Guidelines to Select Top Car Insurers in India

Are you looking for the best car insurance companies in India?

If your answer is yes, we’re sure you have been in the state of confusion already. It is obvious as the Indian insurance market is flooded with plenty of insurers that have come with innovative and attractive products. In this situation, it becomes difficult to zero down on a plan or an insurance company.

When in India having car insurance is mandatory, you can’t take the risk of plying a vehicle without car insurance. Hence, choosing the best policy form the right insurance provider is what something matters. However, before coming to this point, you should understand the actual need for car insurance first.

Car insurance is a legal contact between the insured and the insurer. Under this contract, the insurer provides the much needed financial assistance in case of an unfortunate event that causes damage to the insured vehicle, owner/driver. The offered sum insured is pre-decided based on the coverage you are opting for and the IDV of the vehicle.

Why Do You Need Car Insurance?

The reasons for having car insurance are manifold:

  • With an effective car insurance, you can ensure the needful financial assistance to all damages and loss that can happen to the insured vehicle. The damage could due to man-made or natural calamities like theft, fire, explosion, self-ignition, strike, riots, accident, terrorist activities, while transit by air, road, rail, elevator, damage due to earthquake, flood, storm or other natural calamities etc.
  • You are well covered for third party liability that may arise out of an accident leading to death, injury or damage to the property of a third party.
  • Personal accident cover where the owner or driver gets the insurance coverage up to a certain limit.

Top Car Insurance Companies in India

Buying car insurance is half the battle of ensuring optimum protection to your dream car. The actual challenge comes at the time of selecting the right insurer. With a plenty of insurance providers offering their services, it creates so much confusion about what to choose or what not to. Given that, we’ve compiled a list of few insurance providers that can be named as leading car insurance providers in India, in terms of their offerings and services. Here is the list:

1. Bajaj Allianz General Insurance Company

Founded in the year 2001, Bajaj Allianz General Insurance Company Limited is one of the pioneering insurance providers in India. The company has marked its presence in almost 200 cities across the country and actively working with a wide range of insurance products. The company enables penetration with digitally advanced products and ensures superior quality services to consumers. Bajaj Allianz car insurance is worth your money. Apart from this, the various insurance products offered by Bajaj Allianz include health, Travel, Group insurance, individual policies, insurance for family etc.

2. Tata AIG General Insurance Company Limited

Tata Group and American International Group (AIG) joined hands and formed Tata AIG General Insurance Company Limited in the year 2000. The range of insurance products offered by the company well-assure the requirements of its customers especially the add-on covers. TATA AIG car insurance is among the most sought-after products in the market. The company ensures offers enhanced protection through its policies and promises a well-connected customer support to help you throughout the post-sale services. Apart from the basic covers such as auto insurance, health insurance, travel insurance, the company also offers additional coverage like road-side assistance, NCB protection, No Claim Bonus, cashless settlement with the network garages etc.

3. HDFC ERGO General Insurance Company

Counted among the leading general insurers in India, HDFC ERGO General Insurance Company Ltd. is a result of the joint collaboration between ERGO International AG and HDFC Ltd. The company has its presence in 71 cities with 80 branches and around 1100 employees. It has been rated with iAAA by ICRA Ltd. for its services and given with ISO Certification for the claim services, customer service and policy issuance. The wide range of insurance products offered by the company includes motor, health, travel, liability insurance, marine, property, fire insurance etc.

4. SBI Insurance Company

State Bank of India and Insurance Australia Group (IAG) joined hands to form SBI General Insurance Company Limited. Being the largest banking franchise in India with 19600 branches and 5 Associate Banks, SBI holds 74% stake while IAG has 26% stake with SBI Insurance. Currently, the company is actively operational in 77 cities across the country with a 14,178 IRDA approved distribution channels and 6323 agents. The company offers a range of insurance products to cater to the various needs of its customers including Health, Motor, Personal Accident, Travel, Home, group and individual policies, Group Health, Fire, Marine, Construction etc.

5. Bharti AXA Motor Insurance Company

Owned by Bharti Enterprises in collaboration with a global financial leader AXA, Bharti AXA General Insurance Company Limited is counted among the trusted insurance brands in India. With 51% and 49% stakes respectively, Bharti Enterprises joined hands with AXA in the year 2008 to form Bharti AXA insurance company. The company has 79 branches across the country. Their multiple insurance products worth your money and ensure optimum financial protection. Every year the company comes with innovative insurance solutions by introducing new products in the category of, health insurance, two wheeler insurance, car insurance, home insurance, personal accident insurance, critical illness insurance, liability insurance and travel insurance etc.  the other category includes third-party liability, commercial vehicle insurance, SME package etc. The company has issued around 9.8 million policies and has settled 1.3 million claims till date.

6. Cholamandalam MS General Insurance Company

This leading insurance provider is a result of the collaboration between the leading Indian conglomerate Murugappa Group and a Japanese insurance company Mitsui Sumitomo Insurance Group (MSIG). The company is based on the motto of T3s-Transparency, Trust and Technology, which is completely visible in their products and services offered. The extensive range of insurance products offered by Cholamandalam includes health, motor, travel, personal accident, commercial, group insurance etc.

7. Royal Sundaram Alliance Insurance Company

Claimed to be the first general insurance company of private sector with an insurance license in the year 2001, Royal Sundaram is one of the leading general insurers. The insurer deals in health, motor, personal accident, home and travel insurance to both individual and family or the company as well. With over 5 million customers, 1700 employees and a wide distribution channel, the company has been unstoppable since then, be it services or products offered.

