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Car Insurance Companies: All You Should Know

Are you here to figure out the best car insurer for you? Then you're on the right page.

The purchase of a cheap policy or only a third-party insurance will get you nowhere. Right from choosing the best insurer and evaluating the perfect policy for you, we help you build a solid insurance deal. Read ahead to know more all the essential details about car insurance companies in India.

Things to Know While Choosing a Car Insurance Company

Paying a cheap premium will give you a policy that will not come through at the time you need it. When you look for different policies online, you might want to put in some thought into which car insurance company to choose. Here is a checklist that will help you decide the best car insurance company for your beloved four-wheeler.

Authenticity

Always check your insurance company’s authenticity. You can check for the company’s IRDA registration number on the IRDA website. Once you know that the company is registered with the IRDA, you can be assured that the insurer is legitimate.

Financial Standing

Don’t forget to check the company’s financial standing. This will give you an idea of whether the company is capable of settling your claims. You can get this idea by committing to a simple Google search.

Claim-Rejection Ratio

This is the ratio of the cases rejected to the claims settled. Needless to say, the lower the claim ratio, the better option it is. Simply Google search. Go for a company that settles most claims, as that gives you an assurance that the company.

Periodic Check

When your policy is close to renewal, it's always a good idea to evaluate a few things. Check if you received good customer service. Assess how they have treated your claims. Figure out if your coverage is adequate and premium is cost-effective.

Comparing Policies of Insurance Companies

Want to know which policy works for you? Check out these few things that will help you decide “the one”.
Premium vs Cover
While it is not a good idea to go for a policy solely on a low premium, it is advisable to check which premium gives you the best cover. The company that gives you the best cover for an affordable premium is what will suit you the best in the long run.
Deductibles
Every company has a different structure and offers for a discount against deductibles. Deductibles are voluntary and compulsory. You don’t want to pay a significant chunk of your expenses via your pocket. Make sure you pay just the right amount for a nicely lowered premium. Look for a company that offers you the best discount against the deductibles.
No-Claim bonus
No-Claim bonus is the bonus you get after continuous claim-free years. Usually, this bonus translates into a discount on your premium during renewal. Your no claim bonus discount is accumulated, the highest being 50%. When you buy a new car or change your insurer, you can have this bonus transferred to your new car or new company. When you’re looking for a potential insurer, watch out for the NCB.
Cashless Garages
This is very simple. Cashless garages affiliated to the insurance companies will ensure cashless service for your car. The more expansive the cashless garage list is, the more options for you to choose from. Pick a company that has a good list of cashless garages in your area who also cater to repairing your car model.
Add-Ons
A few companies offer some cool add-ons that are worth checking out. A few of the most popular add-ons are Zero Dep, Invoice cover, NCB protect etc. Choosing a company that offers the best add-ons along with the terms and conditions. This will ensure that you can upgrade your cover whenever you want.

Best Car Insurance Companies in India

Bharati AXA Car Insurance

Bharati AXA car insurance offers instant car insurance policy and renewal online. The company has a wide spread cashless garage network of over 2500+ garages across India. The car insurance offers a comprehensive coverage along with options of add-on covers to enhance coverage.

Royal Sundaram Car Insurance

Royal Sundaram car insurance offers a good and hassle-free pre-and post-sales services. The company’s car insurance plan offers comprehensive coverage along with an option of add-on covers for enhanced coverage. Cashless garage network is spread all over India with over 3300+ cashless garages.

Reliance Car Insurance

Reliance car insurance is a part of India's one of the largest business group Reliance Industries. The car insurance policy comes with a comprehensive coverage and loads of features at an affordable price. It enjoys an extensive network of more than 3800+ cashless network garages nationwide.

TATA AIG Car Insurance

TATA AIG car insurance is being offered by one of India’s most trusted TATA group along with AIG. The car insurance is loaded with features for comprehensive protection and also optional add-on covers for further convenience. It has a nationwide coverage of cashless garage network with over 3800 cashless garages.

