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All cars operating on Indian highways must be insured. The need for insurance has increased significantly in recent years as a result of the enormous number of vehicles that have entered Indian streets. It's crucial to think about potential collisions that can happen and harm your car. A car insurance coverage can be helpful in these circumstances as it will greatly reduce the costs associated with repairing the automobile or replacing its parts.

Insurance Provider Claim Settlement Ratio Number of Cashless Garages
Royal Sundaram General Insurance 92.66% 4,600+
HDFC ERGO General Insurance 91.23% 7,600+
IFFCO Tokio General Insurance 96.80% 4,300+
The Oriental Insurance Company 91.76% 3,100+
Tata AIG General Insurance 98% 5,400+

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Royal Sundaram General Insurance

  • Royal Sundaram General Insurance offers various insurance products through its 158 branches all over India.
  • Its key features include quick claim settlement, affordable premiums, and 4600+ cashless garages to its policyholders.
  • Royal Sundaram Car Insurance has a Claim Settlement Ratio of 92.66%.
  • It comes with minimal documentation, personal accident cover up to Rs.50 lakh, 24x7 assistance, and add-on covers.

HDFC ERGO General Insurance

  • HDFC ERGO General Insurance offers car insurance for as low as Rs.2,072.
  • The insurer has widespread network of 7,600+ cashless garages across the country.
  • It offers third party car insurance, comprehensive car insurance, private bundle car policy, and standalone own damage cover.
  • With a Claim Settlement Ratio of 91.23%, HDFC ERGO’s car insurance offers quick settlement of claims, overnight repair assistance, add-on covers, and many other benefits.

IFFCO Tokio General Insurance

  • IFFCO Tokio General Insurance provides a host of insurance plans to cater to the requirements of every individual.
  • With its affordable car insurance plans and 24x7 assistance, it settles claims within four hours.
  • IFFCO Tokio car insurance has a Claim Settlement Ratio of 96.80%.
  • The insurer has a widespread network of 4,300+ cashless garages.

The Oriental Insurance Company

  • The Oriental Insurance Company was incorporated in 1947 and has 1800+ operating offices across the country.
  • It offers niche products to meet the distinct needs of the country's urban and rural populations.
  • It has a Claim Settlement Ratio of 91.76%.
  • The Oriental Insurance Company’s car insurance comes with discounts on premiums, third party cover, and add-on covers.

Tata AIG General Insurance

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

Benefits of Purchasing a Car Insurance

Benefits of Purchasing

Third-party Car Insurance

Comprehensive Car Insurance

Offers financial assistance and legal cover Highest level of protection
Provides peace of mind Easier to replace your vehicle if it gets stolen
Simple and quick procurement process Cover for damages caused by natural disasters
Cost-effective Cover for damages caused by man-made disasters
Easily available Lower legal liability

Inclusions and Exclusions in Car Insurance

The cover offered by car insurance policies varies from insurer to insurer, but the most common inclusions and exclusions in car insurance are as follows:

What is Covered (Inclusions) What is Not Covered (Exclusions)
Cover for damages to your vehicle Damages to vehicle when it was being used for illegal purposes.
Cover for damages caused by natural calamities Accidents that are deemed fraudulent by the insurer.
Personal accident cover Damages incurred by the vehicle when it was being driven by someone who was under the influence of alcohol or drugs.
Cover for damages incurred due to man-made disasters Damages incurred by the vehicle when it was being driven by someone who does not have a valid driving license and who has not attained the legal driving age.
Theft Damages incurred by the vehicle when the driver was breaking traffic rules.
Damages to property Damages incurred by the vehicle when the car insurance policy had expired.

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

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Add-On Covers for your Car Insurance Policy

The following are a few add-on covers that you can purchase with your car insurance policy to make it more comprehensive and effective:

Zero Depreciation Cover

Purchasing this cover will ensure that you receive a full claim on the cost of the car parts replaced following an accident. This cover is usually provided only for the initial 3 years from the date on which the car was purchased. As the vehicle ages, the premium for this cover gets steeper.

