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Best Car Insurance Companies in India - IRDAI Approved

Team AckoSept 9, 2022

A car is an expensive asset and hence needs to be insured. If your vehicle endures damages, wide-ranging car insurance can take care of associated repair costs. “But which is the best car insurance in India?” you may ask. With the host of car insurance companies and policies that are out there in the market today, it may seem like a daunting task to track down the right insurer. To help you out in your search, here’s a list of the best car insurance companies in India.

Best car insurance companies in India

Top car insurance companies in India

Here is a list of all the IRDAI-approved car insurance companies in India, arranged in alphabetical order.

Car insurance company name (in alphabetic order) Year of inception Location (Corporate Office)
ACKO General Insurance Ltd. 2016 Bangalore
Bajaj Allianz General Insurance Co. Ltd. 2001 Pune
Bharti Axa General Insurance Co. Ltd. (Merged with ICICI Lombard General Insurance Co. Ltd on September 2021) 2008 Mumbai
Cholamandalam MS General Insurance Co. Ltd. 2001 Chennai
Edelweiss General Insurance Co. Ltd. 2016 Mumbai
Future Generali India Insurance Co. Ltd. 2007 Mumbai
Go Digit General Insurance Ltd. 2016 Bangalore
HDFC ERGO General Insurance Co.Ltd. 2002 Mumbai
ICICI LOMBARD General Insurance Co. Ltd. 2001 Mumbai
IFFCO TOKIO General Insurance Co. Ltd. 2000 Gurugram
Kotak Mahindra General Insurance Co. Ltd. 2015 Mumbai
Liberty General Insurance Ltd. 2013 Mumbai
Magma HDI General Insurance Co. Ltd. 2009 Kolkata
National Insurance Co. Ltd. 1906 Kolkata
Navi General Insurance Ltd. 2016 Mumbai
Raheja QBE General Insurance Co. Ltd. 2007 Mumbai
Reliance General Insurance Co. Ltd. 2000 Mumbai
Royal Sundaram General Insurance Co. Ltd. 2001 Chennai
SBI General Insurance Co. Ltd. 2009 Mumbai
Shriram General Insurance Co. Ltd. 2006 Jaipur
Tata AIG General Insurance Co. Ltd. 2001 Mumbai
The New India Assurance Co. Ltd. 1919 Mumbai
The Oriental Insurance Co. Ltd. 1947 New Delhi
United India Insurance Co. Ltd. 1938 Chennai
Universal Sompo General Insurance Co. Ltd. 2007 Mumbai

Having known about the major players in the industry let’s dive deep into the types of plans offered by different insurers.

Types of four-wheeler insurance plans offered by different insurers.

There are primarily three types of car insurance policies available for four-wheelers in India. Here’s an overview.

1. Third-party Car Insurance

As per the Motor Vehicles Act of 1988, it is mandatory for car owners in India to possess this type of insurance policy while driving. It offers coverage against third-party liabilities like injury, death and property damage to a third party. Since it is government-mandated, you can easily buy third party car insurance online or offline from any registered car insurance company.

2. Standalone Own Damage (OD) Cover

This 4 wheeler insurance policy offers coverage against damages/loss that may occur to your car. Its coverage includes theft, damages due to a collision and damages that may result from natural or man-made disasters. Note that this does not include the mandatory third-party coverage.

3. Comprehensive Car Insurance

A Comprehensive Car Insurance policy is a combination of the previously mentioned insurance policies. So, by buying it you will get both the legally mandatory Third-party Insurance and an Own Damage Cover to be protected against damages to your own vehicle. Since this policy has the broadest coverage of the three, we recommended that you buy it for your car.

What does your car insurance policy cover?

The below-mentioned table shows the coverages you can receive under different ACKO car insurance policy types.

Coverage Third-party Insurance Own Damage Cover (Standalone) Comprehensive
Theft of four-wheeler X
Accident-related damage/loss to your car X
Damage caused by fire X
Damage/loss caused by natural calamities like cyclones, floods, earthquakes, etc. X
Damage/loss caused by man-made calamities like riots, strikes, vandalism, etc. X
Damage to the property or vehicle of a third party X
Accident-related injury or death occurring to a third party X
Personal Accident Cover (if opted for)
Minimum legal requirement to drive on Indian roads X

How to select the best car insurance company in India

The answer to which is the “best insurance company” may vary from person to person according to their requirements. Nonetheless, you can select the best motor insurance company in India for you by using the below parameters.

  • Assess your car insurance needs: Before buying car insurance, assess the kind of coverage you require and your budget for the same. Also, take into consideration the Insured Declared Value (usually the current market value of your car) you would like to select. Because based on this value, the insurance premium will be computed.

  • Check the authenticity of the company: When selecting an insurance provider to buy car insurance, make sure that the company is registered with the Insurance Regulatory and Development Authority of India (IRDAI). IRDAI is the regulatory body for insurance providers in India and provides registration only for authentic insurance companies.

  • Check out the add-ons available: Usually, add-ons can be selected with a Comprehensive Car Insurance Policy to enhance its coverage. There are different add-ons for various insurance requirements. So, before selecting an insurance company, make sure it offers your prefered add-ons based on your needs.

  • Claim settlement ratio (CSR): CSR is the ratio of the number of claims raised to the number of claims settled during a financial year. We recommend that you choose an insurer with a CSR above 90%. That way, you can be confident that your claims are unlikely to be rejected.

