How to Choose the Best Car Insurance Company in India?
You can shortlist the best car insurance companies in India by comparing different car insurers online based on various criteria such as their Claim Settlement Ratio (CSR), policy coverages, premiums, number of cashless garages, etc. Let us discuss this further in detail:
- Analyse Car Insurance Needs – Before choosing a car insurance company, you must analyze your car insurance needs. You must know the level of coverage you are looking for and any specific add-ons you want to buy. Moreover, you should also be aware of the maximum premium you can afford for the policy.
- Authenticity of the Motor Insurance Company – You can check the authenticity of a car insurance company by checking its IRDA Registration Number. IRDA is the regulatory authority for insurance companies in India and grants registration numbers to only genuine insurance providers.
- Financial Ability of the Company – checking the financial stability of the insurer will help you to understand the financial stability of the company and determine how likely it is to pay you the claim amount in need of the hour. You can determine the financial stability of the company by going through its annual financial records and checking its solvency ratio.
- Review Add-on Covers: It is always recommended to pay adequate attention to all the add-on covers so that you can pick out the top motor insurance policy in India with additional benefits. These add-on covers are necessary to get enhanced car insurance protection. Some essential add-on covers include Engine Protect Cover, Zero Dep Cover, Roadside Assistance Cover, etc.
- Claim Settlement Ratio – Before moving ahead, you must check the claim settlement ratio (CSR) and incurred claim ratio (ICR) of the car insurance company. CSR refers to the total percentage of claims settled by the insurance company. On the other hand, ICR refers to the total percentage of premiums utilized by the insurance company against the total amount of premiums collected. You should look for a company with a higher CSR and ICR as it depicts a lesser chance of your claims getting rejected by the insurer.
- Cashless Garage Network – Cashless garages are the approved garages of the insurance company where you can get your car repaired on a cashless basis. A company with a larger cashless garage network is better as it ensures that you have a higher probability of finding a cashless garage in your city or neighborhood.
- Online Comparisons –If you compare car insurance policies from different motor insurers online, you will be able to analyse their scope of coverage, premium rates as well as add-on covers. The ideal insurance company will provide you with maximum coverage without making you pay an exceptionally high premium price. You can also compare plans of each company online on Policybazaar.com and choose the right one for your four-wheeler.
- Customer Reviews – It is always better to check the customer reviews of various motor insurance companies before choosing any one of them. You must choose a car insurance company with more positive customer reviews than negative ones.
Types of Car Insurance Policies In India
In India, there are three types of car insurance policies available for car owners. They are explained in detail below:
Comprehensive Car Insurance
A comprehensive car insurance policy provides complete protection to the insured car. It protects the car from all kinds of unforeseen risks resulting from fire, accidents, theft, vandalism, natural disasters and manmade disasters. It also covers any third-party accidental liabilities that the policyholder is legally bound to pay.
Moreover, this type of insurance also provides personal accident cover to the owner-driver of the insured car.
Third Party Liability Car Insurance
A third-party liability car insurance policy protects against any third-party liabilities of the policyholder arising out of accidental bodily injuries, disability, death or property damages to a third party. This type of insurance does not cover any loss or damages suffered by the insured car or its driver.
Having a third-party car insurance policy is mandatory as per the motor laws of India. Thus, you must at least have this four-wheeler insurance cover to legally drive in India.
Standalone Own Damage Car Insurance
A standalone own-damage car insurance policy is provided by almost all car insurance companies. It provides coverage for only the own damages sustained by the insured car. It covers any loss or damages caused to the insured four-wheeler due to unfortunate events, such as fire, natural disasters, theft, accidents and manmade calamities.
This type of car insurance plan is available only if the car owner already has a third-party car insurance policy for the insured vehicle. Since 2019, insurance companies have also started offering Bundled car insurance policies for brand-new cars. This car insurance policy offers a 3-year third party plus 1-year own damages cover to car owners.
Difference Between the Types of Car Insurance Policies in India
Car insurance companies mostly offer three types of car insurance policies. Each plan provides a different kind of coverage to the policyholder. Let us tell you the difference between third-party liability insurance, standalone own-damage insurance, and comprehensive car insurance:
| Coverage | Third-Party Liability Car Insurance | Standalone Own Damage Car Insurance | Comprehensive car Insurance |
| Third-Party Property Damages | Yes | No | Yes |
| Third-Party Vehicle Damages | Yes | No | Yes |
| Bodily injuries/ disability/ death of the third party | Yes | No | Yes |
| Loss/ Damages to the insured car in an accident | No | Yes | Yes |
| Loss insured due to theft of the insured car | No | Yes | Yes |
| Loss/ Damages to the insured car in a natural calamity | No | Yes | Yes |
| Loss/ Damages to the insured car in a fire | No | Yes | Yes |