Car insurance provides financial protection for private car owners against accidents, theft, fire, natural disasters, animal attacks, and other man-made acts. It also includes third-party liability coverage, which is mandatory as per the Motor Vehicles Act, 1988.
Car insurance is a type of vehicle insurance policy that protects you from any unexpected repair costs and legal liabilities. Under this contract, you pay a premium amount to the insurance company, which in return agrees to compensate you for the financial losses incurred due to damage or loss of your car. Insurers provide the compensation through claim settlement, with most policyholders preferring cashless repairs.
In a cashless claim, you can get your car repaired at an authorised network garage without paying from your pocket. The insurer settles the bill directly with the garage as per the policy terms and conditions. Most car insurance policies also include coverage for value-added services like roadside assistance, which helps during car breakdown situations by providing services like towing, flat tyre repair, and battery jump-starting, among others.
Whether you are buying a policy for a new car or want to renew your existing coverage, you should choose car insurance online. It allows you to quickly & conveniently compare multiple quotes based on coverage, premium, add-ons, and claim support so you can find the best plan for your needs.Read more
Why Do You Need Car Insurance?
Car insurance protects your finances and legal rights when something happens to your vehicle. Here is why you need it:
Mandatory under the Motor Vehicles Act, 1988 in India
Protects you from unexpected expenses
Covers accidents and third-party legal liabilities
Provides peace of mind while driving
Your Claim, Our Responsibility
May 2026 claims at a glance
An overview of claims settled with Policybazaar's assistance
Normal wear/tear, electrical/mechanical breakdown, driving without a valid licence, drunk driving, and standard policy exclusions
Essential Add-on Covers
Zero Depreciation, Engine Protection, Battery Protect (for Electric Cars), 24x7 Roadside Assistance, Return to Invoice, etc.
No-Claim Bonus (NCB)
Up to 50% discount for claim-free years
Claim Process
Inform Insurer → Submit Documents → Car Inspection → Repairs/Settlement
Cashless Claims
Available at authorised network garages, the insurer directly settles bills with the garage
Personal Accident (PA) Cover
Up to ₹15 lakhs
New Car (Bundled Policy)
1-year OD + 3-year TP (1+3) or 3-year OD + 3-year TP (3+3)
What are the Different Types of Car Insurance in India?
In India, a car insurance policy is categorised into three types based on the level of coverage it offers. You must choose a policy that meets your unique requirements.
Comprehensive Car Insurance Policy
Comprehensive car insurance offers complete protection by covering third-party liabilities and own damage. It covers damages and losses caused to a third-party as well as to your vehicle by accidents, theft, fire, riots, and natural disasters.
This type policy provides the most extensive coverage, and also offers you the option to enhance it with add-ons like zero depreciation, invoice protection, roadside assistance, etc., at a small additional premium amount.
Third-party Car Insurance Policy
Third-party insurance provides legal and financial protection if your insured vehicle accidentally causes damage or loss to another (third-party) person or their vehicle or property. However, third-party insurance does not cover damages caused to your own car.
As per the Motor Vehicles Act, 1988, it is mandatory for all vehicle owners in India to have third-party insurance. It offers coverage of up to Rs 7.5 lakh for property damages and unlimited compensation for third-party injury or death. IRDAI decides the third-party insurance premium rates.
Standalone Own Damage Car Insurance Policy
Standalone own damage insurance covers damages or losses caused to your own car. It covers repairs and replacement costs arising due to accidents, thefts, fire, natural disasters and riots. However, it does not provide protection against third-party liabilities.
If you have an active third-party insurance, you can buy this policy separately to get complete protection. You can also enhance its coverage through car insurance add-ons.
Explore all plans
What is the Difference Between Comprehensive and Third-Party Car Insurance?
Here is a table that shows the major differences between third-party and comprehensive car insurance:
Comprehensive Car Insurance
Third-Party Car Insurance
Coverage
Coverage
Covers TP liabilities as well as damages to your own car
Covers damages caused to another person or their property.
Property Damage
Property Damage
Covered
Covered
Bodily Injury/Death
Bodily Injury/Death
Covered
Covered
Own Damage
Own Damage
Own damages arising from accidents, theft, fire, calamities, etc., are covered
Not Covered. Covers TP liabilities only
Insurance Premium
Insurance Premium
Higher, as it covers both third-party and own damages
Lower, decided annually by IRDAI
Legally Mandatory
Legally Mandatory
No
Yes
Vehicle Theft
Vehicle Theft
Partial or total losses arising out of the theft of the insured car are covered up to its IDV
Not covered
Accidental Damage
Accidental Damage
Covered
Not covered
Availability of NCB
Availability of NCB
Yes
No
Availability of add-ons
Availability of add-ons
Available.
Not available
View more
Directly from Experts
At Policybazaar, we strive to make car insurance reach maximum people by offering affordable car insurance premiums. You can compare plans from 20+ car insurance companies to find the best price.
We focus equally on claims resolution with our Assured Delivery Program in 115+ locations, offering 24/7 claims support, dedicated relationship managers, and faster repairs with notifications at every step.
We offer customized insurance plans, like ‘Pay as you Drive,' where premiums are based on actual kilometers driven. For instance, if you drive less, say 5,000 km/year, you will only pay the premium for the actual distance covered. You can also recharge the driving limit when needed.
Pay-as-you-drive (PAYD) insurance is a flexible, Usage-Based Insurance (UBI) model for those who drive less frequently. It protects against accidents, theft, and natural disasters while lowering your own-damage premium by charging you only for the kilometres driven. Common slabs include 2,500 km, 5,000 km, 7,500 km, and higher options like 10,000 km. Here are some key highlights of pay-as-you-drive insurance:
Premiums based on actual usage
Ideal for occasional or weekend drivers
Simple odometer verification, no telematics device required
Top-up coverage for additional kilometres needed
View plans
Car Insurance for Electric Cars
Electric car insurance is a type of insurance policy specifically designed for battery-powered vehicles. It provides financial protection to your EV in case of an accident, theft, fire, or damages/losses to third parties. Here are the key highlights of car insurance for electric vehicles:
100% coverage for battery and charging equipment
Specialised roadside assistance for charging or towing
Plans start from Rs. 4.87* per day, with 15+ insurers
Up to 15% discount on Third-party premium
View EV Insurance Plans
Car Insurance Inclusions and Exclusions
What is Covered in Policy
Third-party Liabilities
Covers third-party liabilities, including third-party death, disability and property damages.
