10 Best Car Insurance Companies 2023 in India as per Car Insurance Claim Settlement Ratio

What are the Benefits of Having Car Insurance?

Below are some of the benefits of having a car insurance:

• Adequate car insurance allows the insured to get coverage against vehicle loss or damage caused by accidents, riots, theft, fire, acts of terrorism, in-transit damages, natural calamities, and more
• Offer liability coverage against third-party damages including injury/death of a third party or third-party property damages
• Allow coverage against lawsuits and legal hassles that come upon you due to an accident
• NCB or no claim bonus is another key benefit of having car insurance

Don’t feel confused any more. Here are top 10 car insurance company in India 2023 which offer the best car insurance plans:

Top 10 Car Insurance Companies in India 2023

1. Bajaj Allianz General Insurance Co. Ltd.

 

The company offers some unique services in its car insurance policy including third party car insurance online. Its Drive Smart feature tracks driving in real time and earns you premium discounts. The plan also offers towing facility in case of a breakdown.

Some of the key features are as follows:

• Provides third-party coverage
• Towing facility available 24/7 from roadside
• Cashless claim settlement provided
• Zero depreciation offered
• Several add-on covers can be added for additional benefits

Advantages and Disadvantages of Buying Bajaj Allianz Car Insurance

Advantages	Disadvantages
Provides personal accident cover	Does not cover any claim that may arise due to contractual liability
Own damage is covered as well, including that caused by natural sources, such as earthquakes, landslides, and fire, as well as man-made sources like damage caused by riots/terrorist attacks	Any damage/car loss caused outside the geographical boundaries of the claim may not be covered under the plan

2. Bharti AXA General Insurance Co. Ltd.

 

Bharti AXA’s car insurance plans offer cashless claims across 3000+ garages in India and 24*7 claim assistance in case of claims.

Some of the key features include:

• Over 2,500 cashless garage networks
• Up to Rs. 75 lakh third-party coverage provided
• Roadside towing assistance and Basic Cover provided under the plan

Advantages and Disadvantages of Buying Bharti AXA Car Insurance

Advantages	Disadvantages
With a limited number of steps involved, buying car insurance from Bharti AXA is fast and easy	It doesn’t cover damages to the car if the driver is caught driving under the influence of alcohol or intoxicating substances while the accident takes place
You get 24*7 customer support to take care of all your queries	Staged or deliberately done accidental losses are not covered

3. HDFC ERGO General Insurance Co. Ltd.

 

HDFC Ergo offers car insurance policies both for private cars as well as for commercial ones. Its products promise claim approval at the earliest and have comprehensive coverage features.

Some of the key features are as follows:

• Over 6700+ cashless garages in the network of the insurer
• Offer overnight vehicle repairs
• 100% claim settlement ratio

Advantages and Disadvantages of Buying HDFC ERGO Car Insurance

Advantages	Disadvantages
Covers personal accidents, third-party injuries, and third-party property damages	Doesn’t cover illegal driving such as driving without a license, drinking, and driving.
Covers expenses for fire and explosion, theft, and calamities	Doesn’t cover damages or expenses caused to the car outside the geographical limitation

4. ICICI Lombard General Insurance Co. Ltd.

 

The company has a tie-up with more than 5600 garages across India and has a motor insurance claim settlement ratio of 92.2% within 30 days of claim intimation. These figures make the company a leading name in the car insurance industry.

Some of the key features are as follows:

• Over 12000+ network garages offered by the insurer
• Offers doorstep cashless repairs
• Instant motor claims are available
• NCB up to 50% offered

Advantages and Disadvantages of Buying ICICI Lombard Car Insurance

Advantages	Disadvantages
Covers damages caused by natural disasters such as earthquakes, floods, fires, and storms	Doesn’t cover the wear and tear of cars due to mechanical and electrical breakdown
Covers expenses for theft and terrorist activities	Doesn’t cover damages while driving without a license

5. IFFCO TOKIO General Insurance Co. Ltd.

 

The company provides a unique Value Auto Coverage Insurance policy which provides a range of add-on coverage benefits. The policy, thus, acts as a supplement to your car insurance policy at very affordable premiums.

Some of the key features are as follows:

• Over 4300+ network garages offered by the insurer
• Offers roadside assistance for damaged car
• Quick claim settlement in 4 hours

Advantages and Disadvantages of Buying

Advantages	Disadvantages
Damages caused by natural calamities, accidental collisions, and fires and explosions are covered	Doesn’t cover general wear and tear as well as any mechanical/electrical breakdown
Also covers personal accident-causing death and disability along with third-party losses	Doesn’t cover drunk driving or driving without a licence

6. New India Assurance Company Ltd.

 

New India is a leading public sector general insurer which is a trusted brand among millions. Its private car policy provides a range of inbuilt coverage benefits as well as add-ons.

