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Car insurance is a type of policy that provides financial coverage for your insured vehicle against damages arising from accidents, theft, fire, natural disasters, or other man-made hazards. It also includes third-party liability cover, which is mandatory under the Motor Vehicles Act, 1988.
Car insurance, also known as auto insurance, is a type of motor insurance policy that serves as a legal contract between you and the insurer. It protects you from unforeseen repair costs or legal liabilities that may arise from accidents. In exchange, you pay a premium to the insurer, who compensates you in case your car is damaged.
In simple terms, four-wheeler insurance provides a financial safety net and helps you manage the legal and financial risks of driving. Road mishaps and accidents can lead to significant expenses, and without the right car insurance, these costs can put a serious dent in your finances. While many car owners buy insurance just to meet legal requirements, the right policy can actually save lakhs in case of major accidents. So, ensure you are adequately protected while driving, so you can stay stress-free on the road.
The first car insurance liability policy was issued in 1897, to Gilbert J. Loomis in Dayton, Ohio, covering property damage and manslaughter liability.
Disclaimer - Above mentioned prices are for a Maruti Wagon R, 1.2 VXI (1197 CC) registered in Mumbai on 2013 & previous policy has not expired.
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Browse all reviewsWhile purchasing car insurance online, Coverfox helps users with a simple, easy, and streamlined process. Here are a few more key features that you can get while buying four-wheeler insurance online:
In India, there are three primary types of online car insurance policies: Third-Party Liability 4-wheeler Insurance, Own Damage Insurance, and Comprehensive Four Wheeler Insurance. You can select a plan that best matches your coverage needs and budget.
Third-party car insurance is the most basic and legally required cover that protects you against liabilities arising from damage to 3rd person’s property or injuries to others due to your insured car. Liability only insurance covers property damage of up to ₹7.5 lakh and offers unlimited financial protection against third-party injuries or fatalities.
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 for a nominal additional premium.
A Standalone Own Damage car insurance policy covers your own vehicle against damage from accidents, fire, theft, vandalism, and natural calamities. It does not include third-party liabilities. This policy can be paired with an active third-party plan to ensure complete protection. Typically suitable for cars up to three years old, Own Damage insurance offers a cost-effective way to safeguard your vehicle from unforeseen mishaps while keeping repair and replacement costs under control.
It is now common knowledge that differences between the two types of insurance lies in the extent of coverage. While third-party insurance safeguards you against liabilities arising from damage or injury to others, comprehensive insurance provides all-round protection for your own vehicle too. Each serves a different purpose based on your coverage needs.
Check the table below to get a better grasp on how third-party and comprehensive car insurance differ in detail.
Buying the best insurance for a car online is simple and hassle-free with Coverfox. Compare policies from top insurers, choose add-ons like Zero Depreciation, Return-to-Invoice, or Engine Protection, and get the best value for your premium. Enjoy 100% cashless repairs at network garages, 24x7 roadside assistance, and dedicated claim support till settlement — all in just a few clicks.
It is essential to understand the claim process of your car insurer while making an online car insurance claim. You can follow these steps to ensure a hassle free claim and avoid claim rejections.
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| Reason for Car Insurance Claim Rejection | Explanation | How to Avoid Claim Rejection |
|---|---|---|
| Misinformation | False or missing details in a claim can cause rejection | Always provide accurate information in your claims |
| Policy Expired | A lapsed motor insurance policy makes claims invalid | Renew your insurance on time to stay covered |
| Delayed Intimation | Late reporting of accidents leads to denial | Inform your insurer about any incident promptly |
| Improper Documentation | Missing FIR, bills, or photos weakens a claim | Keep all required documents handy and updated |
| Illegal Driving | Driving without a valid licence or under the influence voids the claim | 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 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.
Below is a list of the 20 best car insurance companies in India, including public and private car insurance companies, with their network garages
| Car Insurer Name | Network Garages | Claim Settlement Ratio (CSR) |
|---|---|---|
| Acko General Insurance Ltd. | 4000+ | 94% |
| Bajaj General Insurance Ltd. | 7200+ | 98.5% |
| Cholamandalam MS General Insurance Co. Ltd. | 16800+ | 96% |
| Generali Central Insurance Co. Ltd. | 6500+ | 96.3% |
| Go Digit General Insurance Ltd. | 9000+ | 96% |
| HDFC ERGO General Insurance Co. Ltd. | 12200+ | 99% |
| ICICI Lombard General Insurance Co. Ltd. | 6900+ | - |
| IFFCO–Tokio General Insurance Co. Ltd. | 11800+ | 95.8% |
| Zurich Kotak General Insurance | 4600+ | 98% |
| Liberty General Insurance Ltd. | 6000+ | 98% |
| Magma General Insurance Co. Ltd. | 4000+ | 96.6% |
| Navi General Insurance Ltd. | 900+ | 97% |
| National Insurance Co. Ltd. | 3100+ | 93% |
| The New India Assurance Co. Ltd. | 3000+ | 95% |
| The Oriental Insurance Co. Ltd. | 7926+ | 94% |
| Raheja QBE General Insurance Co. Ltd. | 1300+ | 92% |
| IndusInd General Insurance Company Limited | 11000+ | 98% |
| Royal Sundaram General Insurance Co. Ltd. | 7600+ | 98.6% |
| SBI General Insurance Co. Ltd. | 9277+ | - |
| Shriram General Insurance Co. Ltd. | 2000+ | 96% |
| Tata AIG General Insurance | 10000+ | - |
| Universal Sompo General Insurance Co. Ltd. | 13500+ | 96% |
| Zuno General Insurance Ltd. | 3300+ | 98% |
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 electric car insurance policy is crucial (and mandatory as well). Car insurance for electric cars 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%). you protect your prize. Get car insurance for EV cars through Coverfox before you head out on the roads with your EVs.
Here’s a look at the different types of electric cars that are covered under these 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.
By choosing 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 insurance prices 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 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 comprehensive car insurance policy, you can estimate the cost of premium 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 current market value of your car, representing the maximum amount your insurer will pay in case of theft or total loss. It is not the original purchase price but the depreciated value based on the vehicle’s age and model. You can choose a higher or lower IDV within the insurer’s permissible range, which directly affects your premium — a higher IDV results in a higher premium and vice versa. The IDV is calculated as the car’s ex-showroom price minus depreciation.
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 affected by the following factors:
1. Vehicle’s Age
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 % |
|---|---|
| 0 – 6 months | 5% |
| 6 months – 1 year | 15% |
| 1 – 2 years | 20% |
| 2 – 3 years | 30% |
| 3 – 4 years | 40% |
| 4 – 5 years | 50% |
| More than 5 years | Mutual agreement |
2. Model of the Car
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.
3. Registration City of the Car
IDV is also determined by where the car is registered. Metropolitan cities such as Mumbai, Delhi, and Bangalore tend to get higher IDV than tier 1, tier 2 cities and rural areas.
4. Depreciation of Car Components
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) |
5. After Market Customisations
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 car insurance prices for third-party motor insurance. As per the IRDAI annual report 2024-25, here are the third-party insurance premium rates given by IRDAI based on Cubic Capacity or Battery Capacity of the car:
For Four-Wheelers (Non EVs)
| Engine Capacity / Battery Size | Annual Premium |
|---|---|
| Up to 1,000 cc | ₹2,094 |
| 1,000 cc – 1,500 cc | ₹3,416 |
| Above 1,500 cc | ₹7,897 |
For Electric Vehicles (EVs)
| Battery Capacity | Annual Premium |
|---|---|
| Up to 30 kW | ₹1,789 |
| 30 kW – 65 kW | ₹2,904 |
| Above 65 kW | ₹6,712 |
Purchasing car insurance online over traditional insurance 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:
No More Agents
Zero Paperwork
Cost-effective
Convenient and Time Effective
Payment Reminders
Pay Premium Online
Easy Endorsement
Digital Policy Documents
By understanding and adjusting these factors that affect car insurance premiums, you can structure your car insurance policy without compromising on coverage:
Saving on car insurance doesn’t have to mean reducing your protection. With the right strategy, you can enjoy comprehensive coverage while keeping your premium affordable. Here are the smartest, most effective ways to lower your car insurance premium:
Before buying or renewing your policy, always compare car insurance quotes from multiple insurers. Don’t just look at premiums; review coverage benefits, add-ons, claim settlement ratios, and customer feedback. Comparing plans helps you find the most cost-effective and reliable protection for your 4-wheeler.
The No Claim Bonus (NCB) is a reward for not filing any claims during the policy period. It can reduce your premium by up to 50% over consecutive claim-free years. Each year you drive safely without making claims, you save more, making NCB one of the best ways to lower your car insurance premiums.
Cars fitted with Automotive Research Association of India (ARAI)-approved anti-theft systems are less likely to be stolen, which insurers reward with discounts of up to 2.5% or ₹500 on your Own Damage (OD) premium. Besides lowering your premium, these devices enhance your car’s safety and peace of mind.
Adding performance or aesthetic modifications such as alloy wheels, custom paint jobs, or spoilers can increase your vehicle’s market value — and consequently, your premium. Stick to manufacturer-approved accessories to keep costs and risks low.
Pick only those add-ons that suit your car’s usage and value. Commonly useful ones include Zero Depreciation, Engine Protection, and Roadside Assistance. Avoid adding unnecessary covers that inflate the premium without much benefit.
A deductible is the amount you agree to pay out of pocket during a claim. Increasing your voluntary deductible (beyond the compulsory one fixed by IRDAI) can help reduce your premium. However, ensure it’s an amount you can comfortably pay when filing a claim.
If your policy expires before renewal, it’s considered a lapsed policy — leading to loss of NCB and higher renewal costs. Renew your policy before expiry to maintain continuous coverage and premium benefits.
If you don’t drive frequently or own multiple vehicles, consider a usage-based or Pay-As-You-Drive (PAYD) plan. You pay premiums only for the kilometres you drive, making it a cost-effective option for occasional drivers.
Your 4-wheeler insurance needs to evolve with time. Reassess your car’s value, usage, and add-ons every renewal cycle to ensure you’re not overpaying for unnecessary coverage.
If the repair cost is minor, pay it out of pocket instead of filing a claim. Each claim resets your NCB to zero, increasing your premium the following year. Avoiding small claims keeps your discounts intact and your future premiums lower.
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Transparent Premium Breakdown
Coverfox provides a clear premium breakdown: Own Damage, Third-Party, Add-ons, and Discounts, so you know exactly what you're paying for.
Expert Claims Assistance
Get full claims support from Coverfox’s in-house team. From documentation to settlement, you’re guided every step of the way.
Free Renewal Reminders
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Customise Your Policy
Add Zero Depreciation, Engine Protector, Return to Invoice, and more—Coverfox allows you to tailor your policy to your needs.
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Save Big with Discounts
Get access to exclusive discounts, No Claim Bonus (NCB) benefits, and promo offers available on Coverfox.
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:
Quick & Easy Process
Easy to Customize
Easily Switch Insurance Provider
No Claim Bonus Transfer
Secure Purchase & Renewal Process
Transparency in Process
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:
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:
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 address. You will also receive a digital copy of your car insurance policy at your email. There, you can download the policy document for future reference. You can also access your policy document from the Coverfox website, by following these simple steps:
Head over to Coverfox or your Insurer’s website.
Log in using your registered credentials that have 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.
While buying a new car, we tend to look at each and every segment – price, parts,fuel efficiency, comfort, etc. But one should not miss out on an important factor – car insurance, as it will serve as the financial protector of your prized 4-wheeler. Here are the reasons to buy a car insurance policy:
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.
These are the 3 major type of car insurance policies in India:
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:
