Cars are no longer considered to be a luxury. Thanks to the lower priced car models available in the market, almost everyone can afford a car in today’s times. The need of comfortable commute has become important and so more and more individuals are investing in a car for themselves and their families.
As the demand for cars is increasing, so is the demand for car insurance policies. The Motor Vehicles Act, 1988 has made it mandatory for car owners to have a valid car insurance policy. If you own a car you need to get it insured as per the provisions of the Motor Vehicles Act, 1988.
Types of car insurance policies in India
Car insurance policies come in two variants. These are as follows –
Third party liability policy
This is the policy which the Act mandates. The policy covers the financial liability that you face in case you cause harm to another individual. The liabilities covered include the following –
- Liability suffered if an individual is killed by the car
- Liability suffered if an individual is physically hurt or injured by the car
- Liability suffered if an individual’s property is damaged by the car
Third-party car insurance allows you to have a financial cushion in case of third party damage during an accident.It is also a mandatory requirement by law.To read more on third party car insurance and compare various plans, click here.
This policy is a packaged policy which covers third party liabilities and also the damages suffered by the car. If the car is damaged and undergoes any type of repairs, the policy pays for the repair costs incurred. The coverage under comprehensive policies include the following –
- Third party liability suffered if an individual is killed or physically hurt by the car
- Third party liability suffered if an individual’s property is damaged by the car
- Damages suffered by the car due to natural or man-made calamities like earthquakes, floods, fire, theft, etc.
- Damaged suffered when the car is being transported from one place to another
Moreover, both third party and comprehensive coverage plans cover personal accident too. If you suffer from accidental death or disablement, you would get coverage of INR 15 lakhs.
Thus, with comprehensive policy car insurance, you get insurance coverage for not just the damage to the third party but also for the costs involved in repairing your own damages. You can read more about comprehensive policy car insurance here.
Since car insurance policies are mandatory, almost all general insurance companies offer car insurance plans. Both third party and comprehensive policies are offered by general insurance companies. There are 33 general insurance companies in India and 31 of them offer car insurance policies. Among so many insurers, how can you choose the best company?
List of best car insurance companies in India
Here is the list of the best car insurance company in India which qualify on all the above-mentioned parameters –
|Car Insurance Company||Best Features||Motor Incurred Claim Ratio (2020-21)||Network Garages|
|Magma HDI Insurance Policy||This policy offers a personal accident add-on that permits an accident cover for the pillion as well.The premium is quite affordable as there are captivating discounts available.||78.91%||3300+ network garages|
|Go Digit Insurance||If there are no claims under the plan you can avail of up to 50% discounts.For a wider coverage aspect, this plan offers five optional covers.||74.91%||2900+ network garages|
|IFFCO Tokio General Insurance||This plan offers self-damage cover as well as damage to the third party.Choosing this plan will help you get up to 70% savings on premiums.||84.04%||4300+ network garages|
|Reliance General Insurance||By choosing this plan you get access to easy video claims as well.There are different add-ons available for customer satisfaction.||76.89%||6200+ network garages|
|New India Insurance||There are various plans available that suit the needs of every customer.These policies are fairly priced.||78.20%||216 network garages|
|ICICI Lombard Insurance Policy||This plan is highly customisable as there are varieties of add-ons available.This plan can be chosen for various time periods.||65.77%||4800+ network garages|
|Bajaj Allianz General Insurance Company Limited||The company is known for settling its claim in a record time.There are numerous policies offered by this company for every consumer.||68.06%||Major garages are covered by Bajaj Allianz General Insurance Company.|
|SBI General Insurance Company Limited||This brand offers specific discounts if the customer’s age is between 25 to 55 years.There are various price ranges depending on the customer’s profile.||68.10%||SBI General Insurance Company has a strong network of cashless garages available in several states of the country.|
|HDFC ERGO General Insurance Company Limited||This plan offers doorstep repair service for the customers.Roadside assistance is also covered in this plan.||70.02%||7900+ network garages|
|Universal Sompo General Insurance Company Limited||The policy offered by this brand covers its own damage as well as third-party under the same plan.If the customer wants higher voluntary access there is also a provision for a discount in that.||87.96%||3500+ network garage|
Armed with this new information, you should be in a good position to compare and purchase top car insurance plans from the preferred company. We understand that with a variety of options available for car insurance in the Indian market, it is not straightforward to choose a car insurance policy, which is why we have done most of the work for you.
