Prasanna Kumar
Getting car insurance through coverfox has saved me both time & money
09 Jan
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You have just purchased your dream car – what’s the next step? The first thing you do after buying a valuable asset is to safely secure it. For a car, that is done by getting insured . Car insurance is an online insurance policy that will protect your financial well-being and your prized possession. In case you were involved in an accident, and your car caused damages to another person or property, the legal liability and damage repair of the third party will be covered by auto insurance.
The first car insurance liability policy was issued in 1897, to Gilbert J. Loomis in Dayton, Ohio, covering property damage and manslaughter liability.
Car insurance is a contract between an insurer (the policymaker) and you (the policyholder) where the insurer compensates for financial losses on the car as per the policy terms. In exchange, the policyholder must pay a certain amount periodically, known as a premium. As per the Motor Vehicles Act, 1988, third-party four-wheeler insurance is mandatory for all four-wheelers in India to legally operate on public roads.
Buying car insurance online is quick and hassle-free with Coverfox. If you wish for further coverage, you can opt for Comprehensive coverage which gives your car full protection from accidents, thefts and any damage caused by natural disaster or man-made hazards with additional benefits like 100% protection, Personal Accident cover, Cashless repairs for your car, and excellent claim support. Having online car insurance ensures peace of mind – and more importantly, financial security.
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Browse all reviewsKey Features of online car insurance include:
In India, there are three primary types of car insurance policies: Third-Party Liability Four Wheeler Insurance, Own Damage Insurance, and Comprehensive Four Wheeler Insurance. Understanding these will help you make an informed.
Third-party car insurance is the most basic and legally required cover that protects you against liabilities arising from damage to someone else's property or injuries to others due to your car. Third Party Insurance doesn’t cover your vehicle, but it saves you from hefty legal fines (from ₹2,000 to ₹4,000) and financial penalties that can occur after an accident.
Comprehensive car insurance offers complete protection by covering both third-party liabilities and damages to your own vehicle due to accidents, theft, fire, natural disasters, or man-made hazards. It’s ideal for car owners seeking financial peace of mind, especially for newer or high-value vehicles. Add-ons can enhance coverage further.
Standalone Own Damage car insurance protects only your car from damages due to accidents, fire, theft, and natural calamities. It doesn’t cover third-party liabilities. Meant for cars already covered by a third-party policy, this plan ensures your vehicle is financially protected in case of unforeseen mishaps. Own Damage insurance is a cost-effective plan.
We know that third-party four-wheeler insurance covers only third-party coverage, and comprehensive insurance provides complete protection. Apart from that, many features of both make them unique, and cater to different needs. To understand deeply the differences between TP insurance and Comprehensive insurance, refer to the table below:
| 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 | Covered |
| 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 insured 4-wheeler car up to its IDV. |
Buying car insurance online is now easier than ever with Coverfox. Now, you can choose additional covers for your policy to enhance protection, compare plans, avail cashless repairs, and save considerably on premiums in just a few steps:
The key benefit of buying car insurance online is its easy online claim process. In case of an accident, theft, or damage, simply file a claim with your car insurer. Understanding the claim process helps in securing the claim settlement amount.
In order to file a successful four-wheeler insurance claim, you will require the below mentioned documents:
To buy a car insurance plan, you need to meet the following basic requirements:
|
Reason for Car Insurance Claim Rejection |
Explanation | How to Avoid Claim Rejection |
|---|---|---|
| Incomplete or Incorrect Information | False or missing details in a claim can cause rejection | Always provide accurate information in your four-wheeler insurance claim |
| Policy Expired | A lapsed car insurance policy makes claims invalid | Renew your four-wheeler insurance on time to stay covered |
| Delayed Intimation | Lack of Proper Documentation | Inform your insurer about any incident promptly |
| Lack of Proper Documentation | Missing FIR, bills, or photos weakens a claim | Keep all required documents handy and updated |
| Illegal Driving | Repairs before insurer inspection may lead to rejection | Always follow the law while driving |
| Non-Covered Damages | Mechanical failures or normal wear & tear are generally excluded | File claims only for damages covered in your car insurance policy |
| Unauthorised Repairs | Repairs before insurer inspection may lead to rejection | Wait for insurer’s approval unless explicitly permitted |
If you have any grievances against your car insurance company, the Insurance Regulatory and Development Authority of India (IRDAI) has set up the Integrated Grievance Management System (IGMS) – an online platform to register and track complaints. You should first raise your grievance with your insurance company. If you are not satisfied with their response, you can escalate the matter to IRDAI through IGMS at www.igms.irda.gov.in. In case you are unable to access your insurer’s grievance system directly, IGMS also acts as a gateway to register your complaint with the insurer.
For every year where no claim is made, a discount called No Claim Bonus (NCB) of 10% to 50% is given on the premium during insurance renewal. But in case of a claim, the policyholder may lose this bonus. With a No Claim Bonus Protect Cover, you continue to enjoy your NCB benefits even after a claim for your 4-wheeler.
