Car Insurance Companies in India

As soon as you finalise the perfect car model for purchase, you need to start hunting for a quality insurance policy for the same. Under the Motor Vehicles Act, 1988, all car owners must have a valid insurance policy for their vehicles at all times.

Failure to comply with this rule can lead to hefty fines of Rs.2000, and Rs.4000 for repeated offence.

Fortunately, there is no dearth of impressive car insurance companies or policies in India. You can choose from a wide range of options when it comes to availing financial protection for your beloved vehicle. Each policy provides different benefits and features, curtailed to a specific section of consumers. 

Take a look at the list of car insurance companies in India.

Keep an eye on the following characteristics of an insurance company to understand whether it is ideal for your need:

• The Reputation of the Brand - This is easy to gauge today, thanks to the internet. You can simply conduct an online search of the insurance provider in question and check the public review section. This should help you assess whether existing policyholders are happy with their choice.
• Should Be Approved by IRDAI - The Insurance Regulatory and Development Authority in India or IRDAI is responsible for the supervision and development of the country’s insurance sector. Companies registered with this central body are more likely to follow all the guidelines when dealing with insurance claims. Additionally, opting for a registered company is safer as there are no chances of fraudulent activities.
• Car Insurance Premiums - Even though financial security in case of accidents or theft of your car is important, you can only invest so much on your yearly car insurance premiums. Insurance aggregator portals will allow you to compare pricing between products from various companies, offering you a better idea of the average pricing of such insurance policies.
• Claim Settlement Ratio - A general insurance company’s claim settlement ratio reveals the kind the support you can expect from the provider during emergencies. High claim settlement ratio indicates that a company settles a majority of the claims that policyholders raise. Needless to say, a lower claim settlement ratio is undesirable.
• Network Garages - Every insurance company allows for cashless repairs at select garages and workshops. A higher number of such network garages ensure that you can always find one nearby. It is thus recommended to pick companies that provide a substantial number of options when it comes to cashless repair outlets.
• Quick and Convenient Claim Process - No one likes to jump through hoops every time they need to file a claim. Therefore, you should choose an insurer whose claim filing and settlement process is simple to follow, in both theory and practice. In this regard, companies offering digital claim settlement process can be extremely helpful in making the process streamlined.

Regardless of the company you choose, it is integral to buy your insurance policy directly from the company, instead of relying on your car dealership.

Why, you ask?

Most people tend to buy car insurance from their car dealership. However, doing so can set you back financially and prevent you from utilising the full benefits of your insurance policy.

Here are some reasons why purchasing a policy directly from an insurance company is a smarter move:

• Ability to Customise Insurance Policies - Car dealers often sell pre-packaged insurance policies, which come with a set of features. Therefore, your ability to customise the policy as per your needs is almost non-existent.
• Diverse Range of Options and Choices - Car dealers generally have collaborations with only a handful of insurance providers. When you buy from them, you are limited to choose a policy from only these companies and not others in the market.
• No Extra Premium Payments - Car dealerships work with insurance companies on a commission basis. This means that when you purchase a policy from them at a certain rate, a portion of that amount is pocketed by the dealership. With a direct purchase from companies, you only pay the actual price of your chosen policy and nothing extra.
• Comparison and Research - Dealerships do not allow you the benefit to compare various policies. Without comparison, you can never acquire the insurance policy with the most value.

You must, thus, read the terms and conditions of every insurance policy you consider while comparing them. The fine print can often help you look beyond just the positives of a policy before you settle for one.