Roadside Assistance Cover

In case you are faced with an emergency when driving in a remote area, the roadside assistance cover will provide you with access to services that can fix your problems as soon as possible.

Personal Accident Cover

A personal accident cover provides coverage to the owner of a car in case of accidents. If the owner of the car is driving it and meets with an accident, 100% of the claim amount will be provided to him/her in case of irreparable damage to limbs or death.

No-Claim Bonus

A no-claim bonus is a reward for policyholders who do not make any insurance claims over the course of a policy year. In such cases, this cover rewards them by providing discounts of up to 50% on the premium payment for the following year.

Engine and Electronic Circuit Cover

This add-on cover provides protection to the electronic circuit and the engine of the vehicle. In case of flooding, the engine can fail if you keep trying to run it, and this damage is not covered by regular car insurance policies.

Loss of Belongings

This add-on cover allows you to report claims because of loss or theft of your personal belongings. In case you leave your laptop or some other expensive equipment in your locked car and it gets stolen, this cover will reimburse you for the loss at least partly if not fully.

Daily Cash Allowance

In case your vehicle remains in a garage for about three to four days, the daily cash allowance cover will pay for your transportation costs. However, this cover is not too popular among Indian car owners due to the fact that repairs usually take just a day or two.

Key Replacement

In case you misplace or lose your car keys, having a key replacement cover will ensure that you are reimbursed for the cost of replacing the key. However, insurance companies do not reimburse the whole amount needed to replace the key.

It is essential to consider the aforementioned covers as they will not only come to your rescue when needed, but will also lower the costs you would otherwise incur if you did not have them. However, not all add-on covers may be beneficial for you, so it is advised that you go through them carefully and pick the ones that could come in handy.

Documents and Details Required for Filing Car Insurance Claims

The following are the details/documents you will be required to send to your insurer when making a claim:

  • Name of the insured individual
  • Policy number
  • Contact number
  • Date and time of the accident
  • Number of the vehicle
  • Make and model of the car
  • Location and extent of loss
  • Name of the garage along with contact information
  • Brief description of the accident

In case of accident damages, the following documents will be required to make a claim:

  • Proof of insurance – cover note or policy copy
  • Registration book copy and original tax receipt
  • Driving license copy along with the original (of the individual driving the car at the time of the accident)
  • FIR or police panchanama (for bodily injuries or death or damage to third party and/or his/her property)
  • Estimate of the cost of repair
  • Payment receipts and repair bills following the completion of repairs

In case of theft of your car, the following documents will be required to make a claim:

  • Original policy document or certificate
  • Registration book along with theft endorsement from the concerned Regional Transport Office plus tax payment receipt
  • Details of the insurance policy, such as policy number, period of insurance, and the insurance company
  • All sets of service booklets, keys, and warranty cards
  • FIR or police panchanama along with JMFC report or final investigation report
  • Acknowledged copy of letter addressed to the Regional Transport Office intimating theft

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

Step 6: Your car insurance will be renewed after you complete the payment.

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How to Purchase New Car Insurance

Agents

Insurance agents are employed by insurance firms and receive compensation from them for promoting their services to customers. Agents are knowledgeable about the available insurance packages. They are qualified and experienced to advise you and assist you in selecting the insurance plan that best meets your needs.

Dealers

Customers purchase vehicles from auto dealers, and these purchases include third-party liability insurance. Dealers frequently have relationships with insurance providers but may not have a thorough understanding of the plans. They handle the administrative tasks necessary to obtain a third-party liability insurance policy offered by the dealership.

Brokers

Brokers can be either individuals or businesses that are authorised to offer insurance products by the Insurance Regulatory and Development Authority of India. Brokers can sell products from a variety of insurance providers because they have the knowledge necessary to support your decision-making. They also assist with post-purchase support. Brokers can assist you in your search for the best policy for you by comparing a variety of options. Brokers can help you with the claim-settlement process as well.

Car Insurance Claim Process for Damages to Your Own Car

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

Step 1: You must notify the insurance provider as soon as you are involved in an accident or observe damage to your car by calling them. Along with the essential paperwork requested by the insurance, you must also provide a properly completed claim form. You can get the forms from your insurance company's website.

