When buying a new car or renewing coverage for your existing vehicle, choosing the right insurer is essential. However, given the plethora of car insurance companies in India, settling on the correct one can be a challenging task. Each insurer offers something unique, and thus, having a clear overview of the major car insurance companies in India is crucial for you to make the right pick.
This blog assists you through the leading players in the industry, things to consider, and how to make a proper decision that best suits your requirements.
Top 10 Car Insurance Companies in India
Below is a selection of the best car insurance companies in India, chosen for their market reach, claim settlement performance, customer satisfaction, and innovative features.
- ICICI Lombard General Insurance
Among the private general insurance firms operating in India, ICICI Lombard holds a leading position. Through its strong digital network and customer-oriented services, it has established a strong presence in the market. The company’s affordable premiums and wide range of add-ons also make it appealing to new as well as veteran policyholders.
Key Features:
- Provides real-time online policy issuance and claim tracking.
- A large network of 4,600+ garages spread all over India.
- Offers additional benefits such as zero depreciation and roadside support.
- HDFC ERGO General Insurance
Thanks to its tech-driven solutions and swift claim processing, HDFC ERGO remains a top preference among digitally inclined car owners. Its user-friendly mobile app and real-time policy monitoring improve customer satisfaction, making policy management and support trouble-free.
Key Features:
- Provides AI-based claim settlement.
- 7,000+ cashless garages in its network.
- Range of customised add-ons.
- Bajaj Allianz General Insurance
Bajaj Allianz combines trust with innovation. The self-inspection option in their app is easy to use, making it faster and simpler for policyholders to raise claims. Additionally, the company offers high claim transparency and thus becomes a trustworthy one with hassle-free insurance coverage.
Key Features:
- 24×7 support for claims.
- Immediate issue of policy through the mobile app.
- Innovative add-ons such as consumables and key & lock replacement.
- Tata AIG General Insurance
With strong support from the Tata Group and global expertise of AIG, this insurance company offers high coverage policies with an extremely high claim settlement ratio. It also offers a series of special policies that are most suitable for luxury car owners and fleet operators.
Key Features:
- Offers coverage of private and commercial vehicles.
- Provides long-term third-party insurance.
- 3,000+ authorised garages.
- New India Assurance
New India Assurance is trusted by crores due to its long history and government support. It is a very popular car insurance provider among Tier 2 and Tier 3 cities, catering to individuals who prefer offline servicing and hardcopy documents.
Key Features:
- Government-backed with a superb market reputation.
- Offers a vast range of policies at low prices.
- Superb offline presence across India.
- Reliance General Insurance
Reliance General is known for value-for-money plans, which are typically more popular among first-time car owners who seek cost savings. It also features new-generation plans like pay-as-you-drive policies and easy premium payment schemes.
Key Features:
- Quick claim sanction with low paperwork.
- Telephonic claim assistance.
- Instant online policy issuance.
- SBI General Insurance
SBI General’s brand value and trustworthiness make it one of the most reliable car insurance companies in India among all economic segments. The company is especially recognised for its dedicated customer support and dependable service in semi-urban and rural regions.
Key Features:
- Supported by the State Bank of India.
- Low premium prices.
- 6,000+ network garages.
- Digit Insurance
A relatively new but rapidly growing competitor, Digit has shaken the conventional insurance model with its technology-based model and greater claim acceptance. It’s particularly favoured by millennials for its clean UI and easily readable policy documents.
Key Features:
- 100% digital onboarding and claim process.
- WhatsApp-based claim support.
- Transparent pricing and lower exclusions.
- Acko General Insurance
Acko is transforming the car insurance landscape with an end-to-end digital model and hyper-personalised motor insurance policies. Its uniqueness is based on zero-commission products, competitive premiums, and strategic online distribution tie-ups.
Key Features:
- Paperless app-based claims.
- Customised policies for low-mileage customers.
- Partnerships with Ola, Amazon, etc.
- United India Insurance
With its proven track record and widespread reach, United India Insurance provides affordable coverage to a wide community spread over both urban and rural India. It has 3000+ network garages across the country and offers a wide range of add-ons that enable individuals to customise their policy as per their requirements.
Key Features:
- Government-backed insurer.
- Good rural and semi-urban penetration.
- Range of add-on covers.
How to Choose the Right Car Insurance Company?
Choosing from India’s best car insurance companies can be overwhelming, given the vast range of plans, premium prices, and add-on facilities. But it becomes easier if you deconstruct it into sensible, actionable steps.
Follow this easy step-by-step guide to make your decision:
- Assess Your Requirements
Depending on your usage, choose third-party or full cover. A comprehensive policy is usually more appropriate if you drive a lot or have an expensive vehicle. When evaluating your needs, consider your driving pattern, car age, and budget.
- Compare Quotes
Utilise aggregator websites to compare coverage and premium rates. Don’t choose the one with the lowest premium rate; look at what is covered in the premium. Sometimes, a policy with a slightly higher premium offering superior features, services, or a higher claim settlement percentage serves as a more ideal choice.
- Check the Claim Process
A seamless online claim process can save your precious time. Select insurers that provide app-based or web-based claims, less paperwork, and fast approval processes. A long or cumbersome claim process can be an added source of tension during times of need.
- Read Customer Reviews
Refer to real customer reviews and complaints before selection. Online forums, social media platforms, and review websites offer unbiased feedback on the customer experience, particularly regarding claim settlement, support responsiveness, and policy renewal issues.
- Look for Add-Ons
Choose policies that allow you to add coverage according to your needs. Add-ons like zero depreciation, engine cover, return-to-invoice, and roadside assistance can greatly enhance the efficiency of your policy.
- Check Claim Settlement Ratio (CSR)
It reflects how dependable an insurer is when it comes to settling claims. The better the CSR, the greater the customer trust, and the indication that the company disburses coverage on time and without hassles.
- Research the Network Garages
Insurers with a wider range of network garages provide more convenience, quick repairs, and improved service, particularly in times of emergency. Also, check the number of network garages within your area for added ease during emergencies.
- Inquire About Customer Service Channels
Look for insurers that offer 24×7 customer support and various contact channels, such as call, mail, chatbots, and WhatsApp support.
- Choose Insurers with Digital Platforms
A smooth app or web platform enhances the customer experience. It enables individuals to purchase or renew policies, lodge claims, upload documents, and check claim status from anywhere at any time.
Car Insurance Premium Factors in India
Car insurance companies determine the premium amount based on several factors:
- Policy Type
Comprehensive policies are costlier than third-party policies. Whereas third-party cover is for other people’s damage only, a comprehensive policy covers damage to your own vehicle, theft, and natural disasters. It also provides the option of including several riders and customisations, which increases the premium.
- Insured Declared Value (IDV)
Increasing the IDV will increase the premium. IDV is the maximum amount your insurer can pay in case of total loss or theft. Higher IDV gives greater financial protection but comes at a higher cost. One has to balance an adequate IDV with an affordable premium.
- Vehicle Type & Age
Older vehicles command higher premiums, particularly if the spare parts are costly or difficult to obtain. Luxury cars, sports cars, and SUVs also command higher premiums as their pricey parts and repairs are more costly. Newer cars can receive discounts as they come with better safety features.
- Location
Urban areas have higher premium rates because of traffic and risk exposure. Cities such as Mumbai, Delhi, and Bengaluru experience more accidents, thefts, and claims, which puts insurers at greater risk. Alternatively, rural or semi-urban locations might have lower premium charges due to lower traffic and less frequent chances of claims.
- Add-On Covers
Add-on covers like zero depreciation, engine cover, etc., provide enhanced security by covering what is typically excluded in base policies. Though they do increase the premium, they minimise out-of-pocket expenditure considerably, thus benefiting newer or costlier vehicles.
How to Lower Your Car Insurance Premium?
Let’s look at some of the ways you can lower your car insurance premium:
- Install Anti-Theft Devices
Anti-theft devices like steering locks, GPS trackers, and anti-car theft alarms, certified by the Automotive Research Association of India (ARAI), can ensure dramatic deterrence against vehicle theft. Insurance companies usually give lower premiums to owners who install these security devices, as it reduces risk on their end.
- Avoid Small Claims
For minor repairs or damage, settle the repair yourself instead of claiming it. This helps you retain the No Claim Bonus (NCB), which in the long run can result in a significant discount in premiums, 50% after five years of claims-free driving.
- Opt for Voluntary Deductibles
A deductible is what you pay yourself before your insurer starts providing coverage. Voluntarily raising the deductible informs the insurer that you will take on the risk, which results in a lower premium amount.
Just ensure that the deductible amount is not too high, as it can lead to unnecessary financial strain when filing claims.
- Renew Timely
Missing the renewal period will result in cancellation of coverage and forfeiture of NCB benefits earned. Early renewal not only keeps you legally compliant but also saves you from the trouble of re-inspection of the policy and increased premiums for lapses.
Now that you know the top car insurance companies in India, how to choose the appropriate insurer, and other essential aspects, you are ready to select an insurance policy that adequately caters to your coverage needs. With so many providers quoting competitively and offering varied features, the best one is the insurer that meets your personal needs, driving patterns, and budget constraints.
FAQs About Car Insurance Companies in India
Q. Which car insurance company is best in India for claim settlement?
Digit Insurance and Tata AIG have among the highest claim settlement ratios, making them popular choices for quick and reliable claims.
Q. Is it necessary to buy car insurance online?
While not mandatory, buying car insurance online offers better transparency, cost-saving options, and convenience compared to offline methods.
Q. Can I change my car insurance company during mid-term?
Yes, you can port your car insurance at renewal. Some insurers may also permit a mid-term change with a pro-rated premium adjustment.
Q. Is third-party car insurance sufficient in India?
Third-party cover is mandatory, but it only protects you from damages to third parties involving your vehicle. Meanwhile, a comprehensive car insurance policy offers coverage for damages to both third parties and your own vehicle.