Accidents
Covers damages from road accidents, collisions or any external means.
Theft
Any partial or total loss to the insured four-wheeler from theft or burglary is covered up to its IDV (Insured Declared Value).
Man-made Acts
Damages from riots, strikes, terrorist activities, etc.
Natural Calamities
Covers damages caused by earthquakes, cyclones, typhoons, hurricanes and other natural disasters.
Fire
The comprehensive insurance plan covers damages or losses from fire, self-ignition, or explosion.
Animal Attack
Car insurance also covers accidental damages by animal attacks.
In-transit Damages
Any damages sustained by the insured vehicle while it was in transit via road, water, rail, or air.
What is Not Covered in Policy
Depreciation
Comprehensive insurance doesn't cover the usual wear and tear of the four-wheeler and its parts.
Invalid Driving License
Any damages when driving without a valid licence.
Drunk Driving
Accidental damages when driving under the influence of alcohol or drugs.
Outside Geographical Area
Damages occurred if driven outside the areas specified in the car insurance policy copy.
Mechanical Failure
Damages caused by mechanical or electrical faults.
Illegal Driving
Damages to the insured 4-wheeler if driven in a race or for unlawful purposes.
Damage due to War
If your car gets damaged in war-related events, invasion, or military operations, the losses will not be covered.
Car Insurance Add-Ons Explained
Add-ons in car insurance are extended coverage benefits that you can buy with a comprehensive or standalone own-damage plan at an additional nominal premium. Let's explore some major add-ons that you should consider choosing with your car insurance policy:
Zero Depreciation Cover
Also called a nil dep cover, the zero dep add-on offers a complete claim payout for the replaced car parts without deducting their depreciating value over time. However, the compulsory and voluntary deductibles (if opted for) still apply with this add-on cover.
Who Should Get It? - Owners of new and expensive cars
Example
Imagine you have a car accident that results in damage to your car's bumper and headlights.
Total repairing cost ₹45,500
With Add-On
Insurer pays
₹45,500
100% total repairing cost
You pay
₹0
Without Add-On
Insurer pays
₹31,850
70% or less of total repairing cost
You pay
₹13,650
30% or more of total repairing cost
For replacements
Insurer will pay a fixed percentage of the cost of new parts. This is as per IRDAI norms and is the same for all insurers.
Here's how much insurer will pay
With Add-On
Without Add-On
100%
Cost of glass and fibreglass components (eg. Windshield)
50%
Cost of tyre
100%
Cost of tubes
100%
Cost of batteries
100%
Cost of metal, wooden, paint & other parts
100%
Cost of glass components (eg. Windshield)
70%
Cost of fibreglass parts
50%
Cost of painting meterials
50%
Cost of plastic, rubber, nylon parts & batteries
60%
Cost of metal, wooden & other parts
Tips If you want to avoid paying out-of-pocket for part replacements, Zero Depreciation cover is a must-have.
No Claim Bonus (NCB) Protection Cover
While no claim bonus in car insurance provides discounts for not making any claim in the previous policy year; an NCB Protection cover is like an additional protective layer. It helps you save up to 50% on car insurance renewal premiums even if you raised a claim during a policy year.
Who Should Get It? - Those who want to retain NCB despite making claims during the policy year
Example
Imagine you make a minor accident claim during the policy year.
Your current No Claim Bonus (NCB): 50%
Base premium for next year: ₹12,000
With Add-On
Insurer pays
₹2,50,000
Your NCB remains intact
Your next year premium
₹6,000
(50% NCB retained)
You pay
₹0
Extra next year
Without Add-On
Insurer pays
₹2,50,000
Your NCB becomes 0%
Your next year premium
₹12,000
You pay extra
₹6,000
Due to loss of NCB
Engine Protection Cover
An Engine Protection cover provides coverage for losses due to oil leakage or water ingress, covering key components like the gearbox, engine parts, and differential.
Who Should Get It? - Best for people living in flood-prone areas
Example
Imagine your car's engine gets damaged due to water entering the engine during heavy rains.
Total engine repair cost: ₹1,20,000
With Add-On
Insurer pays
₹1,20,000
100% engine repair cost
You pay
₹0
Without Add-On
Insurer pays
₹0
(Water ingression not covered under standard policy)
You pay
₹1,20,000
(Water ingression not covered under standard policy)
100% out of pocket expense
Consumables Cover
A Consumables Cover add-on covers the costs of replacing essential consumable parts of the insured car in case of an accidental claim. These small but critical parts include nuts, bolts, screws, AC gas, lubricants, filters, and much more.
Example
Your car meets with an accident and requires minor repairs.
Losing car keys can be a harrowing experience, which you can avoid with a key protection cover. With this add-on, the insurer covers the replacement cost of lost, stolen, or damaged keys and the associated lockset.
Example
You lose your car keys and need a replacement.
Smart key replacement cost: ₹18,000
With Add-On
Insurer pays
₹18,000
Key replacement and reprogramming
You pay
₹0
Without Add-On
Insurer pays
₹0
70% or less of total repairing cost
You pay
₹18,000
Full replacement cost
Daily Allowance Benefit
Daily allowance add-on covers your transportation expenses when your car is being repaired in the garage after an accident. Under this add-on, the insurer provides a daily travel allowance if the damaged four-wheeler is in the garage for more than 3 days.
Example
Your car is in the garage for 6 days after an accident.
Daily allowance: ₹1,000 per day
With Add-On
Insurer pays
₹6,000
(₹1,000 × 6 days)
You pay
₹0
For daily travel expenses
Without Add-On
Insurer pays
₹0
You pay
₹6,000
For cabs or alternate transport
Personal Accident Cover
The personal accident cover compensates if the owner-driver suffers injuries, permanent/partial disability or death in an accident. The maximum sum insured in the PA cover in car insurance is ₹15 lakhs. Additionally, extended personal accident coverage for co-passengers is also available, subject to pre-determined limits.
Example
You suffer a permanent disability due to a car accident.
