Know the features of a car insurance policy and how to choose the right one
Third-party insurance is mandatory as per the Motor Vehicles Act of 1988, in India. A third-party insurance only covers the other vehicle, whom you might have caused any damage. If you want coverage for your own car as well, consider a comprehensive insurance plan.
It’s therefore important to understand different types of car insurance plans,compare their best features, and choose the right policy that suits your needs.
You can get coverage against damage or theft of your four-wheeler with the right car insurance. On Bajaj Markets, you can compare policies and get an insurance starting at just ₹2,094/yr. With the right plan, you can get expensive parts replaced or repaired without any hassle.
There are several car insurance providers you can choose from, each offering unique features. You can look for instant settlements of your claims, 24x7 assistance and cashless services in garages across the country.
Here is an overview of some of the best options that include such benefits:
Insurance Provider |
Claim Settlement Ratio |
Starting Premium |
Cashless Network Garages |
98.54% |
₹2,094 |
4,000+ |
|
98% |
₹2,094 |
7,200+ |
|
99% |
₹2,094 |
8,200+ |
|
98% |
₹2,094 |
7,500+ |
Disclaimer: The above-mentioned details are indicative and subject to change as per the insurance provider’s latest updates.
Getting insurance is simple once you have finalised the insurer and the policy. To get your car insurance policy online, follow these steps:
Navigate to the ‘Car Insurance Premium Calculator’ page
Fill in your details like mobile number, vehicle type, make & model of your insured car, car number, and registration date
Choose the type of insurance policy you want to purchase. You can also choose the add-on covers
Fill in your details like your name, email ID, date of birth, residential address, etc. to proceed
Enter your car’s engine and chassis number
Enter the details of your previous car insurance policy, if any
Cross-check all the details you have entered
Choose a suitable payment facility to safeguard your vehicle with car insurance
Here is an overview of how an ideal car insurance helps protect your finances:
Commonly offered cover options are:
Third-party
Standalone Own Damage
Comprehensive(includes both)
You have the flexibility to choose an option that best suits your needs
Insurance providers enable you to enhance the coverage of your policy through add-ons. You can customise your protection with any of these covers, which come with an added cost
Most car insurance policies offer this benefit when you do not make any claims in a policy year. It rewards you in the form of a discount on your upcoming premium, making your policy more affordable
With a cashless claim facility you can claim any repairs/replacements for your car. You can visit any garage that is in your insurer's network. The insurance company clears bills directly with the garage. Hence, you should follow the right process of making a cashless claim
While you have both options at your disposal, you may enjoy greater convenience via the online route. Here is a detailed look into what both modes entail.
In online mode, you can:
Get the policy conveniently, at any place and at any time
The process is transparent
Complete the process with minimal paperwork and upload them online
Carry out research easily and compare options to make an informed decision
Connect with the customer support team at any time
In offline mode, you will have to:
Visit the insurer’s office with hard copies of the required documents
Pay marginally higher costs as the operational costs may be higher
Bear the risk of less transparency
Connect with agents or the customer support team only during stipulated hours
Choosing your car insurance policy online is considered both easier and quicker. However, ensure that you choose the right insurance provider and policy.
Here is what you need to know about the three options you have under four-wheeler insurance:
Third Party Insurance is among the most common options, because having a third-party cover is compulsory. Here, the insurer will cover the costs only for the third-party damages, be it related to a person, property or vehicle. The cost of the injuries and damages to you and your car are not covered.
With this policy, you get coverage for the damages sustained to your car only. You get a third-party cover for broader protection from natural or man-made calamities, theft, and accidents.
This is a mix of third-party insurance and a standalone own damage policy as it covers both you and the third party. It can thus cost more than the other options. However, since it offers the most enhanced coverage, it is a good investment for your car and finances.
Purchasing four-wheeler insurance with comprehensive coverage is beneficial in many ways. It allows you to secure both your financial and physical health. Some of these are:
Having a comprehensive cover is not mandatory, but it can help you stay compliant with the law as it includes a third-party cover. If you fail to follow this regulation, you may have to pay hefty fines and suffer other consequences. If you don't have third-party coverage, your license might also get suspended.
In case of an unfortunate event, the insurer will cover the costs of treatment of the other person's injury or death. The insurance plan will also cover the costs for the damage caused to the third-party vehicle or property.
Regular third-party coverage does not offer protection for the injuries that you sustain or the damage caused to your car. You can get this protection with a standalone own damage policy, but you still need a third-party liability cover.
Managing two policies can be tiresome and expensive. However, with a comprehensive cover, you get both with one policy. This helps save you time and finances, all while keeping you and your vehicle protected.
