Prasanna Kumar
Getting car insurance through coverfox has saved me both time & money
09 Jan
Language
Car Insurance or motor/auto insurance is an online insurance policy that protects you and your car’s financial well being. This policy is a financial agreement between you and the insurer, where the insurance company protects your four-wheeler financially in exchange for a year’s premium. As per the Motor Vehicle Act 1988, you must have third-party car insurance to drive on Indian roads.
Buying car insurance online is more than just a legal requirement; it's your financial safety net. Whether you're a new driver or an experienced one, having car insurance can protect you from hefty expenses in case of accidents, theft, or damages. Not only does it safeguard your finances, but it also provides peace of mind on the road. Let's dive into the different aspects of car insurance to help you make informed decisions.
| Insurance Companies | Network Garages | Claim-Settlement Ratio(%) | Plan Details |
|---|---|---|---|
| Zuno (Edelweiss) Car Insurance | 1200+ | 98% | |
| Iffco Tokio General Insurance | 4300+ | 95.8% | |
| Reliance General Car Insurance | 6200+ | 98% | |
| Bajaj Allianz Car Insurance | 4000+ | 98.5% | |
| HDFC ERGO General Insurance | 6,800+ | 99% | |
| ICICI Lombard General Insurance | 8,800+ | 96.75% | |
| Kotak General Car Insurance | 1,300+ | 94.67% | |
| National General Car Insurance | 3,100+ | 93% | |
| New India General Car Insurance | 3,000+ | 95% | |
| SBI General Car Insurance | 16000+ | 98% | |
| Tata AIG General Insurance | 5,000+ | 99% | |
| United India General Car Insurance | 3,100+ | 95% | |
| Universal Sompo General Car Insurance | 3,500+ | 96% | |
| Liberty Car Insurance | 4300+ | 90.5% | |
| Future Generali Car Insurance | 3500+ | 96.3% | |
| Digit Car Insurance | 1000+ | 96% | |
| Cholamandalam Car Insurance | 7100+ | 96% | |
| Royal Sundaram Car Insurance | 3300+ | 98.6% |
Car insurance policy is a vital protection for vehicle owners, offering various types of coverage to suit different needs. In India, the primary types of car insurance include Third-Party Liability Insurance, Own Damage Insurance, and Comprehensive Insurance.
Third-Party Car Insurance or otherwise known as Liability-Only Insurance is the mandatory car insurance policy to have while driving on public roads in India. In this type of car insurance policy, financial liability towards a third party (vehicle, property or individual) caused by an accident by your car is covered.
Coverage: Mandatory in many countries, this insurance covers damages to third-party vehicles or injuries to third parties.
Benefits: It is the most basic form of car insurance policy and covers damages done to a third-party in an accident by your car. Also, having a third-party car insurance will make sure you do not receive any traffic fines.
Limitations: Does not cover damages to the policyholder's vehicle.
A standalone damage four-wheeler insurance policy covers damages done to your own four-wheeler. It covers any damage done to your car only, in case of an accident, mishap, theft or natural disaster. Damages done to third parties are not covered under this car insurance policy, hence it is generally clubbed with an existing third-party car insurance.
Coverage: Covers repairs to the policyholder's vehicle in case of an accident.
Benefits: It is cost effective, you can choose third-party car insurance from different insurers and own-damage four-wheeler insurance from another.
Limitations: Does not cover third-party liabilities.
This type of four-wheeler insurance covers both, third party and stand alone car insurance. It gives you all round financial protection for your car. You can customize a comprehensive vehicle insurance policy with “add-ons” to further protect your car. It covers any damages done due to theft, fire, natural disasters, accidents or mishaps.
Coverage: Offers the highest level of protection, covering third-party liabilities, damages to the policyholder's vehicle, theft, and natural disasters.
Benefits: Provides extensive financial security and peace of mind.