Step 2: The insurance provider will send a surveyor to evaluate the harm done to your car. The surveyor will write a report and provide it to the insurance provider. You will receive a copy as well.

Step 3: Following the completion of repairs to your vehicle, the duly signed forms and documents must be taken from the garage and given to the surveyor who will send them to the insurer.

Step 4: If the documents and the claim are approved, a delivery order (DO) will be provided by the insurer in case of cashless claims. Once you pay your car repair bills, you can take your car.

Step 5: You can bring your car to the shop and get reimbursed by paying the fee. Depending on your auto insurance policy's terms and conditions, you may later receive a refund for this sum.

Car Insurance Claim Process for Third Party Claims

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

Step 1: You must let your insurer know if you receive a legal notification from a third party demanding compensation for damages you are responsible for. Before speaking with the third party or agreeing to any out-of-court settlements or financial obligations with them, it is crucial to contact your insurance.

Step 2: A copy of the legal notice must be sent to your insurance company.

Step 3: Copies of the FIR, your driving license, and the RC book of your vehicle must be submitted to the insurance company.

Step 4: The insurance company will review the records and the accident's specifics after that, and if they are satisfactory, they will assign a lawyer to represent you.

Step 5: In case the court says that you will have to cover the damages caused to the third party, the insurer will make the payment to the third party.

Car Insurance Claim Process for Stolen Car

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

Step 1: If your car is stolen you will have to lodge an FIR by filing your complaint at the nearest police station.

Step 2: A copy of the FIR must be submitted to the insurance company.

Step 3: After the final police report is sent to you, a copy must be taken and sent to your insurance company. An investigator will be assigned by the insurance company.

Step 4: After your claim is approved, you should submit your stolen car’s RC book to your insurer.

Step 5: The owner’s name will be changed to the name of the insurance company.

Step 6: The replica car keys and a letter of subrogation must then be delivered to the insurance provider. The insurance firm must also receive a notarized indemnification on stamp paper.

Step 7: Following the completion of the formalities, the claim amount will be disbursed by the insurance company.

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Benefits of Comparing Motor Insurance Online

  • There will be a range of coverage options and premium costs offered by various insurance firms. You should compare automobile insurance premiums primarily for this reason. To find the best premium rates for your vehicle, compare the insurance quotes offered by several insurance companies.
  • If you are comparing several online rates for auto insurance policies, you have the ability to tailor your coverage. Based on the level of coverage you require, you can receive customised prices.
  • Selecting add-ons can help you save a lot of money in the long run. The various add-ons offered by insurers can be compared using comparison tools that are available online.
  • On the Own Damage portion of the automobile insurance policy, many insurers provide discounts. To find out which insurer provides the best discount for your vehicle, you can compare the discounts provided by several insurers.
  • Your understanding of the discounts and coverage options available for your vehicle might be improved by comparing the various policies online. You can learn more about the exclusions and deductibles of the insurance policy by comparing different coverage.
  • The procedure of comparing policies is transparent, which is its best feature. The various facets of the product that the insurance offers can be seen clearly. You may also read reviews of the insurance plan written by other policyholders to learn about their experiences with it.

Why You Need Car Insurance

  1. Mandatory by law: The Motor Vehicles Act of India has made it compulsory for all vehicles used in public spaces to have car insurance. A third-party liability policy is compulsory for all vehicles, but you can decide to go for a comprehensive car insurance policy too.
  2. Effective investment: As a result, having a comprehensive auto insurance policy in place will guarantee that the costs associated with repairing your automobile in the event of an accident are covered. Additionally, any bodily harm to the policyholder will be covered. The amount of compensation in the event of an accident with another vehicle could reach thousands or even millions of dollars.
  3. Offers peace of mind:Having auto insurance gives you the freedom to drive carefree on the highway or even manoeuvre through heavy traffic without worrying about the repercussions of potential collisions.
  4. Health insurance boost: The majority of auto insurance plans cover your injuries as well as the injuries suffered by other passengers in an accident. If the policy you select does not provide this coverage, you can always add personal injury protection as an additional insurance option. This will supplement your health insurance by providing coverage for any eventualities that your health insurance plan may not.
  5. Saving time: After an accident, you have to deal with getting your car fixed, paying for the cost of fixing someone else's car, paying for any injuries you or someone else may have had, filing claims, locating a reputable mechanic, etc.