Insurer |
Plan Name |
Own Damage |
Third party + Comprehensive |
Road Side Assistance** |
Cashless Claims* |
Network Garages |
No Claim Bonus* |
Bajaj Allianz General Insurance |
Private |
Yes |
Yes |
Yes |
Yes |
6500+ |
50% |
Commercial Vehicle Insurance |
Yes |
Yes |
Yes |
Yes |
6500+ |
50% |
|
HDFC Ergo |
Private |
Yes |
Yes |
Yes |
Yes |
8200+ |
65% |
SBI |
Private |
Yes |
Yes |
Yes |
Yes |
7200+ |
50% |
Goods Carrying Vehicle |
Yes |
Yes |
Yes |
Yes |
7200+ |
50% |
|
TATA AIG |
Private |
Yes |
Yes |
Yes |
Yes |
6900+ |
50% |
Kotak |
Private |
Yes |
Yes |
Yes |
Yes |
4000+ |
50% |
ICICI Lombard |
Private |
Yes |
Yes |
Yes |
Yes |
12000+ |
50% |
Reliance |
Private |
Yes |
Yes |
Yes |
Yes |
10000+ |
50% |
Commercial Vehicle Insurance |
Yes |
Yes |
Yes |
Yes |
10000+ |
50% |
*Tentaive (For illustration purpose only)
**Towing (upto ₹1,500 free)
IRDAI decides the price of car insurance in case of third-party coverage. For other covers, like the standalone own damage, you can calculate the price in the following ways:
Most insurers provide a digital calculator that gives you an estimate of your premium. This amount depends on basic details like the make and model of your car and the ex-showroom price.
Once you enter this information, the calculator will instantly provide the forecasted premium. Using it, you can compare the car insurance quotes from different insurers and choose the most cost-effective one.
To manually calculate the price of insurance for standalone own damage cover, you can use the following formula:
Premium = IDV*Premium rate + Add-ons – Discounts and benefits
Here, the premium rate will be decided by the insurer. In discounts and benefits, you can consider the monetary value of NCB, anti-theft devices, and more.
To calculate the IDV, you can use the following formula:
IDV = (Current market value of the car – Depreciation value) + (Cost of vehicle accessories – Depreciation value of these parts)
Manual calculations can be time-consuming and are even prone to errors. A safe and smarter alternative is to use online calculators. They help you calculate your car insurance premium easily, so you can compare them and choose the most affordable option.
Here are some reasons to opt for the online mode for car insurance renewal:
When you choose the online option, you can easily access the details of various insurance policies from different issuers. Comparing features is also more convenient, so you can pick one that is within Read More your budget and offers adequate protection. Read Less
Depending on the insurer and platform you choose, you can complete the car insurance renewal process in a matter of minutes. Most insurers require you to share basic details like policy number and birt Read Morehdate. Once you enter this information, you can renew the policy in just a few clicks. Read Less
The online process is fairly easy as well as safe. The payment you will make is processed through secure payment gateways. The majority of the insurers allow you to pay using your debit or credit card, Read More UPI, or internet banking. As such, you can make secure payments stress-free. Read Less
Along with easy comparison, switching your insurer during car insurance renewal is just as easy. All you have to do is choose your new policy and follow the process to port it online.
Having a valid, i.e., active car insurance policy is important for various reasons, including:
As mentioned, having at least third-party car insurance is a legal obligation. If you fail to comply with this regulation, the fine can go up to ₹4,000. The imprisonment period can be up to 3 months. To avoid this, renew your car insurance at the earliest.
Insurers offer several benefits like the No Claim Bonus when you renew your policy. However, if you do not renew, you will lose out on these benefits, leading to loss. Additionally, the cover offered by the insurer is only valid till the policy period and the grace period.
Not renewing the policy before this period ends will result in the discontinuation of the cover. So, if your car is in an accident or damaged in any other way, the insurer will not be liable to pay for the cost of repair.
Given this, renew your car insurance before it expires. In case you miss the due date, you can still renew it within the grace period. Most insurers offer this period and if you renew it within this time, your policy will not lapse.
If you are unhappy with your current insurer, you can transfer your policy to another one. Ensure that you do this before the policy expires.
Changing the insurer does not mean that you will lose your current benefits. Benefits like NCB will also be transferred provided you switch the insurer at the right time.
While the process to claim car insurance can differ based on the provider, here are some general steps to follow:
Visit the insurer’s website or log on to the mobile app
Register your claim
Note the claim intimation number
Take the car to a network garage for a cashless claim or any other garage for a reimbursement claim
Wait for inspection from the surveyor
Submit all the required documents
Once the insurer processes your request, they will either accept or reject it. If accepted, they will settle the claim once the car is repaired. You can also call their customer support team to file your claim.
The insurer will require you to submit a few documents to support your claim. While these can also vary, some commonly requested documents are:
Copy of the Registration Certificate (RC)
Copy of the driving license of the policyholder
Verified copy of the FIR (First Information Report filed with the police)
Copy of policy documents
Keys to the car
Duly filed and signed claim form
RTO transfer papers
No Objection Certificate and Form 35 in case of active loan
No Trace Report in case of theft
You can contact the car insurance provider’s customer support team to know the exact documents required. You can also check the requirements on the official website or app. Alternatively, you can confirm it at the time of filing the claim.