Sum insured: ₹15,00,000
With Add-On
Insurer pays
₹15,00,000
As lump sum compensation
You pay
₹0
Without Add-On
Insurer pays
₹0
You lose out on
₹15,00,000
Financial protection
Roadside Assistance Cover
The Roadside Assistance cover is the emergency helpline service provided by the insurer. It helps you with services like towing, fuel delivery, flat tyre repairs, and lockouts minor repairs. Your insurance company sends a mechanic to your location to fix the damage to your car. Since insurers do not count Roadside assistance coverage as a claim, it will not affect your NCB.
Who Should Get It? - Ideal for long-distance travellers and highway drivers
Example
Your car breaks down on a highway at night and needs towing.
Towing and assistance cost: ₹3,500
With Add-On
Insurer pays
₹3,500
Towing, on-site assistance, and support
You pay
₹0
Without Add-On
Insurer pays
₹0
You pay
₹3,500
Immediately
Return To Invoice Cover
The Return to Invoice add-on cover helps you receive your 4-wheeler's original invoice amount in the event of theft or total loss. This includes the ex-showroom price, road tax, and first-time registration charges. It is to be noted that the RTI coverage may differ from insurer to insurer.
Who Should Get It? - Best for owners of new or luxury cars
Example
Your car is stolen or declared a total loss after an accident.
Invoice value: ₹10,00,000
Current IDV: ₹7,50,000
With Add-On
Insurer pays
₹10,00,000
Full invoice value
You recover
₹2,50,000
Extra
Without Add-On
Insurer pays
₹7,50,000
(IDV only)
You lose
₹2,50,000
Compared to invoice value
Personal Baggage Cover
With Personal possession add-on cover in your car insurance policy, you get coverage if your personal belongings get damaged in an unfortunate event or stolen when your four-wheeler is parked in authorised parking. The coverage amount is limited and varies from insurer to insurer.
Example
Your laptop and luggage are stolen from the car.
Total baggage value: ₹60,000
With Add-On
Insurer pays
₹60,000
Personal belongings covered
You pay
₹0
Without Add-On
Insurer pays
₹0
70% or less of total repairing cost
You pay
₹60,000
To replace belongings
Tyre Protection Cover
A comprehensive policy excludes tyre or tube damages in an unfortunate accident. A Tyre Protection cover covers expenses related to repairing or replacement of tyres or tubes.
Who Should Get It? - Ideal for those who often go on adventures or drive on rough, bumpy roads
Example
Your tyre bursts due to a pothole and needs replacement.
Tyre replacement cost: ₹9,000
With Add-On
Insurer pays
₹9,000
Tyre replacement cost
You pay
₹0
Without Add-On
Insurer pays
₹0
You pay
₹9,000
Out of pocket
Driver and Passenger Cover
The driver and passenger add-on cover provides financial protection against accidental injuries to passengers riding in the insured car. The insurer covers financial aid for medical expenses, with a maximum coverage of up to ₹2 lakh.
Example
Passengers in your car get injured during an accident.
Medical expense per passenger: ₹2,00,000
With Add-On
Insurer pays
₹2,00,000
Per person
Medical and accident expenses
You pay
₹0
Without Add-On
Insurer pays
₹0
You pay
₹2,00,000
Per injured passenger
View more
Last Month's Trend
Top Add-Ons Selected by Customers
Zero Depreciation98%
Engine Protection 64%
Return to Invoice 73%
Consumables 77%
Check Add Ons
How is Car Insurance Premium Calculated?
There are two ways you can use to calculate car insurance premium:
Using Car Insurance Calculator
The easiest method to calculate the insurance cost for a car is to use a free online car Insurance premium calculator. Simply enter a few basic details of your car like its make, model, variant, and ex-showroom price. The calculator will instantly show the estimated car insurance price along with the IDV.
Car Insurance Premium Calculation via Formula
Another way to calculate your four-wheeler insurance premium is using the following formula:
On the other hand, the own-damage component of car insurance is calculated using this formula:
OD Premium = IDV * Premium Rate (decided by the insurer) + Add-Ons - Discounts
IDV (Insured Declared Value) of a car can be determined by using the following formula:
Insured Declared Value = (Current market value of the car - its depreciation) + (Cost of accessories - their depreciation)
Plans start @ ₹2,094#
Compare & save up to 91%* on Car Insurance
Third-Party Car Insurance Price List As Per IRDAI
As per IRDAI annual report 2024-2025, the third-party premium rates of car insurance are based on the car engine's cubic capacity (cc) and battery capacity. Here are the premium rates per the latest IRDAI notification.
Premium For Petrol & Diesel Cars
Engine Capacity
Third Party Premium
Less than 1000 CC
₹2,094
1000 to 1500 CC
₹3,416
More than 1500 CC
₹7,897
Premium For Electric Cars
Battery Capacity
Third Party Premium
Not Exceeding 30 kWh
₹1,780
30 kWh to 65 kWh
₹2,904
Exceeding 65 kWh
₹6,712
What are the Factors Affecting Car Insurance Premium?
Here are the common factors that affect the final car insurance premium. Understanding these factors is important for both new car insurance buyers and those looking to renew their policies:
Type of Policy
The car insurance price is decided directly based on the policy type you choose. While third-party insurance has the lowest premium, as it only covers damages or losses to other individuals, own-damage or comprehensive insurance plans have higher premiums.
IDV (Insured Declared Value)
IDV is another factor that significantly affects the premium. Usually, the higher the IDV, the higher its insurance premium, while a lower IDV means a reduced premium amount.
Car Make and Model
A four-wheeler's make and model, fuel type, and variant significantly affect its insurance price. Typically, it is costlier to insure high-end or luxury car models than the basic hatchback models because of the higher repair and part replacement costs.
Area of Car Registration
Usually, the premium price is higher in metropolitan cities because of denser traffic and, consequently, higher chances of accidental damage.
Add-on Covers
Though enhancing the policy coverage with add-on covers provides wider protection, it increases the premium, too. Hence, you must choose the add-ons for your policy wisely.
No Claim Bonus
If you have not filed claims during the policy term, the insurer provides a discount in terms of the No Claim Bonus (NCB). You can use this reward to reduce the policy premium at the time of car insurance renewal.
Driving Record
Many insurers check your driving history when deciding the four-wheeler insurance premium prices. Traffic infractions and accidents can affect this amount.
What Factors Impact Insured Declared Value (IDV) in Car Insurance?
When you buy a new car, its IDV is calculated at 5% less than its ex-showroom price. In case of theft or total loss of your car, the maximum amount you can receive from your insurance company is the IDV at that time. Here are a few factors that affect the IDV in car insurance:
Age of the Vehicle
The IDV decreases as your car gets older, which is why new car insurance premiums are higher than those for older ones. The table below shows how the age of your four-wheeler affects the IDV.
Vehicle Age
Depreciation (%)
0 - 6 months
Up to 5%
6 months - 1 year
Up to 15%
1 - 2 years
Up to 20%
2 - 3 years
Up to 30%
3 - 4 years
Up to 40%
4 - 5 years
Up to 50%
5+ years
Based on insurer and market value
Note: If you choose a lower IDV, it may reduce your premium but will also lower the claim amount.
Depreciation Rate
As your car ages, the value of its components declines. This, in turn, reduces its IDV. The table below provides a clear idea of the depreciation rate at which the car components are calculated:
Car Components
Rate of Depreciation (%)
Fiberglass parts
30%
Plastic/Rubber parts
50%
Metal parts
5% - 10% per year
Note: This depreciation charge can be avoided by opting for a zero depreciation or nil depreciation add-on cover.
After-Market Modifications
If you install any extra accessories in your car, it may increase your car's IDV. So, when buying or at the time of car insurance renewal, it is advised that you include the value of these modifications in your policy to ensure complete coverage.
How Can You Save on Your Car Insurance Premium?
Here are some useful tips to save on your car insurance premium costs and make sure that you have the coverage you actually require:
1
Compare Multiple Plans
Every insurer uses a different policy underwriting model, due to which the prices vary, even for the same level of coverage. So, before you buy or renew car insurance, view different options and compare prices and the benefits offered by the insurer. This will help you secure the right protection for your car at an affordable price.
2
Install Anti-theft Devices
If you have an anti-theft device in your car, the insurance company can offer you a discount of up to 2.5% or Rs. 500 on the own-damage part of your overall premium cost. Note that you are eligible for discounted premiums only if the installed device is certified by ARAI (Automotive Research Association of India).
3
Avoid Car Modifications
Every modification done to your four-wheeler increases its value and, in turn, its premium cost. Hence, you must not make any unnecessary modifications to avoid high premiums.
4
Review Add-on Covers
You can also save on your premium if you add only the essential add-ons to your car insurance policy. For example, you can avoid the Roadside Assistance add-on if you already have the coverage through the manufacturer's warranty or a third party membership. Additionally, the Engine Protection add-on is of no use if you live in a city or town that does not experience flooding or waterlogging.
5
Avoid Filing Small Claims
If you have minor car damage, like a dent or scratch, avoid raising a claim and instead pay for the repairs out of your pocket. Doing this small step of not making claims for minor damages will protect your accumulated No Claim Bonus (NCB) and help you save on your premium costs.
6
Consider PAYD Insurance
If you do not drive often, choose Pay-as-you-drive (PAYD) insurance to save on your premium costs. This type of car policy is usage-based, for which you pay the premium only for the number of kilometres you drive.
7
Avoid Policy Lapse
If you renew car insurance after its expiry, it leads to a policy lapse. It, in turn, increases the premium and cancels NCB. So, you should get your car insurance renewal on time to avoid hefty premium amounts.
8
Increase Deductibles
Deductible is the amount that you agree to pay out-of-pocket when making a four-wheeler insurance claim. When you increase your share of deductibles, the insurer offers you some discount on the policy premium as you agree to pay more at the time of the claim.
Old and New Car Insurance Price Differences
Car insurance for new cars is more expensive than for older cars. Here's a comparison of Maruti Swift insurance prices between a new and an old model:
Parameter
Brand-New Maruti Swift (2026 Model)
8-Year-Old Maruti Swift (2018 registration)
Policy Type
Bundled (1-Year OD + 3-Year TP)
1-Year Comprehensive
IDV
Rs. 5.49 Lakh
Rs. 2.30 Lakh (approx.)
NCB
0%
50% (if claim-free)
Add-ons
Zero Dep, Engine Protection, Invoice Protect
Zero Dep
Estimated Premium
₹14,000 - ₹16,000
₹5,000 - ₹7,000
Compare Price & Check Savings on Top Selling New Cars
Mahindra XUV 700
Dealers price
₹82,707
Our price
₹35,649
Your Savinigs
₹47,058
Maruti Brezza
Dealers price
₹43,023
Our price
₹14,702
Your Savinigs
₹28,332
Tata Nexon
Dealers price
₹41,676
Our price
₹15,176
Your Savinigs
₹26,500
Maruti Dzire
Dealers price
₹41,459
Our price
₹14,569
Your Savinigs
₹26,890
Mahindra XUV 3XO
Dealers price
₹49,347
Our price
₹15,792
Your Savinigs
₹33,555
Mahindra Thar
Dealers price
₹89,411
Our price
₹33,624
Your Savinigs
₹55,787
Hyundai Creta
Dealers price
₹55,032
Our price
₹16,132
Your Savinigs
₹38,900
Kia Seltos
Dealers price
₹46,814
Our price
₹15,831
Your Savinigs
₹30,983
Tata Punch
Dealers price
₹31,298
Our price
₹14,321
Your Savinigs
₹16,947
See more
Car Insurance Companies in India 2026
Here is the list of car insurance companies in India, including their claim settlement ratios and the number of network garages they cover.
Car Insurance Companies
Network Garages
Claim Settlement Ratio (CSR)
ICICI Lombard General Insurance Co. Ltd.
5900
96.75%
The New India Assurance Co. Ltd.
3000
95%
TATA AIG General Insurance Co. Ltd.
7500
-
United India Insurance Co. Ltd.
3100
95%
Bajaj General Insurance Limited
4000
98.5%
Go Digit General Insurance Limited
Repair Anywhere
96%
Cholamandalam MS General Insurance Co. Ltd.
8300
96%
National Insurance Co. Ltd.
3100
93%
SBI General Insurance Co. Ltd.
16000
-
IndusInd General Insurance (formerly known as Reliance General Insurance)
8200
98%
The Oriental Insurance Co. Ltd.
3100
94%
IFFCO-Tokio General Insurance Co. Ltd.
4300
95.8%
Shriram General Insurance Co. Ltd.
2000
96%
HDFC ERGO General Insurance Company Ltd.
8200
99%
Royal Sundaram General Insurance Co. Ltd.
