Top 11 Best Car Insurance Companies in India 2020

Top 11 Best Car Insurance Companies in India 2020

Who doesn’t dream of having his or her own luxury car? Who doesn’t want to reach office in their own car instead of going through the hassle and uncomfortable bus or train rides? Basically we can conclude by saying that it is every person’s dream to have his or her own car. Also in today’s world, thanks to the finances and easy loans offered by various banks or financial institutions purchasing a car is rather easy. You can get your car home delivered to you if you are willing and able to pay regular monthly EMI’s to pay off your loan.

However, purchasing the car and brining it home is not enough. You need to insure your car with an insurance company so that in case of any accidents or theft, you will get some percentage of money which will help you take care of the repairs and mitigate any losses that you have faced because of the accident or theft. This is where Car Insurance Companies come in.

What is a Car Insurance policy and why is it important for a car?

A Car Insurance policy is an insurance policy which is offered by a Car Insurance Company to the policy holders. A Car insurance policy insures the owner of the car that in case of any accident, theft or damage caused to the car, the Insurance Company is liable to pay a certain sum of money to the policy holder as compensation to mitigate the loses that he have incurred because of the accident, theft or damaged caused to his car.

Accidents or other damages to the cars are uncertain. And when such accidents or damage takes place, it may cost a fortune to repair your vehicle or purchase a new one. A car insurance policy aims at providing a considerable compensation for repair or for a new car purchase.

Also, the government of India with the Motor Vehicles Act 1988 made vehicle Insurance mandatory for every Car in India. If you dream or own a car then you should mandatorily get it insured under the Motor Vehicle act 1988.

List of 11 Best Car Insurance Companies

The next step in choosing an ideal Insurance Policy for your vehicle is to choose a Car insurance Company. To help you choose an ideal insurance company based on your requirements, we have prepared an analytical table of 11 Best insurance Companies based on their Incurred claim ratio, Network of Cashless Garages and the Policies offered:

Sr. No Car Insurance Company Incurred Claim Ratio Network of cashless Garages Policies Offered
1. United India Assurance Company Limited 109.49% Various garages throughout India ·       Motor Package policy.

·       Motor Liability only policy.

2. The New India Assurance Company Limited 95.39% Various garages throughout India ·       Private Car Policy.

·       Standalone Own Damage cover for Private Car Policy.

·       Motor liability only policy.

3. IFFCO Tokio General Insurance Company Limited 88% 4300+ garages throughout India ·       Car Insurance Policy.
4. Reliance General Insurance Company Limited 86% 4450+ garages throughout India ·       Car Own Damage Policy.

·       Car Insurance.

·       Third Party Liability Insurance.

5. Royal Sundaram General Insurance Company Limited 85% 4600+ garages throughout India ·       Car Shield.
6. Cholamandalam MS General Insurance Company 84% 6100+ garages throughout the India ·       Chola MS Car Insurance Policy.
7. TATA AIG General Insurance Company Limited 78% Various major garages throughout India ·       Auto Secure for Private Car.

·       3 Year Standalone Third Party long term Auto Secure – Private Car Policy

·       Bundled Auto Secure for Private Car.

8. Bharti AXA General Insurance Company Limited 77% 4500+ garages throughout India ·       Third Party Liability.

·       Comprehensive Policy.

9. HDFC ERGO General Insurance Company Limited 76% 6800 + garages throughout India ·       Comprehensive Single Year Car Policy

·       Standalone Own damage cover for Private Car.

·       Third Party Liability Car Insurance.

10. ICICI Lombard General Insurance Company Limited 75% 7800+ garages throughout India ·       Private Car Package Policy.
11. Bajaj Allianz General  Insurance Company Limited 69% 4000+ Garages throughout India ·       Four Wheeler Insurance Policy.

·       Third Party Liability Policy.

United India Assurance Company Limited.

One of the most well-known and trusted Insurance Companies is the United India Assurance Company Limited. United India Assurance Company Limited was established 18th February 1968. When general insurance business was legalized in India on 1972, 12 Indian Companies, 4 Cooperative Insurance Societies, Indian Operation of 5 Foreign Insurers, General Insurance operations of southern region of Life Insurance Corporation of India were combined with the UIIC (United Indian Assurance Company Limited).  The headquarters of UIIC is located in Pune.

United India Assurance has about 18300 work force and over 1300 offices across India. UIIC has over 10million satisfied policy holders across the country.

Highlights:-

  • The Incurred Claim Ratio of United India Assurance Company Limited is 109.49%.
  • United India Assurance Company has various cashless garages throughout the country.
  • The Various Insurance Policies offered by them are:
  1. Motor Package Policy.
  2. Motor Liability only Policy.

The New India Assurance Company Limited.

