What is Car Insurance?
Car Insurance, also known as motor or auto insurance, A car insurance protects you and your car against a number of risks along with third-party liabilities. Any loss or damages arising out of road accidents, third party liabilities, theft, man made calamities, fire , natural disaster and/or death of the driver and/or passengers inside the vehicle in the event of an accident are covered. Though not a mandatory policy, it is advised to have first party car insurance coverage for your vehicle.
What does a car insurance policy cover?
A Car Insurance, also same as motor or auto insurance, vehicle insurance policy covers you and your legal liability of having to compensate for Any loss or damages arising out of road accidents, third party liabilities, theft, man made calamities, fire , natural disaster and/or death of the driver and/or passengers inside the vehicle in the event of an accident are covered. or death caused to the third-party person or property. It also covers the policy holder against any loss or damages caused to their car. A car insurance policy covers the policy holder’s legal liability of having to compensate for damages or death caused to the third-party person or property.
Best Car Insurance Policy in India 2021
The following table shows the complete list of the best car or Vehicle insurance policy in India with their personal accident cover and the number of network garages offered by the Vehicle insurers:
| Car Insurance Companies | Network Garages | PA Cover Owner/ Driver |
| Bajaj Allianz Insurance | 1024 | Up to Rs. 15 lakhs |
| Bharti AXA Insurance | 3742 | Up to Rs. 15 lakhs |
| Chola MS Insurance | 4636 | Up to Rs. 15 lakhs |
| Digit car Insurance | N/A | Up to Rs. 15 lakhs |
| Edelweiss Insurance | 1268 | Up to Rs. 15 lakhs |
| Future General iInsurance | 3194 | Up to Rs. 15 lakhs |
| IFFCO Tokio Insurance | 6757 | Up to Rs. 15 lakhs |
| Kotak Mahindra Vehicle Insurance | 2327 | Up to Rs. 15 lakhs |
| Liberty Vehicle Insurance | 4365 | Up to Rs. 15 lakhs |
| National Vehicle Insurance | 456 | Up to Rs. 15 lakhs |
| New India Assurance Insurance | 456 | Up to Rs. 15 lakhs |
| Oriental Insurance | 456 | Up to Rs. 15 lakhs |
| Reliance Insurance | 4779 | Up to Rs. 15 lakhs |
| Royal SundaramInsurance | 3868 | Up to Rs. 15 lakhs |
| SBI car Insurance | 2613 | Up to Rs. 15 lakhs |
| Shriram Vehicle Insurance | 2071 | Up to Rs. 15 lakhs |
| Tata AIG Vehicle Insurance | 1617 | Up to Rs. 15 lakhs |
| United India Vehicle Insurance | 456 | Up to Rs. 15 lakhs |
| Universal Sompo Vehicle Insurance | 1493 | Up to Rs. 15 lakhs |
What is a car insurance policy?
Car Insurance/ auto Insurance is an agreement between an insurance company and a car owner under which the former provides an insurance cover to the policyholder for financial loss or damages incurred by his/her car in unforeseen events. Depending on the coverage, there are three types of car insurance plans – third party auto insurance, standalone own-damage car insurance and comprehensive (first party) car insurance policy.
Top Car Insurance Companies in India 2022
Here’s the list of the best Vehicle insurance companies as per the claim settlement ratio (CSR) registered by them with IBAI in the financial year 2020-2021.
