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Crash Easy with the Best Car Insurances in India

Created on 15 Jul 2022

Wraps up in 6 Min

Read by 3.6k people

Updated on 13 May 2023

Unless you drive along in one of those Transformers from the American science-fiction franchise, you’re probably looking for good and reliable car insurance, aren’t you?

Moreover, you must have observed that the cost of repairing vehicles is high everywhere in India. It becomes tough to compensate for potentially severe automotive damage due to a natural calamity or a case of theft. Car insurance acts as a protective shield against such cases and more. 

Car insurance covers repair charges, towing, and on-the-spot breakdown assistance, among others. Moreover, car insurance also provides medical coverage for you and your family in case of an accident. But what if there is a third person also involved in it? No worries; your insurance will cover the cost too.

Now the question arises: which insurance should you buy? Read this article to learn more about the same. 

Which Car Insurance Is Best in India?

Insurance is a must in today’s world. Be it life, medical, or car insurance, an insurance policy benefits you, your loved ones, and your valuable assets in the long term. A saying goes, “If you can’t be there to catch them, make sure you leave a safety net,” and reliable insurance is all about that. Many people mandatorily obtain life insurance but underestimate the criticality of car insurance. 

As Danica Patrick, the American race car driver, famously said: “Driving a car is risky, but not having insurance to take care of your family is riskier.”

All said, many firms provide car insurance, which is a highly competitive market worldwide. It accounts for 34.1% of all non-life insurance premiums earned in India, followed by health insurance. Unsurprisingly, it is difficult to determine which one to buy. So, here is a list of some of the best car insurances you can choose from in India. 

Previously, people believed owning a red car would mean a high insurance premium because the colour represented trouble and danger.

Top Car Insurances in India

The Indian car insurance market is flooded with options. But we have narrowed down the search for the best car insurance to only four options, which are pretty dope: 

1. Bajaj Allianz Car Insurance

Bajaj Allianz is a reputed company for any insurance, including car insurance in India. The company started in 2001 and has been serving the public for 18 years, with a good track record and reviews. You can apply online for the insurance on their website.

Features of Bajaj Allianz Car Insurance:

  • Breakdown assistance for any technical glitches or any mechanic’s fee. 
  • Consumables cover items like nuts and bolts, lubricants, washers, etc.
  • Suppose your car suffers any damage from an accident or collision. In that case, Bajaj Allianz Car Insurance offers zero depreciation cover for your vehicle, so you’re not liable to pay depreciation costs for damaged or replaced parts. 
  • You can add a towing cover to your Bajaj Allianz Car Insurance Policy to get your car towed anytime you want without paying anything.

Note: Bajaj Allianz has accumulated an incurred claim ratio of 88.83%.

2. Bharti AXA Car Insurance

Bharti AXA is a leading car insurance company in India, with more than 130 branches all over the nation. Bharti AXA has merged with ICICI to improve its facilities and extend its services to a larger audience. The basic terms let you include many add-ons and covers in your car insurance policy.

Features:

  • With the “No-claim” bonus, if you have not made any claims on your previous insurance cover, you can avail of discounts on your premium payments. 
  • Cover against damage by human-made hazards such as fires, explosions, and more with the Bharti AXA comprehensive policy.
  • Bharti AXA also covers the loss or damage incurred due to instances of terrorist attacks. To enjoy this benefit, you need to get an additional add-on cover. 
  • Under personal baggage protection, Bharti AXA allows you to claim the loss caused by losing your personal belongings like clothing, bags, suitcases, etc., in the car. 
  • Note: As a part of ICICI, it has an incurred claim ratio of 87.99%.

3. Chola MS Car Insurance

Recognised as the best insurance company in India in 2011-12, Chola MS works on its self-made philosophy of T3, which means Trust, Transparency, and Technology. Aside from the basic third-party insurance, Chola MS offers various other benefits and add-ons under its comprehensive car insurance policy:

  • If your vehicle suffers any damage due to riots and strikes, then you can seek assistance under the Chola MS Car Insurance policy.
  • The Chola MS Car Insurance policy comes with a hydrostatic cover. It protects you from the loss incurred by excessive engine cranking or indirect water ingression into the vehicle.
  • You can get an add-on cover to your Chola MS Car Insurance policy which will cover the cost of replacing the keys. Phew! Right? 
  • Chola MS Car Insurance policy comes with a car value cover that allows you to customise and negotiate the amount. 

Note: Chola MS insurance company has an incurred claim ratio of 79.65%.

4. National Insurance

National Car Insurance has been in the market for many years. It was one of the first insurance companies in India. It offers policies for commercial and private car owners. With emergency assistance available every hour and personal damage coverage starting at Rs. 2700, it is often the most preferred company for insuring a car. It also provides many additional benefits to the customers:

  • You can benefit from this cover if your car is five years of age. With the “zero depreciation” add-on cover, you can ask for the default depreciation amount to get total compensation.
  • The “roadside assistance” add-on makes you eligible for assistance from your insurer in case of a sudden breakdown or glitch.
  • Consumables cover engine oil, grease, or car parts. 
  • The return of invoice cover will make you entitled to get the original invoice amount of your vehicle, reducing the registration fee and taxes if your car gets stolen.
1st February is recognised as National Car Insurance Day.


This graph represents the estimated growth of the car insurance market in India by 2025.

Things to Consider Before Choosing an Insurance Plan

Insuring a car does not require many skills. Anyone can do it with some guidance. But, there are certain things that you should keep in mind while purchasing car insurance. They are as follows:

  1. Third-party insurance is compulsory in India, but you can buy comprehensive car insurance. It covers much more than accident and theft damage. Hence, we suggest going through the available plans at your disposal before selecting one.
  2. Before obtaining car insurance, it is always wise to look into the different policies offered by various insurance companies. Gain a clear picture, and consider the option you find most suitable for yourself.
  3. Check the IDV, i.e., the current value of your car and how much the insurer will pay for the damage and premiums. Select a plan that you will be able to afford.
  4. Before settling for an insurance plan, consider their claim process. Take note of how quick they are in their services.

Writer’s opinion:

When you own a car, it automatically becomes necessary to ensure it saves you from a legal mess. It does not take much time to reach out to the insurance companies and get one for your four-wheeler. If you haven’t insured yours yet, do not waste more time! Considering the requirements, it is optimal to buy an insurance policy now.

The Bottom Line

In conclusion, vehicle insurance is a crucial aspect of owning a vehicle that cannot be ignored. It provides financial protection to vehicle owners against unforeseen circumstances such as accidents, theft, and damage caused by natural calamities. With the increasing number of vehicles on the road and the rising risk of accidents, having a comprehensive vehicle insurance policy has become more important than ever before. It not only provides peace of mind to vehicle owners but also ensures that they do not suffer any financial losses in the event of an unfortunate incident. Therefore, it is highly recommended that every vehicle owner should invest in a good vehicle insurance policy that meets their needs and provides adequate coverage.

*Disclaimer: The insurance plans mentioned above are not a recommendation by Finology.

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