Here is a comparison of Comprehensive vs Third Party Cover Car Plans
| Feature | Third Party Car Insurance | Comprehensive Car Insurance |
|---|---|---|
| Coverage | Covers third party damages and injuries only | Covers third party + own car damages, accidental damages, disasters |
| Cost | Lower premium | Higher premium due to broader coverage |
| Add-ons Available | No | Yes (Zero Depreciation, Roadside Assistance, etc.) |
| Legal Requirement | Mandatory | Optional but recommended |
| Own Damage Cover | Not covered, only third-party damage is included | Covered, increase protection with add-ons like Engine Protection Cover, PA Cover, etc. |
| Third Party Damage Cover | Covered | Covered |
| Theft | Not Covered | Partial or Total losses are covered for your car up to its IDV. |
| Key Features | Benefits |
|---|---|
| Own Damage Cover | Available under Comprehensive and Standalone plan |
| Third Party Damage Cover | Covers third party injury and property damage |
| Car Insurance add-ons | 10+ add-ons according to the plan |
| Personal Accident Cover | Upto 15 Lakh |
| Cashless Repairs | Available |
| Car Insurance Premium | Starting @ ₹2072/year |
| Buying/Renewal of Policy | Online & Offline |
| Savings | Upto 80% on Car Insurance Premium |
| No Claim Bonus | Upto 50% |
Your car insurance policy covers the following instances:
Any damages done to the policyholder’s vehicle during an accident (Tyres, exterior/interior damage, engine damage, totaled damage, etc) is covered by comprehensive insurance.
Natural disasters are unpredictable. Any damage done to the policyholder’s vehicle by earthquakes, storms, floods, lightning strikes, etc. are covered by insurance.
Man-made hazards like thefts, vandalism, riots, robberies, fire, explosion, acts of terrorism, etc that lead to car damage are also covered by insurance.
Liabilities incurred by damages done to a third-party (Person or Property) in an accident caused by the policyholder’s vehicle is covered by automobile insurance.
A Personal Accident (PA) Cover for up to ₹15 lakh is given by the insurer which ensures financial safety of the policyholder for themselves in case of an accident (Damages done to the policyholder in an accident).
Your car insurance policy does not cover the following instances:
Comprehensive car insurance does not include cover for general wear and tear of the car.
If the driver of the vehicle is not fit to drive the car, the insurer is not responsible for any damages. For example:
Any loss/damage incurred to the car when the car insurance policy is not in effect is not covered by car insurance.
Mechanical breakdowns, or damage done to the engine because of an oil leak are not covered under car insurance policy. Similarly, car insurance policy does not cover damages done to tyres. The only exception to this if the damages are incurred during an accident.
If a privately owned car is used for commercial activity, then the car insurance policy will be void and not responsible for any damages.
Purchasing car insurance online has made the process seamless and efficient. Here’s what you need to know:
You must consider the following factors while buying the right car insurance online:
Buyers should select coverage that aligns with their specific needs, such as third-party liability, own-damage coverage, or comprehensive insurance. One should also consider the available add-ons before coming to a decision. Add-ons like Personal Accident cover, Zero Depreciation, Roadside Assistance, etc come in handy at the times of need.
Comparing different car insurer’s premium rates before making a decision is a wise choice. You can get car insurance quotes from top insurers in the country through Coverfox.
This indicates the percentage of claims settled by the insurer compared to the total claims received. A higher ratio means a greater likelihood of hassle-free claim approvals.
The number of garages associated with the insurance company where cashless repairs can be availed. A wider network ensures greater convenience in case of repairs.
Consider checking customer reviews of the insurer before buying an insurance policy for your car, it can get you unscripted insights about the insurer. Also make sure you have excellent customer service from the insurer side like you get from Coverfox.
Having No Claim Bonuses (NCBs) help reduce the insurance premium amounts. Also make sure that you get a suitable IDV for your car, it should be around the market value for your vehicle.
Purchasing car insurance online has become increasingly popular due to the numerous benefits it offers. In just three simple steps, you can insure your car against damages and financial losses caused by accidents, fire, theft, and more. Here are the key advantages of buying four-wheeler insurance online:
Renewing your four-wheeler insurance on time is important as it ensures continuous coverage. A timely car insurance renewal also helps avoid legal penalties, such as fines for driving without valid insurance. Moreover, it allows you to retain benefits like the No Claim Bonus (NCB), which significantly reduces premium costs. Being proactive about car insurance renewal not only keeps you legally compliant, but also ensures peace of mind while driving.
Here is the grace period available for car insurance renewal online and consequences of expired car insurance policy.
Every car insurance policy must be renewed to enjoy continuous insurance benefits. You can apply for car insurance renewal online as well offline. However, renewing car insurance policy online can give you several advantages. These benefits are:
Car insurance renewal online is crucial for staying protected and complying with legal requirements. Here’s why:
Legal Compliance: Driving without a valid car insurance policy is illegal in India and can result in hefty fines or penalties.
Uninterrupted Coverage: A lapsed policy leaves you unprotected against financial losses due to accidents, theft, or natural disasters.
Third-Party Liability: Car insurance policy renewal ensures you meet mandatory third-party liability coverage, safeguarding you from legal issues in case of accidents.
Avoid Premium Hikes: Renewing car insurance policy on time helps maintain your No Claim Bonus (NCB), reducing your premium cost.
Comprehensive Protection: Keep your car protected against damages caused by accidents, fire, theft, and other unforeseen events.
Eligibility for Add-Ons: Car insurance policy renewal is a great time to include or update add-ons like Zero Depreciation Cover or Roadside Assistance.
Peace of Mind: Timely four-wheeler insurance renewal ensures you're always prepared for unexpected incidents, whether on the road or off it.
Avoid Policy Lapse: A lapsed four-wheeler insurance policy may require a fresh inspection, leading to additional hassle and costs.
A new car insurance policy is specifically designed to protect newly purchased vehicles from unforeseen damages and risks. It provides coverage against manufacturer defects, theft, and accidental damage, ensuring that the car owner does not face financial burdens in the event of an unexpected incident. Additionally, having a valid new car insurance ensures legal compliance and offers financial security, making it a crucial step immediately after purchasing a new vehicle.
The growth of EVs in the automobile market in India is increasing exponentially. More and more people are shifting towards the more sustainable option – EVs. With this, having an EV car insurance policy is crucial (and mandatory as well). An EV four-wheeler coverage plan additionally protects charging devices, batteries and electric components like motors in the car financially. Most insurers generally provide 100% coverage for the battery (A non EV car insurance typically covers only 50%). Buying electric car insurance is easy and can be done online at Coverfox. Make sure you protect your prized EVs before you head out for the roads.
Types of electric cars that come under electric car insurance plans:
Comparing different car insurance policies helps ensure you get the best deal with adequate coverage. By carefully evaluating key aspects like premiums, coverage, add-ons, and claim settlement ratios, you can make an informed decision that suits your needs and budget.
Let’s explore why comparing car insurance policies is essential and how to effectively assess different car insurance plans.
You can easily compare insurance premium quotes, deductibles, add-ons, reviews, cashless garages, etc through Coverfox. To check car insurance quotes from different insurers, do the following:
You can also check the list of different car insurer’s cashless garages through Coverfox:
Check the list of cashless garages by insurer to make car insurance claims hassle-free. Easily locate authorized service centers for quick repairs without any upfront payments. Compare networks across insurers and choose the best coverage for seamless claim settlements.
The best part about getting a car insurance policy online is that the claim process can be done online as well. If you are in an accident, or your vehicle is stolen/damaged, you will need to file for a claim to your car insurance company. The process for filing a claim online is simple, and if you need any help you can contact Coverfox support for the best helping hand in your claim process. Follow these steps to file a claim with your insurer:
The very first thing to do after you check for any damages after an accident is to call the police and file an FIR. The same goes for thefts. Preserve this FIR as it will be required while filing your claim.
Inform your car insurance company immediately via their website, app, or helpline. Provide details of the incident.
Access your four-wheeler insurer’s portal or app using your registered credentials.
Fill out the online claim form with details like date, time, location, and a brief description of the incident. Submit the required documents with the form.
Schedule a vehicle inspection or upload photos for assessment. Choose between cashless repairs at a network garage or reimbursement options.