| Companies | Network Garages | Claim Settlement Ratio |
|---|---|---|
| Bajaj Allianz General Insurance | 4,000+ | 88.83% |
| Bharti Axa General Insurance | 5,200+ | 87.99% |
| Hdfc Ergo General Insurance | 6,800+ | 91.23% |
| Icici Lombard General Insurance | 8,800+ | 87.71% |
| Iffco Tokio General Insurance | 4300+ | 95.30% |
| Kotak General Insurance | 1,300+ | 82.81% |
| National General Insurance | 3,100+ | 85.71% |
| New India General Insurance | 3,000+ | 89.60% |
| Reliance General Insurance | 6,200+ | 84.26% |
| Sbi General Insurance | 16000+ | 89.51% |
| Tata Aig General Insurance | 5,000+ | 90.49% |
| United India General Insurance | 3,100+ | 82.93% |
| Universal Sompo General Insurance | 3,500+ | 90.78% |
Key Features of Car Insurance By IFFCO- Tokio
| Key Features | Benefits of IFFCO-Tokio |
|---|---|
| Savings | Save Upto 70% on Premium |
| Cashless Repairs | Available at 4300+ Cashless Garages |
| Customizable Add-Ons | 8 Add-ons available |
| NCB Benefits | Get up to 50% Discount |
| Easy Claims | App-based Claim Settlement within 4 Hours |
| Claim Settlement Ratio | 92.65% Claims Settled* |
| Claim Assistance | 24/7 claim assistance Customer service |
| Own Damage Cover | Available |
| Damages to Third-Party | Available |
Key Features of ACKO’s Online vehicle Insurance
| KEY FEATURES | ACKO ADVANTAGE |
|---|---|
| Premium | Vehicle insurance plans starting at Rs. 2,072 |
| Add-ons | 8 add-ons available to enhance your insurance plan |
| Own Damage Cover | Available under Comprehensive Cover |
| Damages to Third-party | Covered |
| Personal Accident Cover | Available. Cover of Rs. 15 lacs for permanent disability/death while driving |
| Cashless Repairs | Yes |
| Claim Settlement Ratio | 94% for FY20-21 |
| Emergency Assistance | 24/7 |
| Repairs | 1-hour pickup (for select cities), instant repairs and 3-day doorstep delivery at no extra cost |
| Buying/Renewal Process | 100% digitally-driven |
What is the best car insurance policy in India ?
Buying a car is one thing and maintaining it is something that is completely different. The roads are some of the most uncertain places, where negligence, ignorance, carelessness or just sheer bad luck can bring about a lot of consequences to you and your car.
And as a car owner, these consequences do cost you a lot. From a small dent on the trunk to major accidents and natural disasters, a car on the road is subjected to diverse threats on a daily basis. Moreover, money is involved in every stage of the car’s recovery and safety. That’s why a car insurance policy becomes inevitable in today’s day and age.
If you haven’t taken four wheeler insurance for your car yet or if you’ve just bought a new car and are looking for a car insurance policy, here are some extensive reasons you should get one today.
Comprehensive Car Insurance Policy or Package Policy:
Car Insurance, also known as motor or auto insurance, A car insurance protects you and your car against a number of risks along with third-party liabilities. Any loss or damages arising out of road accidents, third party liabilities, theft, man made calamities, fire , natural disaster and death of the driver and passengers inside the vehicle in the event of an accident are covered. Though not a mandatory policy, it is advised to have first party car insurance coverage for your vehicle.
Covers Expenses On Own Damage
Apart from accidents, cars can be damaged due to natural disasters, natural instances or their own technical glitches and malfunctions. Regardless of the reason, expenses are involved in getting the car serviced. That’s why it’s ideal to buy a car insurance as it covers damages arising due to uncommon reasons.
Third-party Liabilities
A car is a machine that is subjected to technical issues. A car gone out of control is a threat to civilians and public properties. If there has been an accident with you on the driver’s seat, you are bound to compensate for the damages caused. If you have a car insurance policy, your insurance company would take care of the expenses.
Personal Accidents
Having a four wheeler insurance is like driving with a lifeguard. There is a backup you have to cover the expenses incurred due to car accidents. A proper Vehicle insurance policy also compensates for permanent disability arising due to a car accident. This is an ideal financial support that is inevitable for families.
Mandatory By Law
If you are a car owner, you should mandatorily have a minimum of a third-party Vehicle insurance according to the Motor Vehicles Act. Failing to have is an offence and you could be penalized for it when caught.
Extended Benefits with Add-ons
Apart from the benefits you just saw, you could include add-on benefits such as zero depreciation cover, consumables cover, breakdown assistance, conveyance benefits and more when you buy Vehicle insurance. This only makes your policy more airtight.
Additional Convenience
An extensive online four wheeler insurance policy also allows you to experience benefits like coverage of personal baggage theft/damage, paperless-digital insurance applications and processing, online claims, spot services and more.
Zero Depreciation: How to make the most of it!
Aren’t you glad you have vehicle insurance and now the insurer will pay for it?
But what if you don’t get the claim amount you were expecting and have to pay some out of your own pocket? Not what you had expected, right?
