Car Insurance

1. Comprehensive insurance covers repair costs for your vehicle. 

1. If your car damages a third party's property or causes injury, you are responsible for compensation. 

1. Third-party insurance covers damages, injuries, fatalities, and associated legal liabilities. 

Top Car Insurance Companies in India 2025 

Check out the best car insurance policies offered by the top car insurance companies in India.

Note: GST Update: GST of 18% is applicable on car insurance effective from the 1st of July, 2017

Key Features of Car Insurance Policy 

The following are the significant features of car insurance policy: 

1. Third-party Liability Coverage: Covers damages to third-party property or injuries to third parties caused by your car. 

1. Own Damage Coverage: This includes coverage for damages to your own vehicle due to accidents, theft, vandalism, fire, or natural calamities like floods and earthquakes. 

1. Comprehensive Coverage: Some policies offer comprehensive coverage, which combines third-party liability and own damage coverage, providing broader protection. 

1. Add-on Covers: Insurers offer additional covers that can be added to the base policy for enhanced protection. Common add-ons include zero depreciation cover, engine protection cover, roadside assistance, and consumable cover. 

1. Personal Accident Cover: Car insurance policies often include coverage for personal accidents, providing financial protection in case of accidental death or disability of the owner/driver. 

1. No Claim Bonus (NCB): Policyholders are rewarded with a discount on the premium for every claim-free year, known as the No Claim Bonus. This encourages safe driving and maintaining the vehicle well. 

1. Voluntary Deductibles: Amounts that they agree to bear themselves in case of a claim. Choosing a higher deductible can lower the premium cost. 
2. Windshield Protection: Covers damage to your vehicle’s windshield, ensuring repairs or replacements are covered under the policy. 

1. Towing Assistance: Provides coverage for towing your vehicle to the nearest garage or service station after an accident or breakdown.  

1. Consumables Cover: Includes the cost of consumables like nuts, bolts, and lubricants during car repairs.  

1. Legal Liability Coverage: Provides protection against legal costs if you are held responsible for an accident, including third-party bodily injury or property damage.  

1. Third-Party Property Damage Limit: Specifies the maximum payout for damage caused to third-party property in the event of an accident. 

Benefits of Car Insurance Policy 

The following is the list of benefits of a car insurance policy:  

1. Protection Against Natural Calamities: Car insurance shields you from financial loss due to damage caused by natural disasters such as floods, earthquakes, cyclones, or storms. These calamities can result in extensive damage to your car, and insurance ensures that you are financially covered for repair or replacement costs. 

1. Protection Against Theft: In case your car is stolen, the insurance company compensates you with the Insured Declared Value (IDV). This ensures that you don’t bear the full financial loss, providing you with a fair payout based on the car’s value at the time of theft. 

1. Flexibility to Choose Add-ons: Car insurance policies offer various add-ons, which are extra covers that can be selected based on your specific needs. Some popular add-ons include zero depreciation, which ensures full compensation for repairs, and roadside assistance, which provides immediate help in case of breakdowns. These add-ons enhance your policy but come with additional costs. 

1. Cashless Repairs at Network Garages: Many insurance providers have partnerships with authorised network garages. These garages directly settle repair bills with the insurer, saving you the hassle of paying upfront and seeking reimbursement later. This cashless process makes it convenient for you during emergencies. 

1. Coverage for Accidental Damages: Car insurance policies cover damage to your vehicle resulting from accidents, along with medical expenses for any injuries caused during the incident. It helps reduce the financial burden of repair costs and treatment, providing a sense of security when driving. 

1. Third-party Liability Cover: Third-party liability insurance is mandatory in India, ensuring you are covered in case your car damages someone else’s property or causes injury. The insurer pays for the third-party damages, preventing you from bearing the entire cost and avoiding legal repercussions. 
2. Legal Compliance: Having car insurance is legally required in India, and failure to do so can lead to hefty fines and legal consequences. A valid insurance policy ensures you comply with the law and avoids penalties, ensuring a smooth driving experience. 

1. No Claim Bonus (NCB): If you don’t make any claims during a policy term, you are eligible for a discount on your premium at renewal. The NCB starts at 10% and can increase by 10% every consecutive claim-free year, potentially saving you up to 50% on your policy renewal. 

