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A car insurance, auto or motor insurance is a contract between you and your insurer under which the insurer offers financial assistance if your car suffers damages due to unforeseen events. These events include road accidents, theft, fire, third party liabilities, natural calamities, manmade acts, etc. Three types of car insurance policies offered are private car insurance, third party car insurance, comprehensive car insurance and own damage car insurance. Having a valid car insurance policy also ensures that you comply with the motor laws of India.
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| Categories | Key Features |
| Third-party damages | Covers TP death, injuries & property damages |
| Own damage cover | Offered under standalone and comprehensive |
| No Claim Bonus | Up to 50% |
| Car insurance premium | Starting at ₹2094* |
| Discounts | Anti-theft, NCB, Deductibles, AAI Membership |
| Add-on covers | More than 10 add-ons such as Zero dep, NCB protect, Roadside assistance, etc. |
| Buying/Renewal Process | Online |
| Personal accident cover | Up to ₹15 lakh |
| Cashless Garages/Repairs | Available |
*TP price for less than 1000 CC cars. **All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C apply.
A car insurance policy is not only compulsory as per Indian Motor Vehicles Act, 1988 but also needed to cover your car from many uncertain losses. Below are some top benefits that makes having a car insurance policy a must:
The three types of car insurance policies offered in India are third party, comprehensive and standalone own damage car insurance. You can opt for any of these plans as per your requirements.
A third-party or liability-only policy is mandatory for all vehicle owners to drive on Indian roads. This car insurance policy offers financial compensation in case of death, disability and property damage caused to third parties due to the insured vehicle.
Compensation is provided for death/injuries caused to a third person (up to an unlimited extent as decided by MACT) and property damage (up to Rs 7.5 lakh). However, this policy does not cover damages caused to the insured car.
A comprehensive car insurance policy covers both third-party liabilities and own damages sustained by the insured four-wheeler. Damages arising out of incidents like road accidents, theft, fire, natural and manmade calamities are covered under this car policy.
Moreover, under this plan, the insured person can avail cashless repair services at the network garages of the insurer. Furthermore, you can enhance policy coverage with add-ons such as roadside assistance, zero depreciation cover, etc., by paying a nominal extra premium.
A standalone own damage car policy financially covers only the accidental damages caused to the insured car. Damages arising out of unforeseen events like accidents, fire, natural calamities, theft, etc are covered under this car insurance plan. This policy can be purchased with an active third-party insurance policy
In India, as per the Motor Vehicles Act, it is mandatory to hold at least a third-party cover for all car owners. However, having own damage insurance offers financial help in case of damages caused to the insured car due to unforeseen incidents.
As per the notification released by IRDAI, the third party car insurance rates based on car’s engine capacity are mentioned below:
| Engine Capacity (CC) | Third Party Car Insurance Renewal Price | Third Party Car Insurance Price for 3 Year |
| Less than 1,000 | ₹ 2,094 | ₹ 6,521 |
| More than 1,000 and less than 1,500 | ₹ 3,416 | ₹ 10,640 |
| More than 1,500 | ₹ 7,897 | ₹ 24,596 |
To help you choose the right car insurance, here is a table comparing features offered under different types of car insurance policies in India:
| Coverage Offered | Third-party Car Insurance | Comprehensive Car Insurance | Own Damage Car Insurance |
| Third-party property damage | Offers compensation of up to Rs. 7.5 lakh for property damage. | Covered. Offers compensation of up to Rs. 7.5 lakh for property damage. | Not covered. Only covers own damages and can be purchased along with an existing TP plan. |
| Third-party bodily injury/death | Unlimited compensation for death and disability of third parties due to the insured car. | Unlimited compensation is offered as per the Motor Claims Tribunals for the death and disability of a third party due to the insured car. | Third party liabilities are not covered so no compensation is offered. |
| Own damages of the car | Only third-party liabilities are covered. Does not cover own damages. | Own damages arising from an accident, theft, fire, calamities, etc, are covered. | Covers damages caused due to accidents, collisions, theft, calamities, fire, etc. |
| Insurance Premium | Lower. As decided by IRDAI. | Higher. Covers both third party and own damages. | Lower than comprehensive but higher than third party insurance. |
| Car theft | No coverage is offered for the insured's car theft. | Partial or total losses arising out of the theft of the insured car are covered up to the vehicle's IDV. | Covers losses arising out of theft or burglary. |
| Personal accident coverage | Yes, PA cover of up to Rs. 15 lakh can be purchased with the policy. | PA cover of up to Rs.15 lakh is offered for the driver/owner. | PA cover of Rs. 15 lakh can be purchased if not already purchased with TP plan. |
| Availability of add-ons | Cannot be customised by add-ons. | Can be customised by add-ons like zero dep, NCB Protect, Consumables cover, etc. | This cover is customizable with the help of add-ons like NCB Cover, Nil Depreciation, Tyre Protect, etc. |
Add-ons in motor insurance are covers that can be used to enhance the coverage of your existing car insurance policy. You can purchase these add-ons by paying some extra premium.
Let's discuss car insurance add-ons in detail:
A standard car insurance policy does not cover the depreciation sustained by the car and its parts. However, a zero depreciation add-on offers this coverage, and you will not have to pay for the depreciation value of the vehicle’s parts. The nil depreciation cover is subject to specific claims during the policy period and is available for cars up to 10 years old. Compulsory and voluntary deductibles (as per the case) will be applicable despite zero depreciation cover.
An NCB Protect cover helps save up on your car insurance premium even after raising a claim during a policy year. With this add-on, you can make a car insurance claim and still get a discount of 20% to 50% on car insurance renewal premium.
An engine is one of the most important parts of a car but it is not covered under a comprehensive plan. With an engine protection cover, you can get covered for the cost of fixing the damages caused to the engine due to lubricating oil leakage and water ingression. It covers the gearbox parts, engine parts, and differential parts.
A Pay as you drive car insurance plan is an additional cover available with a comprehensive car insurance policy. This add-on allows a policyholder to save up on own damage premium based on the number of kilometres driven in a policy year. It is a very useful add-on for car owners who do not drive their cars regularly or own more than one car.
Sometimes, a bunch of unforeseen expenses can drain all your savings. Consumables Cover offers coverage for damages to the consumables of the car at the time of any unforeseen event. Consumable items include screws, nuts and bolts, washers, AC gas, grease, lubricants, bearings, clips, fuel filter, etc.
Everyone loses or misplaces their car keys once in a lifetime. This experience can be harrowing if you don’t have a Key and Lock Protect Cover with your car policy. Under this add-on the insurer covers the costs of replacing and repairing car keys under key protection cover.
Daily allowance add-on comes to rescue when your car is being repaired in the garage after an accident. Under this add-on, the insurer will provide a daily travel allowance if the damaged vehicle is in the garage for more than 3 days.
A comprehensive car policy not only provides third-party cover but also offers cover against personal accidents. In personal accident cover, you get an amount of up to Rs. 15 Lakh against death, permanent total disability caused due to accident.
Additionally, one can purchase this cover for co-passengers, which will be as per the seating capacity of the vehicle. However, the amount of coverage is pre-determined even in this case.
In case you get stuck somewhere in the country within the specified distance, as mentioned in the insurance policy, the insurer provides you with roadside assistance under this cover. They send a mechanic to your location to fix the damage caused to your car. Roadside assistance cover is not counted as a claim, thus your NCB stays the same.
Under Return to invoice add-on cover, if your car is stolen or damaged beyond repair, resulting in a total loss, the insurer will provide coverage according to the invoice amount of the car. This cover includes the ex-showroom price, road tax, and first-time registration charges.
With personal possession add-on cover, you get the coverage if your personal possessions get damaged in an unfortunate event or get stolen when the car is parked in authorised parking. There is a limit on a coverage amount that varies from insurer to insurer.
A comprehensive plan does not provide coverage in case the tyres of the car get damaged. Thus, a tyre protection cover can be purchased to cover any damages sustained by your car’s tyres and tubes.
Under this add-on, you get coverage in case any of the drivers or passengers get injured in the accident. The insurer will provide financial aid for the medical expenses.
The following table shows the complete list of the car insurance companies in India with their claim settlement ratio and the number of network garages offered by the car insurers:
| Car Insurers | Network Garages | Claim Settlement Ratio | |
| Bajaj Allianz Car Insurance | 4000 | 98.5% | |
| Chola MS Car Insurance | 8300 | 96% | |
| Digit Car Insurance | Repair Anywhere | 96% | |
| Future Generali Car Insurance | 3500 | 96.3% | |
| HDFC ERGO Car Insurance | 8200 | 99% | |
| ICICI Lombard Car Insurance | 5900 | 96.75% | |
| IFFCO Tokio Car Insurance | 4300 | 95.8% | |
| Liberty Car Insurance | 4500 | 98% | |
| Magma HDI Car Insurance | 4000 | 96.6% | |
| National Car Insurance | 3100 | 93% | |
| New India Assurance Car Insurance | 3000 | 95% | |
| Oriental Car Insurance | 3100 | 94% | |
| Raheja QBE Car Insurance | 1300 | 92% | |
| Reliance Car Insurance | 8200 | 98% | |
| Royal Sundaram Car Insurance | 3300 | 98.6% | |
| SBI Car Insurance | 16000 | 100% | |
| Shriram Car Insurance | 2000 | 96% | |
| Tata AIG Car Insurance | 7500 | N/A | |
| United India Car Insurance | 3100 | 95% | |
| Universal Sompo Car Insurance | 3500 | 96% | |
| Zuno Car Insurance | 1500 | 98% | |
| Zurich Kotak Car Insurance (formerly known as Kotak Mahindra) | 2327 | 98% |
Choosing the correct car insurance policy requires understanding various factors such as coverage types, car's age/make/model, IDV, inclusions, exclusions, add-ons, deductibles, discounts, etc. Here are some useful tips mentioned below that will help you select the right four-wheeler insurance for your car:
A car insurance policy can be bought by two methods online, and offline. The offline method involves purchase or renewal via insurance agents, or by directly visiting the insurer’s office. While the online method involves purchasing policy from an insurer’s website or from an aggregator website like Policybazaar.com.
Car insurance renewal online is extremely convenient and saves a lot of time. Neither do you have to meet with the insurance agent, nor do you have to wait at the insurer’s office for your turn.
You also do not have to fill out several forms or check the office timings to renew motor insurance. Just a few clicks, and you can renew car insurance online anytime, anywhere.
The table below states major differences between buying car insurance online or offline.
| Categories | Buying Car Insurance Online | Buying Car Insurance Offline |
| Buying Process | Can be purchased online from the insurer’s official website or Policybazaar.com. | Requires physical visit to the insurer’s office or by connecting with the agent |
| Insurance Premium | Lower premiums due to the absence of agents. | Higher premiums due to higher operational costs and involvement of agents. |
| Convenience | More convenient as it only requires a smartphone and a good internet connection. | Less convenient as customers need to meet with the insurance agent. |
| Transparency | More transparent as there is no role of an agent or intermediary. | There is less transparency as agents play a big role. |
| Customer Support | Easy to connect with the customer support team 24x7 via emails and calls. | Policyholders can connect with the customer support team or the agent during office hours. |
| Paperwork | Minimum to zero paperwork. | May require a lot of paperwork. |
| Renewal Process | Easy to renew as the policyholder’s details are auto-saved with the insurer | The renewal process is cumbersome and takes time. |
Car insurance price is decided based on several factors. It is also easy to find out the four wheeler insurance premium using an online car insurance premium calculator. However, the insurance provider takes into consideration the following parameters before fixing the auto insurance price:
The IRDAI decides the new car insurance rates for third-party insurance for all cars based on the engine capacity of the car.
The own damage premium for new cars can be calculated in two ways:
The easiest method to calculate the car insurance amount for a new car is to use a Car Insurance Premium Calculator. Simply visit the calculator on Policybazaar.com and enter your car details like make, model, variant, and ex-showroom price. The calculator will calculate the estimated new car insurance price along with the IDV of your four-wheeler.
An OD insurance premium for a new car can also be calculated by using the following formula:
OD Premium = Car’s IDV * Premium Rate (decided by the insurer) + Add-Ons – Discount & benefits (no claim bonus, theft discount, etc.)
IDV or the Insured Declared Value of the car can be calculated by using the following formula:
Insured Declared Value = (Current market value – the depreciation value) + (Cost of vehicle accessories - the depreciation value of these parts)
Lowering your car insurance premium without compromising coverage requires understanding the factors that affect policy costs. Listed below are some helpful tips you can follow to save on your car insurance price while ensuring optimum coverage.
Car insurance premium rates vary based on the coverage options and benefits being offered by the insurance company. Hence, to get your policy at a cost-effective premium, you should compare car insurance policies online and choose the one that best suits your car and requirements.
Installing an ARAI (Automotive Research Association of India) certified anti-theft device in your car is another way to save on your motor insurance premium. This device enhances your vehicle's security and minimises car theft chances. With an anti-theft device installed in your car, insurers offer a discount of up to 2.5% or a maximum of Rs. 500 on the policy premium, thus making your car insurance more affordable.
Every modification done to your four-wheeler increases its value and, in turn, its insurance premium. Hence, if you want to avoid high car insurance premiums, you must not make any unnecessary modifications to your car.
It’s always advised that you take some time to identify the add-on covers tailored to your vehicle's type and requirements. It will not only ensure optimum coverage for your car but also help lower your overall insurance premium. You may consider some beneficial add-ons such as zero deprecation, roadside assistance, and engine protection for a great driving experience.
If you want to reduce your car insurance premium, it is advised not to make claims for minor car damages as they are not very expensive to repair. Paying out-of-pocket for repairing such damages will keep the NCB discount valid for your next insurance renewal, ultimately lowering your policy premium.
Pay as you drive or pay as you go is usage-based car insurance, for which you pay the policy premium only for the number of kilometres you drive. So if you don't drive your car frequently or for long distances, it is advisable to opt for PAYD car insurance to save on your policy premium.
If you renew your car insurance after its expiry, it leads to a policy lapse, which increases the next renewal premium and voids NCB. So, if you want your four-wheeler insurance at an affordable premium, ensure you renew car insurance on time.
Buying car insurance online from the insurer’s website or from aggregators like Policybazaar.com comes with many benefits. Here are few such benefits of buying car insurance online:
To buy a car insurance policy online from Policybazaar.com, follow the steps given below:
When you purchase or renew a car insurance policy online from Policybazaar.com, you do not need any documentation or paperwork. However, there are some details that you will need to have handy with you during the process. These include:
A new car insurance has a validity period after which it needs to be renewed. Thus, to continue receiving coverage, you need to renew car insurance online before its expiry date. Here are some major benefits of online car insurance renewal -
When you renew four wheeler insurance online, you can easily compare the plans offered by multiple insurers. This will also help you understand the additional services offered by the plan, such as a free pick-up and drop facility, 3-day repair assistance, cashless assurance, and self-video claims.
You can easily modify the coverage of your car insurance policy during renewal by adding or removing the add-on covers. However, before tailoring your policy with an add-on cover, remember that your car's premium depends on it.
If you are not satisfied with your current insurer or want to enhance your policy coverage you can switch car insurer at the time of renewal. Moreover, if you find another insurer offering better features, then you can do so from the comfort of your home.
Secured payment gateways make renewing a car insurance policy a secure and transparent process. Premium payment can easily be done using credit cards/debit cards/and UPI.
Car insurance renewal online from Policybazaar.com is quick and easy. Follow these simple steps to get an instant quote in just a few minutes:
You will receive the policy document for your renewed car insurance on your registered email id. You can also download a copy of the policy document and get a printout anytime you want.
Here are the top 4 reasons why you must renew your expired car policy now:
Understanding the right steps to raise a car insurance claim is critical, as your insurer can reject your claim for a lot of reasons. Follow the below-mentioned steps to conveniently raise a valid four-wheeler insurance claim:
Step 1: Raise a claim request – Immediately share details of the accident with your insurer after the accident occurs. Make sure that you properly document and share photographic evidence to support your case.
Step 2: Car Inspection – After the claim is registered, the insurer will send a surveyor to assess the claimed damage. You will be required to submit some documents to the surveyor for the claim verification process. Make sure you keep them handy.
Step 3: Sending the car for repair – Once the inspection is complete, you can send the car to a network garage for repairs.
Step 4: Claim Settlement – If you have a cashless claim settlement, the insurer will directly settle the repair bills with the network garage. However, if you have opted for reimbursement claims, you will first be required to pay the bills and then raise a reimbursement claim.
Whether it is a theft claim, accidental claim or a third-party claim, the insurance company requires a host of documents to be submitted. Mentioned below is the list of different documents that you would require when registering a claim:
Here are some essential tips that will help you avoid car insurance claim rejections:
Inform your insurance company about any modification to your four-wheeler as soon as you make it. If you fail to do so and the insurer learns about it at the time of the claim, they may reject the claim.
If you forget to renew your policy before the expiry date and raise a claim after that, your insurer will reject that particular claim. Therefore, make sure to renew your car insurance policy before the expiry date.
Your insurance provider may reject your claim if you don’t have any of the mandatory documents required to raise a claim. Thus, you must keep all the relevant documents handy at the time of raising a claim.
Read your policy terms and conditions thoroughly at the time of policy purchase for a hassle-free claim settlement and avoid any claim rejections.
A car insurance claim can also get rejected if the driver was not carrying a valid licence at the time of the accident. Thus, ensure that you carry a valid driving licence with you while driving on the roads of India.
If you mistakenly declare an incorrect NCB when buying or renewing your motor insurance policy, any claims made under the new car policy may be rejected. Therefore, you must declare the right NCB when purchasing a policy.
As soon as you purchase a car policy online, your insurer sends a hard copy of your policy to your registered address. Moreover, a soft copy is also instantly mailed to you. However, if you lose your policy documents, you can also download a policy copy from Policybazaar Insurance Brokers Private Limited by following these easy steps:
Check out some of the commonly-used car insurance terminologies:
Ans: A car insurance policy, also known as motor insurance or four-wheeler insurance, is a contract between the policyholder and the insurance company. Under this contract, the insurer offers financial protection for damages to the insured car in unforeseen situations, such as road accidents, third-party liabilities, natural or man-made disasters, theft, fire, etc.
With a valid car insurance policy, you can also save yourself from heavy traffic fines. The three types of car insurance policies are third-party, own-damage, and comprehensive car insurance.
Third party insurance offers third party liability coverage and ensures that you comply with Indian motor laws.
With a comprehensive car insurance policy, you receive financial compensation for accidental damages, losses, and third-party liabilities. Moreover, you can buy a Personal Accident Cover of up to INR 15 Lakh along with your car insurance policy to cover the death, injuries and disability of the owner and driver of the insured car.
Ans: New car insurance is always expensive because the car's IDV is maximum at this point. The car's value depreciates with age, bringing down its IDV. Moreover, most people buy multiple add-ons, which also hikes their premium amount.
Ans: You can reduce the premium of your 4 wheeler insurance policy by:
Ans: You can skip buying personal accident (PA) cover under your new car insurance policy if you already have it under an existing motor policy. If you don’t, you will have to buy it, as PA cover for owner-drivers is mandatory in India.
Ans: Buying or renewing car insurance online takes only a few minutes. All you need to do is log in to Policybazaar.com, enter the details of your car and your contact information, and pay the premium for the chosen plan to get your policy issued instantly.
Ans: Yes. Both offline and online car insurance policies are the same. The only difference is that your online car policy is sent to your registered email ID, while the offline policy is sent to your home through the post.
On the other hand, non-cashless/reimbursement claims are the claims that are raised when your car is getting repaired at a non-network garage. In this case, you need to pay the entire repair bill and raise a reimbursement request with the insurance company.
Next up, inform your insurance company of the loss of your car and submit all the required documents. After this, your insurer will proceed with your claim settlement process.
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Read more#Rs 2094/- per annum is the price for third-party motor insurance for private cars (non-commercial) of not more than 1000cc
*Savings are based on the comparison between the highest and the lowest premium for own damage cover (excluding add-on covers) provided by different insurance companies for the same vehicle with the same IDV and same NCB. Actual time for transaction may vary subject to additional data requirements and operational processes.
##Claim Assurance Program: Pick-up and drop facility available in 1400+ select network garages. On-ground workshop team available in select workshops. Repair warranty on parts at the sole discretion of insurance companies. Dedicated Claims Manager. 24x7 Claim Assistance.
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