Best Car Insurance Companies in India (Updated List)

Best Car Insurance Companies in India (Updated List)

Cars are no longer considered to be a luxury. Thanks to the lower-priced car models available in the market, almost everyone can afford a car in today’s times. The need for a comfortable commute has become important and so more and more individuals are investing in a car for themselves and their families.

As the demand for cars is increasing, so is the demand for car insurance policies. The Motor Vehicles Act, 1988 has made it mandatory for car owners to have a valid car insurance policy. If you own a car you need to get it insured as per the provisions of the Motor Vehicles Act, 1988. Car insurance in India comes in two variants. These are as follows –

Third-party liability policy

This is the policy which the Act mandates. The policy covers the financial liability that you face in case you cause harm to another individual. The liabilities covered include the following –

• Liability suffered if an individual is killed by the car
• Liability suffered if an individual is physically hurt or injured by the car
• Liability suffered if an individual’s property is damaged by the car

Comprehensive policy

This policy is a packaged policy which covers third party liabilities and also the damages suffered by the car. If the car is damaged and undergoes any type of repairs, the policy pays for the repair costs incurred. The coverage under comprehensive policies include the following –

• Third-party liability suffered if an individual is killed or physically hurt by the car
• Third-party liability suffered if an individual’s property is damaged by the car
• Damages suffered by the car due to natural or man-made calamities like earthquakes, floods, fire, theft, etc.
• Damaged suffered when the car is being transported from one place to another

Moreover, both third party and comprehensive coverage plans cover personal accident too. If you suffer from accidental death or disablement, you would get coverage of INR 15 lakhs.

Since car insurance policies are mandatory, almost all general insurance companies offer car insurance plans. Both third party and comprehensive policies are offered by general insurance companies. There are 33 general insurance companies in India and 31 of them offer car insurance policies. Among so many insurers, how can you choose the best company?

How to choose the best car insurance in India?

There are certain factors which should be considered when choosing the best car insurance in India. These factors include the following –

1.The authenticity of the company –

The first thing you should check is the authenticity of the insurance company. Every company is registered with the Insurance Regulatory and Development Authority of India (IRDAI) and carries a valid IRDA license. Check the license number of the company to ensure that the company is authentic. Only when the company is authentic can you be assured of the authenticity of its products. A company which is regulated by the IRDAI cannot cheat or dupe its customers.

2.Financial standing –

Once the authenticity of the company has been established, look at the company’s financial standing. Check out the company’s solvency ratio to assess whether the company is financially stable or not. The financial records of the company can be checked on the company’s website as all insurers are mandated to publish their financial reports online.

3.Claim ratios –

There are two types of claim ratios that you should check. One is the Claim Settlement Ratio (CSR) which measures the percentage of claims settled by the insurance company. A CSR greater than 90% is recommended as it shows that the insurance company has settled more than 90% of its claims.

A high ratio would increase the probability of settlement of your car insurance claims too. The other ratio which you should check is the Incurred Claims Ratio (ICR) of the company. ICR depicts the percentage of premiums utilized by the company in settling its claims. It is calculated as the amount of claims settled against the number of premiums collected.

However, if the ICR is more than 100%, it shows that the company is paying more in claims than it is earning as premiums. This situation is not financially viable as it shows the company making a loss. A very low ICR below 40% shows that the company is making too much in profits and might have higher premiums.

So, look for companies which have an ICR of 70% to 90% which would ensure that the company is profitable and that it is not overcharging premiums.

4.Claim Turn-Around-Time (TAT) –

The claim TAT is also an important consideration when choosing the best car insurance in India. Companies which settle their claims at the earliest are the best as you get the benefit of quick claim settlements. So, check the company’s claim TAT and choose the company which takes the minimum time in settling its car insurance claims.

5.The network of cashless garages –

You should also check the network of cashless garages of the insurance company. The wider the network of garages the easier it would be for you to get cashless settlements of your car insurance claims.

If you keep these factors in mind, you can find the best car insurance in India.

List of best car insurance companies in India:

Here is the list of the top car insurance companies in India which qualify on all the above-mentioned parameters:

Privately Owned companies:

1.HDFC Ergo General Insurance Company Limited:

1. The company has a large customer base of more than 1 crore policyholders which signifies that the company enjoys great trust
2. The company offers overnight car repair services where the repairing is done within a night and the car is delivered to your doorsteps
3. The company offers approvals for its claims within 30 minutes through online verification of QR codes making claim settlements easier

2.Tata AIG General Insurance Company Limited:

1. The company offers a range of add-ons with its comprehensive car insurance policies which help you to increase the scope of coverage
2. The claim settlement process of the company is quick and hassle-free

3.ICICI Lombard General Insurance Company Limited:

93. The company has a high Claim Settlement Ratio. During the financial year 2019, the company has settled 93.14% of its motor insurance claims
94. The claims are settled within the shortest possible time. 93.14% claims settled in 2019 were done within 30 minutes of intimation
95. The company has won the ‘Claim Leader – General Insurance’ Award given by Indian Insurance Award

4.Royal Sundaram General Insurance Company Limited:

1. The company’s car insurance policy promises a 100% refund of the invoice price of the car in case of total loss or theft
2. Free coverage for flat tyre and emergency fuel delivery is available under its car insurance plans
3. A range of extensive add-ons are available for a better coverage scope of your car insurance policy