1. Personal Accident Cover: Personal accident cover provides compensation for the insured’s injuries, permanent disability, or death resulting from an accident. This coverage helps mitigate the financial stress caused by medical treatment and loss of income, offering additional peace of mind for you and your family. 

1. Zero Depreciation Cover: Regular car insurance deducts the depreciation of your car’s parts when settling claims. However, with zero depreciation coverage, you are reimbursed for the full repair cost without any depreciation deductions, ensuring that you get a higher payout for repairs and replacements. 

1. Engine Protection Cover: Engine protection coverage safeguards your vehicle’s engine against damage caused by water ingress, oil leakage, or mechanical failure. This add-on is particularly useful in cases of accidents or weather-related incidents that could impact the engine’s functioning. 

1. Consumables Cover: A regular car insurance policy excludes costs for consumables like nuts, bolts, lubricants, and engine oils during repairs. The consumables cover adds protection for these costs, ensuring that you’re reimbursed for minor but essential components during the repair process. 

1. Return to Invoice Cover: If your car is stolen or severely damaged beyond repair, the return to invoice cover reimburses the full original invoice value of your car, including taxes and registration fees. This add-on ensures you are not financially disadvantaged due to the depreciation of your vehicle. 

1. Towing Assistance: Towing assistance is an essential feature offered by many car insurance policies. In case of a breakdown or accident, the insurer provides towing services to the nearest garage or repair shop, helping you avoid additional costs and inconveniences. 

1. Coverage for Co-passengers: Some policies offer coverage for your passengers in case of an accident. This add-on ensures that your passengers receive medical coverage or compensation if they are injured or killed in an accident, offering more comprehensive protection. 

1. Financial Security: Car insurance provides financial security by covering major expenses, such as repairs, medical treatment, and third-party liabilities. This protection helps reduce the strain of unexpected costs, ensuring you don’t face financial hardship due to unforeseen incidents. 

1. Legal Compliance: In addition to providing coverage, car insurance ensures that you are adhering to legal requirements. Driving without valid insurance can lead to fines and legal trouble, but with the right coverage, you avoid such penalties and stay within the law. 

1. Peace of Mind: The overall benefit of having car insurance is the peace of mind it offers. Knowing that you are financially protected in the event of an accident, theft, or natural disaster allows you to drive with confidence, reducing stress and improving your overall driving experience. 

Types of Car Insurance Policies

Understanding the different types of car insurance coverage is crucial to selecting the right policy for your needs. In India, the key types of coverage are designed to protect you, your vehicle, and others in the event of accidents or other mishaps. Below are the five primary car insurance coverage options available: 

Additional Coverage Options 

1. Engine Protection: Covers damage to the engine caused by external factors like water ingress or oil leakage. 

1. Roadside Assistance: Offers immediate help in case of breakdowns, including towing and minor repairs. 

1. Consumables Cover: Pays for consumables such as lubricants and bolts used during vehicle repairs. 

1. Key Replacement: Covers the cost of replacing lost or stolen keys. 

1. Return to Invoice Cover: Provides compensation equal to the car's original invoice price if it is deemed a total loss. 

Popular Car Insurance Policies in India

Royal Sundaram General Insurance

1. Royal Sundaram General Insurance offers various insurance products through its 158 branches all over India.
2. Its key features include quick claim settlement, affordable premiums, and 3300+ cashless garages to its policyholders.
3. Royal Sundaram Car Insurance has a Claim Settlement Ratio of 98.33%.
4. It comes with minimal documentation, personal accident cover up to Rs.50 lakh, 24x7 assistance, and add-on covers.

HDFC ERGO General Insurance

1. HDFC ERGO General Insurance offers car insurance for as low as Rs.2,072.
2. The insurer has widespread network of 8700+ cashless garages across the country.
3. It offers third party car insurance, comprehensive car insurance, private bundle car policy, and standalone own damage cover.
4. With a Claim Settlement Ratio of 100%, HDFC ERGO’s car insurance offers quick settlement of claims, overnight repair assistance, add-on covers, and many other benefits.

IFFCO Tokio General Insurance

1. IFFCO Tokio General Insurance provides a host of insurance plans to cater to the requirements of every individual.
2. With its affordable car insurance plans and 24x7 assistance, it settles claims within four hours.
3. IFFCO Tokio car insurance has a Claim Settlement Ratio of 95.82%.
4. The insurer has a widespread network of 4,300+ cashless garages.

