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Car Insurance

A car insurance policy protects policyholders against any financial damages arising from accidents if they do meet with them. They can file an insurance claim and get the required amount to repair their car back to its shape. The best part is that you only have to pay a premium once a year for car insurance. If you do not claim in a policy year, you will also get a no-claim bonus. Let’s read further to know more about Car Insurance.

Types of Car Insurance Available for You

There are mainly three types of car insurance that you can see below

  1. Third-Party Car Insurance
  2. Standalone Own-Damage Car Insurance
  3. Comprehensive Car Insurance

Third-Party Car Insurance

In this, you will get personal accident cover with coverage to any person’s death or bodily injury as per the Motor Vehicles Act. Under this type of car insurance, the company will pay all costs and expenses with written consent. The policy term is 3 years and the payable premium for the entire policy term is collected from the policyholder at the time of sale of insurance.

Standalone Own-Damage Car Insurance

In this car insurance, all your car’s own damage expenses will be covered. And you can still avail of an NCB if you have an add-on cover. Suppose if the insured person files a claim in the current policy year, the policyholder will still be eligible to receive the NCB discount on the renewal, provided you have opted for an NCB Protector Add-on cover in the current policy year along with the base Motor OD cover.

Note- Not more than 2 claims are eligible for NCB discounts. The NCB will be protected if the policy is renewed within 90 days of the expiry.

Comprehensive Car Insurance

This is an extensive car insurance policy that provides you both Own-Damage and Third-Party benefits. The policy covers damages caused due to natural disasters, severe weather fire, theft, vandalism, damage to the third party, damage to your vehicle, and damage by riots.

Policy Term

Car insurance is usually valid for 1 year, and the insured must renew the policy before the due date. There is no grace period for car insurance premium payment. If the comprehensive car insurance is allowed to lapse for more than 90 days, your No Claim Bonus is lost.

Car Insurance Sum Insured

This sum insured is based on the Insured Declared Value (IDV) of the car. An IDV is a maximum amount the insurer can pay; it approximately equals the market value of your car. So, if you buy insurance for a new car, check the IDV on the showroom price. To understand this, refer to the below example.

Suppose your car has got damaged and the market value of your car is INR. 8 lakh at the time of policy purchase. It means your insurer will disburse a maximum amount of INR 8 lakh. But the IDV of your car is not constant because when you renew your insurance, the IDV will decrease.

List of Top Car Insurance Companies in India

CompanyBenefitsNetwork Garages for Cashless Claims
HDFC Ergo General Insurance Company Limited70% off on premium payment

Overnight repair service

Same-day settlement
7,100
TATA AIG General Insurance Company LimitedOnline approval

13 additional covers

Loss, Theft & Damage Cover
5,900
ICICI Lombard General Insurance Company LimitedPersonal Accident Coverage

Access to Cashless Garages

Cover for theft
1 dedicated garage for each policyholder
Bharti AXA General Insurance Company LimitedAccidents

Theft & Burglary

Natural & Man-made disaster
5,200+
Reliance General Insurance Company LimitedPersonal accident cover up to INR 15 lakh

7 additional options

Renewal facility for both expired and exciting policies
5,000+
Bajaj Allianz General Insurance Company LimitedCashless hospitalization

Cashless claim facility

No Claim Transfer Bonus up to 50%
4,500+ Network Garages
6,500+ Network Hospitals
IFFCO Tokio General Insurance Company LimitedZero depreciation cover

Coverage for both man-made and natural disaster

24X7 on road coverage
4,300+ Network Garages
The New India Assurance Company Limited2 options for coverage

Financial protection against both natural and man-made disasters

4 Add-on covers
1184+ Network Garages
United India Insurance Company LimitedDiscount on vintage cars

No claim bonus 20% to 50%

Anti-theft device installation discount

5% off on own damage
634 authorized garages

Car Insurance Cover

Your insurance company will compensate for the loss or damage to the car as per the following standard coverages:

  1. Fire, Explosion Self-ignition, or Lightning
  2. Burglary, Housebreaking, or Theft;
  3. Damage by Riot and Strike
  4. Earthquake, flood, typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm, frost, landslide, rockslide, etc.
  5. Car accident by any external means
  6. Loss and damage due to a malicious act
  7. Terrorist activity
  8. Road rail inland, waterway lift elevator, or air

Exclusion

The company isn’t liable to pay for the loss or damage to your car if it has happened due to the following reasons:

  1. War & Similar conditions
  2. Own vehicle damage
  3. Driving under the influence of alcohol or drugs
  4. Doesn’t have a valid driving license
  5. Any damage which is not directly caused by an accident
  6. Regular wear and tear
  7. Regular servicing expense (unless you buy an add-on)