Founded on 23rd July 1919 by Sir Dorabji Tata the founder of House of Tata, The New India Assurance Company Limited is one of the leading insurance companies. This company was nationalized in 1973 and has been providing its customers with effective and helpful insurance policies. The headquarter of New India Assurance Company limited is located in Mumbai.

The New India Assurance Company Limited is the first non-life insurance company to reach over Rs 14000 Crores gross premium. It is also popular in countries abroad such as Japan and New Zealand.

Highlights:-

  • The Incurred Claim Ratio of The New India Assurance Company Limited is 95.39%.
  • The New India Assurance Company Limited has various cashless garages throughout the country.
  • The Various Insurance Policies offered by them are:
  1. Private Car Policy.
  2. Standalone Own Damage cover for Private Car Policy.
  3. Motor Liability only Policy.

IFFCO Tokio General Insurance Company Limited.

The IIFCO Tokio General Insurance Company Limited was founded on 4th December 2000. They are one of the leading insurance companies that has been growing rapidly and is successful in expanding their customer base across India. The headquarters of IIFCO Tokio General Insurance Company Limited is located in Gurugram.

They offer a wide range of Effective and helpful Car insurance policies and also ensures a hassle free and easy insurance claims for their customers.

Highlights:-

  • The Incurred Claim Ratio of IFFCO Tokio General Insurance Company Limited is 88%.
  • IFFCO Tokio General Insurance Company Limited has 4300+ cashless garages throughout the country.
  • The Various Insurance Policies offered by them are:
  1. Car Insurance Policy.

Reliance General Insurance Company Limited.

Reliance General Insurance Company Limited is a part of the Reliance Group. They are one of the leading and trusted insurance companies that ensures their customers satisfaction through effective policies and easy claims. Reliance General Insurance Company have its headquarters in Mumbai and provides various insurance policies including Motor Vehicle Insurance Policy, Health Insurance Policy and Travel policies too.

This the first company which was awarded an ISO 9001:2008 rating for taking care of their customer’s satisfaction through various policies and their easy and hassle free insurance claim process.

Highlights:-

  • The Incurred Claim Ratio of Reliance General Insurance Company Limited is 86%.
  • Reliance General Insurance Company Limited has 4450+ cashless garages throughout the country.
  • The Various Insurance Policies offered by them are:
  1. Car Own Damage Policy.
  2. Car Insurance.
  3. Third Party Liability Insurance.

Royal Sundaram General Insurance Company Limited.

Royal Sundaram General Insurance Company is the first private Insurance Company which was licensed on 2001. The headquarters are

located in Chennai. Royal Sundaram provide various policies including Motor Vehicle Insurance, Health Insurance, personal accidents etc.

The have over 5Million customers across India with over 2000employees to assist their customers.

Highlights:-

  • The Incurred Claim Ratio of Royal Sundaram General Insurance Company Limited is 85%.
  • Royal Sundaram General Insurance Company Limited has 4600+ cashless garages throughout the country.
  • The Various Insurance Policies offered by them are:
  1. Car Shield.

Cholamandalam MS General Insurance Company.

Cholamandalam MS General Insurance Company is one of the leading insurance companies in India. Their motto is “T3… Trust Technology and Transparency”. They provide a wide range of effective and helpful Car Insurance policies. They have their headquarters in Chennai.

Highlights:-

  • The Incurred Claim Ratio of Cholamandalam MS General Insurance Company is 84%.
  • Cholamandalam MS General Insurance Company has 6100+ cashless garages throughout the country.
  • The Various Insurance Policies offered by them are:
  1. Chola MS Car Insurance Policy.

TATA AIG General Insurance Company Limited.

TATA AIG General Insurance Company Limited is a popular insurance company which is a joint venture between American Conglomerate (AIG) and TATA. Tata AIG provides various effective and innovative insurance policies to its customers and ensure their satisfaction. The headquarters of TATA AIG is located in Mumbai.

Highlights:-

  • The Incurred Claim Ratio of TATA AIG General Insurance Company Limited is 78%.
  • TATA AIG General Insurance Company Limited has various cashless garages throughout the country.
  • The Various Insurance Policies offered by them are:
  1. Auto Secure for Private Car.
  2. 3 Year Standalone Third Party Long term Auto Secure Private Car Policy.
  3. Bundled Auto Secure for Private Car.

Bharti AXA General Insurance Company.

The next insurance company on our list is the Bharti AXA General insurance company. The ownership of this insurance company belongs to two companies, Bharti enterprises combined with AXA. The headquarters of Bharti AXA is located in Mumbai.

Founded in 2008, Bharti AXAX General Insurance Company offers a wide range of insurance policies including Two wheelers insurance, Car Insurance, Health Insurance, Personal Accident Insurance, Critical Illness Insurance, Home Insurance and Travel Insurance.