An Engine Protection Cover in Car Insuranceoffers financial protection for repairs or replacement of the engine and its vital parts if damaged by water entry, oil leaks, or hydrostatic lock. Standard policies usually exclude these damages, making this add-on essential for safeguarding your engine.
Car Insurance Companies take into account the depreciated value of the car at the time of claim settlement. Without the Zero Depreciation Car Insurance 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 comprehensive 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 ₹ 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 car key protect cover. Under the Key Protection add-on, the cost of buying a new car key from the company’s service centre is reimbursed by your car insurance company.
Personal Accident (PA) Cover in Car Insurance is a mandatory add-on as per IRDAI guidelines for all owner-drivers under motor insurance policies. It provides financial protection in case of accidental death or permanent disability while driving. As per the latest mandate, a PA cover of ₹15 lakh is required for the owner-driver, with some insurers offering extended protection under standard accident plans. This essential cover ensures legal compliance and critical financial support in emergencies, typically at a nominal premium.
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 a daily allowance cover, the insurer provides you with a fixed amount to manage travel expenses, if your 4-wheeler 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 add-on, you can cover your car accessories which may not be covered in your policy. The add-on provides reimbursement and additional coverage for these items.
Roadside Assistance cover for your four wheeler provides immediate help in case of emergencies while driving, such as a flat tyre, running out of fuel, or technical issues like battery failure. It also covers situations like towing services, lockout assistance, or accommodation benefits if stranded in remote locations. This add-on ensures peace of mind by offering quick solutions to unforeseen breakdowns or accidents.
Below is a list of 20 best car insurance companies in India with their network garages and claim-settlement ratio
| Insurance Companies | Network Garages | Claim-Settlement Ratio(%) |
|---|---|---|
| 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% |
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 An Electric vehicle insurance 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%). Make sure you protect your prized EVs through Coverfox before you head out for the roads.
Types of electric cars that come under electric car insurance plans:
In FY 2022–23, EV car insurance made up just 0.5% of all car insurance policies. By FY 2023–24, this jumped to 3.5%, then reached 8.2% in FY 2024–25, and hit a peak of 14% by March 2025.
BuChoosing the right four wheeler insurance online becomes simple once you know what’s truly important and what isn’t. Planning your policy carefully helps you save money while ensuring your vehicle is well protected. To make the best choice, keep the following factors in mind while buying a policy 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.
Although IRDAI sets third-party premium rates, when purchasing a new car insurance policy you can estimate the cost through an online calculator, use Coverfox’s comparison tool, or apply a simple formula:
For Example, for a Wagon R 2020 Model, which hadn’t made any claims in the previous four wheeler insurance policy:
Insurance Premium = Own Damage Premium (₹752) + Add-ons (₹299 + ₹495) – NCB Discount (₹376) + Third-Party Premium (₹3,416) = ₹4,586.
Own-Damage Motor Insurance accounted for ₹37,324.81 crore in 2023–2024, while Third-Party Motor Insurance accounted for ₹54,455.73 crore in the same year (IRDAI).
IDV or Insured Declared Value is the market value of your car at the time of purchase of car insurance. In case your car is totalled or stolen, you will be compensated for the IDV of your car, i.e, the current market value of the car. You can opt for higher or lower IDV of your car, which would in turn affect insurance premium price. IDV is calculated by:
IDV = Car’s Showroom Price + Cost of 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.]
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 totalled. IDV is affected by the following factors:
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 by where the car is registered. For example, Mumbai will have a higher IDV than another town in Maharashtra
As a car gets old and depreciates, its components also depreciate. 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 four wheeler 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 motor insurance. Here are the third-party 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 |
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:
By understanding and adjusting these factors that affect car insurance premiums, you can structure your car insurance policy without compromising on coverage:
High-end or performance-oriented vehicles tend to attract higher premiums due to costly spare parts and expensive repairs. A standard hatchback, on the other hand, is usually cheaper to insure.
A brand-new car has a higher IDV, which increases the premium. As the car ages, its value depreciates, leading to a lower premium over time.
Cars registered in metro cities or accident-prone areas generally come with higher premiums because of increased chances of theft, traffic congestion, and road mishaps.
Add-ons increase protection but also increase your overall premium. Choose wisely.
Younger or first-time drivers are perceived as higher-risk, resulting in steeper premiums. Insurers may also consider occupation and driving history when calculating rates.
A basic third-party policy is cheaper, but a comprehensive one with add-ons like Zero Depreciation, Roadside Assistance, or Engine Cover will increase your overall premium.
Avoiding claims for a year rewards you with a No Claim Bonus. Over multiple years, this discount can go up to 50%, significantly reducing your renewal premium.
If your car is used daily or for commercial purposes, insurers may charge a higher premium due to increased wear and tear and higher accident risk.
Cars fitted with certified anti-theft devices or advanced safety tech (like ABS, airbags) may qualify for a discount, as they reduce the insurer’s risk.
