List of Best Car Insurance Companies In India

There are 22+ best car insurance companies in India that offer car insurance online with various benefits to cater to different individual requirements. Before buying car insurance, you must decide which company to choose. Here are top car insurance companies to help you buy a policy that best suits your needs.

Read more

22+ Best Car Insurance Companies in India in 2024

Listed below are over 22 best car insurance companies in India, along with their number of network garages and claim statement ratios.

How to Choose the Best Car Insurance Company in India?

Before buying a car insurance policy, you should compare different car insurance companies online based on the following criteria:

• Analyse Car Insurance Needs: It is very important to understand your coverage requirements while selecting among the best car insurance companies. Determine your budget and the type and level of coverage you need, then opt for a motor insurance policy that best suits your requirements.
• Insurer's Reputation: To confirm the legitimacy of a car insurance company in India, you should check its IRDAI registration number and evaluate its financial stability by examining annual records and solvency ratios, ensuring timely and effective claim settlements.
• Review Add-on Covers: It is always recommended that you consider the optional covers available with a car insurance policy to enhance your standard coverage. Some essential add-ons include Zero Depreciation, Engine Protection, Consumables, RSA (Roadside Assistance), etc.
• Claim Settlement Ratio: You should also examine the claim settlement ratio (CSR) and incurred claim ratio (ICR) of the car insurance company. A higher CSR implies a better chance of your motor claims being settled, and a favourable ICR can show efficient premium management. Hence, choose an insurer with higher CSR and ICR to minimise the risk of claim rejection.
• Cashless Garage Network: Cashless garages are car repair shops approved by an insurer where you can get your car repaired without having to pay out-of-pocket. A car insurance company with a larger network of garages ensures a higher probability of finding one near your location.
• Online Comparisons: Before purchasing your policy, you must compare car insurance quotes offered by various insurers. This will help you analyse their scope of coverage, premium rates, and add-ons. The ideal car insurance company will provide you with maximum coverage without making you pay an exceptionally high premium price.
• Customer Reviews: While looking for the best car insurance policy, it is better to check the customer reviews of different car insurance companies regarding the ease of buying, benefits offered, customer services and support, etc. Most car owners rely on reviews of the top car insurance companies in India while buying a policy.

Types of Car Insurance Policies In India

Most car insurance companies in India offer three types of policies, as explained below, each with a different level of coverage:

1. Third Party Liability Car Insurance:

   A third-party liability car insurance policy protects against any third-party liabilities of the policyholder arising out of accidental bodily injuries, disability, 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. It is important to note that a third-party car insurance policy is mandatory as per Indian motor laws.

2. Comprehensive Car Insurance:

   A comprehensive car insurance policy covers both third-party liabilities and own damages, offering maximum protection. Policyholders can further extend this coverage by opting for add-ons, which are optional covers provided by car insurance companies at an additional price.

3. Standalone Own Damage Car Insurance

   A standalone own-damage car insurance policy provides coverage only for the damages sustained by the insured car due to fire, natural disasters, accidents, manmade calamities, as well as theft. You can only opt for a standalone OD cover along with a third-party car insurance policy.

   Here is a table that shows the differences between these three types of car insurance policies:

Factors Affecting your Car Insurance Premium

Here are the key aspects that impact the premium price of a car insurance policy:

• Make, Model and Type: Your car’s manufacturer, model, and cubic capacity significantly impact car insurance premium rates. Luxury or sports cars have higher premiums compared to hatchbacks or SUVs.
• Geographical Location: The area in which you reside is another factor that affects car insurance policy premiums, mainly due to crime rates, traffic and population densities, weather conditions, and road quality, thereby influencing the overall risk for car insurance companies. Generally, the premiums are higher for car owners living in urban areas.
• Age/Profession of the Driver: Car insurance companies consider the driver's profession and age to assess the level of risk associated with insuring an individual. In case multiple drivers use the same car, car insurance premiums go up because the chances of claims increase with each additional driver.
• No Claim Bonus (NCB): If you are a responsible driver and you haven't filed any claim during the policy term, you get the advantage of the No Claim Bonus (NCB), which is a discount on your policy premium at the time of renewal. 
• Claim Settlement Ratio (CSR): The claim settlement ratio is the number of claims an insurer settles in a year out of the total number of claims received. An average of 85% CSR is considered good. You can easily find the claim settlement ratio of car insurance companies on IRDAI’s website, Policybazaar.com or the insurer’s official website.

How to Buy Car Insurance in India?

Before you buy four-wheeler insurance, it is essential to compare different plans offered by car insurance companies. Here is how you can compare and purchase the best car insurance policy from Policybazaar.com:

• Select ’Car Insurance’ from the homepage of Policybazaar Insurance Brokers Private Limited.
• Enter your car’s registration number and other details.
• Fill out the proposal form to view policy prices.
• You will now find multiple plans offered by different car insurance companies.
• You can also see the details of a plan from the ’Policy Details’ option.
• Compare and choose the plan as per your coverage requirements. At this step, you can also select the necessary add-ons that you need.
• Now, pay the premium amount using the available payment modes.
• Once you make the payment, your four-wheeler insurance policy will be mailed to you.