3300
98.6%
Universal Sompo General Insurance Co. Ltd.
3500
96%
Magma HDI General Insurance Co. Ltd.
4000
96.6%
Future Generali India Insurance Co Ltd.
3500
96.3%
Liberty India General Insurance
4500
98%
Zurich Kotak General Insurance Co. (India) Ltd.
2327
98%
Zuno General Insurance Ltd.
1500
98%
View more
Disclaimer: The insurers/plans mentioned are arranged in order of highest to lowest gross direct premium income for motor insurance(total) by non-life insurers within India segment wise as per “Gross Direct Premium Income Underwritten By Non-Life Insurers Within India (Segment Wise): for the period upto March 2025 (Provisional & Unaudited ) In FY 2024-25”, published by General Insurance Council. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. The insurers/plans mentioned are offered by Policybazaar's insurer partners offering motor insurance plans on our platform for complete list of insurers in India refer to the IRDAI website www.irdai.gov.in.
How to Select the Right Car Insurance Coverage Online?
Keep in mind these important factors to get the right car insurance online:
Appropriate Policy Coverage
While third-party insurance is sufficient to avoid traffic fines, a comprehensive car policy offers complete protection to you and your vehicle.
Insurer Claim Settlement Ratio (CSR)
A higher claim settlement ratio (CSR) of the insurer implies there are greater chances of your claims being settled.
Cashless Garages
Choose an insurer with an extensive network of cashless garages. It will broaden the scope of availing of a cashless repair facility without paying cash from your pocket.
Know the Claim Process:
Go for an insurance company with an easy claim process, 24x7 claim support, and a faster claim settlement.
Select the Suitable IDV
Choose the IDV that matches your car's market value. While a lower IDV can help you save on your premium costs, you may incur higher out-of-pocket expenses during claims.
When buying insurance for a car, it is important to take the insurer's customer service and other benefits into the account. Look for the insurer that offers 24/7 assistance when you have any queries or need claim-related help.
Policybazaar Exclusive Benefits
Advantages you get
365 days
Free pickup & drop
5-Day
Quick repair services
24x7
Claims support, even on holidays
Get assigned a dedicated manager
Why trust us?
70K+
Cashless garages
₹440 Cr
Claims settled
10.5 Cr
Happy customers
How to Buy or Renew Car Insurance Online?
Buying or renewing car insurance online is quick, simple and hassle-free. You can compare plans, check prices, and purchase the right car insurance coverage as per your needs. Check out the steps below:
On Policybazaar's homepage, click 'Car Insurance.'
Enter your vehicle number or select 'Brand new car' for new car insurance.
Provide your car details and fill out the registration form.
Now, compare car insurance quotes, policy features, benefits, and premium prices from different insurers.
Select a plan that best fits your coverage needs and budget.
Opt for or drop add-on covers (as required).
Securely pay the premium amount via cards, UPI, or net banking.
After the payment is successful, a soft copy of your policy will be instantly sent via email.
Documents Required for Buying/Renewing Car Insurance Online
You do not need any documentation or paperwork when you purchase or renew car insurance online from Policybazaar.com. However, there are some details that you must have handy. These include:
NCB, insurer name, car policy no., the policy period, Add-on info
KYC
Proof of Residence and Proof of Identification (Pan Card/Aadhar/DL/Voter ID/Form 16/Passport)
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What are the Benefits of Buying or Renewing Car Insurance Online?
Buying or renewing car insurance online offers several important benefits that help you save both time and money:
Easy Comparison
The online process allows you to easily compare car insurance plans offered by multiple insurers with just a click. This helps in easily understanding the policy features and additional services offered by different insurers.
Seamless Customisation
Another benefit of purchasing car insurance online or renewing it is the feasibility of personalising the coverage based on the requirements. During a car policy renewal, you can easily modify the four-wheeler insurance coverage by adding or removing add-ons.
Easy to Switch the Insurer
If you are dissatisfied with your current insurer or find some other insurer's offerings more appealing, you can switch car insurer at the time of car insurance renewal online.
Secured & Transparent
Secured payment gateways make car insurance renewal or buying online a safe and transparent process. Policy premiums can be easily paid using credit/debit cards, and UPI.
Why Should You Renew an Expired Car Insurance Policy Immediately?
Here are the top 4 reasons why it is important to renew your expired car insurance policy immediately:
Legal Requirement
Motor insurance is mandatory for all vehicle owners in India. Hence, if you are caught driving without a valid car policy, you could incur fines of up to ₹4,000 and face imprisonment as well.
Save the Loss of NCB
If you do not renew your expired car policy within 90 days, you will lose your benefits of No Claim Bonus (NCB), which can otherwise help in getting big discounts on car insurance renewal premiums.
Continued Coverage
If your car insurance has expired, you do not get policy coverage. This means you become financially vulnerable to bear the repair costs yourself in case of accidents, theft, fire, etc.
Save yourself from Vehicle Inspection
A four-wheeler with an expired insurance policy may have to undergo a mandatory inspection before its coverage can be renewed. The insurer can deny car insurance renewal or raise the premium amount if the car is poorly maintained or in bad condition.
How to Check Your Car Insurance Status Online?
After you buy or renew your car insurance online, it is important to verify its status and confirm if it is active and correctly recorded. This helps you stay legally compliant and financially covered if something expected happens. There are multiple reliable platforms you can use to check your car insurance status online through your car's registration number or policy number. These include:
Parivahan Sewa Portal
mParivahan App
Insurance Information Bureau of India (IIB) Portal
Policybazaar.com
These online platforms let you quickly access your car insurance details, like the insurer's name, policy validity, and coverage status. By regularly checking your car insurance status, you can avoid fines for expired policies, prevent coverage gaps, and make sure that your information is accurate and up-to-date in the records.
How to Download Your Car Insurance Policy Copy Online?
When you purchase car insurance online, your insurer sends your policy documents to your registered address. Moreover, you also receive a digital copy of your policy at your email address. However, if you lose your policy documents, you can download your policy copy from the official website of Policybazaar. Here are the steps to download your car insurance policy copy online:
Visit Policybazaar.com and select the 'Sign in' tab.
You can sign in via OTP or through your Google account.
You will now be redirected to your account dashboard.
From the 'Your Policies' section, you can easily download your policy copy.