Bajaj Allianz Car Insurance

Bajaj Allianz Car Insurance offers third party liability along with own damage cover. Bajaj Allianz car insurance has around 4000 cashless garage network and offers mobile app for round the clock road side assistance. The company is known for its quick claim settlement process and has consistently received iAAA rating from ICRA demonstrating the highest claims-paying capacity.

Other Popular Car Insurance Companies in India

Incurred Claim Ratio of Car Insurance Companies in India

Name of Car Insurance Companies in IndiaClaim Ratio (%)
ICICI Lombard78.91%
HDFC ERGO89.43%
Bharti AXA89.09%
Bajaj Allianz69.19%
New India Assurance86.95%
SBI General Insurance102.07%

The above figures are taken from IRDAI Annual Report 2016-17

Things to Know While Choosing a Car Insurance Company

  • Know the type of policy you need: For luxury cars, those that have been purchased on loan and newly purchased cars, it is best to opt for a comprehensive car insurance policy. While for cars that are not as expensive as most others, cars owners may opt for third party property policies that financially protect policyholders against third party losses and car damages. Alternatively, car owners may opt for only a third party fire and theft coverage.

  • Select the insurance company carefully: Research thoroughly on the background of insurance companies and compare between them to select a reliable one. Some of the criteria that you should consider while selecting an insurance company are number of years it has been in the market, claim settlement ratio, dealing with non-claim problems, etc.

  • Compare the premium of different car insurance companies: Compare the premiums being offered by various car insurance companies. You can update yourself on such information by visiting the branches of car insurance companies or check the same through their official websites. Leading car insurance companies generally make advanced tools like car premium calculator accessible through their websites. This offers prospective customers the convenience of getting a personalised quote regarding their premium eligibility. The quotes from various websites of car insurance companies can be compared to take a well informed decision.

  • Select a suitable deductible: The higher the deductible, the lower will be your premium eligibility. However, in that case, you have to shell out a higher amount if an accident occurs, even if the mishap did not happen because of your negligence.

  • Opt for sufficient coverage: Make sure that you are neither over-covered nor under-covered. Opting for coverage that is not relevant for you unnecessarily increases your premium, while not opting for sufficient coverage defeats the purpose of purchasing a car insurance policy.

  • Transparent processes: An insurer that follows a streamlined process related to documentation, purchase, claim settlement, policy terms and benefits, etc. creates a positive impression about its efficiency.

  • Flexibility: Most new-age car insurance company offer customers the convenience of opting for features and benefits customised to suit unique needs.

  • Make the most of discounts: Prospective purchasers who are considered to be low-risk, especially those married or with a positive driving record, are often offered attractive discounts on certain features like safety tools, anti-theft, etc. Another way to avail lower premium payments is to combine your car insurance policy with home insurance.

FAQs on Car Insurance Companies

What are the benefits that are excluded from car insurance plans?

The following are the benefits that are usually not included in car insurance plans:

  • Loss or damage to the car when the policy has expired

  • Loss or damaged caused to the insured car when the driver does not have a valid driving license

  • Loss or damaged caused due to drunk driving

  • Damage or loss to insured car’s engine caused due to oil leakage

  • Natural wear and tear of car and car parts

  • Loss or damage to the car as a result of negligence of the guidelines issued by the car manufacturer

What are the documents required for purchasing policies from car insurance companies?

For new car insurance policies, the following are the required documents:

  • Filled up Proposal Form

  • Copy of the Registration Certificate (RC)

For policy renewals, the following are the documents that have to be submitted to the car insurance company:

  • Copy of previous car insurance policy

  • Copy of the Registration Certificate (RC)

I have recently got the CNG in my car changed to LPG. Do I need to get this information updated in my car insurance policy document?

Yes, you have to get in touch with your car insurance company and get this information updated in your policy document. This is because the type of fuel is one of the essential criteria that determine your premium.

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