Monday, March 4, 2024

which car insurance is best in India

want to know India best car insurance ? if yes then this Article is for you after reading this article you will have the complete information about best car insurance in India.

Have you ever thought about which car insurance is best in India as there are multiple car insurance providers in India. Don’t worry we are going to discuss the best car insurance in India.

Having a third party insurance is mandatory to drive a vehicle as per the motor vehicle act, 1988. Driving without an insurance policy can result in a fine. It is important to get a proper insurance policy to save yourself from heavy expenses after any mishap.

As the number of car owners are growing at a record high Car insurance is a type of insurance policy that provides financial coverage against any damage, loss or theft after any mishap. Insurance is most important both legally and ethically.

Top car insurance provider in India

Here is the list of top 10 insurance providers in India according to the number of garages and the claim settlement ratio.

Car insurance companiesNo. of garagesClaim settlement ratio
Bajaj Allianz car insurance400098.5%
Reliance car insurance820098%
SBI car insurance16000100%
Royal sundaram car insurance330098.6%
Liberty car insurance450098%
Kotak mahindra car insurance232798%
Digit car insuranceRepair anywhere96%
Liberty car insurance450098%
Zuno car insurance150098%
Magma HDI400097.1%

*We are not promoting any insurance company. The information provided here is taken from the internet.

How to choose the best car insurance company in India ?

When it comes to choosing a car insurance policy there are several points to be taken into consideration such as claim settlement ratio, number of garages, policy coverages, premium, add-ons varieties, etc. so let’s discuss some of the criterias to consider while choosing a car insurance.

  • Authenticity of Motor insurance company: The authenticity of the respective motor insurance company can be checked from IRDAI registration number. IRDAI is an insurance regulatory body that provides registration numbers to only verified insurance providers.
  • Analysis of your need and budget: Before moving to own an insurance policy firstly you should analyse your need with your insurance cover. Also you should check for any specific add-on covers required. You should also check for the maximum amount of premium you are ready to pay for it. 
  • Availability of add-on cover: Before moving further, you should verify the availability of add ons cover which will provide you benefit in some specific cases. Some of the important add-on covers are- roadside assistance cover, zero depreciation cover, engine protection cover, etc.
  • Claim settlement ratio: It is always recommended to check for Claim Settlement Ratio, CSR and Incurred Claim Ratio, ICR for any insurance provider. CSR refers to the percentage of claims approved by the company and the ICR refers to the percentage of premium utilised to pay off the claims. The higher the CSR and ICR are, the higher is the chances the company will pass the claims.
  • Cashless garage network: The cashless garage are the insurance provider’s approved garages where you get cashless repair for your car. The larger the number of cashless garage networks is, the higher is the chance of finding a verified garage in your area.
  • Customer reviews: It is better to check customer reviews provided by existing customers that will provide you with an idea about the company.

Types of car insurance policies in India

There are mainly three types of car insurance policies available in India, i.e standalone own damage insurance, third party insurance policy and comprehensive insurance. Each insurance policy offers different features catering to different needs. Let us discuss about each one in detail:

Standalone own damage car insurance

A standalone own damage car insurance is provided by nearly all of the insurance providers. It insures own damage to the insured car and protects against unforeseen conditions such as fire, natural disaster, theft and manmade calamities.

This type of car insurance is offered to those who already have a third party insurance for the insured vehicle. Now some insurance providers have started a bundled car insurance plan which includes 3 year third party plus one year own damage insurance.

Third party car insurance policy

A third party car insurance provides insurance against damage to third party vehicles by the insured car. It also insures damages and loss occurred by the insured vehicle which includes accidental damage, disability and death of a third party.

It is mandatory to have a third party insurance policy to drive legally in india. So you require this minimum cover to drive legally.

Comprehensive car insurance policy

A comprehensive car insurance policy insures against all kinds of natural disasters, man made calamities, vandalism, theft, fire, accidents, etc. Basically it completely insures the insured car. Along with it, it provides insurance against all kinds of third party liabilities.

Also, it provides personal accident cover to the driver of the insured car. If you want to know more about PA cover, you can check out an article on this site.

Standalone own damage vs third party vs comprehensive car insurance

These are the three types of car insurance policies provided by the insurance provider that caters to the different needs. Now let us discuss the differences between standalone own damage cover insurance, third party liability insurance and comprehensive car insurance.

Coverage availableStandalone own damageThird party liabilityComprehensive car insurance
Third party property damageYesNoYes
Third party vehicle damageYesNoYes
Damage to third partyYesNoYes
Damage to insured carNoYesYes
Theft loss of insured carNoYesYes
Fire loss of insured carNoYesYes
Natural disaster damageNoYesYes
Man Made calamity damageNoYesYes
PA cover (if opted)YesYesYes
Zero depreciation cover(if)NoYesYes
Other add-on coverNoYesYes
Mandatory by lawYesNoNo

Now we have discussed the various conditions and the coverage availability of any particular insurance policy type. It is now totally on the policyholder to choose a perfect car insurance policy according to need and budget.

Factors affecting the car insurance premium

Here are some of the factors that affect the car insurance premium, lets get into detail

  • Make, model and type: The make, model, engine specification and fuel type affects the car insurance premium. Cars whose maintenance cost is high have a higher premium. It can be seen in the case of diesel cars having 10 – 15% higher premiums.
  • No claim bonus: If the policyholder does not file any claim during the last one year, then the insurer rewards with a discount in premium amount at the time of renewal of car insurance.
  • Location: The geographical location of the user also affects the car insurance premium. This generally depends  on the car registration area. If the area is urban, highly populated or more crime happens in that particular area then the premium amount is high. 
  • Age/ profession of driver: The age and profession of the driver is also considered. Premium amount is high for cars with multiple drivers.

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Conclusion 

Now as we have understood completely about the car insurance in India, different kinds of cover as standalone own damage cover, third party liability and comprehensive car insurance and their coverage conditions as well. 

There is no doubt that car insurance is a must have tool for any owner as it protects yourself and your hard earned money in the case of any unforeseen mishap. Also it is legally compulsory to have a third party liability insurance to drive in India as per motor vehicle act. So you should choose car insurance with proper research that would cater to your needs.

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