Car insurance helps you get mitigate financial obligations that may arise due to an unfortunate event involving your car such as a road accident, fire, theft, natural calamities, etc. As per the Indian Motor Tariff, every car owner is legally required to have at least a third party car insurance cover for being able to drive their car/vehicle on Indian roads. Currently, there are 25 insurance companies in India that offer car insurance.
Best Car Insurance Companies
Car insurance helps you mitigate financial obligations that may arise due to an unfortunate event involving your car such as a road accident, fire, theft, natural calamities, etc. As per the Indian Motor Tariff, every car/vehicle owner is legally required to have at least a third party car insurance cover for being able to drive their car legally on Indian roads.
Currently, there are 25 General Insurance Companies in India that offer car insurance plans.
Top Car Insurance Companies in India with OD Claim Settlement Ratio & Network Garages
Find below the best car insurance companies in India with claim settlement ratio (CSR) & network garages.
Car Insurance Company
Motor OD Claim Settlement Ratio FY20
IFFCO Tokio General Insurance
Royal Sundaram General Insurance
The Oriental Insurance Company
HDFC ERGO General Insurance
Universal Sompo General Insurance
Tata AIG General Insurance
The New India Assurance
SBI General Insurance
Bajaj Allianz General Insurance
Future Generali India Insurance
Bharti AXA General Insurance
ICICI Lombard General Insurance
Liberty General Insurance
Cholamandalam MS General Insurance
National Insurance Company
Edelweiss General Insurance
Reliance General Insurance
Acko General Insurance
United India Insurance Company
Kotak Mahindra General Insurance
Go Digit General Insurance
Magma HDI General Insurance
Shriram General Insurance
Navi General Insurance
(Source: IBAI’s General Insurance Claim Insights Handbook - 5th Edition.)
How To Choose The Best Car Insurance Company In India?
The definition of the best car/vehicle insurance company is subjective as it varies from individual to individual depending on their requirements. For some individuals, a car insurance company that has the highest claim settlement ratio is the best, while for others the insurance company which has a wide network of cashless garages is the best. Thus, there are a number of parameters that make an insurance company the best for an individual. One should consider the following factors while choosing a car insurance company.
1. Network of Cashless Garages
There are a number of garages with which a car insurance company partners for the facilitation of cashless insurance claims. While choosing a car insurance company, one must check the strength of the network of cashless garages of the insurance company. One must also see if there are enough cashless garages in the vicinity of his/her locality.
2. Claim Settlement Ratio
Claim Settlement Ratio tells the number of claims settled by a car insurance company out of the all the claims received by it during a financial year. It is always good to go with an insurance company with a high claim settlement ratio.
3. Availability of Add-ons
Add-ons refer to extra coverages that can be opted with a standard car insurance policy to extend the coverage. Add-ons are available with own-damage and comprehensive car insurance plans and can be opted for at the time of policy purchase as well as renewal.
4. Customer Support Service
One must also check the availability and quality of the customer support service offered by an insurance company. While some insurance companies offers 24*7 customer support, some offer 5-day customer assistance services.
Buy Best Car Insurance Policy Online With InsuranceDekho
Step 1: Visit InsuranceDekho and click on the ‘car’ tab.
Step 2: Enter your car’s Registration Number. In case you do not remember it, choose ‘Don't know your car number?’ option. After selecting that, a pop up will open asking you your car’s brand name, model, fuel type, variant, registration year, registration city and RTO.
Step 3: Fill in your personal details like your Name and Mobile Number and click on the ‘Submit and Get Quotes’ button. Confirm the expiry date of your previous car insurance policy and the name of your previous car insurer.
Step 4: All available premium quotes will be displayed to you. You can compare and select the quote which best meets your requirements. You can also opt for add-on covers at this stage to extend the coverage of your basic car insurance plan.
Step 5: Enter your personal details, nominee details and car/vehicle details. Proceed with the payment using your credit/debit card or other net banking facilities.
The policy will be sent instantly to you at your registered email address.
Types of Car Insurance Plans Offered By Different Companies
On the basis of car/vehicle/4 wheeler insurance coverage, there are three types of car insurance plans:
- Third Party Car Insurance
According to Indian Motor Tariff, every car owner in the country is mandated to have at least a third party car insurance policy. This plan provides you coverage for all third party liabilities such as third party bodily injuries, disability, death as well as property damage which may occur due to any unfortunate event involving your car. The third party property damage is limited to Rs. 7.5 lakh under this plan.
- Standalone Own-Damage Car Insurance
This plan provides coverage only for own-damages incurred by your car in any mishap such as road accident, natural calamity, fire, explosion, theft, riot, etc. To remain compliant with the legal requirements, you must purchase a third party car insurance plan with it. A standalone own-damage car insurance plan gives you the flexibility to choose your own-damage cover and third party cover from different insurance companies.
- Comprehensive Car Insurance
This is a bundled cover that offers you coverage for both third-party liabilities as well as own-damages incurred by your car in an unfortunate event. Among all the three types of car insurance plans, a comprehensive cover offers you the maximum coverage. You can further extend the coverage of this plan by opting for add-ons like zero depreciation cover, engine cover, etc.
Damage/losses caused to your car due to accident
Theft of two-wheeler
Damage incurred due to fire
Damage/losses due to natural calamity
Damage to property and third party vehicle
Personal Accident Cover (if opted)
Injury/ Death of Third Party due to an accident
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Car Insurance Companies Reviews & Ratings
Car Insurance Companies FAQs
Which is the best car insurance company in India?
There are various factors that should be considered while choosing the best car insurance company. Some of the factors are Claim Settlement Ratio, Number of Network Garages, IDV (Insured Declared Value) offered Availability of Add-ons, etc. On the basis of claim settlement ratio for the FY 2018-19, the best car insurance companies IFFCO Tokio General Insurance Company (96.44%), Royal Sundaram General Insurance (94.07%), Oriental Insurance Company (93.16%), Universal Sompo General Insurance (92.45%) and New India Assurance (92.23%).
How to switch from one car insurance company to another?
You can switch from one car insurance company to another at the time of renewal of your policy.
Which are the top 10 car insurance companies in India?
The top 10 car insurance companies for the year 2018-19 on the basis of claim settlement ratio are IFFCO Tokio General Insurance Company (96.44%), Royal Sundaram General Insurance (94.07%), Oriental Insurance Company (93.16%), Universal Sompo General Insurance (92.45%), New India Assurance (92.23%), Tata AIG General Insurance (91.80%), SBI General Insurance (91.74%), Bajaj Allianz General Insurance (91.23%), HDFC Ergo General Insurance (89.48%), Future Generali India (88.56%).
Will car insurance companies pay for all the damages in a car accident?
The coverage provided under a car insurance plan will depend on the type of plan purchased. A third party car insurance plan will provide coverage for third party liabilities, a standalone own-damage car insurance plan will provide coverage for own-damages of the car, and a comprehensive car insurance policy will provide coverage for both third party liabilities as well as own-damages of the car.
How does a car insurance company provide coverage without checking the condition of the car in India?
For a third party car insurance, no car inspection is required by the insurance company as only third party liabilities are covered under this plan. However, whenever you move to an advanced car insurance policy for instance from the third party to a comprehensive cover, your insurance company will do an inspection of your car. Also, when you opt for a zero depreciation cover or renew your car insurance policy during the break-in period (within 90 days from the policy expiry date), an insection of your car by the insurance company is required.
How do insurance companies estimate car damage?
Insurance companies analyze the present value of the total damaged parts of the car. After this depreciated value is deducted from the total estimated loss.
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