Best Car Insurance Companies In India 2022

Car Insurance Companies in India

Here is a list of car insurance companies in India and the number of network garages, Incurred claim ratio, PA cover details.

Key Points to Consider while Choosing the Best Car Insurance Policy in India:

While buying a top car insurance policy, you must consider the following key points:

Compare the Key Features Provided by the Insurance Coverage:

Draw a comparison of your shortlisted motor insurance policies to analyze if they all are providing the same kind of insurance coverage. Your insurance plan should include all the key inclusions in terms of a car (such as own damage cover) and provide you with coverage against a personal accident as well as for the injuries succumbed by a third party.

Review Add-on Riders as the Part of the Best Car Insurance Policy in India:

It is always recommended to pay adequate attention to all the add-on riders so that you can pick out the top car insurance policy in India with additional benefits. For your convenience, we have listed below a few crucial motor Insurance riders.

Engine Cover:

It provides an extra layer of protection by safeguarding you against additional expenses incurred due to car engine damage.

Third-Party Liability Coverage:

Third-party Liability coverage ensures the protection of the car owner against any financial liability that could be because of any bodily injury, death, and damage repair cost of a third-party motor.

Roadside Assistance Cover:

In case you are stranded because of the engine failure or an accident or if your car’s tire is punctured, you are provided with the option of availing roadside assistance. It will enable you to call your insurer and make a request to send a car mechanic at your location.

Zero Depreciation Cover:

When you make a selection to add zero depreciation cover to your car insurance policy, the depreciation on substituted car parts is waived off by your insurance company. It signifies that you are eligible for getting a higher amount of claim.

Personal Accidental Cover:

Personal accidental coverage ensures the financial protection to the vehicle owner against unexpected and unfortunate events that might induce physical trauma, or cause the accidental death, or the person might end up being a totally disabled permanently because of a road accident.

Consider Reviews of the Car Insurers:

Make sure you ask your extended family members and friends regarding their experiences with any specific motor insurance company. The feedback coming directly from your near and dear ones may provide you better insights about how its customer support and claim procedure work. It will help you to make an informed choice.

Options for a Flexible Car Insurance Coverage:

While buying the top car insurance policy in India, a flexible coverage is always significant. As the consumer base is varied, there is no ‘one-size-fits-all’ kind of policy. You must choose a car insurance policy depending on certain insurance needs. An insurance provider, which offers the flexi-coverage facility, must be given priority over other needs. This involves that if the insurance provider offers a pre-existing package that is tailor-made as per your needs and requirements, you must take a positive sign into consideration.

Compare Insurance Premium Online:

The Internet is flooded with so-called great deals. Don’t fall for them; they could be nothing but a trap. You can come across a decent deal online when you take some time out of your hectic schedule and search across the Internet.

While comparing car insurance policy online, keep the following points in your mind:

• Compare various insurance policy offered by the different insurance providers.
• Ensure that the comparison site computes the premium on the fixed IDV (Insured Declared Value).
• Compare the insurance premium on at least 3 online insurance comparison sites.

Factors Affecting Your Car Insurance Premium

The factors determining the car insurance premium depend on the risks, which the insurance provider underwrites. These factors are categorised as under:

Risks Related to Car

The model of your car, cubic capacity, and fuel type etc. are a few parameters that determine the premium for your car insurance. Some care such as commercial cars and SUVs, i.e. Sports Utility Vehicle, often require higher premiums as insurance providers get a large number of claims on these cars. Usually, diesel cars have a 10-15% higher premium than petrol vehicles.

Risks Related to the Location

This is based on the registration area. Generally, the premiums are higher if the owner of the car lives in an urban area, densely populated area, or near highways. If theft or loss of the vehicle is higher in the area where you reside, then the car insurance premiums go up.

Risks Related to Driver of the Car

The profession and age of the driver are taken into consideration. In the case of multiple drivers of the car, you have to pay higher premiums.

Negotiation is the Key

When it comes to buying motor insurance, negotiate with your existing insurance provider. You never know you might end up getting an additional advantage if you have been a responsible driver and have not made way too many claims or filed too many accidents.

Safeguard Your No Claim Bonus (NCB)

If you are a responsible driver, and you haven't filed any claim, then you get the advantage of the No Claim Bonus (NCB). If you don't register any auto insurance claim for a year, then your car insurer rewards you with a No Claim Bonus. This is the discount that is subtracted from your insurance premium during policy renewal. As an option, you can go for NCB.

Check out the Claim Settlement Ratio (CSR)

Before you finalize a car insurer, last but not the least, consider the insurer’s previous record of claim settlement. Claim Settlement Ratio is the time taken by an insurer to settle down the claims from its clients. Proceed only when it is good. Don’t even think of buying the best car insurance policy in India if the CSR is not good. You can easily find the Claim Settlement Ratio of various insurers on the website of IRDA of India.

