In 21st Century India, owning a car has moved beyond being a status symbol to an everyday necessity.

Being owner of a car proves your financial independence, puts you in a refined league of your peers and wins you some much-needed brownie points with the family.

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But the joys of owning a car or any vehicle could be short-lived if say, your vehicle meets with an unfortunate and untimely accident, is stolen, is lost in a raging flood, or worse – if it turns up to be the cause of an accident that costs the life or property of a complete stranger.

These situations can be disastrous, costly, and frustrating for anyone!

There is one solution. Get a Car Insurance Plan.

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What is Car Insurance?

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 the Indian law.

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Anyone who drives without an insurance policy has to pay heavy penalties.

To help you to buy right car insurance policy, here are the 5 best car insurance policies available in market right now.

5 Best Car insurance policies

1. New India Car Insurance

Source: New India Assurance

New India Insurance Co. Ltd. was incorporated on 23rd July 1919; established by the House of Tata founder member, Sir Dorab Tata.

New India Assurance is offering a wide range of effective and helpful motor insurance products that will cover all of your basic needs. It includes all those features that a Motor insurance plan should have.

Under this plan, you will get two types of coverage, Liability and package coverage. Both will assist you in their ways.

  • Liability only policy. This covers third-party liability for bodily injury liability and / or death and property damage. Personal Accident cover for Owner-driver is also included.
  • Package only policy. This cover loss or damage to the vehicle insured in addition to liability cover.

Features and Benefits

  • Customer support team 

Well, one of the best features of National Insurance is a well-trained customer service team which will always be there to clear all doubts and queries.

It will also help the policyholder to make claims, apply for a policy or renew the same.

  • Discounts

Those people who are embers of the Automobile Association of India will be eligible for special discounts.

Apart from this, policyholders can also take advantage of no claim bonus discount. Those who have anti-theft devices will also be eligible for an additional discount.

  • Hassle-Free Claim Settlement

Claims will be settled in a speedy manner without any hassles. The process of initiating a claim during an emergency situation is also very convenient.

Inclusion & Exclusion

InclusionsExclusions
Loss or damage caused because of :
  • Fire, explosion & self-ignition
  • Natural calamities such as floods, storms, landslides, earthquakes, rock slides, hurricanes, lightning
In case where the insured uses the vehicle contrary to mandated instructions
Loss that occurs because of theft, robbery, and other man-made calamities such as strike, riots, terrorist activities, accidental external damageAccident due to intoxication
Damage that occurs because of travel by road, air, elevator, inland waterwayDamage due to own negligence
Third-party liability in cases of injury, death or damageMechanical or electrical breakdown
Personal accident coverLoss due to nuclear risks
Loss occur because of electrical or non-electrical accessoriesWar related risks
Legal liability to passengers who do not pay faresConsequential loss
Contractual liability
Loss of accessories by theft
If used/driven outside geographical area

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2. TATA AIG Car Insurance

Source : TATA AIG Insurance

Tata Aig General Insurance Company Limited (Tata Aig General) is a joint venture between Tata Group and American International Group, Inc. (AIG).

Tata AIG Motor Insurance plan takes into consideration the conventional risks as well as non conventional risks associated with automobiles.

It insures that the policy holders are able to put their minds at rest and in case of emergencies get immediate assistance.

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Features and Benefits

  •  Comprehensive motor cover
  •  Comprehensive personal cover
  •  Comprehensive third-party cover
  •  Flexibility to choose from 12 additional risk covers
  •  Flexibility to choose from 12 additional risk covers
  •  Cashless settlements at networked garages
  • Reimbursement claim settlement within one week
  • Claim free policy periods accumulate no claims benefit
  • Cover for on road emergencies
  • Vehicle repair cover due to accident has six months validity
  • Third party cover up to ₹7.5 lakhs
  • Personal cover
  • Driver and pinion cover
  • Vehicle cover
  • No pickup charges for personal/commercial car
  • Salvage value is not deducted while calculating premiums for cover value
  • Repair claim for glass/fiber/plastic/rubber parts does not reduce no claim benefits

Inclusion

Company provides vehicle cover for the following risks:

  • Damage due to catching fire
  • Damage due to explosion
  • Damage due to ignition
  • Damage due to struck by lightning
  • Theft of vehicle
  • Damage due to riots/strikes
  • Damage due to natural calamities like earthquake, floods, cyclone
  • Damage due to accident from external causes
  • Damage due to terrorist and other malicious acts
  • Damage during transporting vehicle in another vehicle (waterways, roadways, airways, lifts).
  • Damage due to landslide/road slide

3. Bajaj Allianz Car Insurance

Source : Bajaj Allianz Insurance

When it comes to something as crucial as car insurance and car insurance renewal policy, Bajaj Allianz Car Insurance is trusted by millions.

The company enables its policyholders to renew their car insurance quickly and conveniently.

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Features and Benefits

  • Instant policy – Hassle-free instant paperless renewal
  • 24/7 – claim assistance
  • Drive Smart services – Mobile app to assist 24/7 Roadside Assistance
  • Cashless claims at over 1500 preferred garages/workshops
  • Towing facility is provided in case of an accident or a breakdown
  • Get instant assistance on your claims and updates about your claim status through SMS alerts
  • Enjoy hassle-free vehicle inspection in the 1500 preferred workshops
  • Covers loss or damage caused by natural calamities – fire, explosion, earthquake, storm, etc.
  • Covers loss or damage caused due to man-made reasons – theft, riot, burglary, damage in transit, etc.
  • Accident Coverage for the individual owner/driver of the vehicle
  • Protection from legal liability in case of death or property damage of a third-party.

To make things easier, you can subscribe to the renewal reminder feature on Bajaj Allianz website. Enter your name, contact details and renewal date. A reminder will be sent to renew your car insurance policy.

You cannot enjoy the benefits of having an insured car after your car insurance term expires. Hence, renewing your car insurance (once the initial term expires) is very important.

Inclusion

Bajaj Allianz car Insurance offers the below coverage:

1.Own Damage

This policy covers any damage or loss the owner’s car undergoes due to any of the following things:

  • Fire, explosion, self-ignition or lightning
  • Burglary or Theft
  • Riot & Strike
  • Natural calamities like flood, hurricane, storm, cyclone, earthquake, etc
  • Terrorist activity
  • While in transit by road, rail, lift, elevator or air
  • Landslide or rock-side

2. Third Party or Liability

Bajaj Allianz Private Car Insurance Policy covers any injury or property damages incurred to the third-party due to the insured car

3. Personal Accident Cover

Bajaj Allianz will pay a sum Insured of ₹2 lakhs to the owner-driver of the insured vehicle in case of permanent total disability or to the beneficiary in case of accidental death.

Optional Covers:

  • Passenger Personal Accident Cover: A Sum Insured of ₹2,00,000 for each of the occupants can be bought under passenger personal accident cover
  • Legal Liability for Paid driver: Liability cover for paid driver with a premium of 50 ₹/annually can be bought.

4. HDFC ERGO Car Insurance

Source : HDFC ERGO Insurance

HDFC ERGO General Insurance Company Ltd. is a collaboration between HDFC Ltd. and ERGO International AG, the primary insurance entity of Munich Re Group.

The organisation offers a complete range of general insurance products right from Motor, Health, Travel and Home to Personal Accident in the retail space.

Features and Benefits

  • Enjoy cashless claim service at over 3400+ authorized network garages.
  • Network of authorized garages located across India.
  • Enjoy No Claim Bonus.
  • Special discounts for members of the Automobile Association. 
  • You (as the owner/driver of the vehicle) are entitled to mandatory Personal Accident Cover (owner/driver of the vehicle) for up to Rs 2 lakhs against Permanent total Disability & Accidental Death.
  • Cover also extends to the named or unnamed passengers of the vehicle up to the vehicle’s seating capacity and a driver.
  • The dedicated customer care team ensures round-the-clock support for all your queries

Inclusion

HDFC ERGO car Insurance offer the below coverage:

  • Protection against damage due to fire, explosion, lightning, natural calamities (flood, earthquake, landslide, etc.).
  • Cover against damage caused by theft, burglary, house break-in, terrorism, malicious acts, etc.
  • Protection against any damage caused during transit by rail, road, air, inland waterways or lift.
  • Damage caused by routine wear & tear, ageing of the vehicle.
  • Damage caused by a person driving the vehicle without a valid licence or under the influence of intoxicants.
  • Any loss of damage occurring outside India
  • Electrical / mechanical breakdown of the vehicle, depreciation or any consequential loss.

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5. The Oriental Car Insurance

A renowned company in the insurance ecosystem is Oriental Insurance.

Source : Oriental Insurance

The company provides car insurance plans that ensures that car owners are tension free in difficult situations.

The company ensures absolute customer delight by offering customized plans as per requirements of the car owner, seamless online renewals, excellent add-ons to existing plans, emergency services and a lot more.

Investing in a car insurance plan with this company therefore turns out to be a wise decision.

Features and Benefits

  • Offers customized plans as per your requirements
  • Offers coverage for a year, but also offers coverage for shorter duration
  • Offers online facilities to buy and renew the car insurance products at your convenience
  • Offers alternative car benefit allowance in case of emergencies like theft, accident, damage. This allowance is Rs.400 or Rs.650/-
  • Offers excellent add-ons at a very affordable rate
  • Offers emergency services through TVS absolutely free
  • Offers higher and best coverage at an affordable premium rate
  • Provides complete peace of mind through stress-free rides
  • Offers speedy and hassle-free claim settlement process
  • Has effective risk management system

Inclusion

Oriental Car Insurance offers a comprehensive coverage for you and your prized possession. They offer the below coverage:

  • Natural calamities like floods, inundation, typhoon, cyclone, hurricane, storm and hailstorms
  • Landslides and rock slides
  • Earthquake (both shock and Fire)
  • Fire, self-ignition, lighting or explosion
  • Terrorist and Malicious activities
  • Strikes and Riots
  • House breaking, burglary and theft of car

Why Do You Need a Car Insurance?

There is no doubt in saying that accidents occur without a warning.

But, with the help of an effective motor insurance plan, you will be prepared to face such type of situations mentally and financially.

Motor insurance offers needful financial cover to you and your vehicle in case of any kind of damag or theft. With the help of an effective motor insurance plan, driving on the roads of India will be easier and tension free.

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Also, under the provisions of the Motor Vehicles Act of India, all vehicles that operate in public places must have a car insurance policy as a mandatory document.

Car insurance is the smartest way to financially secure yourself and your car.

Let’s say, you own a 1-year-old standard hatchback with Insured Declared Value of Rs. 4,00,000, but sadly, don’t have a car insurance.

Following are the approximate expenses that you might incur if your car was to meet with an accident of “medium impact”:

DamagesExpenses
Frontal DamagesRs. 25,000
Windshield DamagesRs. 6,000
Bumper DamagesRs. 5,000
BonnetRs. 6,000
FenderRs. 5,000
HeadlightRs. 3,000
TotalRs. 50,000

Car insurance policy would have costed you a certain premium:

  • Without zero dep: Rs. 6,000
  • With zero dep: Rs. 8,000

Paying a miniscule amount like Rs. 8,000 every year can still help you cover those Rs. 50,000 [or more] worth of accident-related damages to your car.

No Car Insurance = Financial Expenses + Emotional Torture + Stress + Inconvenience

Benefits of Car Insurance

1.With an effective car insurance policy, the insured will get the coverage against loss or damage of the vehicle that is caused by Accident, theft, fire, explosion, self ignition, lightning, riots, strikes, Act 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 is 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.

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Conclusion

A car insurance is the policy which covers your car against financial losses that you may face in case of accident or theft of car.

A comprehensive car insurance policy covers for third-party liability, property damages, and medical expenses. It is compulsory for vehicle owners to have at least third-party liability insurance; however, some prefer to purchase additional insurance to ensure further protection.

You pay a certain amount as a premium to the insurance company to buy this cover, and they agree to pay for accidental damages and theft losses.

Happy Investing!

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