What is Car Insurance?

Car insurance in India is a type of insurance policy that provides financial protection to car owners against damages or losses caused by unforeseen events. It is mandatory by law for all car owners in India to have at least a third-party liability insurance policy.

In India, there are two types of car insurance policies available - Third-Party Liability Insurance and Comprehensive Insurance.

Third-Party Liability Insurance is the basic insurance policy that covers damages or losses caused to a third-party, such as bodily injury, death, or property damage, due to an accident involving the insured car. This insurance policy does not cover any damages or losses to the insured car or the policyholder.

Comprehensive Insurance, on the other hand, provides complete coverage to the car owner against damages or losses caused to the insured car, third-party liability, and personal accident cover. It covers damages or losses caused due to accidents, theft, natural disasters, fire, riots, and other unforeseen events.

Car insurance in India also provides additional benefits such as cashless repairs, towing facilities, and discounts on renewals. The premium of the policy depends on various factors such as the make and model of the car, the age of the car, the policyholder's driving experience, and the type of coverage opted for.

It is important to have car insurance in India not only to comply with the law but also to protect oneself from unforeseen financial losses due to accidents or other unfortunate events.

Key Features of Car Insurance Policy

The key features of a car insurance policy in India may vary depending on the insurance company and the type of policy. However, some of the common features of car insurance policies in India include:

Categories Key Features
Third-Party Liability Coverage Every car insurance policy in India must include mandatory third-party liability coverage, which covers the policyholder's legal liability towards third-party injury, death, or property damage caused by the insured car.
Comprehensive Coverage Car owners can also opt for comprehensive coverage, which provides protection against damages or losses to the insured car, third-party liability, and personal accident cover.
Personal Accident Cover A personal accident cover provides coverage to the policyholder in case of bodily injury or death caused by an accident while driving the insured car.
No Claim Bonus Insurance companies in India offer a No Claim Bonus (NCB) to policyholders who do not make any claims during the policy period. The NCB is a discount on the policy premium during the renewal of the policy.
Add-On Covers Car owners can opt for additional coverage such as zero depreciation cover, engine protect cover, roadside assistance, and consumables cover by paying an additional premium.
Cashless Repairs Many insurance companies in India offer cashless repair facilities at their network garages, which allows the policyholder to get their car repaired without paying any money upfront.
Deductibles A deductible is a fixed amount that the policyholder has to pay towards the claim amount. The higher the deductible, the lower the premium.
Renewal Car insurance policies in India need to be renewed annually. Policyholders must renew their policy before the expiry date to avoid any penalties or lapses in coverage.

*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.

Coverage Under Car Insurance Policy

The coverage under a car insurance policy in India may vary depending on the type of policy and the insurance company. However, here are some of the common coverage provided by car insurance policies in India:

How to calculate Car Insurance Premium in India?

The premium for car insurance in India is calculated based on several factors. Here are some of the key factors that determine the car insurance premium:

  • Type of Coverage: The type of coverage, such as third-party liability or comprehensive coverage, also affects the premium. Comprehensive coverage is more expensive than third-party liability coverage.
  • Insured Declared Value (IDV):IDV is the current market value of the car, which is calculated based on the car's age, make and model, and depreciation. The higher the IDV, the higher the premium.
  • Add-On Covers:Optional add-on covers such as zero depreciation cover, engine protect cover, and roadside assistance also affect the premium. The more add-on covers included, the higher the premium.

Benefits of Buying Car Insurance Online in India?

Buying car insurance online in India offers several benefits, including:

In summary, buying car insurance online in India is a convenient, cost-effective, and transparent way to purchase car insurance. It offers several benefits, including easy comparisons, instant policy issuance, renewal reminders, and customer support.

How to File a Car Insurance Claim in India?

To file a car insurance claim in India, follow these steps:

It is important to note that the policyholder needs to file the claim within the specified time limit mentioned in the policy document. Also, the policyholder should not admit to any liability or negotiate with the third-party without the insurance company's permission.

Type of Car Insurance in India

  • Comprehensive Car Insurance

    Comprehensive Car Insurance

    Comprehensive car insurance is a type of car insurance policy that provides extensive coverage for the policyholder's car. This type of policy covers a wide range of risks, including damage to the car, theft, and third-party liability. In India, comprehensive car insurance policies are optional but highly recommended for car owners.

  • Third-Party Car Insurance

    Third-Party Car Insurance

    Third-party car insurance is a type of car insurance policy that covers the policyholder's liability towards third-party damage or injuries caused due to the policyholder's car. In India, third-party car insurance is mandatory for all car owners, as per the Motor Vehicles Act, 1988. This type of policy does not cover damages to the policyholder's car or personal injuries to the policyholder.

  • Own Damage Car Insurance

    Own Damage Car Insurance

    Own damage car insurance is a type of car insurance policy that covers the policyholder's car against damages due to accidents, natural disasters, or other perils. This type of policy is an optional add-on to third-party car insurance and is recommended for car owners who want to have comprehensive coverage for their cars.

How to Choose Car Insurance Policy Online in India?

Choosing the right four-wheeler insurance policy online can seem overwhelming, given the number of options available in the market. Here are some tips to help you choose the best policy for your car:

In summary, to choose the right four-wheeler insurance policy online, determine your requirements, compare policies, check the insurer's reputation and claim settlement ratio, look for discounts, and read the policy documents carefully. Taking these steps will help you choose the policy that provides the coverage you need at a reasonable premium.

How to Calculate Four Wheeler Insurance Premium Online?

To calculate the premium of your car insurance policy online is quite a simple process. Below are some steps to find the premium of your car insurance through the premium calculator:

1. Choose the brand, model, fuel type & variant of your car.

2. Select the city where your car is registered correctly.

3. Set the year in which you bought your car.

4. Tell us, if you have made any claim in the previous year by selecting ‘Yes’ or ‘No’.

5. Enter your name and mobile number on which you will get an OTP. On entering the OTP, you will get various policy premium quotes to choose a plan from.

How To File a Online Car Insurance Claim?

A car insurance claim can be made in two ways - cashless claim or reimbursement claim. When you visit a network (partner) garage of your insurance provider for your car’s repair work, the claim is settled in a cashless manner When you visit a non-network garage of your choice, the claim is settled first by you and is later reimbursed to you by your insurance provider. You can follow the below steps to make a car insurance claim -

  • Step 1: Inform your insurance provider about the incident.
  • Step 2: Get your claim intimation number.
  • Step 3: A surveyor will visit the place of the incident to assess the damages.
  • Step 4: Your insurance provider will arrange for towing services for your car, if required.
  • Step 5: Get your car repaired at either a cashless network garage or a garage of your car.
  • Step 6: The claim will be settled by the insurance provider in accordance with the garage chosen by you for repairs.

What are the Documents Required for Car Insurance Policy in India?

To purchase a car insurance policy in India, the following documents are generally required:

The specific documents required may vary depending on the insurance company and the type of policy. It is always recommended to check with the insurance company for the list of documents required before purchasing a car insurance policy.

FAQs About Car Insurance Policy

Ans: Comprehensive insurance is considered the best as it provides complete protection for your car. In case you want insurance for an old car, buying a third-party policy is the best as it provides mandatory coverage and is pocket-friendly.

Ans: New car insurance is always expensive because the IDV of the car is maximum at this point. The value of the car depreciates with age, which brings 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:

  • Opting for a higher deductible
  • Installing anti-theft devices in the car
  • Building your No Claim Bonus percentage
  • Avoid buying unnecessary add-ons
  • Compare vehicle insurance plans