Prasanna Kumar
Getting car insurance through coverfox has saved me both time & money
09 Jan 2025
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Car insurance provides financial protection against damage to your car and third-party liabilities arising from accidents and other covered events. Depending on the policy you choose, it can cover your own vehicle, third-party liabilities, theft, fire, natural calamities and more (as per policy terms). You can compare car insurance plans from multiple insurers on Coverfox and choose coverage based on your car, budget and needs.
In India, driving a car without valid four wheeler insurance is illegal and carries financial risk. Here’s why car insurance is important:
In third-party car insurance, liability that arises from an accident towards another person or property is covered. Injury, death or property damage caused by the insured four-wheeler owner is compensated by the insurer as per legal limits.
It is the minimum required cover to drive legally in India. All four-wheeler insurance policies must have it. Although it does not pay for repairs for damages caused to your own vehicle. Claims made under third-party insurance are often settled by the Motor Accident Claims Tribunal (MACT) through a legal process.
Own damage cover is for covering damages caused to your own vehicle. These damages may include damage, fire, theft, natural disaster or manmade hazards, depending on the policy. It does not include third-party liability and is bought separately by those who are looking for coverage for their own vehicle.
You can buy Own Damage Car Insurance only if you already have a third-party insurance policy, to stay legally compliant. One important note: Own damage cover on its own does not meet the legal requirement for third-party liability.
Comprehensive car insurance is a mix of own damage cover and third-party liability in a single policy. In this, damage done to the insured vehicle from insured events and also damage caused to third-party, both are covered as per policy terms.
It can be further customised with add-ons like zero depreciation, engine protection, return to invoice, etc. Comprehensive car insurance may be suitable for new car owners looking for both third-party liability and own-damage protection.
Repair costs from collisions, overturning, or self-inflicted accidents.
Total loss of the vehicle due to theft, subject to police reporting and claim conditions.
Damage caused by fire, explosion, or self-ignition.
Losses from floods, cyclones, earthquakes, landslides, and similar events.
Damage from riots, strikes, malicious acts, or terrorism, where covered.
Compensation for injury or death caused to another person.
Compensation for damage caused to another person's property.
Regular ageing of tyres, parts, and paint isn't a claimable loss.
Failures unrelated to an insured event, such as a worn-out clutch, are excluded.
Claim payouts reduce parts' value by age unless zero dep car insurance applies.
Claims are rejected if the driver wasn't legally licensed at the time of the incident.
Accidents caused while under the influence of alcohol or drugs void the claim.
Damage during use outside the policy's permitted purpose isn't covered.
Anything specifically excluded in the policy document, regardless of cause.
Disclaimer: Coverage may vary based on policies chosen, insurer’s terms & conditions. Read the policy document carefully to understand the exact coverage of your insurance for four wheeler.
Add-ons in insurance policy for car extend the coverage potential of the policy and come at an additional cost. Each add-on has its own benefits.
| Add-On | What It Does |
|---|---|
| Zero Depreciation | What it doesReduces depreciation deductions on eligible parts during a claim |
| Engine Protection | What it doesCovers specified engine-related damage, including from water ingress |
| Return to Invoice | What it doesCovers the difference between claim settlement and invoice value, subject to terms |
| Roadside Assistance | What it doesProvides support during breakdowns, such as towing or a jump start |
| Consumables Cover | What it doesCovers eligible consumable items used during repairs, like nuts, bolts, and engine oil |
| NCB Protection | What it doesPreserves accumulated No Claim Bonus after eligible claims |
Note: These add-ons apply to comprehensive and standalone own-damage plans, not to third-party-only cover.
Add-on selection should follow the vehicle's profile, not a fixed checklist:
If you’ve bought a car, then it is important to understand how premiums work. The following factors affect car insurance premiums:
Choosing the best insurance for car is not just about comparing prices. You need to consider the following factors as well while buying new car insurance:
Buy a policy that fits your needs. Before you buy car insurance, consider whether the coverage and add-ons are appropriate for how you use the car. Buying an expensive policy that has all the add-ons when the car is not even in daily use does not make an economically right choice.
IDV should neither be too low nor too high. It should reflect the current market value of the car, and the premium should fit your budget.
Choose add-ons like zero depreciation, engine protection, return to invoice car insurance, or roadside assistance based on the vehicle's age and use.
Online car insurance comparisons show which insurers have cashless garages near you, so repairs don't need upfront payment.
You can compare car insurance quotes on Coverfox and compare plans online to find a policy that suits your needs. Compare your options before you choose a policy.
Upload your policy to CoverAI and ask it to do a thorough check of your policy. You will understand your policy better, and CoverAI will help you choose a suitable car insurance policy as per your needs.
Try COVER AIIf you are buying insurance for a new car or an existing one, it is a simple and streamlined process on Coverfox. Just follow these steps:
Pro Tip: Use CoverAI for car insurance quotes comparison and select what best suits you!
Try COVER AIOnline car insurance renewal can be done without visiting a branch or repeating the entire paperwork process. Check your policy expiry, IDV, NCB and add-ons, compare the renewal quote, and complete your car insurance renewal online before the policy expires.
The car insurance claim process can be done in two ways:
In this type of claim, the car insurer directly settles the bill with the network garage the insured vehicle is being repaired at. There is no need for upfront payment from the policyholder for the bills.
In this type of claim, the policyholder has to pay the repair bill, and file a claim for reimbursement. Then, the insurer verifies the claim and reimburses the amount for the insured events.
Here are the steps to file a car insurance claim:
The best car insurance depends on your requirements and your budget. There is no single policy that can be deemed the best car insurance policy; a third-party car insurance will help you ensure legal mandates are met, whereas a comprehensive policy protects your vehicle while being legally compliant.
Third-party cover pays only for damage or injury caused to others. Comprehensive cover adds protection for your own vehicle from accidents, theft, fire, and other listed events.
Car insurance in India starts from ₹2094** per year for third-party cover, while the premium for OD insurance varies based on factors such as the car's age, make and model, registration location, coverage, IDV, add-ons, NCB and applicable discounts. On Coverfox, you can save up to 85%* by comparing car insurance quotes online.
Premium depends on IDV, the car's age, make and model, location, policy type, add-ons selected, NCB, and deductibles chosen.
IDV, or Insured Declared Value, is the maximum amount payable for a total loss or theft claim. It's the car's current market value after depreciation.
NCB, or No Claim Bonus, is a discount on own-damage premium for each claim-free year, ranging from 20% to 50% based on consecutive claim-free years.
You can compare car insurance quotes online on Coverfox by entering your car registration number and providing the required previous policy details. Click on “Get Quotes” to view and compare available plans, coverage and premiums before choosing a policy.
You can reduce your car insurance premium by renewing your policy on time to retain your NCB, choosing only the add-ons you need, selecting an appropriate IDV and opting for a higher voluntary deductible if you can afford to pay more during a claim.
Buying car insurance online often skips agent commissions and paperwork costs that add to offline premiums, though the base price still depends on the insurer and plan chosen.