Highlights:-

  • The Incurred Claim Ratio of Bharti AXA General Insurance Company Limited is 77%.
  • Bharti AXA General Insurance Company Limited has over 4500 cashless garages throughout the country.
  • The Various Insurance Policies offered by them are:
  1. Third Party Liability.
  2. Comprehensive Policy.

HDFC ERGO General Insurance Company Limited.

HDFC ERGO General Insurance Company limited is one of the most popular and leading insurance companies in India.  This company has been formed as a joint venture between HDFC and ERGO Limited.

They have their headquarters in Mumbai and offer a wide range of insurance policies and services across the country. It is rated AAA by ICRA.

Highlights:-

  • The Incurred Claim Ratio of HDFC ERGO General Insurance Company Limited is 76%.
  • HDFC ERGO General Insurance Company Limited has over 6800 cashless garages throughout the country.
  • The Various Insurance Policies offered by them are:
  1. Comprehensive Single Year Car Policy.
  2. Standalone Own damage cover for private car.
  3. Third Party Liability Car Insurance.

ICICI Lombard General Insurance Company Limited.

The next insurance company in our list is among the top insurance companies in India. ICICI Lombard General Insurance Company was founded in 2001. Ever since then it has been successfully and efficiently providing various insurance companies to its customers.

ICICI Lombard has gross premium of Rs 1352.92 Billion. The Headquarters of ICICI Lombard is located in Mumbai.

Highlights:-

  • The Incurred Claim Ratio of ICICI Lombard General Insurance Company Limited is 75%.
  • ICICI Lombard General Insurance Company Limited has over 7800 cashless garages throughout the country.
  • The Various Insurance Policies offered by them are:
  1. Private Car Package Policy.

Bajaj Allianz General Insurance Company Limited.

Established in 2001, Bajaj Allianz General Insurance Company limited is one of the fastest growing insurance companies in India. Bajaj Allianz has its presence in over 200 towns and cities in India.

Bajaj Allianz’s headquarter is located in Pune. They provide various innovative and helpful insurance policies to their customers. It is a IRDAR (Insurance Regulatory and Development Authority of India) General Insurance Company.

Highlights:-

  • The Incurred Claim Ratio of Bajaj Allianz General Insurance Company Limited is 69%.
  • Bajaj Allianz General Insurance Company Limited has over 4000 cashless garages throughout the country.
  • The Various Insurance Policies offered by them are:
  1. Four Wheeler Insurance Policy.
  2. Third Party Liability Policy.

Factors to keep in mind while choosing the best Car Insurance Company?

Choosing the best Insurance Company based on your requirements is the most crucial step while choosing the best insurance policy for your car. There are several factors that we need to keep in mind before selecting an Insurance Company based on our requirements.

The various factors that we need to keep in mind are:-

A. Authenticity of the Company.

Checking the authenticity of an Insurance Company is the first factor that you need to consider while selecting the best insurance company. Only the products which are provided by an authentic company can be deemed as authentic. Every Insurance company has to register themselves with the IRDAI (Insurance Regulatory and Development Authority of India) and has a valid license. You will need to check the particular license of the insurance company to ensure that it is a valid company.

If the insurance company carries a license given by the IRDAI, only then the insurance company can be termed a valid insurance company.

B. Financial position of the company.

The next factor that you will need to consider is the financial condition of the company. It is mandatory for every insurer to upload/publish their financial statements on their official website. You can find all the information related to the company’s finances and determine if the company is financially stable or not.

C. The Claim Ratios.

The next step that you need to follow is to check the claim ratio of the company. (CSR) Claim Settlement ratio refers to the percentage of claims which are settled by the insurance company. It is recommended to choose the insurance company whose CSR is more than 90% because a CSR of above 90% shows that the insurance company has settled more than 90% of their claims.

D. Taken to settle the claims.

Time is a crucial factor that plays a major role in the selection process of an ideal insurance policy. Companies require a certain period of time to settle their customer’s car insurance claims. The company that takes the least amount of time in settling the insurance claims is the best as the customers are able to get the benefits of quick settlement. However for some companies, this period is very large and often very complicated for the customers.

Hence it is advisable to select that Insurance company which takes the least amount of time for loan settlements.

E. Their Network of Cashless garages.

The next factor is checking the network of Cashless garages. If an insurance company has a wider network of cashless garages across the country, this means that it would be very easy for their customers to get cashless settlements for their Car insurance claims.

How to find the best Car Insurance Policy?

After selecting the ideal insurance company based on the various factors and characteristics, the next step is to decide which you need to find the insurance policy you want to buy? There are various factors that you will need to consider before making the decision of buying a particular insurance policy.

