The city of Hyderabad is known for its cultural, business, historical, culinary, and natural beauty-from the ancient rocks that surround the city, dating back to early human settlements, to the palaces renowned for their architectural splendour. This city is also known as ‘Cyberabad’ or tech city.
The city is buzzing with cars and bikes, and many tourists discover its hidden gems. With the increasing vehicle population and tourist industry, the city has been witnessing traffic congestion and accidents over the past years. Having online car insurance will ensure that your car is guarded from unforeseen circumstances.
As per the Traffic Index Organisation, the city's Traffic Congestion Index (TCI) averages around 32.25, placing Hyderabad at 14th globally in terms of traffic congestion.
The city has a vehicle population of approximately 80 lakh (as of 2024), with the majority being motorcycles and motor cars. This causes tremendous traffic congestion in business and highly populated areas. As of 2024, a total of 3058 road accidents have been reported, resulting in injuries to 3393 individuals and 301 deaths.
There are majorly three types of car insurance plans available in the city of Hyderabad:
This is the most basic form of car insurance and is mandatory under the Motor Vehicles Act of 1988. A third-party car insurance policy in Hyderabad covers financial liabilities arising from injuries or damages caused to third-party individuals or property by your four-wheeler. This type of insurance is typically the most affordable option in Hyderabad, as it offers limited coverage and fulfills the legal requirement to drive on city roads.
For vehicle owners in Hyderabad who already have third-party coverage, standalone own-damage insurance offers additional protection. It covers damages to your four-wheeler due to unforeseen events such as accidents, theft, fire, or natural and man-made disasters. This policy provides more flexibility and control, which is particularly useful in a city like Hyderabad where traffic congestion and accident risks are relatively high. Coverage details may vary depending on the insurer, so it is advisable to review the policy terms carefully before purchasing
A comprehensive car insurance policy in Hyderabad provides complete protection, combining both third-party liability and own-damage coverage. It includes all the benefits of third-party insurance while also covering your vehicle against a range of risks such as accidents, theft, fire, floods, earthquakes, riots, and vandalism. Given the increasing number of vehicles and traffic conditions in Hyderabad, opting for a comprehensive insurance plan ensures better financial security and peace of mind for car owners.
Below are the factors affecting car insurance premiums in Hyderabad:
The Insurer’s Declared Value is the market value of your motor vehicle, which is recorded in their book. In Hyderabad, this value is used to calculate your car insurance premium while considering the other factors.
The year of registration of your vehicle affects the car insurance premium. If it is a new car purchased and registered in Hyderabad, the IDV will be a proportion of the purchase value and so will be the insurance premium. If your car is old, then there are chances of it having a lower IDV as per depreciation and potentially a higher premium depending on the risk coverage.
In Hyderabad, the fuel type of the car also affects the car premium to some extent. Fuel types such as petrol, diesel, hybrid, and electric vehicles are considered while calculating premiums.
Whether the car has been used over a range of kilometres or has previous policy claims or accidents affects the car insurance premium. If it is a new car, then mileage and engine specifications are considered.
Cars with standard and advanced safety features often qualify for premium discounts. However, this is subject to the car's make, model, and type. Given Hyderabad’s increasing traffic density, having such features can be advantageous both for safety and for lowering your insurance costs.
The city is buzzing with traffic all day. It is necessary to cover your car with a standalone policy or comprehensive car insurance policy. Below are the benefits of car insurance in Hyderabad:
It acts as a financial safety net in case of any unexpected accident in Hyderabad. All the financial liability is covered if the conditions are met to intimate a claim.
If you don’t claim over the tenure of your policy in Hyderabad, you can claim the no-claim bonus over the next policy period. This can get you some discount on the premium payment of the next insurance period or policy.
You can quickly access insurance policies in Hyderabad with the help of various insurance tech company websites. These companies or brokers have tie-ups with existing insurers to meet your requirements.
You can customize your car insurance policy in Hyderabad in terms of add-ons. This helps you to pick specific riders which are suited to your needs.
In case you need to apply for a claim in Hyderabad, insurer brokers including Coverfox offer claim assistance to help you through a smooth claim process.