  • Speed of claim settlements: It is important to factor in the turnaround time for settling claims while selecting an insurance provider. Usually, the more time it takes for a claim to be settled, the longer it will take to restore your car to functioning condition. Thus, the shorter the claim settlement duration, the better. You can verify this by visiting the social media handles of the insurance company and checking out various customer reviews.

  • Cashless garage network: The top car insurance companies in India usually have a good range of quality network garages. So, check this while selecting a suitable car insurer. Also, make sure that the company’s network garages are accessible to you. So that in the unfortunate case of an accident, you can transport your car to a repair shop speedily.

  • Good customer service: Another feature of top vehicle insurance companies in India is having a good customer service team. So, while choosing a car insurer, ensure they have a good customer care team that offers 24x7 service. That way, in the cause of any issues, you can easily contact them and troubleshoot your problems. You can go about this by checking reviews online or by asking the reviews of friends or family members who are existing/previous customers of the insurer.

  • Compare options online: Another way to narrow down the best motor insurance company in India is to compare multiple insurers online. You can compare companies based on their price-to-coverage ratio and pin down the best vehicle insurance company in India that way.

Why is it better to purchase four-wheeler insurance directly from car insurers?

Here’s why it is better to purchase four-wheeler insurance directly from a car insurer.

Wider options: Usually, when you are buying a new car, the car dealer selling you the car will suggest a particular insurance policy to be bought along with the car, as the dealer might have a tie-up with that insurer. This will limit your options. Instead, if you choose to buy directly from the insurer of your choice, you have multiple options.

Ability to customise: Buying insurance directly from a car insurer gives you the ability to customise your insurance plan according to your requirements. So, your hard-earned money will be well spent. 

Value for money: Digital-first insurers usually work on a direct-to-customer model resulting in zero commissions. Also, their operational costs are lower than their traditional counterparts due to an online setup. Thus, you can purchase a car insurance policy at a relatively low premium from such insurers without compromising coverage and services, resulting in value for money.

How to buy the best car insurance policy online from ACKO

Since ACKO is a digital-first insurance provider, you can buy our online car insurance plans without having to visit a physical branch office. Here are the simple steps that need to be followed to buy ACKO’s car insurance policies.

Step 1: Visit our official website/mobile app and enter information like your car’s registration number, make, previous policy details (if applicable), etc.

Step 2: Review our range of uniquely designed car insurance plans and select the one that suits your requirements best.

Step 3: Make a payment for the plan you have selected and receive its respective policy document in your email.

Frequently asked questions

The following are some of the commonly asked questions regarding the best car insurance companies in India.

How to find the best vehicle insurance company in India?

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You can shortlist the best vehicle insurance company in India by looking up different insurers online and comparing them based on various criteria. Some of the criteria you can use to compare insurance companies are their credibility, policy coverages, pricing, network of cashless garages, Claim Settlement Ratio (CSR), etc.

What documents do I need to submit while buying car insurance?

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Since ACKO is a 100% digital insurer, when buying insurance, you do not need to submit any physical documents. Alternatively, you just have to provide a few details like your car’s registration number, make, model, year of manufacture, claim history (if applicable), etc.

How do insurance companies assess car damages?

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Usually, insurance companies assess damages by employing an inspection surveyor who will inspect the severity of the damages and report back to the insurer. Based on this information, insurers will approve or reject claims requests for damages. If the claim is approved, the insurer will allocate funds toward the necessary repairs as per the policy’s terms and conditions.

Do car insurance companies work on weekends as well?

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Usually, car insurance companies do not work on weekends; however, some do. Nevertheless, you can usually buy/renew a policy and raise a claim 24x7 over the insurer’s official website or app like the ACKO app) or dedicated helpline number.

What is the necessity to purchase car insurance in India?

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The following are some of the key reasons why car owners in India should consider purchasing four-wheeler insurance.

  • Obtaining third-party car insurance is a legal requirement to drive in India.

  • You can financially protect your car against theft, accident-related damages and damages caused by manmade or natural calamities.

  • You can be protected against the financial repercussions of car accidents involving a third party or their property.

  • As per Indian law, a Personal Accident (PA) Cover is also a legal requirement to drive on Indian roads. However, it is technically not a car insurance policy. It provides financial compensation in the event of unfortunate disability or death occurring to the insured due to a vehicle accident.

Is a background check done before offering car insurance?

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A back-end background might be a possibility before insurance companies offer car insurance. This is done to prevent fraud.

Is it possible to switch car insurance companies mid-policy term?

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Yes, it is possible to switch car insurance companies mid-policy term. However, depending on the months you have already received coverage, you will receive only partial or no reimbursement. On the other hand, you can switch insurance policies during car insurance renewal. That way you will not incur any monetary loss.

Reference:

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet, and is subject to changes. Please go through the applicable policy wordings for updated ACKO-centric content, and before making any insurance-related decisions.

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ACKO General Insurance Limited

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CIN: U66000KA2016PLC138288

IRDAI Registration No: 157

Category: Non-Life Insurance

The use of images and brands are only for the purpose of indication and illustration. ACKO claims no rights on the IP rights of any third parties. The ratings are derived from reviews and feedback received from Google and Facebook users on their respective platforms. | *Save Rs. 45,000 has been calculated on IDV of 20,00,000, 0% NCB and select add-ons. Amount saved is in comparison to Acko's F&U filing. Product name: Private Car Policy - Bundled | UIN: IRDAN157RP0014V01201819 |

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