8. Oriental Insurance Company Ltd

Founded in the year 1947, Oriental Insurance Company Ltd. is another trusted name in the insurance market. The insurance products offered by the company are designed both for the rural and urban population. With 31 regional offices and 1800 active branches across the country, the company believes in offering quality services with innovative insurance solution. the car insurance offered by the insurer is most sought-after which comes with third party liability, personal accident cover or the add-on covers. You can opt for a 1-year policy with add-ons like zero depreciation, loss of accessories, or other alternative benefit covers.

9. United India Insurance Company Ltd

Founded in the year 1938, United India Insurance Company Ltd. is a government-owned insurance company. They offer insurance for a private vehicle including cars, two-wheelers, and commercial vehicles. The insurance plans offered by the insurer can be customised as per the requirements. The company comes with an excellent discount policy and added benefits. The no claim bonus facility offered by the insure ranging from 20% to 50% ensures a lucrative discount on the premiums. Moreover, the discount offered by the insurer for the members of the automobile industry, for having installed the anti-theft device, is worth considering.

10. New India Assurance

New India Assurance Co. Ltd. was formed in the year 1919 by the founder member of House of Tata – Sir Dorab Tata. The company was merged with Indian companies in the year 1973 and became nationalised. Being the first non-life insurance company to reach Rs14304 Crore GP (gross premium) New Iindia Assurance is counted among the leading general insurers. The company also has its presence in the foreign nations like UK, Middle East, Japan, Australia and Fiji.

11. Reliance General Insurance Company

Reliance General Insurance is an important part of the Reliance Group and being counted among the best insurance providers in India. The company almost cater to every insurance requirements of an individual and offers a wide range of insurance products. The car, health, travel, personal accident, group or commercial insurance policies offered by the insurer worth your investment. The company has also been awarded various recognitions for quality management, claim process and the first one to be awarded wide ISO 9001:2008 certification for ensuring an end to end services and products across the country.

However, the above-mentioned list is not the comprehensive one and it is recommended to opt for a thorough comparison with car insurance calculator at the time of purchasing a plan.

Things to Ponder while Selecting Car Insurance Company in India

Whether you are buying car insurance online or offline, you should keep a few things in mind. Here we go:

  • Genuineness of the Company

It is the foremost thing to consider while buying a plan or selecting an insurance provider. Make sure the company you have selected is authentic. You can look for IRDA’s registration number which is the best authenticity proof. Only go for a company that is registered with IRDA and so is legitimate.

  • Financial Background

Also, consider the financial background of the insurer. This will give an idea whether the insurer is apt for paying your claims or not. With a little research, you can get an idea of the company’s overall growth and turnover and finally take a decision.

  • Ratio of Claim Rejection

Claim rejection ratio refers to the count of the claim rejected by the insurance provider. Simply put, lower the claim rejection ratio, better it is for you. That means the chances of your claim getting rejected is lesser. Simply go for the company, which has a lower claim rejection ratio. By simply Google it, you can get the list of companies with their claim rejection ratio or follow the IRDA’s list. 

  • Policy Evaluation

Have a periodic check at the time of renewal is a must to land on a lucrative deal. Check if you get a better plan with sufficient services. You may also come across with an insurer that offers good discounts and premiums that is suitable to your budget.  Consider every aspect starting from the coverage to claim settlement ratio and go for it.

Parameters of Comparison

In order to zero down on the right insurer or a right plan, the online comparison is a must which allows you to take a fair decision. Saying that below are a few parameters basis on which a comparison should be done:

  • Premium Vs Cover

Premium should not be the only concern at the time of buying a plan or selecting an insurer. You should look for the insurer that offers sufficient coverage at an affordable premium. Because there is no use of buying a plan that is not sufficient, even it comes with a lower price.

  • Deductibles

Deductibles are something, which allows you to avail discounts in premiums. However, every company comes with a different structure, so the discount may vary. Deductibles are of two types- voluntary and compulsory. If you opt for any of the deductibles, you will have to bear a portion of your total claim. Make sure you opt for the amount that is bearable which aids you with a lowered premium. Opt for a company that comes with the best offers.

  • No-Claim Bonus (NCB)

No Claim Bonus is offered for not claiming your insurance. Usually, it is a bonus or discount on your annual premiums at the time of policy renewal. By not claiming your insurance policy, you can avail a maximum of accumulated discounts up to 50%. Even you can have the accrued discount transferred to a new car insurance company in case of the switch.  So, at the time of looking for a potential insurance provider, always consider NCB bonus and opt for the one who offers the highest of this.

  • Network Garages

Network garages are the workshops where the insured can repair his/her vehicle free of cost. The repair expenses are settled directly by the insurance company. The more extensive the network garage list is, the more options available for you to choose from. Choose a provider that comes with a sufficient list of network garages or with those that are in your vicinity.

  • Riders

Rider covers are worth considering. These are the additional covers you can opt to boost the basic policy coverage. You should consider a company that offers a maximum of riders at a decent cost. Some of the riders to consider are Zero Depreciation Cover, Road-side Assistance, NCB Protector etc. only with the best cover you can upgrade the basic policy cover and stay fully covered.

Over to You!

It is always said that finding the right insurer is difficult. However, this can be dealt with easily with a proper approach. If you are too looking for a car insurance plan to give the utmost protection to the prized possession, consider the aforementioned pointers and go ahead. Let 2019 be the year you select the right insurance coverage for your dream vehicle.


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