Enter a few required details and let our system hand-pick the most relevant and suitable insurance policies for you!
What does a car insurance policy cover?
Before buying any insurance, it is necessary to check what it covers. For car insurance, it is important to note these inclusions that are covered under a comprehensive car insurance policy:
- Damage or loss due to a natural disaster:Any damage caused by natural disasters like floods, earthquakes, storms, and thunder is covered in most good car insurances.
- Damage or loss because of man-made calamities:Man-made calamities like riots, rallies, robbery, theft.
- Personal accident:Any damage to the driver or loss of the driver’s life while driving the car. This can be a short relief for the future of the family members.
- Third-party liability cover:This insurance cover is made compulsory by law for every car that runs on the road. This cover assures financial support to a third person who gets permanently injured or loses their life because of an accident with your car.
In case your car is stolen, the insurance company will compensate you as per the IDV of the car.
Benefits of car insurance companies
Here’s a complete list of the benefits offered by the Best Car Insurance Companies in India
1. HDFC Ergo General Insurance Company Limited
The features and benefits of HDFC Ergo car insurance company are –
- The company has a large customer base of more than 1 crore policyholders which signifies that the company enjoys great trust.
- The company offers overnight car repair services where the repairing is done within a night and the car is delivered to your doorsteps
- The company offers approvals for its claims within 30 minutes through online verification of QR codes making claim settlements easier
HDFC Ergo has a wide network of 6,800 garages that provide cashless facility that make repair works hassle-free. The easy application process and multiple policy options also make HDFC Ergo an attractive car insurance option.
2. TATA AIG General Insurance Company Limited
The features and benefits of TATA AIG car insurance company are –
- The company offers a range of add-ons with its comprehensive car insurance policies which help you to increase the scope of coverage
- The claim settlement process of the company is quick and hassle-free
TATA AIG car insurance is known for the quick application process, the customer service team is known to be quite prompt and if you have installed anti-theft devices in your vehicle, you can also avail certain discounts. Click on the link below for more details!
3. ICICI Lombard General Insurance Company Limited
The features and benefits of ICICI Lombard car insurance company are –
- The company has a high Claim Settlement Ratio. During the financial year 2019 the company has settled 93.14% of its motor insurance claims.
- The claims are settled within the shortest possible time. The Claim Settlement Ratio in the financial year in 2020 – 2021 was 97.9%/li>
- The company has won the ‘Claim Leader – General Insurance’ Award given by Indian Insurance Award
ICICI Lombard car insurance offers a number of benefits including roadside assistance in case of an accident to the policyholders. It is one of the most trusted brands for insurance solutions in India with a customer base of over 4 crores. You can read more about the company’s plans by clicking below.
4. Royal Sundaram General Insurance Company Limited
The features and benefits of Royal Sundaram car insurance company are –
- The company’s car insurance policy promises 100% refund of the invoice price of the car in case of total loss or theft
- Free coverage for flat tyre and emergency fuel delivery is available under its car insurance plans
- A range of extensive add-ons are available for a better coverage scope of your car insurance policy
These are some of the benefits offered by Royal Sundaram car insurance company for the policyholders. You can get detailed information about car insurance plans from Royal Sundaram by clicking below.
5. Bharti AXA General Insurance Company Limited
The features and benefits of Bharti AXA car insurance company are –
- The company has issued more than 27 million policies ever since it was established
- More than 1.3 million claims have been settled
- The company provides you with 24*7 assistance for your car insurance policy
Known for the great no-claim bonuses that are passed on to the policyholder for every zero-claim year, Bharti Axa car insurance company is a great option, especially after taking into account the network of 5000+ cashless garages all over the country that make car repairs hassle free.