How Car Insurance Can Protect You?

  • Damages: Cars are expensive to purchase and maintain, and repairing them if they meet with accidents can be a costly affair too. There may be instance where your vehicle could sustain damages because of a third party’s negligence. Having a car insurance policy will ensure that your damages are paid for by the insurance company.
  • Lower liability: It is mandatory to have third party liability car insurance in India. This policy will protect you from being held legally liable for an accident that you caused. For instance, if you hit someone else's property with your automobile, your insurance will pay for both the cost of repairing the damage and any legal implications.
  • Hospitalisation expenses: While some collisions are very minor, others result in more serious injuries for the driver and passengers than minor bumps and scratches. People occasionally sustain fractures or other serious wounds that require hospitalisation. Having a car insurance policy can ensure that you don't burn a hole in your wallet during times like these, given the rate at which medical and hospitalisation costs are increasing in India.
  • Compensation for the family: In some cases a car accident can lead the demise of the car owner. If you are the sole breadwinner of your family, it can be extremely difficult for your spouse and kids to survive in your absence. A car insurance policy will pay for the expenses your family will incur after your death, such as funeral expenses.
  • Lower cost for online purchase: Online vehicle insurance purchases might save money because the premiums are frequently lower. The insurance company's running costs are cheaper when transactions are completed online, which explains this. The insurance firm distributes the savings to the client because brokers do not need to be paid commissions. Even renewing your coverage online is easy and convenient, not to mention affordable.

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Points to Keep in Mind When Purchasing Four Wheeler Insurance:

1. Do your research

You will have to compare a number of plans to find the one that best suits your four wheeler insurance needs. You will have to consider various parameters such as the cost of premium, the claim settlement ratio of the company, the coverage provided, additional benefits, etc.

2. Claims

The Claim Settlement Ratio of an insurance company must be checked to ensure that you have a hassle-free claims process.

3. Third-party insurance is compulsory

If you are purchasing a car for the very first time, the auto-dealer will offer you third-party insurance. If not, you will have to purchase it from a broker or insurance company.

4.Understand the policy document

You must go through the policy document to understand who is covered, how much coverage is provided, What are the exclusions, inclusions and etc.

5. Comprehensive cover offers greater protection

Not only will it protect you and your vehicle, but will also take care of the claims made by third parties for damages caused to their body or vehicle.

6. Additional cover must be considered for your risk profile

Purchasing add-on covers for your car insurance policy will provide you with sufficient cover against various situations in case of accidents.

7. Periodical evaluation

Experts say that you must evaluate your insurance plan on an annual basis to know if you have adequate coverage or you need more.

8. Credit score

The credit-based insurance score of an individual can determine the premium rate applicable to him/her.

9. Personal accident cover must be considered

The benefits of purchasing this cover is that it provides global coverage and covers all legal expenses. It is also customisable based on the needs of the individual.

10. Voluntary deductibles

By going for this option, the cost of repairs during accidents will be shared between you and the insurer, thus meaning that you will have to pay a lower premium amount.

11. Assess dealer insurance

The package may not be the best suited to your insurance needs and neither would it be the least expensive option.

12. Understand your car’s Insured Declared Value

The Insured Declared Value of your vehicle is the maximum amount that can be claimed under your car insurance plan.

13. Understanding the No-Claim Bonus

In case you do not make any claims over the course of a year, the No-Claim Bonus will offer benefits such as reduction in your premium amount.

14. Consider cashless claim options

Look for four wheeler insurance companies and plans that offer the cashless claims facility as it comes in handy during times of emergencies.

15. Car customisation

It is important to note that coverage is not offered for some vehicle parts under a regular car insurance policy. Engine parts or other mechanical parts may not be covered after they are modified.

16. Customer service

When you purchase a car insurance policy, the customer support offered by the company is crucial to ensure that you don’t have any hassles in the future.

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