The factors that we will need to consider are:

A. The amount of premium charged.

The first factor that you need to keep in mind is the amount of premium charged. There are various policies which charge very high premiums. So while buying an Insurance policy for your car, you need to check the premium amount and access whether you will be able to pay the premium amount regularly or not.

B. Amount of Coverage allowed.

The next factor is the amount of coverage allowed. People often do not check this characteristic and buy an insurance policy for their car just by looking at the premium amount.

Amount of coverage means that amount that you will recover from the insurance company in case of any accident or damages to your car. It is advisable to buy the insurance policy with higher amount recovered.

C. The claim process.

The simplicity of the claim process is another factor that you need to check before buying an insurance policy. Simpler the claim process, easier you will be able to get your claim’s settlement done.

D. Discounts offered.

There are several discounts that are available for purchasing a Car Insurance Policy. You need to check the discounts allowed. For instance various insurance companies offer some premium discounts for their customers if the customers install safety devices in their cars etc. This discounts help to decrease the premium amount that you need to pay regularly.

Once you have considered all the above mentioned factors, you will be able to choose an ideal insurance policy for you based on your requirements.

How to buy the best Car Insurance Policy?

After you have made up your mind and selected the best Car Insurance Policy based on your requirements, the next step is to buy that Insurance Policy from the Insurance Company. Now-a-days with the help of Internet, you can buy the best insurance policy right from the comfort of your home.

The steps that you need to follow to buy the Car Insurance Policy online are:

  1. Log on into the insurance company’s official website and search for the “Car Insurance” Option.
  2. Click on the Car Insurance Option.
  3. You will be directed to a new page where you will be needed to furnish details related to your car such :
  4. Your Car’s registration Number.
  5. Your Car’s Chassis Number.
  6. Your personal mobile number and your valid email address.
  7. You will also be asked about your car’s age, date of purchase, kilometers travelled etc.
  8. Select the type of policy that you want for your car from the list of all the available policies.
  9. Once you have selected the Car Insurance Policy, check the add-ons and choose an add-on if you want.
  10. You will be promoted to another page where you will have to enter your personal details, bank account number etc.
  11. After entering the details upload the various documents asked by the company.

The documents required for buying a car Insurance policy are:

  1. Proof of Identity
  • Aadhaar Card
  • Passport
  • Driving License
  • Voter ID
  1. Proof of address
  • Passport
  • Voter ID
  • Driving License
  • Bank or Post Office Passbook
  1. A Passport Size Photo
  2. Registration Certificate of the vehicle
  3. After uploading the details make the payment using your Debit-Card, UPI, Mobile Wallets, etc.
  4. After payment is made, you will get an acknowledgement stating that the policy is now purchased and that the payment is made.

Conclusion

A Car Insurance policy is very important for your vehicle in India. It is also important for the owners of the cars too as insurance policies aim to provide financial aid to the owners in case of any unforeseen accidents. However while choosing a Car Insurance Policy for your car, the most important factor that you need to keep in mind is the Insurance Company.

There are many insurance companies in India which offers the services of Car Insurance. But there are only a few notable companies which have always succeeded in fulfilling their customer’s needs through their services and hassle free claim procedure. These companies offer various benefits to their customers including discounts. So as a customer, before buying a car insurance policy you will have to carefully examine each and every details of the car insurance company to ascertain whether or not the company will be able to settle your insurance claim quickly or not.

In case you miss out even a single detail about the company, your experience with them might not be a good one. The company might take a long time to settle the claim.

FAQ’s

A. Which company is the best for car insurance in India?

Answer: Companies such as New India Assurance, ICICI Lombard, HDFC ERGO, Reliance General insurance etc. are some of the best car insurance companies in India.

B. What will happen if a car insurance policy is not renewed?

Answer: If the car insurance policy is not renewed then the premium will lapse. Also you will be fined by the authorities if you are found to be driving a car without a valid car insurance.

C. How are the amount of premium calculated?

Answer: The amount of premium charged depend on the cubic capacity of the car. Some premium amounts are also determined by the IRDA.

D. What is a personal accident cover?

Answer: Personal accident cover policies covers accidental deaths or injury in a car accident. If a person dies or suffers injury because of accident while driving/riding the insured vehicle, the customer will be paid a lump sum by the insurance company.

E. What are the various documents required for insurance claim of a private vehicle?

Answer: The documents required are:

  • A Copy of the Insurance Policy.
  • Driving License.
  • Registration certificate of the vehicle.
  • Pollution Certificate of the Vehicle.
  • Fitness Certificate of the Vehicle.

F. What is the period for renewal of an insurance policy?

Answer: If the insurance policy has expired, the policy holder will have to renew the policy within 90 days from the date of expiry.

G. Are natural calamities covered under car insurance?

Answer: Yes, if the damages done to the car is caused by flood, cyclone, earthquake, etc. the insurance company is liable to settle the claims of the policy holder.

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