6. Reliance General Insurance Company Limited
The features and benefits of Reliance car insurance company are –
- The company promises hassle-free purchases as the policy is delivered within 10 seconds
- You get free roadside assistance coverage in your car insurance policy worth up to INR 500
- The company enjoys ISO 9001:2015 certification which makes it trustworthy
Click the button below to read the complete benefits offered by Reliance car insurance plans.
7. Bajaj Allianz General Insurance Company Limited
The features and benefits of Bajaj Allianz car insurance company are –
- The company’s car insurance policy can be bought within 3 minutes
- The Motor On-The-Spot feature in the company’s car insurance plans lets you make instant claims through your Smartphones. Small claims can, therefore, be settled within 20-30 minutes
- The company recorded a high claim settlement ratio of 98.48% in the financial year 2020-21
Bajaj Allianz offers a number of insurance plans for car insurance. It is one of the most trusted brands in India and offers a lot of flexibility for the insurance policies. You may read more and browse through their offerening by clicking on the link below.
8. IFFCO Tokio General Insurance Company Limited
The features and benefits of IFFCO Tokio car insurance company are –
- The company offers completely transparent products and services so that you know what you are buying
- The claim settlement process of the company is quick and efficient ensuring that you get your claims settled within 4 hours
- IFFCO TOKIO offers a wide network of over 4300 garages
- The company has various awards in its name which make it a reputed company
IFFCO Tokio car insurance offers protection from damages arising out of accidents and thefts, the company has a claim settlement ratio of about 79.19% and is known for the quick turnaround time to issue policies with minimal documentation. You can read more about IFFCO Tokio insurance company and browse through their plans below.
Owned by the Government of India
9. The New India Assurance Company Limited
The features and benefits of New India Assurance car insurance company are –
- The company has a strong financial standing as its net worth for the quarter ended 30th June 2019 stood at INR 37,483 crores
- The company’s solvency ratio is 2.13 which further ensures of the string financial stability of the company
New India Insurance is an expert in the non-life insurance business and has been in the Indian market since long. New India Assurance company offers comprehensive car insurance plans for protection against accidental and theft-related risks along with a number of benefits that you can check below.
United India Insurance Company Limited
The features and benefits of United India car insurance company are –
- The company is a public limited company which is owned by the Government of India and enjoys immense trust among policyholders for over 84 years
- There are more than 1.74 crore policyholders of the company till date
United India car insurance has a claim settlement ratio of about 91.72%, its policies also offer discounts to companies that install anti-theft devices on their cars. Click on the link below to know more about the company.
How to choose the best car insurance company in India?
There are certain factors which should be considered when choosing the best car insurance company in India. These factors include the following –
- Authenticity of the company – the first thing which you should check is the authenticity of the insurance company. Every company is registered with the Insurance Regulatory and Development Authority of India (IRDAI) and carries a valid IRDA license. Check the license number of the company to ensure that the company is authentic. Only when the company is authentic can you be assured of the authenticity of its products. A company which is regulated by the IRDAI cannot cheat or dupe its customers.
- Financial standing – once the authenticity of the company has been established, look at the company’s financial standing. Check out the company’s solvency ratio to assess whether the company is financially stable or not. The financial records of the company can be checked on the company’s website as all insurers are mandated to publish their financial reports online.
- Claim ratios – there are two types of claim ratios that you should check. One is the Claim Settlement Ratio (CSR) which measures the percentage of claims settled by the insurance company. A CSR greater than 90% is recommended as it shows that the insurance company has settled more than 90% of its claims. A high ratio would increase the probability of settlement of your car insurance claims too. The other ratio which you should check is the Incurred Claims Ratio (ICR) of the company. ICR depicts the percentage of premiums utilised by the company in settling its claims. It is calculated as the amount of claim settled against the amount of premiums collected. If the ICR is more than 100%, it shows that the company is paying more in claims than it is earning as premiums. This situation is not financially viable as it shows the company making a loss. A very low ICR below 40% shows that the company is making too much in profits and might have higher premiums. So, look for companies which have an ICR of 50% to 90% which would ensure that the company is profitable and that it is not overcharging premiums.
- Claim Turn-Around-Time(TAT) – the claim TAT is also an important consideration when choosing the best car insurance company. Companies which settle their claims at the earliest are the best as you get the benefit of quick claim settlements. So, check the company’s claim TAT and choose the company which takes the minimum time in settling its car insurance claims.
- Network of cashless garages – you should also check the network of cashless garages of the insurance company. The wider the network of garages the easier it would be for you to get cashless settlements of your car insurance claims.
If you keep these factors in mind, you can find the best car insurance company in India to buy your car insurance policy from.
How to buy the best car insurance policy from Turtlemint?
Choosing the best car insurance policy online can be tough. Turtlemint is here to help with this! At Turtlemint, you can compare various plans and choose the best car insurance. All you need to do is:
- Go to the Turtlemint website – www.turtlemint.com
- Click on the car insurance section, and enter your car registration number.
- This takes you to a fresh page; enter your vehicle type, model no., registration number, previous insurance number (if you had one), and policy type.
- By doing this, you will be able to see a whole list of insurance plans that can be suitable for your car. You can compare the quotes and benefits to make the best choice.
- Once you find a suitable insurance plan and want to buy it, click on “Buy now”.
- Choose your preferred mode of payment, and that’s it, you have the best car insurance on the market!
- If you are unsure about the options and quotes and want help while deciding. You can take the help of Turtlemint advisors.
So, consider these factors, compare the available car insurance policies offered by leading insurance companies and then buy the best plan. Turtlemint is an online platform which allows you to compare and buy the car insurance policy of leading insurance companies. On Turtlemint’s website you can find the list of all the leading car insurance plans available in the market. You can also check the plans’ coverage benefits and premiums and then choose the best policy. Turtlemint’s platform, therefore, gives you an easy mode of comparing and buying the best car insurance policy.
We understand that choosing a car insurance can be quite a daunting task, which is why we have made the job simpler for you, simply click on the link below, enter a few details and allow our system to show the most relevant Car insurance policies to you at competitive prices!
So, if you buy a new car or when your existing car insurance policy is up for renewals, choose the best car insurance policy from the leading car insurers. Compare the plans offered by the leading insurance companies and then buy so that you get the best policy.
- What is personal accident cover in car insurance policies?
Personal accident cover in car insurance policies covers accidental death or disablements. If the owner/driver of the car suffers accidental death or becomes fully or partially disabled in an accident, the cover pays a lump sum amount. The sum insured for personal accident cover is INR 15 lakhs and the premium is INR 750.
- What are the add-ons available under car insurance plans?
There are different types of add-ons available under car insurance plans. The popular ones include the following –
- Roadside assistance – round the clock assistance in case of breakdowns
- Zero depreciation – no deduction for cost of depreciation from car insurance claims
- Engine protect – coverage against engine damage due to water seepage
- NCB protect – protection of the accumulated no claim bonus even after a claim
- Return to invoice – payment of the invoice value of the car in case of total loss or theft
- Consumables cover – coverage of the cost of consumables used in repairs of the car like engine oil, lubricants, etc.
- Personal accident cover for named passenger – extension of personal accident cover for a named passenger, etc.
- What is a long term car insurance policy?
A long term car insurance policy is one which runs for more than a year. As per the latest changes, cars bought on or after 1st September 2018 should have a long term liability cover for three years. In keeping with this mandate, nowadays, long term car insurance plans are available for new cars.
- What will happen if the car insurance policy is not renewed?
If the car insurance policy is not renewed on time, the coverage would lapse. You would be fined if you are found driving without a valid car insurance cover.
- How are third party premium calculated?
The premiums for liability only policies are determined by the IRDA and they depend on the cubic capacity of the car.