Car Insurance Price, Coverage, Claims & Renewal Online
Car insurance or four wheeler insurance is an agreement between a car owner and the car insurance provider that offers protection for four-wheelers in the case of financial losses due to unforeseen events like accidents and natural calamities.
Key Features Of Car Insurance
| Key Features | Benefits |
| Claim Assistance | Quick and easy claim process with the help of experts across India |
| High Claim Settlement Ratio | High percentage of claims being settled by the insurer |
| Cashless Repairs | Cashless service for car repairs at network garages across India |
| Damages to Third-Party | Coverage for damages to third-party property or person |
| Own Damage Cover | Coverage for damages to your car caused by accidents, man-made disasters, and natural disasters |
| Customizable Add-ons | Up to 13 add-ons available for an all-round car insurance policy |
| No Claim Bonus (NCB) | Discount on premiums for every claim-free year up to 50% after 5 consecutive years |
| Savings & Affordable Premiums | Save up to 75% on premiums by buying policies online |
| Third-Party Cover | Coverage for third-party injury and property damage |
| Personal Accident Cover | Coverage for personal accidents up to 15 lakh |
| Add-on Covers | Various add-ons available, such as zero depreciation cover, return to invoice cover, and roadside assistance |
| Premium | Car insurance plans starting at ₹ 2,094 with customizable add-ons |
| Emergency assistance | 24/7 emergency assistance |
| Zero Depreciation Cover | Available as an add-on or type of cover |
Car Insurance Price
Car insurance price is 2094 rupees plus taxes for third party liability only policy for 1 year coverage. For comprehensive insurance coverage can cost approximately 3000 to 15000 for cars under 1000 cc.
Third Party Car Insurance Price list 2023
| Cubic Capacity Of The Car | Insurance Price |
|---|---|
| Not exceeding 1000 cc | Rs. 2,094 |
| Exceeding 1000 cc but not exceeding 1500 cc | Rs. 3,416 |
| Exceeding 1500 cc | Rs. 7,897 |
Types Of Car Insurance
- Third-Party Car Insurance: This type of car insurance is mandatory for all car owners in India, as per the Motor Vehicles Act. It provides compensation for damages or injuries caused to a third-party person or property in the event of an accident involving the insured car, up to a limit of Rs. 7.5 lakh. However, it does not cover damages to the insured car. Therefore, it is recommended to purchase a comprehensive or standalone car insurance policy in addition to third-party coverage.
- Comprehensive Car Insurance: A comprehensive car insurance policy covers both third-party liabilities and damages to the insured car. This type of policy provides extensive coverage compared to a basic third-party policy, and also offers protection against natural disasters like floods, earthquakes, cyclones, etc., and man-made disasters. In addition, the policyholder can enhance the coverage by adding on benefits or riders such as roadside assistance, zero depreciation cover, etc. by paying an extra premium.
- Standalone Own Damage Car Insurance: This policy covers only accidental damages caused to the insured car and can be purchased with an active third-party insurance policy. It provides financial assistance in the event of damages caused to the insured car and third-party liabilities as well. However, it does not cover losses incurred by third parties and is only applicable to cars bought after September 2018.
Inclusions In Car Insurance Policy
- Third-party liability coverage
- Own damage coverage
- Personal accident cover
- Add-on covers
- Cashless claim settlement
- Loss or damage due to natural calamities such as flood, earthquake, hurricane, cyclone, etc.
- Loss or damage due to man-made disasters such as theft, riot, strike, terrorist activity, etc.
- Loss or damage due to fire, explosion, self-ignition, or lightning.
- Liability for third-party bodily injury or death, including legal expenses.
- Liability for third-party property damage, including legal expenses.
- Personal accident cover for the driver of the insured car.
- Cover for damages caused by the driver of the insured car to co-passengers.
Exclusions
- Driving under the influence of alcohol or drugs
- Unlicensed driving
- Geographical limitations
- Regular wear and tear, aging, or mechanical breakdown
- Commercial use
- Nuclear risks, war, or other similar perils
- Mechanical or electrical breakdown of the insured car
- Depreciation or wear and tear of the insured car
- Loss or damage due to driving outside the geographical limits specified in the policy
- Loss or damage due to the insured car being used for illegal purposes or racing
- Damage caused to the insured car by someone driving without a valid driving license
- Damage caused to the insured car by someone driving under the influence of alcohol or drugs.
