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. It covers damage to another vehicle and also provides compensation for injury or death of a third person, but it does not cover any damage to your own vehicle.
If you want coverage for your own car, as well as protection against personal injury or death, consider a comprehensive car insurance plan. By understanding different types of car insurance plans and comparing their features, you can choose the right policy that suits your needs.
There are several car and auto 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 (per year) |
Cashless Network Garages |
|---|---|---|---|
| 95.99% |
₹2,094 |
7,200+ |
|
| 97.00% |
₹2,094 |
7,159+ |
|
| 99.16% |
₹2,094 |
12,200+ |
|
| 95.43% |
₹2,094 |
7,500+ |
Disclaimer: The above-mentioned details are indicative and subject to change as per the insurance provider’s latest updates.
Getting motor insurance is simple after finishing 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, car number, and PIN code to get car insurance quotes.
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 the details of your previous car insurance policy, if any.
Cross-check all the details you have entered.
Choose a suitable payment facility and pay the car insurance premium.
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 get your car repaired or parts replaced without making an upfront payment.
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 better convenience through the online methods. Here is a detailed look at what both modes entail:
In online mode, you can:
Get the policy conveniently, from any place and at any time
The process is transparent
Complete the process with minimal paperwork and upload it 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
Choose from the limited options
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 the stipulated hours
Choosing your car insurance policy online is both easier and quicker. However, ensure that you choose the right insurance provider and policy.
Here is what you need to know about the popular options you have under auto coverage quotes:
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.
It does not cover the cost of the injuries and damages to you and your car.
With this policy, you get coverage for the damages sustained to your car only. It does not cover any third-party liabilities.
This is a mix of third-party insurance and a standalone own damage policy, as it covers both you and the third party. As a result, it can 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 premium advantages you will get with it 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 do not have third-party coverage, your licence 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.
With so many car insurance options available, it can be overwhelming to choose the right policy. Besides, if you are not careful, you might overlook important details that could leave you underinsured. Rather than risking your finances and car, choose the right policy with a checklist in place.
Here are some important factors to consider before choosing a car insurance policy online:
Decide the type of coverage you want. Narrow down your options and choose the right insurer and policy. For instance, if you want comprehensive coverage, go with an insurer that offers more value at a nominal premium.
While there is a standard set of inclusions and exclusions in a car insurance policy, they can vary across insurers. Ideally, you should ensure that the policy covers costs that you have a greater possibility of incurring.
Look for a policy that offers more inclusions to widen the scope of your cover.
Choose the most cost-effective policy offering the coverage you want. First, finalise your policy’s must-haves and then compare the car insurance quotes from the shortlisted options.
This is the amount that the insurer will provide in case someone steals your car or it is unrepairable. It determines the market value of your car and affects your premium as well as coverage. Ensure that you compute it correctly by using an IDV calculator.
These options help boost the coverage of your policy, but not all insurers offer the same options at the same price. Compare these across companies and select a provider who offers the add-on you need at an affordable price.
For instance, if you want NCB protection, choosing an issuer that does not offer it or offering it at a higher cost is not beneficial.
Most insurers have tie-ups with certain garages across India to offer the cashless claim facility. Choosing an insurer with a smaller network may not be ideal, as you may not get the assistance you need.
Check the insurance provider’s network list, and ensure that it covers the areas that you visit or are likely to visit. You can find these details online, categorised by state and city.
It refers to the percentage of claims an insurer approves out of the total claims received. For instance, if the insurer approves 98 claims out of 100, the ratio will be 98%.
Choose an insurer with a higher settlement ratio to increase the likelihood of your claim being approved.
If the process to file a claim is not easy and seamless, it will simply add to your stress. Additionally, there are certain terms and conditions that you need to follow to ensure you can file a claim.
Since all this varies across insurers, pick the one known for hassle-free processes and customer-friendly terms.
Read the reviews of insurers you have zeroed in on to see how the experience of other customers has been. For the most convenient experience, pick the provider who offers:
Here is an overview of the car and auto insurance benefits that you can get with various lenders available on Bajaj Markets:
| Insurer |
Own Damage |
Third party + Comprehensive |
Cashless Garages |
Coverage Amount |
No-Claim Bonus |
|---|---|---|---|---|---|
| Bajaj General Insurance |
Yes |
Yes |
7200+ |
₹15 Lakhs |
NCB protector available as an additional cover |
| SBI Car Insurance |
Yes |
Yes |
7159+ |
₹15 Lakhs |
Up to 50% off on the premium with NCB |
| HDFC ERGO Car Insurance |
Yes |
Yes |
12,200+ |
₹15 Lakhs |
Up to 50% off on the premium with NCB |
| TATA AIG Car Insurance |
Yes |
Yes |
7,500+ |
₹15 Lakhs |
20-50% off on the premium, depending on the number of claim-free years |
Disclaimer: The above-mentioned details are indicative and subject to change as per the insurance provider’s latest updates.
Improving your motor insurance coverage is easy when you select appropriate add-ons. Some of the commonly offered covers are:
Insurance providers offer this bonus when you do not file a claim during the policy period. However, if you do file a claim, you are ineligible for this bonus. NCB can help lower your premium amount, hence it is recommended to get this protection.
Your NCB add-on will remain intact during the car insurance renewal process even if you file a claim during the policy year. This is what makes it so popular.
Although insurers offer a wide network of garages, they may not be accessible in remote locations. During such instances, you can rely on this add-on cover. Under it, the insurance provider will offer 24X7 service to assist you during a breakdown or other emergencies.
This may include a team to refuel your car, tow it, repair a flat tyre, or even arrange for cab services. These services will vary depending on the insurer and your chosen policy.
Your car is an asset, and its value will depreciate over time due to regular wear and tear. This can result in out-of-pocket expenses as insurance providers do not cover depreciation costs. However, with this add-on cover, you can forego such expenses.
A regular car insurance policy does not cover the cost incurred due to damage to your engine. Since such costs can be high, paying for them from your pocket can be a strain. By getting this add-on, you can extend your policy’s cover to your engine as well.
In some cases, your car may have to stay in the garage for a longer period. During this period, you may have to look for other modes of transport. By getting this add-on cover, you can pay for alternate transportation through your insurance.
Generally, insurers offer a daily allowance up to two weeks. However, it varies depending on the company and the policy you choose.
If you lose the key to your car or if the lock needs repair, the cost is not covered by standard car insurance. With the help of this add-on, you can cover these costs through your policy.
As the name suggests, this add-on offers coverage for the cost of your car’s tyres, which makes replacing tyres and tubes more affordable. Generally, it is applicable in case of burst tyres, punctures, cuts, or bulges.
This will vary across insurers and plans, so read the terms before you add it to your policy.
With this add-on cover, you can protect your car to its full invoice value. The insurer will pay the full cost of your car in the event of loss or theft. However, this will also have terms and conditions that you must go through before opting for it.
This is a mandatory cover that you must have along with a third-party car insurance policy. With this, you can get compensation in case of injuries, disability, or death resulting from an accident.
This offer is for the owner-driver of the insured vehicle, who owns the vehicle and has a valid driving licence.
If you don’t want to end up with lost or damaged personal belongings, this add-on cover can help you recover the cost via insurance. However, remember that different insurance providers will cover different types of belongings.
For instance, it may cover your laptop, clothes, CDs, or audio tapes, but your jewellery, cards, or money may not be. Read through the terms before you add it to your car insurance policy.
This add-on cover extends coverage to the passenger of the car. Like the Personal Accident cover, it offers compensation for injuries, disabilities, or death due to an accident. However, this is not a mandatory cover.
Although the above add-ons are common, their availability will depend on the insurance provider and policy you choose. You may also find other covers that are not listed above. Review your options carefully to add only the ones you need.
Insurance providers charge a premium in exchange for coverage. This amount depends on a number of factors, such as the type of your car, policy, and more. Here is a brief overview of the top factors that influence the cost of your car insurance policy:
The coverage you get depends on the Insured Declared Value (IDV), which depends on how old your car is.
Generally, newer cars have a higher IDV. Once your car starts to depreciate, the IDV decreases, which results in a lower premium. Thus, a new car will have a higher premium compared to an older one.
Insured Declared Value represents the market value of your car and significantly impacts the premium amount. A lower IDV means the sum insured is lower, resulting in a low premium.
On the other hand, a high IDV can result in a higher premium amount due to a higher sum insured.
Insurers calculate IDVs using their own criteria. If you are unhappy with the IDV of your current insurer, you can switch plans when the time comes to renew the policy.
The process of online car insurance renewal is easy, and you can find a suitable policy on Bajaj Markets during this time.
Car insurance offers three types of coverage options, and since their scope is different, the premiums vary too. Generally, comprehensive covers are more expensive than the others because they offer a broader cover.
Your car’s engine has a direct impact on the premium amount you pay. If the engine's cubic capacity is high, the premium will likely be high, and if it is low, the premium will be lower.
This is primarily because the engine capacity also affects the value of the car. A higher engine capacity can imply that it is an expensive car, and vice versa.
If you have made multiple claims during the policy year, the insurer will likely charge a higher premium during the car insurance renewal process. This is because you pose a higher risk, which the insurance provider offsets with a higher premium.
On the other hand, if you have not filed any claim, the insurer will likely offer a No Claim Bonus.
These help you secure extra coverage, and based on their features, add-ons come at different rates from different providers. Be careful about which ones you choose, as costly add-on covers will result in a more expensive car insurance policy.
This refers to the part of the claim amount that you will have to pay. If you choose a higher deductible, the premium amount will be low because the insurer’s liability is low.
However, a higher deductible also means that you will have to pay a higher amount at the time of claim.
For instance, if the deductible is ₹3,000 and the claim is for ₹5,000, the insurer will only pay ₹2,000, and you will pay the remaining amount. If the claim is for ₹2,000, and the deductible is ₹3,000, the insurer will not pay anything. Given these calculations, choose your deductible carefully.