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As per the statistics above, we can estimate that the vehicle population in Hyderabad will cross the mark of one crore over the coming years. With third-party insurance being compulsory, it is a convenient and financially smart move to pick a standalone damage policy or a comprehensive policy to protect your car from accident contingencies.
The third-party policy mandate is to protect the opposite individual’s automobile in case the accident is caused by you. However, the standalone policy is for your vehicle’s coverage and safety. The comprehensive policy is with add-ons and riders which we will discuss below to give extra safety to your vehicle.
Below is the list of common inclusions and exclusions of car insurance policies in Hyderabad:
| Covered by Insurance | Not Covered by Insurance |
|---|---|
| Damage to own vehicle in an accident | General wear and tear (depreciation) |
| Natural calamities (floods, earthquakes, etc.) | Driving under the influence or without a licence |
| Man-made hazards (theft, riots, fire, etc.) | Damages when the policy is expired |
| Third-party damage (person/property) | Mechanical failure or tyre damage (non-accidental) |
| Personal Accident Cover (up to ₹15 lakh) | Use of private car for commercial purposes |
Add-ons are standalone rider policies which are added to the base insurance policy. Think of them as customization. Below are the types of car insurance add-ons:
Third-party insurance coverage is the minimum requirement as per law. Given the range of standalone and comprehensive policies, it is dependent on various factors such as the car's value, the city’s traffic pattern, and accident frequency. A standalone own-damage cover is typically based on the car’s Insured Declared Value (IDV), which can range from ₹50,000 to several lakhs depending on the vehicle. A comprehensive policy (including third-party liability) can insure it for up to ₹4-5 lakh or more in Hyderabad depending on the car's make and model.
With the advance of technology and website integration, you can buy a car insurance policy within minutes. Here is how you can buy car insurance online in Hyderabad through our website:
Below are the steps to register a car insurance claim in Hyderabad:
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 insurance company immediately via their website, app, or helpline.
Access your insurer’s portal or app using your registered credentials.
Fill out the online claim form and submit the required documents.
Schedule a vehicle inspection or upload photos. Choose between cashless or reimbursement options.
Monitor your claim status online. The insurer will settle the bill directly with the garage for cashless claims or reimburse the approved amount.
Below is the list of documents needed for a car insurance claims in Hyderabad:
Choosing the best four-wheeler insurance policy can be tricky for many individuals, thus you can rely on the points below to pick the policy that suits you the best.
Cashless garages are a complimentary service provided by the insurer company. The policy you pick might have a cashless network garage depending on insurer tie-ups. They might vary from insurer to insurer and policy to policy. You can identify the cashless garage network through the insurer’s official website by selecting the state, city, and car make/model. Below are the stops to get the list of cashless garage networks depending on the insurer:
Step 1: Visit the cashless garage section on our website- Cashless garage network
Step 2: Click your desired insurer.
Step 3: Fill in details such as your state, city and your car brand
You will get the location of the cashless garage in that city as per the insurer’s network.
There are several cashless garages in Hyderabad authorized by various Car Insurance Companies. Some of them are mentioned below:
| Name | Address | City | State |
|---|---|---|---|
| Anand Glass Enterprises | 2-3-577/2, Minister Road, Opp - Saibaba Temple | ||
| Brindavan Auto Technicians | 4-1-6/B/1,Strret No-6,Eden Garden Road,Boggulakunta Ramkoti,Hyd | ||
| Elite Automotive | Flat No 208, Prajaya Syndicate Block No 3, Kompally | ||
| Fusion Hyundai (Rvan Ventures Pvt Ltd) | Sy No.65, Near Suchitra X Road, Jeedimatla Qutubullapur Mandal |
Below are the traffic rules that you need to keep in mind and follow:
Ans: The cost of car insurance in Hyderabad depends on the car’s IDV value, coverage, and premiums that are to be paid periodically.
Ans: The best car insurance policy is the one which satisfies your budget, car requirements, financial safety, and required coverage.
Ans: Yes, you can purchase add-ons with car insurance in Hyderabad.
Ans: Factors such as budget, policy requirements, add-ons, and coverage should be considered while buying a car insurance policy in Hyderabad.
Ans: Yes, an insurance policy is limited by tenure. You need to renew the insurance policy from time to time.