Add-On Covers In Car Insurance
| Add-On Cover | Explanation |
|---|---|
| Zero Depreciation Cover | This add-on cover ensures that you get the full claim amount without any deduction for depreciation. Without this cover, the insurance company deducts the depreciation value of your car’s parts from your claim amount. |
| Engine Protection Cover | This add-on cover protects you from the cost of repairing or replacing your car’s engine in case it gets damaged due to water ingression, leakage of lubricating oil, or any other such event. |
| Return to Invoice Cover | This add-on cover helps you get the original invoice value of your car in case of theft or total loss due to an accident. Without this cover, you would only get the current market value of your car, which could be significantly lower than the invoice value. |
| Roadside Assistance Cover | This add-on cover provides emergency assistance to you in case your car breaks down on the road. It includes services like towing, fuel delivery, battery jump-start, and more. |
| No Claim Bonus Protection Cover | This add-on cover ensures that you retain your No Claim Bonus (NCB) even if you make a claim during the policy period. Without this cover, a single claim can result in the loss of your NCB, which could significantly increase your premium for the next policy period. |
| Consumables Cover | This add-on cover covers the cost of replacing consumable items in your car like engine oil, brake oil, coolant, and more, which are not covered under the standard policy. |
| Key Replacement Cover | This add-on cover provides coverage for the cost of replacing lost or stolen car keys. |
| No Claim Bonus (NCB) Protection Cover | This add-on cover protects the policyholder’s accumulated No Claim Bonus (NCB) even in the event of a claim. |
| Daily Allowance Cover | This add-on cover provides a fixed daily allowance to the policyholder to meet the expenses of alternative transportation while the insured car is being repaired. |
| Emergency Assistance Cover | This add-on cover provides 24×7 roadside assistance and emergency services such as towing, fuel delivery, battery jump-start, and flat tire repair. |
| Bi-Fuel Kit Cover | This add-on cover provides coverage for the CNG/LPG bi-fuel kit and its parts fitted in the insured car and its a mandatory cover to have in India. |
| Personal Belongings Cover | This add-on cover provides coverage for the loss or damage to personal belongings like laptop, mobile phone, handbag, etc. kept inside the insured car. |
How To Calculate Your Car Insurance
- Use an online premium calculator: Many insurance companies offer an online tool called a car insurance premium calculator. Just enter the required information about your vehicle, select the policy coverage and add-ons you want, and click “Get Price.” The calculator will then display the total premium you need to pay for your chosen policy.
- Calculate Own Damage Insurance Premium: The premium for an own damage insurance policy is calculated by multiplying the Insured Declared Value (IDV) of your vehicle by the premium tariff as decided by the insurer, and adding the cost of any add-ons. Then, subtract any discounts you may be eligible for, such as a No Claim Bonus (NCB).
- Calculate Insured Declared Value (IDV): The IDV for your vehicle is calculated by subtracting the depreciation deduction from the list price of the car manufacturer. You can also add the cost of vehicle accessories that are not part of the list price, but remember to also subtract the depreciation deduction of those accessories.
- Calculate Third-Party Car Insurance Premium: For private cars in India, the premium rates for Motor Third Party Liability Insurance are set by the Insurance Regulatory and Development Authority of India (IRDAI). The premium varies based on the engine cubic capacity of the vehicle, with rates ranging from Rs. 2,094 to Rs. 7,897 for the financial year 2022-2023.
Car Insurance Companies In India – Which One Is Best?
List of car insurance companies in India with their claim settlement ration 2022-23
| Car Insurer | Network Garages | Incurred Claim Ratio % |
|---|---|---|
| Universal Sompo Car Insurance | 3500 | 91.32% |
| New India Assurance Car Insurance | 3000 | 91.00% |
| SBI Car Insurance | 16000 | 93.58% |
| United India Car Insurance | 3100 | 98.90% |
| Oriental Car Insurance | 3100 | 97.95% |
| Raheja QBE Car Insurance | 1000 | 92.55% |
| IFFCO Tokio Car Insurance | 4300 | 84.12% |
| Zuno Car Insurance | 1500 | 84.61% |
| Kotak Mahindra Car Insurance | 2327 | 82.67% |
| Royal Sundaram Car Insurance | 3300 | 85.76% |
| Digit Car Insurance | Repair Anywhere | 79.54% |
| Reliance Car Insurance | 8200 | 75.57% |
| Bajaj Allianz Car Insurance | 4000 | 68.53% |
| Liberty Car Insurance | 4500 | 62.84% |
| Future Generali Car Insurance | 3500 | 62.43% |
| Chola MS Car Insurance | 4636 | 65.05% |
| Bharti AXA Car Insurance | 5200 | N/A |
| Tata AIG Car Insurance | 7500 | 74.51% |
| Shriram Car Insurance | 2000 | 72.97% |
Buying Car Insurance Online Vs Offline
In today’s digital age, buying car insurance online has become a common practice. Online purchase of a 4-wheeler insurance policy enables you to insure your car against any damage due to an accident, theft, fire, etc. within just 2 minutes. Buying car insurance online offers quick comparisons and safe payment modes, making it a clear winner over offline mode for the following reasons:
| Category | Buying Car Insurance Online | Buying Car Insurance Offline |
|---|---|---|
| Buying Process | Can be purchased online from the insurer’s official website or Policybazaar.com using a smartphone or laptop. | Requires a physical visit to the insurer’s office or connecting with the agent. |
| Insurance Premium | Lower premiums due to the absence of intermediaries. | Higher premiums due to higher operational costs and involvement of agents. |
| Convenience | More convenient as it only requires a smartphone and a good internet connection. | Less convenient as customers need to meet with the insurance agent. |
| Transparency | More transparent as there is no role of an agent or intermediary. | There is less transparency as agents play a big role. |
| Customer Support | Easy to connect with the customer support team 24×7 via emails and calls. | Policyholders can connect with the customer support team or the agent during office hours. |
| Paperwork | Minimum to zero paperwork. | May require a lot of paperwork. |
| Renewal Process | Easy to renew as the policyholder’s details are auto-saved with the insurer. | The renewal process is cumbersome and time-consuming. |
How to buy car insurance online
- Visit the official website of the insurer or a trusted third-party aggregator website
- Enter the required details like car make and model, engine capacity, registration number, etc.
- Choose the coverage and add-ons as per your requirement
- Make the payment online and receive the policy document instantly via email
Car Insurance Renewal Online
- Visit the insurer’s website or a third-party aggregator website
- Enter the policy details like policy number and expiry date
- Review the policy and coverage details
- Make the payment online to renew the policy
Car Insurance Claim Process
- Contact the insurer immediately after the accident or damage
- Register the claim and provide the required details like policy number, car details, accident details, etc.
- Get the car surveyed by the insurer’s authorized surveyor
- Submit the required documents like claim form, police report, driving license, etc.
- The claim will be processed and settled as per the terms and conditions of the policy
Documents Required For Car Insurance Claim
- Copy of the insurance policy document
- Copy of the car registration certificate
- Driving license of the policyholder
- Police FIR report in case of accident or theft
- Original repair bills and payment receipts
- Any other document as requested by the insurer
FAQs
Q1. Which type of car insurance is best? A: Comprehensive insurance is considered the best as it provides complete protection for your car. If you’re insuring an old car, a third-party policy is best as it provides mandatory coverage and is cost-effective.
Q2. Why is first-time car insurance so expensive? A: New car insurance is usually more expensive because the IDV (Insured Declared Value) of the car is highest when it’s new. As the car ages, its value depreciates, and so does its IDV. Additionally, many people opt for multiple add-ons, which increases their premium.
Q3. How can I lower my car insurance premium? A: You can lower your 4 wheeler insurance premium by increasing your deductible, installing anti-theft devices, earning No Claim Bonus, avoiding unnecessary add-ons, and comparing vehicle insurance plans.
Q4. Can I skip buying personal accident (PA) cover under new car insurance? A: You can skip buying PA cover if you already have it under an existing motor policy. However, if you don’t have it, then you need to buy it as PA cover for the owner-driver is mandatory in India.
Q5. How long does it take to buy/renew car insurance online? A: Buying or renewing car insurance online takes only a few minutes. You need to log in to Policybazaar.com, enter the details of your car, your contact information, and pay the premium for the chosen plan to get your policy issued instantly.
Q6. Are offline and online car insurance policies different? A: No, offline and online car insurance policies are the same. The only difference is that your online car policy is sent to your registered email id while the offline policy is sent to your home through the post.
Q7. Where can I check my car insurance policy details? A: You can check your four wheeler insurance details in your policy document. You can also contact the customer care team or check the Policybazaar app to get your policy details.
Q8. What is an endorsement in car insurance? A: Endorsement is a document that incorporates any agreed changes made to existing car insurance policy terms or personal details of the policyholder.
Q9. Is it safe to renew car insurance policy online? A: Yes, it is safe to renew car insurance online. However, make sure to buy it from an IRDAI-registered website like Policybazaar.com. You can find the IRDAI registration number at the bottom of the website.
Q10. Are theft and fire covered under third-party insurance? A: Generally, theft and fire damages to the insured car are not covered under third-party insurance plans. However, some insurers offer customized third-party plans that provide coverage for theft and fire.
Q11. Is engine damage covered under zero depreciation insurance? A: Zero dep claims vary from insurer to insurer. It can vary from two claims to an unlimited number of claims depending on the insurance company.
Q12. How many claims can I make under zero depreciation insurance? A: Zero dep claims vary from insurer to insurer. It can vary from two claims to an unlimited number of claims depending on the insurance company.
Q13. Does car insurance cover damages caused by rat bites? A: Yes, damages due to rat bites are covered under a 4 wheeler insurance policy.
Q14. Does car insurance cover damages caused by a coconut or cricket bat? A: Yes, car insurance provides coverage for any damages due to a hit by a coconut or cricket bat.
More Faqs
- What is a voluntary deductible in car insurance? How does it affect the car insurance premium? A voluntary deductible is an amount that the policyholder agrees to pay from their pocket while making a claim. Opting for a voluntary deductible can lower the car insurance premium.
- How can I make changes to my car policy document if there is a mistake? If there is an error in your car insurance policy document, you can make changes online, through email or call, or by visiting the nearest branch of your insurance provider.
- What happens to my car insurance policy if I sell my car? As per the Motor Vehicle Act, you need to transfer the existing car insurance policy to the new owner’s name within 14 days of selling the car. Alternatively, you can cancel the policy and get the remaining amount refunded.
- Is medical cover for passengers commuting in my car included in my car insurance policy? You can purchase personal accident cover for passengers as an add-on to your car insurance policy.
- What is a cover note in car insurance? A cover note is a temporary certificate of insurance issued by the insurance company after the policyholder has submitted a proposal form and made the premium payment.
- Does car insurance cover cosmetic damage, such as scratches and dents? Yes, a comprehensive or standalone own-damage car insurance policy covers the cost of repairing cosmetic damages.
- What risks are covered under a comprehensive car insurance policy? Comprehensive car insurance covers third-party liabilities as well as damages caused by accidents, theft, fire, natural calamities like earthquake, flood, etc., and man-made disasters such as riots and strikes.
- Can passengers be covered under car insurance? Passengers can be covered under car insurance if you purchase a passenger cover.
- Does car insurance cover damages to tyres? Car insurance covers the cost of repairing or replacing tyres and tubes only if they are damaged during an accident. This excludes tyre burst and normal wear and tear.
- Does car insurance cover electrical fires? Electrical fires are covered by your car insurance if the policy includes such a provision.
- Will my insurance company provide coverage for an accident caused by someone else while driving my car? If you lend your car to someone with your consent, and they cause an accident, your car insurance policy will cover you, your car, and the other driver.
- What is a Garage Cash cover in car insurance? Garage Cash is an add-on benefit that provides a daily allowance to cover the cost of transportation if your car is in the garage for an extended period for repairs.
- Does car insurance cover damage caused by unusual incidents, such as a hit by a coconut or cricket bat? Unusual incidents like damage caused by a coconut or cricket bat may be covered under car insurance if the policy covers man-made disasters.
- Is engine damage covered by car insurance? Engine damage caused by accidents is covered by car insurance. However, damage due to wear and tear or mechanical failure is not covered. Engine protection add-on cover can be added to the policy for such coverage.
- Why do car insurance premiums vary from company to company? Each insurance company uses a different formula to assess risk and determine premium amounts and claim payouts.
- Why do car insurance premiums increase every year? Third-party insurance premium rates are increased by IRDAI every year, which impacts the premium cost of car insurance. The number of claims raised by policyholders and loss ratios of insurance companies also impact the premium cost.
- Does the city of car registration impact the premium cost of car insurance? Yes, the premium cost of car insurance varies based on the location of car registration. Insurance companies classify cities into different zones based on the associated risk