Monitor your claim status online. The insurer settles bills directly with the garage for cashless claims or reimburses approved amounts for reimbursement claims.
There are 2 types of Car Insurance Claims available, that include:
Cashless Claims: Repairs are done at network garages without upfront payment.
Reimbursement Claims: Pay for repairs and get reimbursed later.
In order to file a successful auto insurance claim, you will require the below mentioned documents:
Once you have bought the car insurance policy online, the policy document will be mailed to your registered email address. There, you can download the car insurance policy document for future references. You can also access your policy document from Coverfox website, by logging in to your registered account using your registered email address or mobile number. Here is a detailed procedure of downloading your four-wheeler insurance policy online through Coverfox or through your Insurer:
It is easy to find the premium price amount using a Car Insurance Calculator online. Companies calculate car insurance premiums after taking into account various aspects. The basic premium calculation formula is: Insurance Premium = Own Damage Premium (Includes all the factors) - (NCB + Discounts) + Third-party Liability Premium.
IDV = Car’s Showroom Price + Cost Accessories- Depreciation on Car
Thus, the formula for calculating Own Damage Premium Price is:
OD = Insured Declared Value X [Car Premium as per the insurer)] + [ Optional Benefits] – [NCB/Discount etc.]
If you're looking to understand what your car insurance prices is and what affects car insurance premium prices, check this:
Luxury and high-performance cars typically attract higher premiums due to expensive repairs and parts.
A newer car with a higher Insured Declared Value (IDV) results in a higher premium. Conversely, older cars have lower premiums.
Cars registered in metro cities or high-risk zones are subject to higher premiums due to increased theft or accident probabilities.
Younger drivers or those with less experience often face higher premiums as they are considered riskier.
Comprehensive policies with add-ons like zero depreciation or engine protection naturally increase premium amounts.
Claim-free years reward you with a discount on your premium, often up to 50% for multiple years.
Commercial use or extensive mileage increases wear and tear, resulting in a higher premium.
Cars with anti-theft devices or advanced safety systems often qualify for premium discounts.
A clean driving record with minimal claims lowers your premium; a poor record can have the opposite effect.
Voluntary deductibles reduce your premium but increase your out-of-pocket expenses during claims.
By optimizing some of these factors, you can lower your car insurance price while ensuring comprehensive coverage. Explore your options today and choose the car insurance policy that fits your needs!
While purchasing a car insurance policy, the Insured Declared Value (IDV) is generally 5% of the ex-showroom price of the car. IDV is the maximum amount paid to you as settlement if your car is stolen or completely totaled. There are various factors that influence this value that include:
The age of the vehicle determines the IDV of the car. As the car gets older, its IDV also depreciates. Here is a table showcasing how age affects IDV
| Age of the Car | Depreciation % | IDV = % of Ex-Showroom Price |
|---|---|---|
| 0 – 6 months | 5% | 95% |
| 6 months – 1 year | 15% | 85% |
| 1 – 2 years | 20% | 80% |
| 2 – 3 years | 30% | 70% |
| 3 – 4 years | 40% | 60% |
| 4 – 5 years | 50% | 50% |
| More than 5 years | Mutual agreement | Based on vehicle condition & insurer’s terms |
IDV is also affected by the model and variant of the car. High–end luxury cars have higher IDV than a regular car. SUVs and Sports cars generally have higher IDV than a regular sedan or a hatchback.
IDV is also determined on where the car is registered. For example, Mumbai will have a higher IDV than another town in Maharashtra
As a car gets old and depreciated, its components also get depreciated. Thus it affects the overall IDV. To avoid this, a zero-depreciation cover add-on is opted. This table showcases how different components depreciate over time.
| Component | Depreciation Rate |
|---|---|
| Rubber, Nylon, Plastic parts | 50% |
| Tyres and Tubes | 50% |
| Batteries | 50% |
| Fibreglass Components | 30% |
| Glass parts (including windscreen) | 0% |
| Metal parts (painted) | Based on vehicle age (5-10% a year) |
After market customisations add to the overall iDV of the car. Make sure to include them while buying insurance to increase the IDV and ensure protection of these extra accessories.