This is what nill depreciation cover does to your claims.
The rate of depreciation for all parts is as follows –
Subject to a deduction for depreciation at the rates mentioned below in respect of the parts replaced For All Rubber/ Nylon/ Plastic Parts, tires, tubes and batteries 50% For Fiber glass components 30% For All Parts made of Glass zero
The rate of depreciation for all parts including wood is as follows –
AGE OF car % OF DEPRECIATION Not exceeding 6 months Nil Exceeding 6 months but not exceeding 1 year 5% Exceeding 1 year but not exceeding 2 years 10% Exceeding 2 years but not exceeding 3 years 15% Exceeding 3 years but not exceeding 4 years 25% Exceeding 4 years but not exceeding 5 years 35% Exceeding 5 years but not exceeding 10 years 40% Exceeding 10 years 50%
This means, if you make a claim of Rs 10000 for your 4-year-old car, the insurer will not pay more than Rs 6500. This is why every vehicle should have depreciation reimbursement cover or add-on.
Typical Components Of An Auto Insurance Policy
If you’re shopping for a brand new automobile or looking for car coverage, you’ll in all likelihood want to apprehend the not unusual place sorts of insurance to be had on a automobile coverage policy. The numerous sorts of automobile coverage insurance are to be had to assist defend you, your passengers and your automobile if you’re worried in a automobile accident. Six not unusual place automobile coverage insurance alternatives are: car legal responsibility Insurance , uninsured and underinsured motorist insurance, complete insurance, collision insurance, clinical bills insurance and private damage protection. Depending on in which you live, a number of those coverage’s are obligatory and a few are optional. Understanding what’s required for your country and what every allows cowl let you pick the proper insurance on your situation.
1. LIABILITY COVERAGE
Auto liability coverage is mandatory in most states. Drivers are legally required to purchase at least the minimum amount of liability coverage set by state law. Liability coverage has two components:
Bodily injury liability may help pay for costs related to another person’s injuries if you cause an accident.
Property damage liability may help pay for damage you cause to another person’s property while driving.
2. UNINSURED AND UNDERINSURED MOTORIST COVERAGE
If you’re hit by a driver who doesn’t have insurance, uninsured motorist coverage may help pay for your medical bills or, in some states, repairs to your vehicle. If you’re hit by an underinsured driver, that means they have car insurance but their liability limits aren’t enough to cover your resulting medical bills. That’s where underinsured motorist coverage may help.
3. COMPREHENSIVE COVERAGE
Comprehensive might also additionally assist cowl harm on your automobile from such things as theft, fire, hail or vandalism. If your automobile is broken through a blanketed peril, complete insurance might also additionally assist pay to restore or update your vehicle (as much as the automobiles real coins value). This insurance has a deductible, that’s the quantity you’ll pay out of pocket earlier than your insurer reimburses you for a blanketed claim. Comprehensive is generally an non-obligatory insurance — however your lender might also additionally require it if you’re leasing or paying off your vehicle.
4. COLLISION COVERAGE
If youre worried in an twist of fate with every other vehicle, or in case you hit an item along with a fence, collision insurance might also additionally assist pay to restore or update your car (as much as its real coins cost and minus your deductible).
5. MEDICAL PAYMENTS COVERAGE
If you, your passengers or own circle of relatives individuals who’re using the insured car are injured in an accident, scientific bills insurance can also additionally assist pay for prices related to the injuries. Covered prices can also additionally consist of clinic visits, surgery, X-rays and more.
6. PERSONAL INJURY PROTECTION
Personal damage protection, or PIP, is simplest to be had in a few states. Like scientific bills coverage, PIP may also assist pay in your scientific fees after an accident. In addition, PIP might also assist cowl different fees incurred due to your injuries — for example, toddler care fees or misplaced income.
OTHER TYPES OF AUTO INSURANCE COVERAGE
You can be capable of upload the subsequent elective coverages for your automobile coverage coverage, relying in your situation. Your coverage agent let you apprehend what every facilitates cover, so that you can prepare a coverage thats proper for you
1. Rental reimbursement coverage/transportation expense coverage
2. Gap coverage
3. New car replacement coverage
4. Towing and labor cost coverage
5. Ride-sharing coverage
6. Sound system coverage
7. Classic car insurance