Car insurance is designed to offer protection against any financial loss arising due to accident, whether it be with another vehicle or against any object, theft of the vehicle or important parts of it, water damage or fire damage etc. A comprehensive insurance cover also protects you against any liability arising out of an accident involving a third party, person or property. All kinds of natural calamities and man-made calamities are also covered.
Car insurance is also popularly known as motor insurance or auto insurance. It is usually done to protect your car or vehicle, from unexpected or accidental risks. It mainly gives you protection against the losses that you incur in case of unavoidable instances. It helps you get cover against financial losses caused by accidents, liabilities & in some cases, even losses caused by theft. The premium of car insurance depends on certain factors like; the value of your car, type of coverage, voluntary excess & vehicle classification. Car insurance gives you the confidence to drive without worries. In case of emergencies, it acts as a life-saving toolkit for the insurance holder. The premium of car insurance depends on certain factors like; the value of your car, type of coverage, voluntary excess & vehicle classification. Car insurance gives you the confidence to drive without worries. In case of emergencies, it acts as a life-saving toolkit for the insurance holder.
Disclaimer - Above mentioned prices are for a 2 years old Maruti Wagon R, 1.2 VXI AMT OPT (1197 CC) registered in Mumbai & previous policy has expired.
| 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% |
Here is a comparison of Comprehensive vs Third Party Cover Car Plans:
| WHAT IS COVERED? | THIRD-PARTY | COMPREHENSIVE |
|---|---|---|
| Third-Party Vehicle Damage | ||
| Third-Party Property Damage | ||
| Own Vehicle Damage | ||
| Vehicle Theft | ||
| Fire Damage | ||
| No Claim Bonus | ||
| Cashless Claim | ||
| Damage from Natural Calamities | ||
| Personal Accident Covered | ||
| Engine Protection | ||
| Zero Depreciation Cover | ||
| NCB Protection | ||
| Invoice Cover |
List of Cheapest Car Insurance Plans
| Plans | Cover Value (IDV) | PA COVER Price | NET PREMIUM | |
|---|---|---|---|---|
| Edelweiss Car Insurance | ||||
| Shriram Car Insurance | ||||
| Iffco Tokio Car Insurance | ||||
| Digit Car Insurance | ||||
| Bharti AXA Car Insurance | ||||
| Liberty General Car Insurance | ||||
| Reliance General Car Insurance | ||||
| Bajaj Allianz Car Insurance |
Disclaimer: The above mentioned prices are for a Honda Civic, V CVT (1799 CC), Petrol,, registered in Mumbai & previous policy has not expired.
Below is a list of 20 best car insurance companies in India with their network garages and claim-settlement ratios 2019 - 2020:
| Car Insurers | Network Garages | Claim-Settlement Ratio(%) |
|---|---|---|
Edelweiss Car Insurance |
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Iffco Tokio General Insurance |
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Bharti Axa Car Insurance |
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Reliance General Car Insurance |
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Bajaj Allianz Car Insurance |
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Hdfc Ergo General Insurance |
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ICICI Lombard General Insurance |
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Kotak General Car Insurance |
||
National General Car Insurance |
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New India General Car Insurance |
||
Reliance General Car Insurance |
||
SBI General Car Insurance |
||
Tata AIG General Insurance |
||
United India General Car Insurance |
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Universal Sompo General Car Insurance |
||
Liberty Car Insurance |
||
Future Generali Car Insurance |
||
Digital Car Insurance |
||
Cholamandalam Car Insurance |
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Royal Sundaram Car Insurance |
Disclaimer: *The above information on Incurred Claim Ratio has been sourced from IRDAI’s Annual Report (2019-20).
Check out what is included and excluded in the car insurance policy. A comprehensive car insurance policy is always preferable. A comprehensive car insurance policy covers:
You can now compare various car insurance plans and choose exactly the one meeting your needs. You can easily compare quotes from different car insurance companies online and can compare the best car insurance plans in India from the table above.
Higher Incurred Claim Ratio indicated higher satisfied customers. More the ICR, higher the chances of your claim getting settled.