Your geographical location affects the possibility of damage to your car, which affects the insurer’s liability, thereby influencing the premium you will pay. If you live or park in an area that is prone to accidents, natural calamities, vandalism, or theft, the premium will be higher.
If you have installed an Automotive Research Association of India (ARAI) authorised anti-theft device, the premium may be lower. With these devices, the possibility of theft decreases, which lowers the insurer’s liability.
Some modifications to your car affect its risk profile and can affect your payable premium. If you do not inform the insurer about these modifications, it can lead to issues at the time of making a claim. In some cases, your policy may also become void.
A few crucial modifications that you should disclose to your insurer are to do with suspension, engine, wheel, safety, body, and light. While disclosing these changes can increase your premium now, it can help you save more in the long run by ensuring continued coverage.
The Insurance Regulatory and Development Authority of India (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 insurer will decide the premium rate. 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 your budget and offers adequate protection.
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 birthdate. Once you enter this information, you can renew the policy in just a few clicks.
The online process is fairly easy as well as safe. The payment will go through secure payment gateways. The majority of the insurers allow you to pay using your debit or credit card, UPI, or internet banking. As such, you can make secure payments stress-free.
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 a third-party motor 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 a 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.
It will also transfer benefits like NCB, 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, it will either accept or reject it. If accepted, they will settle the claim after repairing the car. 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 licence of the policyholder
Verified copy of the FIR (First Information Report filed with the police)
Copy of policy documents
Garage name with contact details
Duly filed and signed claim form
RTO transfer papers
No Objection Certificate and Form 35 in case of an 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.
When you file a motor insurance claim, the insurer has the right to either accept or reject it. In case of rejection, you will have to pay for damage or loss, which can cause financial strain.
Here are some tips you can rely on to lower the chances of rejection:
Insurers will ask you to submit several documents to support your claim. This can include the FIR, policy documents, proof of damage, and more. If you delay or fail to submit any of these documents, the insurer can reject your claim.
Ensure you keep all the paperwork on hand for the best chance of approval.
If you do not complete the car insurance renewal process, your policy will lapse. When this happens, the insurer will no longer be liable to cover any costs. As such, it is important to renew your policy on time.
You can opt for reminders or set one yourself to ensure you do not miss the date.
Your policy document will clearly state the inclusions and exclusions. It will determine your claim acceptance or rejection. Read through it carefully before filing a claim. If you feel that your policy coverage is inadequate, compare your options.
Switch the insurer at the time of renewal or even during the policy period.
Holding a valid (unexpired) driving licence is a crucial requirement of insurers. If you do not have a licence and drive the vehicle, you are breaking the law. As such, the insurer is not liable to cover any costs related to damage or loss.
So, do not drive without a valid licence.
Disclosing all the relevant details is crucial. This includes informing the insurer about any modifications, mentioning the right NCB, and other details. If there is any discrepancy, the insurer has the right to reject your claim. In some cases, failure to disclose information can void your policy.
In case you were not driving as per Indian traffic rules and regulations when the damage occurred, the insurer can reject your claim request. Ensure that you do not drive without the right paperwork, drive under the influence, enable underage driving, and more.
Every car insurance provider has a different process for filing claims. If you do not follow it, the chances of facing rejection increase. You must also ensure that you file the claim within the stipulated period.
You can find these details in your policy document, on the insurer’s website or app, and by talking to the customer support team.
A police complaint is mandatory when you file a claim against your car insurance policy, especially in case of an accident or theft. If you do not file an FIR or submit a copy of it, the insurer can reject your 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 claims during the policy period. It will reflect as 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 you pay for your car insurance, typically once a year. However, long-term policies are also available, where the premium is paid once every few years. 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 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 the policyholder, but if it is in the name of another family member, they will be the 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.
An insurance quote or auto coverage quote will give you an approximate cost of purchasing a policy from a specific insurer. Most companies include policy details in their car insurance quotes.
Every car and auto insurance provider has 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 riots |
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 |
| Malicious activities like theft or vandalism (usually covered under a comprehensive policy) |
Damage or loss incurred during war-like situations, invasion or nuclear risk |
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 of 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 up to 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 a charge on the premium if you are a high-risk policyholder. This is 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 and the insurer updates the details, the insurer issues 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.
It is best to switch insurers only at the time of policy renewal, as mid-term cancellations may result in a loss of premium for the unused coverage period. In addition, it could also involve additional administrative complexities.
The grace period refers to the short duration within which you can renew your policy even if it has expired. Generally, it can range from 15 to 30 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 automatically download and be sent to your email.
Car insurance plans with durations shorter than a year are not typically available for private vehicles. Most insurers offer standard annual or long-term policies.
The best policy and insurer depend on your needs and the type of car insurance you are looking for. It is important to compare coverage options, claim settlement ratios, add-on features, and customer reviews before making a decision.
Car insurance premiums are not fixed and can vary widely. The insurance premium can vary a lot. For third-party (TP) cover, it mainly depends on the engine capacity. For own damage (OD) cover, factors like the car’s age and model are considered.