The Oriental Insurance Company

1. The Oriental Insurance Company was incorporated in 1947 and has 1800+ operating offices across the country.
2. It offers niche products to meet the distinct needs of the country's urban and rural populations.
3. It has a Claim Settlement Ratio of 91.50%.
4. The Oriental Insurance Company’s car insurance comes with discounts on premiums, third party cover, and add-on covers.

Tata AIG General Insurance

1. Tata AIG General Insurance offers a wide range of insurance products to its customers.
2. Its car insurance plans let you save up to 75% on premiums.
3. The insurer has a high Claim Settlement Ratio of 98%.
4. It offers 13 add-on covers and has an extensive network of 5400+ cashless garages to ensure easy and quick claim settlement.

What is Covered & Not Covered Under Car Insurance Policy?

Here are the details of what a car insurance covers and does not cover: 

Note: Each policy has its own list of exclusions that you are expected to read carefully at the time of purchasing one.

How to Buy Car Insurance Online? 

To buy a car insurance online follow the steps mentioned below - 

Step 1: Research and select the car insurance provider that best suits your needs. 

Step 2: Visit the car insurance provider’s website and pick the best plan for yourself. 

Step 3: Once you select the plan, follow the steps of filling all the necessary details asked by the website. 

Step 4: Submit the form and proceed to the online payment page. 

Step 5: Complete the payment with your credit or debit card. 

Step 6: After the payment is done, you will get the policy document from the insurer through your registered email id. 

How to Renew Car Insurance Online?

Given below are the steps to renew your car insurance online:

Step 1: Visit the car insurance renewal section of your insurer.

Step 2: Enter the details like your name, date of birth, policy number, etc., and submit.

Step 3: Select the car insurance plan you wish to buy.

Step 4: Choose the add-on covers or riders that you wish to purchase (if required).

Step 5: The premium amount payable will be displayed on the screen.

Step 6: Make the premium payment via net banking, debit card, or credit card.

Step 7: Your car insurance will be renewed after you complete the payment.

Comparison Between Third-Party & Comprehensive Car Insurance:

The following table shows the difference between third party insurance and comprehensive car insurance: 

Points to Consider When Choosing a Car Insurance Policy

The following are the few things that you need to consider while choosing a car insurance:  

1. Compare Plans: Use online tools to compare car insurance policies based on quotes, services, and features. Choose a plan that best meets your needs. 

1. Evaluate Your Needs: Assess your car type, driving habits, and potential risks to select a policy tailored to your requirements without overspending. 

1. Consider Add-ons: Explore optional coverage to enhance your policy but choose only those add-ons that are truly necessary. 

1. Review IDV (Insured Declared Value): Verify your car’s market value and ensure the insurer provides adequate reimbursement for total loss or irreparable damage. 

1. Check Customer Support: Opt for an insurer with 24/7 customer service for reliable assistance whenever needed. 

Factors Affecting Car Insurance Premium

The following are the factors which affect a car insurance premium: 

1. Insured Declared Value (IDV):  IDV reflects your car's current market value, adjusted for depreciation. Higher IDV leads to higher premiums.

1. Car Owner: Premiums are influenced by the car owner's driving record. A clean record often results in lower premiums.

1. Make and Model: Premiums vary based on the car's make, model, and class. Sports cars generally have higher premiums than standard ones.

1. Safety Features: Vehicles equipped with anti-theft devices may qualify for reduced premiums. Modern safety features can also impact insurance costs.

1. Coverage Needed: Premiums depend on the coverage level. Comprehensive coverage typically requires higher premiums, with additional add-ons increasing costs.

1. Frequency of Claims: No Claim Bonus (NCB) discounts are offered to policyholders who haven't filed claims during the policy term, reducing future premiums.

Why Do You Need a Car Insurance?

The following are the reasons for Car Insurance:

1. Mandatory by Law: The Motor Vehicles Act, 1988, requires car insurance for all vehicles in India. Non-compliance can lead to penalties and suspension of driving rights. 

1. Protection for You and Your Vehicle: Comprehensive insurance covers damage to your vehicle, third-party damages, and incidents like fire, natural disasters, or vandalism. 