Some of the key features are as follows:

• Add-on covers can be availed under the plan by paying an additional cost
• Third-party coverage includes protection against death or disability of third-party persons and third-party damages.
• Over 3000+ network garages offered by the insurer

Advantages and Disadvantages of Buying

Advantages	Disadvantages
Covers damages caused by fire, self-ignition, lightning, and explosion	Do not cover normal wear and tear and breakdowns
Covers damages caused by landslides, rockslides, floods, and hurricanes	Do not cover consequential losses

7. Oriental Insurance Co. Ltd.

 

Oriental’s car insurance policy is available online with minimal paperwork and easy application process. You can add various add-ons for an increased coverage and also avail attractive premium discounts.

Some key features are as follows:

• Offers several add-ons that can be availed by paying an extra premium
• The insured can avail of several discounts on premiums like voluntary deductible
• Though the coverage period is one year, the insured can seek short cover durations

Advantages and Disadvantages of Buying

Advantages	Disadvantages
Cover loss and damage to cars caused by burglary, housebreaking, or theft	Doesn’t cover damages if the driver is driving without a valid DL
Damages caused during transit by Road, Rail, Inland waterways, air or lift.	Doesn’t cover depreciation or any consequential loss

8. Royal Sundaram General Insurance

 

Royal Sundaram has a tie-up with more than 3300 garages in India. The policy offers special add-on covers which also cover damages to the plastic and metal parts of the car as well as the windshield glass.

Some of the key features are as follows:

• Over 3300+ network garages offered by the insurer
• Offers zero depreciation for 7 years
• Allows quick claim settlement

Advantages and Disadvantages of Buying

Advantages	Disadvantages
Allows in-transit cover	breakdown or mechanical damage caused to the car is not covered
Offers personal accidental cover for the paid driver and other car occupants	Damages happening beyond geographical boundaries (not mentioned in the policy) are not covered

9. Tata AIG General Insurance Co. Ltd.

 

With TATA AIG’s car insurance plans, you can buy either a comprehensive car insurance policy or a liability only one. The company has a range of thirteen add-on coverage benefits that promise customization as well as enhanced coverage.

Some of the key features are as follows:

• Over 5400+ network garages for cashless services
• Provides zero-depreciation cover
• Get a policy in three easy steps

Advantages and Disadvantages of Buying

Advantages	Disadvantages
Reimburses IDV or complete value of the car if the insured car is stolen	Doesn’t cover damages caused to the car while driving under the influence of alcohol and drugs
Covers damages due to natural disasters as well as man-made calamities	Costs insured toward general maintenance of the car is also not covered

10. United India Insurance Co Ltd.

 

CRISIL has rated the company AAA which shows the stability and trust of its customers. Its car insurance plan is easily available online and you also get a premium discount if you pay the premiums online.

Some of the key features are as follows:

• Over 3100+ network garages for cashless services
• Provides towing assistance for accidents
• Get a quick claim settlement in easy steps
• Offers coverage outside India

Advantages and Disadvantages of Buying

Advantages	Disadvantages
Covers damages caused by theft, riots, accidents, or any other mishaps	If the driver is under the influence of alcohol, the damages caused are not covered
Offer coverage for damages caused due to due to fire	Damages such as normal wear and tear of the car are not covered

Other Best Car Insurance Companies in India

We looked at the 10 best companies offering car insurance in India in 2023. However, in addition to the above, there are some more car insurance companies that are worth considering this year. Let’s look at some of these below:

• Go Digit Car Insurance: Highly popular for its service to customers offering vehicle pick up, repair and drop back, ensuring utmost convenience to the customer. The claim settlement process is also absolutely simple and hassle-free.
• Acko Car Insurance: One of the top go-to choices for most customers for its 8 customized car insurance plans that can be personalized to suit individual needs. Minimum document formalities and paperless insurance process sets it apart from the others in the market.
• Universal SOMPO Car Insurance: With more than 3,500 network garages offering prompt customer service and a couple of unique insurance benefits such as daily hospital cash during accident and engine protection cover benefit, Universal SOMPO stands out as one of the leading companies in the car insurance sector.

Best Car Insurance Companies and their Car Insurance Claim Settlement Ratio 2022

When it comes to finding the best car insurance company in India, there are few primary things that people consider: car insurance price, network garages of the car insurer, and claim settlement ratio of the car insurance company.