It is beneficial to consider add-ons when you buy car insurance online. Add-ons like No Claim Bonus, Zero Depreciation Cover, Engine Protection Cover are additional benefits that improve your comprehensive car insurance policy.
Your four-wheeler car insurance plan covers the following instances:
Your four-wheeler car plan does not cover the following instances:
Car Insurance add-ons are additional benefits provided under a car insurance policy. The add-on covers in motor insurance can be purchased with an extra premium on the insurance amount. Let’s discuss these car insurance add-ons in detail:
• No Claim Bonus Protection Cover
For every year where no-claim is made by the policyholder, a discount called No-Claim Bonus (NCB) of 10% to 50% allowed substantial discounts on the car insurance premium. But in the case of a claim made for the damaged car, the policyholder can miss out on the No-Claim Bonus. With a No Claim Bonus Protection Cover, you can continue to enjoy your no claim bonus after the claim as well.
Flooding or Oil Leakage can damage the car engine over time. Car insurance does not cover the charges of engine repair. An engine protection add-on provides cover to the expenses made on the repair of the engine and protects you from incurring additional costs later on.
Car Insurance Companies take into account the depreciated value of the car at the time of claim settlement. Without the zero-depreciation cover, all insurers are responsible for depreciating the parts of your car and pay your claim only after the depreciation amount has been deducted. The add-on does not remove any depreciation and you obtain more money in your claims.
When a car gets repaired, a number of consumable items are used like lubricants, nuts and bolts, engine oil, screw, oil filter, etc. The cost of these items is not covered under a car insurance policy and the policyholder has to bear the cost. The Consumables add-on cover reimburses the amount spent on consumables during the repair of the car.
Car keys are not cheap and can cost up to Rs. 10,000 in some cases. In case of losing or misplacing your car keys, you do not have to bear additional charges for a new one if you opt for Key protection cover. Under the Key Protection add-on, the cost of buying a new car key from the company’s service center is reimbursed by your car insurance company.
A personal accident cover is an add-on benefit provided by the car insurance company to the owner-driver of the insured car to protect them from any type of bodily injury at the time of an accident. The Personal Accident Cover gives compensation to the owner-driver covering his bodily injury, disability or death in case of an accident. The cover can also be purchased for fellow passengers on an unnamed basis limited to the seating capacity of the vehicle. Under this, you can get access to coverage of up to Rs. 1 lakh per passenger.
Sometimes, you have to commute on your own after putting your car in a repair garage due to a sudden accident. In such a case, you bear the cost of travelling from your pocket. However, If you have this add-on the insurer provides you with a daily allowance for travelling if your car is required to be in the garage for more than 3 days. (May change from insurer to insurer)
A car comes with various accessories like a stereo set, reverse camera etc. Since the accessories are expensive, it makes them prone to damage and theft. With a simple car insurance add-on, you can cover your car accessories which may not be covered in your car insurance policy. The add-on provides reimbursement and additional coverage for these items.
It is easy to find the premium amount using a Car Insurance Calculator online. Companies calculate car insurance premiums after taking into account various aspects. Following factors are considered by the car insurance companies when deciding the insurance premium:
The formula of Car’s IDV calculation:
IDV= Car’s Showroom Price + Cost Accessories- Depreciation on Car
Thus, the formula for calculating Own Damage Premium Amount is:
OD= Insured Declared Value X [Car Premium as per the insurer)] + [ Optional Benefits] – [NCB/Discount etc.]
Car insurance renewal is necessary to enjoy the car insurance benefits without breaks. Hence, you should renew car insurance before it expires. Follow these steps to renew car insurance online:
You will also receive the updated, downloadable policy document related to your car insurance on your registered email-id.
Every car insurance policy must be renewed to enjoy continuous insurance benefits. Car Insurance renewal can be done either online or offline. But you enjoy several advantages to renew a car insurance policy online. These benefits are:
As per the Indian Motor Vehicles Act, 1988, it is mandatory for all car owners to have a basic third-party car insurance coverage policy. However, comprehensive car insurance is highly recommended if you want to cover you and your 4-wheeler. Before you make the final decision to buy a car plan, it is important to compare different plans and insurers. The insured declared value has a significant impact on the premium payment amount (Higher the Insured Declared Value (IDV), more the premium, and vice versa). Here is why you should buy car insurance plans online on Coverfox.
In case of an accidental emergency that requires immediate hospitalization, you need to inform your car insurance provider instantly. Here is a step-by-step guide to filing an online car insurance claim:
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Q. Why should I buy insurance for my car?
Ans: First and foremost, having a valid car insurance policy is mandatory under the Indian Motor Vehicles Act, 1988. You cannot drive your car without holding at least a third-party liability-only policy. It is best if you buy a comprehensive car insurance policy as it protects you, your car, third party person and property. It covers risks like fire, natural calamities, car theft, and more.
Q. Which is the cheapest car insurance?
Ans: The cheapest car insurance policy is the policy that offers you the highest insurance cover with all the required add-ons at the lowest possible premium. Your requirement is different from other people, so what is cheapest for others may not be suitable for you. Check out this article to find out the cheapest car insurance for your car.
Q. How can I check the availability of a four-wheeler insurance plan for my car?
Ans: You can simply visit coverfox and provide your car details like registration number or make and model to find out various car insurance plans available for your car along with the premium you have to pay for it.
Q. How can I download a duplicate copy of my car insurance policy online?
Ans: You can easily download your car insurance policy online from the insurance company's website. If you have bought your car insurance policy from Coverfox, you can download it from your online account by logging in with your ID and password.
Q. Where can I find out what my car insurance policy number is?
Ans: Your policy document or insurance certificate has the policy number printed on its first page. You can also connect with the insurance company to know your policy number.
Q. Explain Zero Dep Add-on in Car Insurance Policy?
Ans: Zero Depreciation, an add-on cover, is known by many different names like Nil depreciation or Bumper to Bumper Cover. If you have attached this add-on to your comprehensive car insurance policy, depreciation value is not subtracted from the coverage of wearing out of any body parts of the car, excluding tyres and batteries. The insurance company will pay out the entire cost of the body part for replacement. Check out the dedicated page on Zero Depreciation to know more.
Q. How many claims can I make on my car insurance policy in a year?
Ans: Normally, there is no limit placed on the number of claims that you can make in a policy year. It is best to go through the policy document carefully to know if any limits are applicable to your policy. You must also remember that on making a claim, you will not get a No Claim Bonus.
Q. Explain Bumper to Bumper Car Insurance policy?
Ans: Bumper to Bumper Car Insurance Policy is a comprehensive car insurance policy with a Bumper to Bumper add-on attached to it. It is also known as Zero Depreciation Policy or a Nil Depreciation Policy. Read our dedicated page on Zero Depreciation to know more.
Q. What should I do if there is a mistake in my car insurance policy document?
Ans: In case you find out there is a mistake in your car insurance policy document, instantly contact your insurance company and highlight the mistake you have come across. If the insurer asks for additional information or documents for rectification of the mistake, you must provide the same at the earliest possible. On receipt of the information, the insurer will provide you with a new policy document or issue an endorsement letter.
Q. How can I renew my expired car insurance online?
Ans: You can instantly renew your car insurance policy on coverfox. All you have to do is provide your expired car insurance policy number and select a car insurance policy that is best for you. Pay the premium from the payment options available, and you will receive the renewed policy in your inbox.
Q. Does a car insurance policy cover passengers riding in the car?
Ans: No, a comprehensive or third party liability only policy does not cover the passengers riding in the car. In order to provide protection to people riding in your car, you can buy a passenger cover add-on by paying an additional nominal premium.
Q. Is it compulsory to buy car insurance in India?
Ans: Yes, Indian Motor Vehicles Act, 1988 clearly states that it is compulsory for every car owner to have at least a basic third party liability only plan before they can use their vehicle on Indian roads.
Q. What is the penalty for driving my car without a valid car insurance policy today?
Ans: If you are using your car without a valid car insurance policy, you will be fined Rs. 2000/- and also get to enjoy a free trip of 3 months to jail. On the second offence, the fine amount increases to Rs 4,000/- with 3 months of jail term.
