Cheap car insurance quotes

cheap car insurance quotes

Which Insurance Company Provides the Cheapest Car Insurance In India?

Looking for car insurance that is cheap? Read this article before you make the decision.

There are as many as 25 general insurance companies in India which offer car insurance. The presence of multiple insurance companies offers a wide array of car insurance options to car owners but at the same time also makes it difficult for car owners to find the best and cheapest car insurance policy for their car.

Comprehensive Car Insurance Price Depends On The Following Factors:

Just like every car is different, so is its car insurance premium. Thus, there is no standard list of insurers who provide the lowest car insurance price in India for all types of cars.

1. IDV of Car

Insured Declared Value of the car is its manufacturer’s showroom listed price minus the cost of depreciation. IDV also equals to the maximum insured sum.

2. Make And Model

Your car’s model and make also decide the premium price of the insurance policy.

3. Age Of Car

The more the age of the car, the more will be the car insurance premium price and vice versa.

4. Add-Ons Purchased

The cost of availing add-on covers adds to the car insurance premium cost. The more the add-ons purchased, the higher will be the car insurance policy’s premium price but the more will be the insurance coverage.

5. Geographical Location

The car insurance premium is also affected by the location of the RTO at which the car is registered. Two car insurance policies for the same car and from the same insurer will be different for cars registered in different cities or in different areas of the same city.

Now let us have a look at how the premium of the same car differs with different insurance companies.

The below table shows the list of insurers that offer a comprehensive car insurance plan at the lowest insurance price premium for a brand new Hyundai Grand i10 Petrol variant (1197cc) registered in Kolkata (West Bengal, India).

Motor Insurance CompanyComprehensive Car Insurance Price(without any add-on) Excluding GST @18%
TATA AIG General InsuranceRs. 13,616
Digit General InsuranceRs. 15,226
Royal Sundaram General InsuranceRs. 17,793
Bharti AXA General InsuranceRs. 20,071
Liberty General InsuranceRs. 20,378

Source: Insurancedekho.com; Data as of September 23, 2019.

Is the Cheapest Car Insurance Price the Best Car Insurance?

It is not necessary that the car insurance available at the lowest premium price is the best insurance plan for your car. Besides, the cost of purchasing a car insurance premium, you should also consider the following factors while selecting car insurance for your much-loved car:

1. Availability of Customer Support

Some car insurers offer customer assistance services on all days round the clock, while some offer customer support only during specific timings on specific days.

2. Claim Settlement Ratio

The claim settlement ratio tells the percentage of claims which an insurer has settled out of the total number of claims received in a financial year. It is an important benchmark while choosing a car insurance plan. An insurer might be offering car insurance at the lowest rate but may not feature a good claim settlement ratio and vice-versa.

3. Availability of Add-ons

Add-ons are extra covers that enhance the coverage of a comprehensive car insurance policy and a standalone own-damage car insurance policy. Some insurers offer more types of add-ons than other insurers. So while choosing car insurance, you should check if your insurer offers the add-ons you want.

4. Ease of Policy Purchase/Renewal

It is another parameter that must be taken into consideration at the time of policy purchase. You should check if the insurance purchase/renewal process is easy, instant and paperless or not as per your convenience.

Takeaway

When purchasing car insurance doing it online is the simplest option. With a few clicks, you can compare the different car insurance companies, the quotes they offer and check their network of cashless garages. If your existing car insurance policy renewal is required then you can also renew it and check the premium amount on the premium calculator. Keep in mind that there are three main types of insurance based on the type of coverage they provide. The first is third-party insurance which is compulsory for all cars driving on Indian roads. It takes care of third-party liabilities in case of a mishap including bodily injuries, death and property damage. The second is the standalone own-damage insurance compensates for the policyholder’s vehicle damage in case of a mishap. The third is comprehensive car insurance, as the name suggests it takes care of third party liabilities and own-damage costs under a single premium and is the most hassle-free option of the tree. With the last two options, you can also purchase a car Insurance add-on cover to further strengthen your car insurance. Some useful ones include the zero depreciation cover, the engine protection cover, the passenger cover, and the roadside assistance cover. To read more articles on car insurance click here.

For further reading:

How To Buy Acko Car Insurance Policy Online?

Disclaimer: This article is issued in general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.

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