Lock Price Now, Buy Later
Tired of fluctuating price disrupting your insurance plans? Now you can lock in the current premium for 4 hrs to up to 14 days with our “Price Lock” feature.
The price you lock is the prize you'll pay, unless itr drops.
You get the flexibility to take extra time to coordinate with friends/family.
Just pay a minimal fee & rest assured that your fare won't change.
How it works?
If price increases, you pay the locked price. If price decreases, pay the new lower price.
Pay a small fee to get the benefit of “Price Lock” feature.
Pick your preferred “Price Lock” window from the options provided.
Buy your plan before the locked price expires.
Claim for Accidents
Third-Party Claim
Stolen Car Claim
How to Raise a Car Insurance Claim for Accidents?
To raise a car insurance claim for damages to your own four-wheeler, follow these steps:
Note: Initiate the claim process promptly and follow your insurer's instructions to avoid delays or rejections.
Inform the Insurance Company
File FIR
Record Evidence
Submit Required Documents
Damage Assessment
Repair
Claim Settlement
How to File a Third-Party Car Insurance Claim?
Here's the step-by-step process of filing a third-party car insurance claim:
Note: The court decides the payout amount under third-party claims based on the third party's age, profession, and income.
Inform your insurer immediately if you receive a legal notice from a third party.
Do not agree to any out-of-court settlements or pay on your own.
Submit copies of the legal notice, FIR, RC, and your driving licence to your insurer.
The insurer will verify your case and assign a lawyer to represent you.
If the Motor Accident Claims Tribunal (MACT) orders compensation, your insurer will pay the third-party directly.
How to Raise a Stolen Car Insurance Claim?
Here is how you can file a car insurance claim if your car is stolen:
Report the theft to the Police and submit the FIR copy to your insurer.
Provide the final untraced police report to your insurer so they can assign a surveyor for further claim investigation.
Upon claim approval, submit your stolen car's RC, duplicate keys, a subrogation letter, and a notarised indemnity bond to your insurer.
After all formalities, your insurer will either pay you your car's IDV, or its original purchase price (if you have a 'Return to Invoice' add-on).
Documents Required for Filing a Car Insurance Claim
Here are the important documents that you will need when raising a car insurance claim:
Duly filled and signed claim form
Your car insurance policy copy
Driving license
RC copy
Copy of police FIR (in case of theft claims)
Original repair bill and payment receipt
Estimated repair bills
Why Should You Choose Cashless Car Insurance for Repairs?
Filing a cashless car insurance claim for repairs offers the following benefits to policyholders:
Quick Settlement: In a cashless claim, the insurer coordinates directly with the garage for damage inspection, approval, and repair. This significantly accelerates the repair process compared to traditional reimbursement claim procedures.
Zero Out-of-Pocket Expenses: The insurance provider settles bills directly with the garage; your liability is limited only to mandatory deductibles and depreciation (unless offset by specific add-on covers).
Certified Quality Repairs: The repair work is done at the insurer's authorised network garages, which use genuine spare parts and follow strict quality standards.
Simplified Paperwork: The garage and insurer manage most of the documents, so you do not have to track every bill and receipt.
Fair and Transparent Process: With a dedicated surveyor overseeing the claim from start to finish, you are guaranteed fair billing and protection against unnecessary repair costs.
Common Mistakes to Avoid When Filing a Car Insurance Claim
To avoid car insurance claim rejection or insufficient payouts, be mindful of these common mistakes that most people make:
Admitting Fault or Guilt
Never admit liability at the accident spot, and let the insurance companies figure out who's at fault.
Delaying Notification
Failing to inform your insurer immediately after the accident can increase the risk of your claim being denied.
Skipping the Police FIR
Not informing the Police, particularly in case of theft or third-party injury or damage, can also lead to claim rejection.
Starting Repairs too Soon
Do not start repairs before a surveyor inspects the car, or you may risk claim rejection.
Lack of Documentation
Failing to take pictures of the scene or gather testimonies from the witnesses can weaken your case.
Settling Personally
If you make any private, cash settlements with the other party instead of involving the insurer, it can result in complications in the future.
Important Car Insurance Terminologies You Must Know
Premium is the amount the vehicle owner pays to the insurer in exchange for the financial protection of the four-wheeler.
Insured Declared Value (IDV)
IDV is the current market value of the insured car. If it suffers a total loss (theft or damage beyond repair), IDV is the maximum compensation that the insured person will get from the insurer.
Regional Transport Office (RTO)
The RTO is the official government body in India that maintains the database of vehicle ownership, registration, and licence validity.
Own Damages
Damages from an accident, natural calamity, fire, man-made disaster or burglary.
Total Loss
A car is declared a total loss when it is stolen and not recovered or if its repair costs exceed a specified percentage of its IDV.
Endorsement
An endorsement is making an official change to your car insurance policy during its tenure.
Grace Period
It is the additional time that insurers give for car insurance renewal after your policy has expired. If you renew your policy during this period, you do not lose your No-Claim Bonus, but you cannot make any claims.
Geographical Limit
The geographical limit is the specified area (usually within India) where your car insurance provides coverage. Any loss or damage that happens outside this limit may not be covered.
Personal Accident Cover
Personal accident cover in car insurance provides compensation to the owner-driver in case he/she becomes disabled or dies in an accident.
Surveyor
In case of an accident, the insurer sends a surveyor to the accident scene or the garage to inspect the car, take photos, and record details to verify the cause of damage and estimate repair costs.
Consequential Loss
It is the indirect financial impacts that arise due to a damage event, such as loss of income or secondary effects, which are usually not covered under a standard car insurance policy unless separately covered.
Cashless Claims
These claims are filed when the insured 4-wheeler is taken for repair at a network garage authorised by your insurer.
Voluntary Deductible
A voluntary deductible is the amount the policyholder chooses to pay out of pocket when making a car insurance claim.
No Claim Bonus (NCB)
No Claim Bonus or NCB is a discount on the car insurance renewal premium. This reward is given by the insurer to the policyholder for safe driving and not raising any claims in the previous policy year.
Named Driver
This is a specific person listed in the car insurance policy documents who can drive the insured car. If an unlisted or unlicensed driver was found to be driving the car at the time of the accident, insurers can reject the claim.
