5 Best Car Insurance Policies in India 2023

Owning a car is now more of a necessity than a status symbol in India in the 21st century.  The possession of a car demonstrates your financial independence, places you in a higher class of peers, and gains you some much-needed favour with the family.

However, the pleasures of owning a car or any vehicle could be short-lived if, for example, your vehicle meets with an unfortunate and untimely accident, is stolen, is lost in a raging flood, or worse - if it proves to be the cause of an accident that results in the loss of life or property of a complete stranger. Anyone can experience these situations as disastrous, expensive, and frustrating!

There is one solution. Get a Car Insurance Plan.

In this blog, we have put together a list of the Best Car Insurance Policies in India, in 2023.

Car Insurance is nothing but an insurance policy that allows you to get the required financial coverage against several forms of damages, theft, harm caused to your vehicle, and third-party liability as well.

Motor insurance is a compulsory document that vehicle owners should carry while driving. It is essential in India to have motor insurance as per Indian law. Anyone who drives without an insurance policy has to pay heavy penalties.

To help you to buy the right Car Insurance Policy, here are the 5 Best Car Insurance Policies available in the Indian market right now.

Top 5 Car Insurance Policies of 2023

Factors to Consider While Choosing a Car Insurance 

• Market Research

It can be difficult to choose the best car insurance option for you with so many options on the market. Therefore, doing thorough research up front becomes crucial. You can choose the best plan with the best insurer with the aid of thorough research. Ensure that your auto insurance offers comprehensive coverage at a reasonable price.

Additionally, you should choose a reputable insurer with a good claim settlement ratio and a large network of garages. By doing this, you can easily use the cashless claim facility.

• Fuel to be Used

If your car is a diesel, you might have to pay a higher insurance premium. Diesel-powered vehicles are expensive, and so is their IDV. As a result, a car with a diesel engine will cost more to insure than one with a gasoline or compressed natural gas engine.

• Type of Coverage

Your car insurance costs will be significantly impacted by the coverage you select. However, don't sacrifice the types of coverage that you actually require in favour of lower costs.

• Third-party Insurance

According to the Indian Road Safety Act and the Indian Motor Vehicles Act, choosing a third-party insurance plan is required. Therefore, before driving a vehicle you just bought on the road, be sure to obtain third-party insurance. Usually, your dealer would offer it, and the premium costs would be added to the cost of your car.

• Estimations and Quotes

It's simple to accept a single estimate that appears to offer a fantastic premium and matching benefits, reasoning that there isn't anything better available. But this is a mistake that must be avoided at all costs. Consider at the very least obtaining three quotes from various trustworthy businesses.

Benefits Of Having a Car Insurance

1. With an effective car insurance policy, the insured will get coverage against loss or damage of the vehicle that is caused by accident, theft, fire, explosion, self-ignition, lightning, riots, strikes, acts of terrorism, transit by rail, road, air & elevator and natural calamities (Earthquake, Flood and more). 

2. It will also offer the required cover against all financial liability that causes injury or death of a third party or damage to the property. That provides benefits to survivors when an accident results in death.

3. It covers lawsuits, including legal fees brought against you as the result of an accident.

4. Having no claim bonus is one of the main benefits of having car insurance. A customer is qualified for this benefit each year without a claim. This could be offered as a discount on the premium, which would further lower the cost of the insurance.

5. Driving without a valid insurance policy is illegal and may result in steep fines. You should purchase a car insurance policy in order to avoid this fine and adhere to the rules.

You may also want to read What Checks are Done for Car Finance by a Lender in India

Features & Benefits of the Best Car Insurance Policies of 2023

Here are some best Car Insurance Policies of 2023 along with their respective features-

1. Bajaj Allianz Car Insurance

Bajaj Allianz has improved driving safety for drivers since 2001 and is considered as the best Car Insurance Policy. By financing third-party legal liability, they help lower the cost of litigation. Their accidental damage protection plans provide complete protection against a range of risks and aid in emergency preparedness.

Features-

• Simple to buy and renew.
• 24-hour support by their garage networks.
• Additionally, they offer a DriveSmart Telematics Service.
• Repairs are available with their cashless claims service at no additional cost.
• They provide affordable insurance premiums and allow you to transfer up to 50% of your current NCB when you renew your policy with them.
• They reimburse you for the costs incurred when making duplicate locks and keys under their Lock and Key Replacement cover.
• Their Consumable Expenses cover can help you ensure that your engine is running strong.
• Their Accident Shield add-on covers can guard against the financial repercussions of accident-related death and disability for the drivers and passengers of the insured vehicle.

Things They Cover-

• Cover Against Natural Disasters
• Cover Against Man-made Disasters
• Cover Against Personal Accidents
• Third Party Legal Liability

2. ICICI Lombard Car Insurance

The ICICI Lombard Car Insurance Policy is also very well-known and considered the best insurance for cars in India by a large number of people. Some of the key characteristics of their private car package insurance policy include low premiums, simple renewals, and quick claim settlement.

Features-

• They offer easy renewals.
• According to their instant policy feature, all you have to do is provide contact information, tell them about your car, and select the appropriate level of coverage. They'll deliver your policy right to your inbox after receiving the payment.
• When you avoid filing any claims during a policy year, you can get a 50% premium reduction at renewal thanks to their "No Claim Bonus" feature.
• In their network of over 4600 garages, they provide cashless services.
• By dialling their toll-free number available around the clock, you can purchase their roadside assistance add-on and receive immediate mechanical assistance.

Things They Cover-

• Coverage for quakes, floods, fires, and storms, among other natural disasters.
• Instant claim settlement.
• Coverage protection against theft, accidents, and terrorism.
• Third-party legal liabilities cover.

3. Cholamandalam MS Car Insurance

Cholamandalam MS General Insurance Company makes sure that your vehicle is protected from any unplanned incident and that all of your costs are paid for after one occurs. As a result, the insurance provider offers a variety of car insurance plans, including third-party, standalone own-damage, and comprehensive coverage.

Features-

• All of their car insurance plans are made to shield you from any legal or financial obligations you might have to incur from a third party in the event of an accident.
• They also offer coverage for losses or damages incurred by your own vehicle as a result of collisions or other accidents.
• An extensive selection of add-on covers is available from Cholamandalam MS, including zero depreciation, no claim bonus protection, consumables cover, daily cash allowance, key replacement cover, consumables plus cover, and others.
• Additionally, they provide customer support service around-the-clock.
• Instant disbursement of the claim amount and simple, hassle-free claim initiation.

Things They Cover-

• Third-Party Property Damage.
• Protects your car from both natural and man-made disasters, including floods, cyclones, riots, strikes, etc.
• There is a cashless claim settlement option available at over 6,900 network garages.

4. Digit Car Insurance

A growing number of people are choosing Digit Car Insurance because of its simple self-inspection and motor claim procedures. The business is also growing as one of India's reliable general insurance providers.

Features-

• They provide policyholders with exclusive benefits like car pick-up, drop-off, and repair services, among others.
• Easy and quick renewal process for Go Digit Car Insurance.
• With a 96% claims settlement ratio for private cars, they provide a seamless claim settlement process.
• Personal accident insurance is provided for the owner and driver of the insured vehicle.

Things They Cover-

• Third-Party Coverage.
• Provide No Claim Bonus.

5. Edelweiss Car Insurance

The goal of Edelweiss auto insurance is to shield the insured car and its owner from any financial hardships brought on by unforeseen occurrences like theft or an accident on the road. Depending on the requirements of the car owners, the Edelweiss General Insurance Company offers four-wheeler insurance plans. In the event of a traffic accident, they also offer assistance.

Features-

• Quick claim resolution with a client-oriented strategy.
• Priority maintenance at the preferred facilities/garages in the network.
• More than 1268 network garages offer auto repair services under the insurance company's umbrella.

Things They Cover-

• Third-Party Coverage.
• Provide No Claim Bonus.
• Theft, self-ignition, man-made disasters, natural disasters, in-transit damages, and terrorist attacks are all covered under their policies.

Conclusion

This was the list of the best insurance for car in India. Car Insurance is a policy that protects your vehicle from potential financial losses in the event of an accident or vehicle theft.

A complete Car Insurance package will pay for medical costs, property damage, and third-party liability. Vehicle owners are required to carry third-party liability insurance at a minimum, but some choose to do so in order to increase their level of protection. The insurance provider agrees to cover accidental damages and theft losses in exchange for a premium payment from you in order to purchase this coverage.

Consider getting a car insurance policy for your vehicle to combat any accidental losses.

Disclaimer: The views expressed in this post are that of the author and not those of Groww.

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Research Analyst - Bavadharini KS