Best Car Insurance Companies in India
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Best car insurance companies
It’s mandatory to insure your car as per Indian law. But before insuring your vehicle, you must decide which plan to purchase and from whom. The best car insurance plans are those that offer comprehensive coverage, top-notch customer service, and trouble-free claims settlement. And the best insurer should be digital-first. To help you choose the best car insurance in India, we have compiled a list of the best car insurance companies in India and shared other valuable information so that you can make an informed decision.
20+ Best car insurance companies in India (March 2023)
Here is a list of all the IRDAI-approved car insurance companies ( 24 non-life insurers) in India offering the best car insurance in India. Please note that the list is 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 |
Cholamandalam MS General Insurance Co. Ltd. | 2001 | Chennai |
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 |
Zuno General Insurance Limited (Formerly Edelweiss General Insurance Co. Ltd.) | 2016 | Mumbai |
Please note that Bharti Axa General Insurance Company Limited has merged with ICICI Lombard General Insurance Co. Ltd on September 2021.
Now that you are aware of the major players in the industry, let’s dive deep into the types of plans offered by different insurers.
Plans offered by the best car insurance companies in India
Primarily, there are three types of car insurance policies available for four-wheelers in India. Here’s an overview.
Third-party Car Insurance
As per the Motor Vehicles Act of 1988, car owners in India must 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.
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 mandatory third-party coverage.
Comprehensive Car Insurance
A Comprehensive Car Insurance policy is a combination of the previously mentioned insurance policies. So, by buying it, you will get the legally mandatory Third-party Insurance and an Own Damage Cover, which covers damages to your vehicle. Since this policy has the broadest coverage of the three, we recommend buying it for your car.
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 based on their requirements. Nonetheless, you can select the best motor insurance company in India using the parameters below.
Assess your car insurance needs
Before buying car insurance, assess the kind of coverage you require and your budget. Also, consider 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 company's authenticity
When selecting an insurance provider to buy car insurance, ensure 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, you can choose add-ons with a Comprehensive Car Insurance Policy to enhance its coverage. There are different add-ons for various insurance requirements. So, before choosing an insurance company, make sure it offers your preferred 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%.
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 wide network of quality garages. So, check this while selecting a suitable car insurer. Also, ensure 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 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 case of any issues, you can easily contact them and troubleshoot your problems. You can go about this by checking reviews online or by asking for 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 select the best vehicle insurance company in India.
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 | ✔ |
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 vehicle might suggest a particular insurance policy to be purchased along with the car, as the dealer might have a tie-up with that insurer. This will limit your options. Instead, you can buy directly from the insurer of your choice.
Ability to customise
Buying insurance directly from a car insurer allows you to customise your insurance plan according to your requirements so that you spend your hard-earned money well.
Value for money
Digital-first insurers such as ACKO 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 visiting 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 and model, 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.
Step 3: Pay online for the selected plan and receive its 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?
You can shortlist the best vehicle insurance company in India by looking up different insurers online and comparing them based on various criteria. Some criteria you can use to compare insurance companies are their credibility, policy coverages, pricing, the network of cashless garages, Claim Settlement Ratio (CSR), etc.
Which documents do I need to submit while buying car insurance?
Since ACKO is a 100% digital insurer, no physical documents are required while buying car insurance. To insure your vehicle instantly, you must provide details like your car’s registration number, make, model, year of manufacture, and claim history (if applicable).
How do insurance companies assess car damages?
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?
Usually, car insurance companies do not work on weekends; however, some do. Nevertheless, you can 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?
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 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 to the insured due to a vehicle accident.
Is a background check done before offering car insurance?
A back-end background check might be a possibility before insurers offer car insurance. This is done to prevent fraud.
Is it possible to switch car insurance companies mid-policy term?
Yes, it is possible to switch car insurance companies mid-policy term. However, you might receive only partial or no reimbursement depending upon the number of months already covered. On the other hand, you can switch insurance policies duringcar insurance renewal for a seamless transition.
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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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