5.Bharti AXA General Insurance Company Limited:

1. The company has issued more than 27 million policies ever since it was established
2. More than 1.3 million claims have been settled
3. The company provides you with 24*7 assistance for your car insurance policy

6.Reliance General Insurance Company Limited:

1. The company promises hassle-free purchases as the policy is delivered within 10 seconds
2. You get free roadside assistance coverage in your car insurance policy worth up to INR 500
3. The company enjoys ISO 9001:2015 certification which makes it trustworthy

7.Bajaj Allianz General Insurance Company Limited:

1. The company’s car insurance policy can be bought within 3 minutes
2. The Motor On-The-Spot feature in the company’s car insurance plans lets you make instant claims through your Smartphones. Small claims can, therefore, be settled within 20-30 minutes
3. The company has a high claim settlement ratio of 98%

8.IFFCO Tokio General Insurance Company Limited:

1. The company offers completely transparent products and services so that you know what you are buying
2. The claim settlement process of the company is quick and efficient ensuring that you get your claims settled within 4 hours
3. The company has various awards in its name which make it a reputed company

Owned by the Government of India:

1.The New India Assurance Company Limited:

1. The company has a strong financial standing as its net worth for the quarter ended 30th June 2019 stood at INR 37,483 crores

1. The company’s solvency ratio is 2.13 which further ensures the strong financial stability of the company

2.United India Insurance Company Limited:

1. The company is a public limited company which is owned by the Government of India and enjoys immense trust among policyholders
2. There are more than 1 crore policyholders of the company till date

How to buy the best car insurance policy?

Now that you know the best car insurance companies, you can buy the best car insurance policy too. However, all the companies offer one or more car insurance policy and so choosing the best policy might prove to be a challenge. You should, therefore, compare the available policies to choose the best one. Compare car insurance policies offered by the above-mentioned car insurance companies and then choose one. To compare, you should consider the following parameters –

• Coverage vis-à-vis the premium charged

When comparing car insurance policies, many individuals look at only the premium amount. This is a mistake. The policy should be compared on the coverage that it offers vis-à-vis the premium that is being charged. The best policy would be the one which has an optimal coverage amount, offers comprehensive coverage features and is yet priced reasonably.

• The claim process

The policy which offers the simplest claim settlement process should be chosen. When the claim settlement process is simple, you can get your claims settled easily.

• Premium discounts offered

Car insurance policies offer a range of premium discounts for different factors. For instance, you can get a discount if you are a member of an approved automobile association or if you install safety devices. Though discounts are offered by all companies, the rates vary. Choose a policy which offers the maximum possible discount so that your premium is reduced.

• Add-ons available 

Add-ons are additional coverage benefits which can be added to a comprehensive car insurance policy to increase the scope of coverage. Look for the variety of add-ons offered by car insurance policies. The best policy would be the one which offers the add-ons that you require and that too at an affordable premium rate.

So, consider these factors, compare the available car insurance policies offered by leading insurance companies and then buy the best plan. Turtlemint is an online platform which allows you to compare and buy the car insurance policy of leading insurance companies. On Turtlemint’s website, you can find a list of all the leading car insurance plans available in the market. You can also check the plans’ coverage benefits and premiums and then choose the best policy. Turtlemint’s platform, therefore, gives you an easy mode of comparing and buying the best car insurance policy.

So, if you buy a new car or when your existing car insurance policy is up for renewal, choose the best car insurance policy from the leading car insurers. Compare the plans offered by the leading insurance companies and then buy so that you get the best policy.

Frequently Asked Questions:

• What is a personal accident cover on car insurance policies?

Personal accident cover in car insurance policies cover accidental death or disablements. If the owner/driver of the car suffers accidental death or becomes fully or partially disabled in an accident, the cover pays a lump sum amount. The sum insured for personal accident cover is INR 15 lakhs and the premium is INR 750.

• What are the add-ons available under car insurance plans?

There are different types of add-ons available under car insurance plans. The popular ones include the following –

1. 1. Roadside assistance – round the clock assistance in case of breakdowns
   2. Zero depreciation – no deduction for the cost of depreciation from car insurance claims
   3. Engine protect – coverage against engine damage due to water seepage
   4. NCB protect – protection of the accumulated no claim bonus even after a claim
   5. Return to invoice – payment of the invoice value of the car in case of total loss or theft
   6. Consumables cover – coverage of the cost of consumables used in repairs of the car like engine oil, lubricants, etc.
   7. Personal accident cover for named passenger – an extension of personal accident cover for a named passenger, etc.

• What is the long term car insurance policy?

A long term car insurance policy is one which runs for more than a year. As per the latest changes, cars bought on or after 1st September 2018 should have a long term liability cover for three years. In keeping with this mandate, nowadays, long term car insurance plans are available for new cars.

• What will happen if the car insurance policy is not renewed?

If the car insurance policy is not renewed on time, the coverage would lapse. You would be fined if you are found driving without a valid car insurance cover.

• How are third party premium calculated?

The premiums for liability-only policies are determined by the IRDA and they depend on the cubic capacity of the car.

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Courtesy Article: Supramind / September 26, 2019 mintpro.in