To ensure you understand your policy and make the right decisions during comparison, here are some terms that you must know:
This refers to the portion of the claim amount that you need to pay. As such, it results in a lower claim amount. It can be either compulsory or voluntary, depending on the policy and the insurer.
This is when you do not have to pay anything to get your car fixed as per the policy terms and sum insured. The insurer will directly settle the bill with the garage. However, to use this facility, you must choose a network garage only.
This refers to the market value of your car. It influences the coverage and the premium you will pay for your car insurance plan.
This is a benefit that the insurer will offer if you do not file any claim during the policy period. It is reflected by a discount on the premium amount.
Own Damage (OD) cover extends the policy’s coverage to the injuries and damages sustained by your car. It will not cover any third-party damages.
This is the amount that you will pay once a year for car insurance. It depends on the type of car, coverage, location, modifications, and other such factors.
This refers to the time during which your car insurance policy will be valid. It depends on the term you choose. If you choose one year, the period will be of one year, and so on.
This refers to the person whose name appears on the policy. If it is in your name, you will be policyholder but if it is in the name of another family member, they will be policyholder.
They help broaden the coverage of your car insurance policy. Insurers offer a variety of add-on covers. With them, your cover will expand as per the terms, and the premium will also increase.
This is a process through which you can make changes to your car insurance policy document. You can make changes to your name or disclose any modifications you made to the car during the policy period.
Every car insurance provider has a certain terms, which determine whether you can file a claim or not. While this varies across insurers and policies, here are some common ones you should know:
Inclusions |
Exclusions |
Loss or damage incurred due to natural calamities |
Regular wear and tear of your car |
Loss resulting from man-made disasters such as fire or explosion |
Mechanical or electrical breakdown |
Third-party liability coverage |
Damage caused to your car while driving under the influence of alcohol or other intoxicants |
Personal accident cover |
Loss or damage incurred while driving without a valid driver's licence |
Damages incurred due to accidents |
Damage caused when the policy is inactive |
Theft of four-wheeler |
Damage or loss incurred during war-like situations and malicious activities |
Spending a little time doing research can help you choose the right policy for your car and save more in the process. On Bajaj Markets, you can compare offerings of reputed insurers and get a policy with ease online.
Yes, you can easily get/renew a policy of your choice online. To do that, you can choose a marketplace like Bajaj Markets or visit the insurer’s website. You can enter your car details and other information to get car insurance quotes and choose accordingly.
Yes. You can and should transfer the current four-wheeler insurance to the new vehicle owner. In fact, you should complete the transfer within 14 days from the day of sale. You can check with your insurer to know the process of transferring your policy.
There is no limit on the number of claims you can make in a year against your four-wheeler insurance. However, there is a limit in terms of the amount. You can file claims only until the policy value. For instance, if your policy is for ₹15 Lakhs, you can claim only up to ₹15 Lakhs and no more.
Yes, the No Claim Bonus offered by a majority of the insurance providers is transferable easily. Most issuers automatically transfer the bonus as you renew the policy with them. However, this can vary depending on the insurer and the policy you choose.
Some insurance providers may charge an additional fee or charge on the premium if you are a high-risk policyholder. This is known as premium loading and is a standard practice for certain policies.
Your car insurance policy document contains a host of information, both personal and relating to your vehicle. If you request a change in these details and the insurer makes the change, it is known as an endorsement.
Yes. You can switch your car insurance provider at any point. Doing it at the renewal can be more beneficial as you can get more benefits more affordably. However, ensure that you can compare policies before switching to ensure it is the right move.
The grace period refers to the short duration within which you can renew your policy even if it has expired. Generally, it can go up to 90 days from the day your policy expires. You can confirm this at the time of purchase or renewal.
If you complete the car insurance renewal process within this period, you can enjoy continued benefits. If you don’t, your policy will lapse, and you will lose out on benefits like the No Claim Bonus.
In case you lose the soft copy of your car insurance policy, you can visit the insurer’s website or app to download it again. Most insurers allow you to do this without any additional costs. All you have to do is provide your policy number and other basic details to get the document.
Insurance providers allow you to download the policy document through their app or website. Once you open either of these, you can log into your account and navigate to the policy details.
You will find the option to download the policy on the dashboard. Click on it and provide the relevant details (policy number, birth date, etc.). Once you submit the required information, your policy will either be downloaded automatically or sent to your email.
No. Insurance providers offer these policies for one year or more. Generally, when you get the policy for two years or more, the insurer may give you a discount on the premium. However, this varies across insurance providers and comes with certain terms and conditions. Be sure you read everything carefully before paying.
The best policy and insurer depends on your needs and the type of car insurance you are looking for. In terms of flexible coverage, Bajaj Allianz is known to be one of the best. In terms of comprehensive coverage, HDFC Ergo is a top choice.
The premiums for third-party insurance are fixed by the Insurance Regulatory and Development Authority of India. They vary between ₹2094 and ₹7897 based on the engine capacity.