1. Financial Support for Family: Personal accident cover in car insurance provides financial compensation for policyholders or their families in case of death or severe injury. 

1. Legal Cost Coverage: Car insurance covers legal expenses arising from accidents, reducing financial strain during legal proceedings. 

1. Third-Party Damage Coverage: Basic third-party insurance covers costs for damage or injuries to others, including medical bills and repair expenses. 

How to Calculate Car Insurance Premium?

There are various factors that the insurance provider takes into account while calculating the car insurance premium. These factors are mentioned below - 

1. Type of car 

1. Age of car 
2. Geographical zone 
3. Insured Declared Value (IDV) of the car 
4. Cubic capacity of the engine Regional Transport Office

Car Insurance Claim Process for Damages to Your Own Car

For damage occurred to your car, the car insurance claim process is as follows: 

1. Step 1: Report FIR.  

File a First Information Report (FIR) immediately after an accident, theft, or fire. It’s not needed for minor damage unless a third party is involved. 

1. Step 2: Photographic Proof.  

Take clear, detailed photos of the accident scene and damage to help the insurer evaluate the claim. 

1. Step 3: Submit Documents  

Provide necessary documents like the insurance policy, FIR, owner’s license, driver’s car registration certificate, and other required paperwork. 

1. Step 4: Fix Your Car  

Take the car to a repair shop or request the insurer to cover repair costs. If the claim is accepted, the costs will be reimbursed or directly covered. 

1. Step 5: Claim Settlement  

For cashless settlement, the insurer pays the garage directly after the surveyor’s report. For reimbursement, submit repair receipts. 

1. Note: A mandatory deductible portion of repair costs applies, even with insurance. 

Car Insurance Claim Process for Third Party Claims

The car insurance claim process for a third-party claim is as follows:

Third-party motor insurance claim for disability, injury, or death:

Step 1: File an FIR with the police immediately after the accident and obtain a copy. 

Step 2: Get the third-party motor insurance details from the car owner. 

Step 3: Obtain a copy of the charge sheet filed by the police against the car owner. 

Step 4: Hire a motor claims lawyer and file a compensation case in the Motor Accident Claims Tribunal. 

Step 5: The case must be filed in the tribunal court where the accident occurred or where you reside. 

Step 6: Out-of-court settlement may be proposed, but involving authorities is advised.   

Third-party car insurance compensation claims for property damage: 

Step 1: File an FIR and get a copy, along with the charge sheet. 

Step 2: File the claim in the local tribunal court. 

Step 3: Compensation will be assessed based on submitted documents and statements. 

Step 4: The maximum compensation limit for property damage is Rs. 7.50 lakh.   

Car Insurance Claim Process for Stolen Car

The car insurance claim process for stolen car is as follows:

1. Step 1: File a Police Report Report the theft immediately at the police station and get an FIR with details of the theft and vehicle. 

1. Step 2: Inform Your Insurance Company Notify your insurer with the FIR, vehicle details (make, model, registration), and any available witness info. 

1. Step 3: Insurer’s Investigation The insurer will verify the claim, investigating the FIR and possibly interviewing witnesses. 

1. Step 4: Submit Documentation Provide required documents like the FIR, vehicle RC, driving license, car keys (if available), and any other insurer requests. 

1. Step 5: Loss Assessment The insurer calculates the claim amount based on the vehicle’s Insured Declared Value (IDV) and depreciation. 

1. Step 6: Claim Settlement The insurer processes the claim and settles it, minus any applicable deductible. 

Documents Required for Filing a Car Insurance Claim 

The following is the list of documents required for filling a car insurance claim: 

Points to Remember to Avoid Rejection of Car Insurance Claim 

The following are some of the vital points that should be remembered to avoid rejection of car insurance claim: 

1. Renew policy on time otherwise the insurer will reject your claim request. 

1. Declare every detail related to car modification to avoid rejection of claim in case you inform during processing your claim. 

1. Keep mandatory documents handy to process your claim and avoid rejection. 

1. For hassle-free claim settlement read policy terms and conditions thoroughly. 

1. Always keep your driving license while driving to avoid claim rejection. 

1. While purchasing a car insurance policy, declare the NCB (No Claim Bonus) correctly otherwise your claim request may get rejected. 

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