End of Life (EOL) Vehicle
These are the vehicles that have reached a stage where they are no longer legally permitted to operate. In India, private petrol cars older than 15 years and diesel cars older than 10 years may be categorised as EOL under local regulations (like in Delhi-NCR).
Zero Depreciation Cover
Zero depreciation is an add-on cover in car insurance that prevents the depreciation deduction on the four-wheeler and its parts during claims.
Break-in Insurance Inspection
If a policy expires and is not renewed on time, the insurer may inspect the car for existing damages before proceeding with the car insurance renewal.
Subrogation
It is the process in which the insurer may legally seek to recover the amount from another party responsible for the loss after settling a claim.
Anti-Theft Device
An anti-theft device is a security system (such as an engine immobiliser or alarm system) for cars to prevent theft.
Downtime Cover
This is an add-on cover that provides compensation for your daily commute costs if your car is under repair after an accident.
Salvage Value
It is the remaining value of your car after total loss or severe damage, which insurers deduct from the claim amount if you do not hand over the car to them.
Free Look Period
It is a short time after you receive your car insurance policy to review the terms, cancel the coverage if you are not satisfied, and receive a refund of the premium (subject to applicable deductions).
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FAQs About Car Insurance
General
Buy/Renew Policy
Policy Coverage & Premium
Claims
Q1. Which car insurance policy is best to buy?
Ans: The 'best' car insurance plan depends on your unique requirements, such as the level of coverage, premium amount, or ease of claims. For all-around safety (third-party liabilities + own damages), choose comprehensive car insurance along with the zero depreciation add-on.
Q2. Can I transfer my car insurance to a new car owner?
Ans: Yes, when selling your car, you can transfer your car insurance to a new owner. It is legally required, so both the buyer and seller stay protected from any future liabilities.
Q3. When should I choose zero dep cover?
Ans: When buying car insurance, you must opt for the zero depreciation add-on cover if you want your insurer to pay the complete cost of replacing damaged parts without deducting for their depreciation (wear & tear due to ageing) during a claim.
Q4. Should I buy comprehensive or third-party car insurance?
Ans: You should always choose comprehensive car insurance if you want full protection for your car. A third-party policy is recommended if your car is very old or rarely used, as it only covers accidental damage from your car to other people or their property.
Q5. When I buy new car insurance, which policy type should I choose?
Ans: For a new car, you should choose a comprehensive car insurance policy along with essential add-ons like zero depreciation cover, return to invoice cover, and 24x7 roadside assistance. This will offer the highest level of protection for your brand-new car.
Q6. Are offline & online car insurance the same? Is it safe to buy online?
Ans: Buying car insurance online is safe and more affordable than offline. While both offer the same coverage, the buying experience and prices may differ.
Q7. Can I purchase a car insurance policy on EMI?
Ans: Yes, select the EMI option on the payments page while buying car insurance.
Q8. Which insurance plan is compulsory for a new car?
Ans: According to the Indian Motor Vehicles Act, 1988, third-party coverage is compulsory car insurance for new cars. This helps avoid any financial or legal consequences in case of any unforeseen incident on the road.
Q9. Why is the first insurance of a car costly?
Ans: Since the market value of the new car is higher than that of the older models, its IDV (Insured Declared Value) is also higher, resulting in a higher new car insurance premium.
Q10. What if there is a mistake in my car insurance policy?
Ans: In case you find a mistake, you can contact your insurer or policybazaar if you have purchased it from us. We will immediately assist you with policy endorsement to avoid claim rejections or policy cancellation.
Q11. Is my car insurance valid in another state in India?
Ans: Yes. As per the Motor Vehicles Act, 1988, your car insurance policy is valid across all states in India.
Q1. How much is the cost of renewing car insurance?
Ans: While the third-party insurance price in India starts at Rs. 2,094 for cars under 1000cc, the actual car insurance renewal cost depends on the engine capacity, type of the policy, and NCB discounts.
Q2. What is the penalty for driving with an expired insurance policy?
Ans: The fine for driving without a valid car insurance policy is Rs. 2,000 (for first-time offenders). For a repeat offence, the penalty may go higher to Rs. 4000 and may also include 3 months of imprisonment.
Q3. What is the car insurance grace period in India?
Ans: The grace period for car insurance is 15 to 30 days after the policy has expired. Although some companies might allow up to 90 days.
Q4. Should I change my car insurance provider every year?
Ans: No, but you should compare car insurance prices every year before renewing. If any other insurer offers better coverage or lower premiums, you may consider switching.
Q5. How can I save on my car insurance renewal costs?
Ans: In 2026, you can lower your car insurance renewal premium by comparing quotes, availing NCB discounts by not filing claims, choosing a higher deductible, installing anti-theft devices (ARAI-approved), and avoiding unnecessary add-on covers.
Q6. Is it okay to renew car insurance after expiry?
Ans: To renew your policy after its expiry, your car will first be inspected by the insurer. The best thing is that you can renew car insurance 15 to 30 days before its expiry.
Q7. I rarely drive my car. Can I just buy third-party insurance?
Ans: Yes, you can, but it will only cover the losses or damages you cause to other people or their belongings. Instead, you can consider Pay as you Drive insurance if you don't want to pay full price and keep the optimum coverage. Under this plan, you pay for the number of kilometres you actually drive. The options that you can avail are 2500km ,5000km, 7500km and 10000km. In case the limit is crossed, you can revise the same.
Q1. Which company offers the lowest car insurance?
Ans: You can check the lowest car insurance premium prices at Policybazaar.com, which offers easy comparison of different policies from the best insurance companies in India simultaneously.
Q2. Does car insurance cover damage from a rat bite?
Ans: Yes, comprehensive car insurance covers damage caused by rat bites. These include chewed wiring or scratches on upholstery, plastic panels, etc. Rodent bites are also covered under Pay as you drive car insurance in India.
Q3. Is the engine covered in zero dep?
Ans: Engine damages are not covered under the standard zero depreciation cover. For this, you must purchase an Engine Protect add-on with your car insurance.
Q4. Are passengers covered by car insurance?
Ans: A basic car policy does not cover passengers sitting in the insured four-wheeler. However, you can purchase a Passenger Protection Cover to get compensation in case any passenger suffers injury or dies at the time of the accident.
Q5. Does car insurance cover paint damage?
Ans: Yes, you can claim for accidental paint damage if you have comprehensive car insurance.
