Top 5 Car Insurance Policies Companies in India 2023: Your Ultimate Guide!

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Owning a car is no longer a luxury, it’s become a necessity. But, the joy of owning a car could be short-lived if something were to happen to it. Car repairs can be quite expensive and can cause a lot of financial stress. 

So, it’s now become more important than ever to purchase car insurance. As some of us may already be aware, motor insurance is legally mandated as per Section 146, Motor Vehicles Act, 1988 to ply on Indian roads. Apart from ensuring that you’re on the right side of the law, a car insurance plan can help you stay protected in the event of any unforeseen events. 

While only a third-party liability motor insurance is compulsory, many car owners choose to purchase a comprehensive car insurance plan to ensure that they’re sufficiently protected. To help you make the right car insurance plan, we’ve compiled a list of the best car insurance companies in India. 

S. No. Best Car Insurance Companies
SBI General Insurance
Acko General Insurance
Cholamandalam MS General Insurance
Bajaj Allianz General Insurance

Before purchasing a car insurance plan, it’s important that you consider a few important pointers. This will help you understand your requirements and purchase a plan that works best for you! Here are some considerations to make before zeroing in on any car insurance plan: 

  • Type of Insurance 

Broadly, here are three types of insurance coverages – third-party liabilities, own damage and comprehensive. The type of insurance you need will depend upon your requirements and budget. Remember, a third-party cover is mandatory, everything else is entirely up to you! 

Though a comprehensive plan is a little bit more expensive than a third-party or own damage cover, it’s still advisable to get one. This is because a comprehensive plan offers all-round protection. 

  • Shop Around 

When you’re looking to purchase a car insurance plan, make sure to shop around. Compare the coverages offered by different insurers, premium amount, customer service, No Claim Bonus offered, etc. This will help you compare and contrast amongst insurance providers and eventually choose the right one for you! 

While on this topic, it may be a good idea to choose a well-reputed insurance provider with a good claim settlement ratio. 

  • Fuel Type 

If you’re looking to purchase a car insurance plan for your diesel-powered car, then chances are that your premium might be on the higher end. This is because diesel cars are typically more expensive, causing their IDVs to rise. Now, you may be wondering ‘what is IDV in car insurance?’ 

IDV or Insured Declared Value is the maximum amount that your insurer will be liable to pay to you if your car is lost or damaged beyond repair. The higher the value of your car is, the higher will be your IDV and subsequently, the higher will be your premium.  

Some insurers will also give you the option to customize your IDV. If you choose a lower IDV, your insurance premium is likely to come down as well. 

  • Voluntary Deductibles 

If you signal to your insurer that you’re willing to take on the responsibility of insuring your vehicle, then your insurer will lower your premium. How can you do this? Well, you can do so by opting in for voluntary deductibles. With a voluntary deductible, you’re essentially volunteering to pay a certain amount or percentage of the expenses in case of any unforeseen events. 

Benefits of Having a Car Insurance 

Here are a few benefits of getting a car insurance plan: 

  • You can stay protected against a wide range of unexpected events. This can include accidents, thefts, natural disasters, transit damage, etc. 
  • Offers financial protection towards third-party in case of third-party damages or losses. 
  • It covers lawsuits and legal fees. 
  • For each claim-free year, you may be awarded an NCB or No Claim Bonus. This can help you lower your car insurance renewal costs significantly. 
  • Most importantly, it can help you avoid any legal implications caused by driving without valid third-party car insurance. 

We’ve created a table with the best car insurance companies in India and their key features to help you make an informed car insurance purchase decision. 

Insurer Name Specifications 
SBI General Insurance6697 cashless garagesMotor claim settlement ratio of  98%Offers a range of additional covers including bi-fuel kit, NCB, loss of belongings, key replacement cover Legal liability paid for drivers and employees Personal accident cover of up to ₹15 Lakhs for owner-driver and up to ₹2 Lakhs for per passenger 
Acko General InsuranceAffordable premium Availability of multiple add-ones enjoy cashless repairs Claim settlement ratio of 96.20% 24/7 emergency assistance
Cholamandalam MS General InsuranceOffers car value customisationWide range of add-ons Personal accident cover Damages and losses caused by theft and vandalism are covered 
HDFC ERGO6400+ cashless network garages Overnight vehicle repairs 100% claim settlement ratio Doorstep windshield repairs 
Bajaj Allianz General Insurance4500+ cashless network garages 24/7 spot assistance 98% claim settlement ratio Zero depreciation cover Flexible and customizable distance per day plans 

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