eye	50%
Permanent total disablement from injuries other than named above.	100%

Disclaimer: Please note that the above figures are approximate and just for representational purpose, keeping a standard hatchback car in mind. They will vary as per the intensity of the accident or loss, car make model, and engine capacity.

Type of Coverage which Impacts Your Quotes

Third Party Liability Coverage

This compensates the damages to a third party and their property. It’s best for those planning to insure their car just because it’s mandatory (but we wouldn’t recommend that!).

The quote that you get for TP cover is the sum of its components which include:

The basic third-party premium
Premium for Personal Accident Owner Driver Cover – Rs. 100
Goods and Service tax – 18%

The basic premium for third-party depends on the cubic capacity. These rates are revised each year by IRDA. From 1st April, 2017, the third-party insurance rates are:

CONDITION RELATING TO ENGINE CAPACITY	APPLICABLE PREMIUM RATE
Not exceeding 1000cc	Rs. 2,055
Above 1000cc but lower than 1500cc	Rs. 2,863
Exceeding 1500cc	Rs. 7,890

Comprehensive Coverage

This covers damages to the third party, as well as your own car. It is best for those wanting to cover for losses for accidents and incidents such as theft and natural disasters.

The quote that you get for comprehensive coverage is the sum of its components which include:

Third-Party premium
Own Damage premium
Premium for Personal Accident Owner Driver Cover – Rs. 100
Charges for additional coverage (add-ons)
Goods & Services Tax – 18%

The own damage premium depends on Insured Declared Value (IDV), engine capacity and vehicle RTO. The IDV is the value of the car based on its ex-showroom price and depreciation percentage. An add-on cover depends on your car’s requirement and thus is a variable. The service tax is charged on the OD premium.

Additional Covers in Car Insurance

ZERO DEPRECIATION COVER

For the repair or replacement expenses of plastic, rubber, glass and other materials which would otherwise not be covered in a regular policy.

ENGINE PROTECTION

For times when the monsoons are at their destructive worst, and leave your car’s engine and your tear glands vulnerable to flooding.

NCB PROTECTION

To continue enjoying a discounted premium on your no-claim bonus year-on-year, even after making a claim during the policy period.

INVOICE COVER

To recover as much as the car’s on-road price or Insured Declared Value, in case of total loss (such as theft or a really bad accident).

Inclusions and Exclusions in Car Insurance

INCLUSIONS	EXCLUSIONS
Own Car Damage for all damages that occur to your car due to accidents	Damages caused if youâ€™re caught driving under the influence of alcohol
Personal Accident Cover, in case of death or permanent disability in an accident, the insurer compensates you	Loss and damages that are caused due to war and nuclear risk
Financial protection from Natural Calamities such as floods, earthquakes, etc.	Accidental Damages caused while you were using your car for illegal activities
In case of Theft, your insurer will pay an amount equal to your IDV	Losses incurred while driving without valid license
Man-made disasters including riots, strikes, fire, and terrorism is covered	Regular mechanical expenses due to consistent wear and tear

Key Benefits of Car Insurance

Apart from being a mandate, car insurance also provides a wide range of benefits that make it a utility product for car owners in India. Some of these benefits include-

Coverage against any loss or damage caused to the insured vehicle
Coverage against loss or damage caused by accidents, fire, theft, self-ignition, explosion, lightening, riots, terrorist activities or natural calamities.
Personal Accident cover
Coverage against financial liability caused by injury or death of a third party or damage to the property.

Claim Settlement ratio of Best Car Insurance companies in 2018

With a number of players in the car insurance space, only a few offer the best claim settlement ratios and have made their mark in the space. Here’s an exhaustive list of the companies that offer car insurance plans with best settlement ratio-

INSURANCE COMPANY	INCURRED CLAIM RATIO (%)
National Insurance	84.16
HDFC Ergo General Insurance	89.43
Bharti AXA General Insurance	89.09
IFFCO Tokio General Insurance	84.37
Future Generali India Insurance	81.77
ICICI Lombard General Insurance	78.91
Cholamandalam MS General Insurance	79.82
Magma HDI General Insurance	78.49
Liberty General Insurance	77.29
Bajaj Allianz General Insurance	69.19

How to save on Car Insurance Premium?

AVAIL NO CLAIM BONUS

Your responsible driving skills are rewarded with a bonus of upto 50% on your premium, for every consecutive claim-free year. Now isn’t that a treat?

INSTALL SECURITY DEVICES

Automative Research Association of India (ARAI) approved anti-theft devices can fetch you up-to 2.5% discount on your car insurance premium!

BECOME AAI MEMBER

Membership of the Automobile Association of India, an organisation powered by IRDAI, secures you a concession on own-damage premium.

Compare Car Insurance: Get the Best Quote Online

Compare car insurance policies using a simple tool to get the best quotes from top insurers.

12+ INSURANCE COMPANIES IN INDIA

20+ PLANS AVAILABLE IN MARKET

16+ UNIQUE ADD-ON COVERS TO CHOOSE FROM

3500+ CASHLESS GARAGE NETWORK

How Car Insurance Comparison Helps

You can compare policies from top brands instantly. To opt for the right car policy as per your need and convenience, compare quotes online.

Here’s how comparison will help you:

Same car. Different insurance companies. Different car rates.

Not all insurers offer same coverage and premiums. That’s the reason you should compare car policies. Comparison helps you to get the ideal coverage at a suitable premium. compare car insurance quotes from 12+ top insurance companies of India in a matter of seconds to get the best possible premiums for your car policy.

Customizable policy.

You get a completely customizable policy, when you compare quotes online. Customize your policy in terms of selecting the type of car insurance policy, car’s Insured Declared Value (IDV) and Add-ons. And get real time quotes from the leading companies of India.

See what’s trending in your location and for your car.

Don’t know which plan to buy? Do not worry. when you compare quotes online, we help you to find the right policy by sharing what people having the same car model are buying and which is the preferred car insurer by people living near your location.

Your pick of insurance add-ons.

Car Insurance add-ons saves you tons of money at the time of claims. comparison tool helps you to check and compare different add-ons offered by different insurers. However, not all insurance companies provide every add-on. You can compare which companies give you the add-ons you need, and which don’t, and make your choice accordingly.

Discounts on car insurance (Who doesn’t love them!)

Yes, companies offer discounts when you buy car policy. Every insurance provider gives some discount against the Own Damage component of your car policy. This discount varies from insurer to insurer for your car. Compare car insurance quotes to find out which policy gives you the most discount for your car. we have negotiated up to 60% discounts with the insurance companies!

Is your favorite Garage covered under cashless claims?

Have a go-to garage for your car? Most of us have one. Compare and check which garages are covered under ‘Cashless claims’ for every insurance company. You can use our handy car tool get the list of cashless garage networks.

Side-to-side comparison.

Compare car insurance policies side-to-side on aspects like premium, IDV, add-ons available, deductibles, discounts offered, etc. to find the right policy. We make the evaluation process easier and help you boil down to the suitable plan for your vehicle.