Q6. Does the city of registration affect the car insurance premium?
Ans: Yes, the area of vehicle registration impacts its own-damage insurance premium, as IRDAI categorises regions into Zone A (metropolitan) and Zone B (the rest of India) to determine risk levels and set rates.
Q7. Will I get a discounted premium if I am a member of the Automobile Association of India (ARAI)?
Ans: Yes, most insurance providers offer car insurance discounts to ARAI members.
Q8. What if my friend borrows my car and gets into an accident? Will my car insurance policy cover the damage?
Ans: Yes, your comprehensive car insurance policy will cover the damages to your car even if your friend is driving.
Q9. If I get injured in an accident, will my car insurance policy cover hospital bills?
Ans: Yes. The Compulsory Personal Accident (CPA) cover with your car insurance provides a lump-sum payout in the unfortunate event of an injury or death.
Q10. If someone breaks into my car and steals my laptop, is it covered?
Ans: No, car insurance only covers the damage or loss to the insured car and not personal items. For that, you should have a Loss of Personal Belongings add-on with your policy.
Q1. How many times can we claim under car insurance in a year?
Ans: There is usually no limit on the number of motor claims you can make in a year. Each time you claim, it affects your NCB, and it may increase your car insurance renewal premiums for the future.
Q2. Can I get my car repaired at a garage of my choice and claim later?
Ans: You can check for cashless garages available in your area and get your car repaired at a garage of your choice. In case of a non-cashless garage, you can pay for the repairs from your pocket and raise a reimbursement claim to receive the compensation later from your insurer.
Q3. What is the time limit for car insurance claim settlement?
Ans: Car insurers complete most claim settlements within 10 working days. The actual duration depends on the terms & conditions of the insurer and the extent of damage.
Q4. What happens if there are more passengers in my car than allowed and we get into an accident? Can I raise a claim for it?
Ans: You can still raise a claim in this scenario. However, the insurer can closely scrutinise the claim and has the right to deny it or reduce the compensation amount.
Q5. Under which circumstances can my car insurance claim be rejected?
Ans: Your insurer can deny a claim if you were driving under the influence of drugs or alcohol, had an expired car insurance policy or licence, or used a private car for commercial purposes at the time of damage.
Disclaimer: The list mentioned is according to the alphabetical order of the insurance companies. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website www.irdai.gov.in
In today's digital age, obtaining a duplicate car insurance policy online has never been easier. Whether you have
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Car Insurance Reviews & Ratings
4.6 / 5
Bhavya
Kota, March 09, 2024
★★★★★
Fast Process
Claimed for damages to my car as it collided with a cow on my way to office. The team was supportive and got my claim assisted fast. Got cashless claim and it was satisfactory as I received my car at my doorstep in 3 days only. Happy with the service.
Mallu
Raipur, March 08, 2024
★★★★★
Problem solver
Mr. Rajesh support executive of Policybazaar found a solution to my problem quickly. I was facing difficulty in customizing my Kotak Mahindra insurance plan for my Swift Dzire car. I was able to customize my plan after getting in touch with him. Thanks to the entire team for providing assistance to me.
Subodh
Kolkatta, March 07, 2024
★★★★★
Little discount
I am glad to get my Taigun car insured from Policybazaar. I really liked the way of explation the SBI third party insurance paln feature by Mr. Sachin customer support features. Thanks to an executive who explained each and everything in detail.
Sanjay
Nagpur, March 06, 2024
★★★★★
Financial help
My friend suggested me to insure my Tata Hexa car from policy bazaar. I explore car plan and I saw many plans out of which I opted for reliance general comprehensive car insurance and got complete protection for my car.
Mridual
Gurugram, March 05, 2024
★★★★★
Understanding Customer support
My bundled policy with the dealer was about to get over so I decided of renewing my policy online this time. Had a lot of questions about Insured Declared Value and certain addons which wanted to add to my plan (my dealer never cleared these things to me). Got a deep understanding of this team from PB customer support and chose a Digit Own damage plan along with zero dep and Engine protect addon for my Nexon car at a really good price.
Vishal
Delhi, March 04, 2024
★★★★★
Helping Customer Support
Wanted to purchase a comprehensive policy for my Tata Tiago car but was confused on what insurer I should go with. There are so many available on the internet. Stumbled upon Policybazaar and tried comparing plans. Also contacted their customer support for their help and they were kind enough to answer all my questions patiently. Purchased a Royal Sundaram car insurance plan for my car and am satisfied so far.
Milesh
Hyderabad, March 03, 2024
★★★★★
Multiple payment methods
I compared car plans for my Swift car according to the benefits I wanted in my car insurance plan. I chose the United India comprehensive plan because I liked the features offered in this plan. Payment made easy as Policybazaar offered me multiple payment options. Everything was so Hassle free.
Randheer
Chandigarh, March 02, 2024
★★★★★
Need Improvement
Services are fine, they offer a good feature of plan comparison. But I think a lot can be improved with their customer service. I had a few questions in my mind which were not answered to my satisfaction. They can work on their support.
Prateek
Surat, March 01, 2024
★★★★★
Claim settlement
I was on my way home from work and on the way I met with an accident. With the help of my comprehensive policy, my Honda Amaze was repaired in garages cashless. Ms. Sonia support executive of Policybazaar helped me with the entire cashless process.
Varun
Jaipur, March 01, 2024
★★★★★
Good service
The whole process took very less time to insure my Datsun car. I did not face any trouble while purchasing a future Generali own damage cover from Policybazaar. The team did a really good job and answered all my queries.
#Rs 2094/- per annum is the price for third-party motor insurance for private cars (non-commercial) of not more than 1000cc
*Savings are based on the comparison between the highest and the lowest premium for own damage cover (excluding add-on covers) provided by different insurance companies for the same vehicle with the same IDV and same NCB. Actual time for transaction may vary subject to additional data requirements and operational processes.
+Savings are based on the maximum discount on own damage premium as offered by our insurer partners.
^Lowest Price Guaranteed is based on certifications shared by insurers with us. Policybazaar will facilitate price matching subject to the terms and conditions of select insurers.
##Claim Assurance Program: Pick-up and drop facility available in 1400+ select network garages. On-ground workshop team available in select workshops. Repair warranty on parts at the sole discretion of insurance companies. Dedicated Claims Manager. 24x7 Claim Assistance.