How to Choose Best Car Insurance Company in India?

Choosing the best car insurance company is not a mammoth task. But you need to be aware of the kind of protection you want for your car. With that, here are a few tips that will help you choose the top car insurance company in India. Take a look:

• Analysing Car Insurance Needs – Before you choose the top car insurance company, you need to analyze your car insurance needs. You must know the level of coverage you are looking for as well as any specific add-ons that you want to buy. You should also be clear about the Insured Declared Value (IDV) of your car that you wish to get. Moreover, you should also be aware of the maximum premium that you can afford to pay for the policy.
• Authenticity of the Motor Insurance Company – Now that you know your car insurance needs, you need to find authentic motor insurance companies in the market. You can check the authenticity of a car insurance company by checking its IRDA Registration Number. IRDA is the regulatory authority for insurance companies in India and It grants registration numbers to only genuine insurance providers.
• Financial Ability of the Company – Besides checking the authenticity of the car insurance company, you must also check its financial standing. This will help you to understand the financial stability of the company and determine how likely it is to pay you the claim amount in the need of the hour. You can determine the financial stability of the company by going through its annual financial records and checking its solvency ratio.
• Claim Settlement Ratio – Before moving ahead, you must check the claim settlement ratio (CSR) and incurred claim ratio (ICR) of the car insurance company. The CSR refers to the total percentage of claims settled by the insurance company. On the other hand, ICR refers to the total percentage of premium utilised by the insurance company against the total amount of premiums collected. You should look for a company with a higher CSR and ICR as it depicts a lesser chance of your claims getting rejected by the insurer.
• Claim Settlement Speed – Besides claim ratios, you should also determine the claim settlement speed of the car insurance company. You should go for a company with a faster claim settlement speed as it represents that the insurer will pay you the claim amount as soon as possible.
• Cashless Garage Network – Next, you should find out about the network of cashless garages available with the car insurance company. Cashless garages are the approved garages of the insurance company where you can get your car repaired on a cashless basis. A company with a larger cashless garage network is better as it ensures that you have a higher probability of finding a cashless garage in your city or neighbourhood.
• Customer Service – The customer service of the car insurance company should also be determined while choosing the best motor insurer. The customer service enables you to get an idea about how easily will you be able to get in touch with the insurer and seek help. You must choose a company that provides round the clock services to its customers as you can contact them 24x7.
• Online Comparisons – Online comparisons is the best way to find a car insurance company that best fulfils your insurance needs. If you compare car insurance policy by different motor insurers online, you will be able to analyse their coverage level, premium rate as well as the benefits offered. The ideal insurance company will provide you with maximum coverage without making you pay an exceptionally high premium price.
• Customer Reviews – It is always better to check the customer reviews of various motor insurance companies before choosing any one of them. Reviews by existing or previous customers will help you get an idea of the kind of insurance experience you are going to have with the company. You must choose a car insurance company that has more positive customer reviews than negative ones.

Types of Car Insurance Policies In India

In India, car owners can buy two types of car insurance policies. They are:

Comprehensive Car Insurance

A comprehensive car insurance policy provides complete protection to the insured car. It protects the car from all kinds of unforeseen risks resulting from fire, accidents, theft, vandalism, natural disasters and manmade disasters. It also covers any third-party accidental liabilities that the policyholder is legally bound to pay. Moreover, this type of insurance also provides personal accident cover to the owner-driver of the insured car.

Third Party Liability Car Insurance

A third-party liability car insurance policy protects against any third-party liabilities of the policyholder arising out of causing accidental bodily injuries, death or property damages to a third party. This type of insurance does not cover any loss or damages suffered by the insured car or its driver.

Standalone Own Damage Car Insurance

A standalone own damage car insurance policy is provided by almost all car insurance companies. It provides coverage for only the own damages sustained by the insured car. It covers any loss or damages caused to the insured four-wheeler due to uncontrollable events, such as fire, natural disasters, theft, accidents and manmade calamities. This type of car insurance plan is available only if the car owner already has a third-party car insurance policy for the insured vehicle.

Difference Between the Types of Car Insurance Policy in India

Insurance companies mostly offer three types of car insurance policy. Each plan provides different kind of coverage to the policyholder. Let us tell you the difference between the third-party liability insurance, standalone own damage insurance, comprehensive insurance and zero depreciation insurance:

Overview of Best Car Insurance Companies in India

Here is a quick rundown of the top car insurance companies that you can consider to secure your car:

Disclaimer: *Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.

Bottom-line

While purchasing a car insurance policy it is important to check the policy features, the number of network garages offering cashless repair, add-on cover along with the incurred claim ratio of the company. You can select from any of the above-mentioned car insurance companies and choose the best motor insurance in India that offers you maximum coverage benefits at a nominal premium.