The Insurance Regulatory and Development Authority of India (IRDAI) annually reviews and sets the premium prices for third-party vehicle insurance. Here are the third-party automobile insurance premium rates given by IRDAI
| Engine Capacity / Battery Size | Vehicle Type | Annual Premium | Long-Term Premium (3 Years) |
|---|---|---|---|
| Up to 1,000 cc | Petrol/Diesel Car | ₹2,094 | ₹6,521 |
| 1,000 cc – 1,500 cc | Petrol/Diesel Car | ₹3,416 | ₹10,640 |
| Above 1,500 cc | Petrol/Diesel Car | ₹7,897 | ₹24,596 |
| Battery Capacity | Vehicle Type | Annual Premium |
|---|---|---|
| Up to 30 kW | Electric Car | ₹1,789 |
| 30 kW – 65 kW | Electric Car | ₹2,904 |
| Above 65 kW | Electric Car | ₹6,712 |
Lowering your car insurance premium doesn’t have to mean compromising on coverage. Follow these tips to save money while staying protected:
Shop around and compare car insurance quotes from multiple insurers to find the best deal.
Agree to pay a higher voluntary deductible to lower your car insurance price.
Maintain a claim-free record to earn discounts of up to 50% on your premium.
Only select add-ons that you truly need, like Zero Depreciation or Engine Protection.
Anti-theft devices certified by the Automotive Research Association of India (ARAI) can fetch you discounts.
Combine your car insurance policy with other policies like home insurance to get multi-policy discounts.
Maintain a clean driving record by avoiding accidents and traffic violations.
Multi-year car insurance policy often come with discounted rates.
For older vehicles, consider dropping comprehensive coverage if the repair cost exceeds the car’s market value.
Retain your No Claim Bonus by not filing minor claims and covering small damages out of pocket.
Premiums are lower for vehicles with smaller engines and those with good safety ratings.
Regularly reassess your coverage needs to avoid overpaying for unnecessary features.
Implement these strategies to maximize savings on your car insurance premium without sacrificing essential coverage.
Car insurance is an essential safeguard that protects you from unexpected expenses and liabilities. Whether buying a new car insurance policy online or renewing an existing one, comparing plans and selecting the right coverage ensures a stress-free driving experience. For hassle-free car insurance purchase, renewal, and claim settlement, Coverfox offers an easy-to-use platform with competitive car insurance prices and excellent customer support.
Yes, as per the Motor Vehicles Act, 1988, car insurance is mandatory in India. Every vehicle must have at least a third-party insurance policy, which covers damages caused to other people, vehicles, or property. Driving without valid insurance can result in fines or legal action.
Yes, your No Claim Bonus (NCB) is linked to you, not your car. When you purchase a new car, you can transfer your NCB from your old policy to the new one, provided you have maintained a claim-free record. You need to obtain an NCB certificate from your previous insurer to avail of the discount on your new car’s premium.
Your premium depends on factors like the policy type, car make and model, engine capacity, registration location, and Insured Declared Value (IDV). Add-ons like Zero Depreciation increase the cost, while No Claim Bonus (NCB) lowers it.
Driving without insurance is illegal and can result in fines or up to three months of imprisonment.
It covers:
Zero Depreciation Cover ensures full claim reimbursement without factoring in the depreciation of parts, giving you higher payouts during repairs.
Simply visit the Coverfox website, log in, review your existing policy, compare renewal quotes, and make the payment online. Your renewed policy will be instantly sent to your email.
NCB is a reward for not filing any claims during the policy term. It offers a discount on your premium, which increases with every claim-free year.
Yes, the policy can be transferred to the new owner. The process involves notifying the insurer and submitting the necessary ownership transfer documents.
Add-ons are additional benefits that enhance your policy. Popular ones include:
IDV represents the car’s current market value and is the maximum amount you can claim in case of theft or total loss of the vehicle.
Add-ons are additional benefits that enhance your policy. Popular ones include:
