Best Car Insurance Companies in India 2024: Claim Settlement Ratio & Benefits (2024)

Comprehensive

Third Party

Own Damage

Car insurance helps you get mitigate financial obligations that may arise due to an unfortunate event involving your car such as a road accident, fire, theft, natural calamities, etc. As per the Indian Motor Tariff, every car owner is legally required to have at least a third party car insurance cover for being able to drive their car/vehicle on Indian roads. Currently, there are 25 insurance companies in India that offer car insurance.

20+ Top Car Insurance Companies in India with OD Claim Settlement Ratio & Network Garages: IRDAI Approved

Find below the best car insurance companies in India with claim settlement ratio (CSR) & network garages.

(Source: IBAI’s General Insurance Claim Insights Handbook - 5th Edition.)

How to Choose the Best Car Insurance Company in India?

The definition of the best vehicle insurance company in India is subjective as it varies from individual to individual, depending on their requirements. Preferences vary among individuals when choosing the best car insurance company. While some prioritise the highest claim settlement ratio, others find value in insurers with an extensive network of cashless garages.

1. Network of Cashless Garages

There are a number of garages with which a car insurance company partners for the facilitation of cashless insurance claims. While choosing a car insurance company, one must check the strength of the network of cashless garages of the insurance company. One must also see if there are enough cashless garages in the vicinity of his/her locality.

2. Claim Settlement Ratio

Claim Settlement Ratio tells the number of claims settled by a car insurance company out of all the claims received by it during a financial year. Opting for an insurance company with a high claim settlement ratio is a wise choice for securing the best claim settlement ratio car insurance.

3. Availability of Add-ons

Add-ons refer to extra coverages that can be opted with a standard car insurance policy to extend the coverage. Add-ons are available with own-damage and comprehensive car insurance and can be opted for at the time of policy purchase as well as at the time of car insurance renewal. A best car insurance companies should have wide options of availability of add-ons.

4. Customer Support Service

One must also check the availability and quality of the customer support service offered by an insurance company. While some insurance companies offers 24*7 customer support, some offer 5-day customer assistance services.

Types of Car Insurance Policies Offered By Different Insurance Companies

On the basis of car/vehicle/4 wheeler insurance coverage, there are three types of car insurance plans:

1. Third Party Car Insurance

According to Indian Motor Tariff, every car owner in the country is mandated to have at least a third-party car insurance policy. This plan provides you coverage for all third party liabilities such as third party bodily injuries, disability, death as well as property damage which may occur due to any unfortunate event involving your car. The third party property damage is limited to Rs. 7.5 lakh under this plan.

2.Standalone Own-Damage Car Insurance

This plan provides coverage only for own-damages incurred by your car in any mishap such as road accident, natural calamity, fire, explosion, theft, riot, etc. To remain compliant with the legal requirements, you must purchase a third party car insurance plan with it. A standalone own-damage car insurance plan gives you the flexibility to choose your own-damage cover and third party cover from different insurance companies.

3. Comprehensive Car Insurance

This is a bundled cover that offers you coverage for both third-party liabilities as well as own damages incurred by your car in an unfortunate event. Among all the three types of car insurance plans, a comprehensive cover offers you the maximum coverage. You can further extend the coverage of this plan by opting for add-ons like zero depreciation cover, engine cover, etc.

What is Covered under Car Insurance?

Explore the comprehensive protection provided by car insurance, which covers a range of scenarios to ensure your peace of mind on the road:

• Accidents: Unforeseen accidents resulting in damage to your car are covered by car insurance, providing you with financial relief.
• Theft: If your vehicle is stolen, your car insurance offers coverage up to the insured declared value mentioned in the policy.
• Natural and Man-made Calamities: Your car is shielded from natural disasters like fire and earthquake and man-made events such as vandalism, terrorism, and more.
• Personal Accident: In case of owner-driver accidents, coverage of up to Rs. 15 lakh is provided for disability or death resulting from the accident.
• Third-Party Liability: Car insurance safeguards you against third-party claims for injuries, disabilities, or deaths caused by your vehicle.

What is Not Covered under Car Insurance?

While car insurance offers a wide range of protection, it's essential to know what is not covered. Some exclusions include:

• Electrical Breakdown and Mechanical Breakdown: Coverage typically doesn't extend to electrical or mechanical failures.
• Normal Wear and Tear: Regular wear and tear of your car's components is not covered.
• Driving without a Valid License: Accidents are excluded while driving without a valid license.
• Consequential Loss of Car: Losses indirectly caused by an event, like a breakdown, may not be covered.
• Driving Under the Influence: Accidents occurring while driving under the influence of drugs or alcohol are excluded.
• Illegal Use of Car: Any damage caused while using the car for illegal activities is not covered.
• Commercial Use of Private Car: Using your private car for commercial purposes may not be covered.
• Depreciation of Car Parts: Depreciation of car parts over time is typically not covered.
• Contributory Negligence: Damages resulting from your negligence while driving may be excluded.

How to Buy the Best Car Insurance Policy from InsuranceDekho?

Step 1: Visit InsuranceDekho and click on the ‘car’ tab.

Step 2: Enter your car’s Registration Number. In case you do not remember it, choose ‘Don't know your car number?’ option. After selecting that, a pop up will open asking you your car’s brand name, model, fuel type, variant, registration year, registration city and RTO.

Step 3: Fill in your personal details like your Name and Mobile Number and click on the ‘Submit and Get Quotes’ button. Confirm the expiry date of your previous car insurance policy and the name of your previous car insurer.

Step 4: All available premium quotes will be displayed to you. You can compare and select the quote which best meets your requirements. You can also opt for add-on covers at this stage to extend the coverage of your basic car insurance plan.

Step 5: Enter your personal details, nominee details and car/vehicle details. Proceed with the payment using your credit/debit card or other net banking facilities.

The policy will be sent instantly to you at your registered email address.

How to make a Car Insurance Claim?

When it comes to claiming your car insurance, following these steps ensures a smooth process:

• Prompt Contact: Reach out to your insurance company within 48 hours of the accident or theft to initiate the claim.
• Third-Party Damage or Theft: If third-party damage or theft is involved, file a First Information Report (FIR) with the police.
• Document Submission: Provide the necessary documents, including a copy of the FIR, claim form, and policy details.
• Assessment by Surveyor: The insurance company will appoint a surveyor to assess the extent of damages and validate the claim.
• Repair Process: If required, your car will be sent to a garage for repairs. Cashless service may be offered if the garage is within the network.
• Cashless Service: Cashless service will be provided if your car is being repaired at a network garage.
• Theft Scenario: In case of theft, the insured declared value will be given to you after the police provide a non-traceable report.

Comparison of Different Types of Car Insurance in India

The coverages offered in different car insurance plans are as follows:

Conclusion

As you embark on your car insurance journey, remember that the "best" company is the one that aligns with your specific needs and priorities. Thorough research, informed decision-making, and proactive engagement with your insurer pave the way for a secure and satisfying car insurance experience. By securing appropriate coverage, you're protecting your vehicle and investing in your peace of mind on the roads of India.

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