Frequent or high-value claims can increase your premium during car insurance renewal. A clean claim record shows responsible driving and is rewarded with better rates.
Choosing a higher voluntary deductible lowers your premium but means you'll bear more cost during a claim. It’s a trade-off between savings and risk.
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. Don’t just look at the premium—compare coverage benefits, add-ons, claim settlement ratios, and customer reviews. This ensures you get the best value and not just the lowest price.
Agree to pay a higher voluntary deductible to lower your car insurance price. While this means more out-of-pocket expenses during claims, it signals financial responsibility to insurers and can significantly reduce annual premiums.
Maintain a claim-free record to earn discounts of up to 50% on your premium. NCB is cumulative and increases with every consecutive claim-free year, making it one of the most effective ways to save on car insurance over time.
Only select add-ons that you truly need for your 4-wheeler, like Zero Depreciation or Engine Protection. Avoid loading your policy with unnecessary extras, which can inflate your premium without adding meaningful value.
Anti-theft devices certified by the Automotive Research Association of India (ARAI) can fetch you discounts. These devices not only deter theft but also lower your risk profile, making you eligible for premium reductions.
Combine your car insurance policy with other policies like home insurance to get multi-policy discounts. Insurers often reward loyal customers who consolidate their coverage with one company.
Maintain a clean driving record by avoiding accidents and traffic violations. Safe driving lowers your risk profile, which can lead to fewer claims and reduced premiums over time.
Multi-year car insurance policies often come with discounted rates and protect you from yearly price hikes. They also save you from the hassle of annual renewals and potential lapses in coverage.
For older vehicles, consider dropping comprehensive coverage if the repair cost exceeds the car’s market value. Third-party insurance may suffice, especially if your car is rarely used or has a low resale value.
Retain your No Claim Bonus by not filing minor claims and covering small damages out of pocket. This helps you qualify for greater NCB discounts in the long run and keeps your premium from rising.
Premiums are lower for vehicles with smaller engines and those with good safety ratings. If you're budget-conscious, opt for models that are inexpensive to repair and have lower theft risk.
Regularly reassess your coverage needs to avoid overpaying for unnecessary features. Your driving habits, vehicle condition, or life situation may change—make sure your policy reflects those changes.
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Renewing your four-wheeler insurance on time is important as it ensures continuous coverage. A timely 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.
Every 4-wheeler insurance policy must be renewed to enjoy continuous insurance benefits. You can apply for car insurance renewal online as well offline. However, renewing the policy online can give you several advantages. These benefits are:
At Coverfox, you do not need to submit any documents unless specifically required. However, having this information handy while purchasing or renewing car insurance online will ensure a smoother process:
Owner’s name and details, Make/Model/Variant, Engine Capacity, Fuel Type, Engine & Chassis No., Vehicle Class
Driving Licence Number of Primary Driver
NCB details, Insurer’s name, Policy number, Policy term, Add-on cover details
Address Proof / ID Proof (Aadhar, PAN, Voter ID, Passport, etc.)
If you let your car insurance lapse, you lose financial protection, risk losing your No Claim Bonus, may face legal penalties, and might be asked for a vehicle inspection, making car insurance renewal absolutely crucial. Additionally, lapses often lead to higher premiums on renewals, so it’s best to renew on time or set reminders because:
Driving without a valid car insurance policy is illegal in India and can result in hefty fines or penalties.
A lapsed policy leaves you unprotected against financial losses due to accidents, theft, or natural disasters.
Renewal ensures mandatory third-party liability coverage, safeguarding you from legal issues in case of accidents.
Renewing on time helps maintain your No Claim Bonus (NCB), reducing your premium cost.
Keep your car protected against damages caused by accidents, fire, theft, and unforeseen events.
Renewal is the best time to include or update add-ons like Zero Depreciation or Roadside Assistance.
Timely renewal ensures you're always prepared for unexpected incidents, whether on the road or off it.
A lapsed policy may require fresh inspection, leading to additional hassle and costs.
NOTE: If your car insurance policy expires and is not renewed on time, insurers may offer a short grace period, usually up to 30 days, during which you can renew your policy without losing your accumulated No Claim Bonus (NCB). However, it’s important to note that this grace period does not extend your insurance coverage. Your vehicle remains uninsured during this time.
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 policy document for future reference. You can also access your policy document from the Coverfox website, by logging in to your registered account using your registered email address or mobile number. Here is a detailed procedure for downloading your four-wheeler insurance policy online through Coverfox or through your Insurer:
Head over to Coverfox or your Insurer’s website.
Log in using your registered credentials that has your car insurance policy details.
Navigate to “My Policies” to download your car insurance document.
From the list, choose the car insurance policy you want to download.
Click on Download or View PDF to save a copy of your policy document.
Check the list of cashless garages by insurer to make car insurance claims hassle-free. Easily locate authorised service centres for quick repairs without any upfront payments. Compare networks across insurers and choose the best coverage for seamless claim settlements.
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:
