Before you start searching for the best car insurance company in India, and the best insurance company, assess your needs and know the type of policy you want. That’s the basic.
In India, there are two types of car insurance policies that we come across – Third-party Insurance and Comprehensive Insurance.
Third-party insurance is a mandatory requirement by law. It covers only damages to the third-party. Under third-party insurance plan, you do not get the compensation for the damages to your car.
On the other hand, A comprehensive car insurance policy covers both third-party liability and damage to your car.
So, if you are looking for a basic plan with a relatively affordable premium, a third-party liability plan would be an ideal choice. But, if you drive a luxury car, it is better to purchase a comprehensive insurance cover, as it will help reduce financial liabilities in the event of an accident.
Points to considered while choosing the best car insurance company in India?
There are few fine points which should act as step by step guidelines while choosing the best car insurance company in India.
Authenticity of the company – the first thing which you should check is how authentic the insurance company is. Check the IRDA license number of the company to ensure that the company is authentic. A company which is regulated by the IRDAI cannot cheat or dupe its customers.
Financial standing – Look at the company’s financial standing. Check out the company’s solvency ratio to assess the financial stability of the company. The financial records of the company can be checked on the company’s website as it is mandatory to publish their financial reports online.
Claim ratios – Claim Settlement Ratio (CSR) which measures the percentage of claims settled by the insurance company. A CSR which is greater than 90% is recommended as it clearly indicates that insurance company has settled more than 90% of claims.
Claim Turn-Around-Time(TAT) – The insurance Companies which settle their claims at the earliest are you will get the benefit of quick claim settlements. The minimum the better.
Network of cashless garages – you should also check the network of cashless garage of the insurance company. The wider the network of garages makes it easier for you to get cashless settlements of your car insurance claims.
Points to consider while buying the best car insurance policy in India?
All the companies offer one or more car insurance policy and it makes it a bit challenging to choose the best insurance for your car. You compare the available options to choose the best one suitable for you.
Coverage vis-à-vis the premium charged
when comparing car insurance policies, many look only at the premium amount that they would be paying. This is a mistake. The policy should be compared on the coverage parameters that it offers vis-à-vis the premium which is being charged.
The claim process
The policy with the most easy claim settlement process should be chosen over others.
Premium discounts offered
Car insurance policies offer a plethora of premium discounts based on certain parameters. Lets say, you can get a premium discount if you are a member of an certified automobile association or if you install a particular safety devices in your car.
Add-ons are basically an additional coverage benefits which can be taken as a top up to your comprehensive car insurance policy to increase the horizon of coverage. Do look for the variety of add-ons made available by car insurance companies.
Few of the best Car Insurance Companies in India with Incurred Claim Ratio & Network Garages
Car Insurance Companies Cashless Garages Incurred Claim Ratio
Bajaj Allianz Car Insurance 4000+ 62%
Bharti AXA Car Insurance 5200+ 75%
Chola MS Car Insurance 6900+ 84%
Digit Car Insurance 1400+ 76%
Edelweiss Car Insurance 1000+ 145%
Future Generali Car Insurance 2500+ 69%
HDFC ERGO Car Insurance 6800+ 82%
IFFCO Tokio Car Insurance 4300+ 87%
Kotak Mahindra Car Insurance 1000+ 74%
Liberty Car Insurance 4300+ 70%
National Car Insurance NA 127.50%
New India Assurance Car Insurance 1100+ 87.54%
Oriental Car Insurance NA 112.62%
Raheja QBE Car Insurance 1000+ 102%
What is personal accident cover in car insurance policies?
When we talk about Personal accident cover in car insurance policies, it covers accidental death or disablements. If the owner or say driver of the car suffers accidental death or becomes fully or partially disabled in an accident, the cover pays a lump sum amount. The total sum insured for personal accidental cover is Rs. 5 Lakhs and the premium is Rs 750.
What are the add-ons available under car insurance plans?
There are different types of add-ons available under different car insurance plans. The popular ones are –
Roadside assistance – 24*7 road side assistance in case of breakdowns
Zero depreciation – no deduction for cost of depreciation from the claims
Engine protect – coverage against engine damage due to water seepage
NCB protect – protection of the accumulated no claim bonus even after a claim
Return to invoice – payment equals to the invoice value of the car in case of total loss or theft
Consumables cover – coverage of the cost of consumables used in repairs of the car like engine oil, lubricants, etc.
Personal accident cover for named passenger – extension of personal accident cover for a named passenger, etc.
What is a long term car insurance policy?
A long term care insurance policy is one which provides coverage for more than a year. As per the latest changes by IRDA, cars bought on or after September 1, 2018 should have a long term liability cover for three years now. In line with this new mandate, long term car insurance plans are available for new cars.
What will happen if the car insurance policy is not renewed?
If you fail to provide the car insurance policy on time, the coverage that it provides, would lapse. You would also be fined heavvily if you are found driving without a valid car insurance cover.
How are third party premium calculated?
The premiums for policies for third party are determined by the IRDA and it depend on the cubic capacity of the car.