Cars are no longer considered a luxury item. With cheaper car models on the market, most people can afford a car. The desire for a comfortable commute has become important, so more and more people are investing in vehicles for themselves and their families. As the demand for cars increases, so does the demand for motor insurance and the best car insurance companies.
The Motor Vehicles Act of 1988 made it mandatory for car owners to have valid motor insurance. If you own a car, you must take out insurance as per the provisions of the Motor Vehicles Act, of 1988.
Types of Motor Insurance Policies in India
There are two types of Motor Insurance Policies. These are:
Liability Insurance
This is an insurance required by law. This insurance covers the financial liability that you incur in case of causing harm to others. The coverage includes but is not limited to:
- Liability in case of death caused by a vehicle
- Liability in case of bodily injury caused by a vehicle
- Liability in case of damage to a person’s property caused by a vehicle
Providing Motor Liability Insurance
It provides you with financial compensation in case of loss caused to a third party in an accident. It is also required by law.
Comprehensive Insurance
This insurance is package insurance that covers third-party liability and damages caused to your vehicle. In case your car is damaged and needs repair, the repair costs incurred will be borne by the insurance company. Comprehensive insurance cover includes:
- Third-party liability in case of death or bodily injury caused to a person by a car
- Third-party liability in case of damage to a person’s property by a car
- Damage to your car caused by natural or man-made calamities such as earthquakes, floods, fires, theft etc.
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- Damage caused while transporting your car from one place to another Moreover, both the liability and comprehensive insurance also cover personal accidents.
- In case of death or disability caused by an accident, you will be covered for Rs 1.5 million.
- Fully comprehensive insurance covers you against third-party damages as well as repair costs for your damages.
Motor insurance is compulsory, so almost all general insurance companies offer motor insurance. Both liability and comprehensive insurance are offered by general insurance companies. There are 33 general insurance companies in India, of which 31 offer motor insurance.
List of the Best Car Insurance Companies in India
Here is a list of the best car insurance companies in India that meet all the above criteria and offer you the best car insurance –
1. CarYanams
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Just enter a few required details and our system will find the most relevant and suitable insurance policy for you.
2. HDFC Ergo General Insurance Company
Limited Features and benefits of one of the best car insurance companies, HDFC Ergo Motor Insurance Company are:
- The company has a large customer base of over 10 crore policyholders, which means the company is highly trusted.
- The company offers overnight car repair services, where repairs are completed overnight and the car is delivered to your doorstep.
- The company approves claims within 30 minutes through QR code online verification, facilitating claim settlement.
- The easy application process and numerous insurance options also make HDFC Ergo an attractive car insurance choice.
3. TATA AIG General Insurance Company
Limited Features and benefits of one of the best car insurance companies, TATA AIG Motor Insurance Company are:
- The company offers numerous add-ons to its comprehensive motor insurance policies that help in expanding your coverage.
- The company’s claims settlement is quick and easy.
- TATA AIG Car Insurance is known for its quick application process, its customer service team is known to be very responsive and you can also avail certain discounts if your vehicle has an anti-theft device fitted.
4. ICICI General Insurance Company
- Limited Features and benefits of ICICI Lombard Motor Insurance Company are as follows: The company has a high claim settlement ratio.
- In FY 2019, the company settled 93.
- 14% of motor insurance claims.
- Claims are settled within a very short period.
- The claim settlement ratio for the financial year 2020-2021 was 97.
- 9D44.
- The company won the Indian Insurance Awards Claim Leader – General Insurance award.
- ICICI Lombard Motor Insurance offers various benefits to its policyholders, including roadside assistance in case of accidents.
- The company is one of the most trusted insurance solutions brands in India, boasting a customer base of over 40 crore.
5. Royal Sundaram General Insurance Company
Limited Features and benefits of Royal Sundaram Motor Insurance Company Limited are:
- The company’s motor insurance policies promise a refund of 100% of the claimed value of the car in case of total loss or theft.
- Free puncture and emergency refuelling insurance is available with the motor insurance plans.
- A range of comprehensive additional benefits are available to enhance your motor insurance coverage.
6. Bajaj Allianz General Insurance Company
Limited Features and benefits of Bajaj Allianz Motor Insurance Company are:
- The company’s motor insurance can be purchased within 3 minutes.
- The Motor On-The-Spot feature of the company’s motor insurance plans allows instant claims through your smartphone. Hence, small claims cases can be handled within 20-30 minutes.
- The company recorded a high claim settlement rate of 98.
- 48% in FY 2020-21.
- Bajaj Allianz offers a variety of insurance plans in terms of motor insurance.
- It is one of the most trusted brands in India and offers a lot of flexibility in its insurance policies.
7. IFFCO Tokyo General Insurance Company
Limited Features and benefits of one of the best car insurance companies, IFFCO Tokyo Auto Insurance Company are:
- The company offers completely transparent products and services so you know what you are buying.
- The company’s claims settlement process is fast and efficient, with claims being settled within 4 hours.
- IFFCO TOKIO offers a wide network of over 4,300 workshops.
- The company has won various awards, making it a reputable company.
- IFFCO Tokyo Auto Insurance covers losses due to accidents and theft and has a claims settlement rate of around 79.
- 19%, and is known for the speed at which policies can be issued with minimal documentation.
8. The New India Assurance Company
Limited Features and Benefits of Auto Insurance Company New India Assurance are as follows:
- The company has a sound financial position as per year net worth of 37,483 crores for the quarter ended 30th June 2019.
- The solvency ratio of the company is 2.13 which further ensures the high financial stability of the company.
- New India Insurance is an expert in the general insurance business and has a long-standing presence in the Indian market.
- New India Assurance Company offers comprehensive auto insurance that protects against the risks of accidents and theft and a host of benefits which you can check below.
What does car insurance cover?
Before you take out an insurance policy, you should check the coverage. When it comes to car insurance, you should look out for the following benefits that are included in a comprehensive car insurance policy:
Damage or loss due to natural disasters:
Any damage and thunder caused by natural disasters like floods, earthquakes, storms etc. are mostly covered by a good car insurance policy.
Damage or loss due to man-made disasters:
Man-made disasters like riots, rallies, robbery, theft etc.
Personal injury:
Damage caused to the driver or death of the driver while driving. This can be a temporary relief for your family’s future.
Liability Insurance:
This insurance is mandatory by law for all vehicles plying on the road. This insurance provides financial support to a third party who suffers permanent disability or loss of life as a result of an accident involving your car.
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