Best Car Insurance Companies India	Network Garages	Claim Settlement Ratio 2022
Bajaj Allianz General Insurance Co. Ltd.	4,000+	88.83%
Bharti AXA General Insurance Co. Ltd.	5,200+	97.35%
HDFC ERGO General Insurance Co. Ltd.	6,800+	99.80%
ICICI Lombard General Insurance Co. Ltd.	5,600+	78.32%
IFCCO IFFCO TOKIO General Insurance Co. Ltd.	4300+	95.82%
New India Assurance Company Ltd.	3,000+	89.60%
Oriental Insurance Co. Ltd.	3,100+	93.96%
Royal Sundaram General Insurance	3,300+	85%
Tata AIG General Insurance Co. Ltd.	7,500+	96.43%
United India Insurance Co Ltd.	3,100+	82.93%
Go Digit Car Insurance	5,800+	96%
Acko Car Insurance	2,000+	83.91%
Universal SOMPO Car Insurance	3,500+	90.78%

So, these are the top 10 car insurance companies in India according to their car insurance claim settlement ratio in 2022. They promise easy purchase, comprehensive coverage, low premiums and, above all, easy and quick claim settlement process. So, you can pick any of the top 10 car insurance company’s insurance cover for your car to get the best plan.

Difference Between Various Types of Car Insurance Policies in India

Third-party (liability only) car insurance policy	Comprehensive car insurance policy	Standalone Own-Damage car insurance policy	Pay-as-you-drive car insurance policy	Zero depreciation car insurance
The third-party policy is the liability-only policy that covers liabilities of the third party like bodily injuries and/or death of a third-party person. It also covers third-party property damages	Comprehensive car insurance is the dual-benefit car insurance plan that offers coverage against third-party liabilities as well as your standalone car damages	The standalone car insurance plan covers the insured car against damages caused due to accidents, fire, natural calamities, theft, etc If you buy the standalone car insurance, you also must buy the mandatory third-party policy separately	Pay-as-you-drive car insurance is a new entrant in India and suits those who drive their car not that frequently. Here, the policy charges the premiums depending on the kilometers driven by the insured. So, if you drive within 10,000 – 15,000 km per year, this plan is best for you	This is a car insurance add-on that suits vehicle owners who do not want insurers to settle claims by taking into consideration the depreciation on the different car parts. Thus, with this add-on, you can increase the claim amount considerably.

How to Choose the Best Car Insurance Company in India 2023?

As is evident, the choice for a car insurance company in India is quite varied. There is no dearth of options for the customer. Whom to choose in this scenario? How to opt for the best? Some basic considerations should always be taken into account, to simplify choice of best car insurance in India:

• Make sure that your car insurer has a high Claim Settlement Ratio or CSR.
• Check for the number of network garages provided by your insurer; the higher, the better.
• Ensure that your car insurance has the flexibility to include add-on rider benefits as and when the need arises.

Types of Car Insurance Plans Offered by Different Insurance Companies in India

There are essentially three types of car insurance policies that most insurers provide to their customers. A fair knowledge of each of them is helpful to know:

1. Third-Party Car Insurance: This is mandated as per the Motor Vehicle Act, 1988 and ensures coverage against all third-party damages that involve your vehicle.
2. Comprehensive Car Insurance: This is optional however highly recommended to buy since it provides complete protection against third-party as well as own-damage car expenses that may have to be incurred during a mishap.
3. Standalone Own-Damage Car Insurance: This only covers own damages incurred to the car of the owner during an accident or any other natural calamity. However, you would still need to buy third-party insurance in addition to it to comply with the law.

What Does Your Car Insurance Cover?

We looked at the three different types of car insurance policies in the above section. Now let us look in detail at what each of them cover for the car owner:

 

Coverage Parameters	Third-Party Car Insurance	Standalone Own-Damage Car Insurance	Comprehensive Car Insurance
Natural calamity loss/damage	Does not cover	Covered	Covered
Accidental damage	Does not cover	Covered	Covered
Injury/death of third party during accident	Covered	Does not cover	Covered
Two-wheeler theft	Does not cover	Covered	Covered
Personal Accident Cover (Optional)	Covered	Covered	Covered
Fire damage	Does not cover	Covered	Covered
Property and third-party vehicle damage	Covered	Does not cover	Covered

8 Important Factors that Affect the Premium of a Car Insurance

1. Type of car: The make year, car model and engine capacity of the car influence the premium.
2. Age of the car: Older cars generally have a much lower premium compared to new cars.
3. Insured Declared Value or IDV: IDV is the current market value of the car, a higher IDV will attract a higher premium.
4. Geographical location: Car Insurance premium in India varies from city to city depending on the frequency of theft, accidents and natural calamities.
5. Driving history: A person with a good driving record tends to pay a much lower premium compared to some other person with a history of accidents or traffic violations.
6. No-Claim Bonus: Accumulated over time, no-claim bonus results in a lower premium for the policyholder.
7. Coverage: Comprehensive policies with higher coverage will also attract a higher premium in comparison to third-party car insurance policies.
8. Add-ons: Additional coverages like passenger cover, zero depreciation, etc. can increase the car insurance premium.