Which Insurance Company Provides The Cheapest Car Insurance In India?

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Insurance Companies Providing Cheapest Car Insurance In India

Insurance is a compulsory for driving a car on the Indian roads and is a must for every car owner to have one for the vehicle. In India, as many as 25 companies of general insurance are offering car insurance policies. Of course, when it comes to buying a policy, everyone wants to have the best and cheapest car insurance plan offering maximum benefits. And with a wide array of options in terms of insurance providers, it becomes difficult for car owners to pick one best policy for their car.

However, here it is important to note that a car insurance plan depends on several things. Thus it is difficult to compile a list of the insurance providers in India offering most cost-effective car insurance policies.

In this blog, we are going to discuss the factors on which an all-inclusive car insurance policy depends. Having a sound knowledge of such factors will help you in evaluating different policies and in choosing the best and the cheapest car insurance in India  which could suffice your car insurance needs.

Here is a table below showing the list of top insurers offering vehicle insurance plans at low premium prices. (The vehicle insured is the latest Hyundai Grand i10). This is a petrol model registered at Kolkata and the insurance policy is comprehensive.

Estimated Premium Price for Hyundai Grand i10 from Popular Insurance Companies India

*Actual premiums may vary

5 Factors that affect Car Insurance Policy and Its Premium

Here are the 5 key factors on which a comprehensive car insurance policy and its premium price depends:

1. Model and make of your vehicle: The model of the vehicle you are driving as well as its make plays a very important role in the premium rate fixed for your car insurance policy by the insurance company.
2. Age and condition of your vehicle: It is quite obvious that the more a car is used or the more its age is, the more insurance premium rate it will attract. Thus, a new car with fine condition will invite less premium amount, while an old car not in the best condition will have more premium.
3. IDV of vehicle: The IDV or the Insured Declared Value of a car is the highest limit of sum assured predetermined by the insurance company in the event of total loss or theft of your car. It is basically the price that you receive by deducting the showroom price offered by the manufacturer of the car and the depreciation cost of the vehicle. IDV is equivalent to the highest sum insured price on your car insurance policy.
4. Add-ons used: The premium rate of a car insurance also depends on the add-on coverage that you avail. So, depending on the number of add-ons you buy along with your car insurance, the premium rate of the policy will keep increasing.
5. Location (Urban/Rural): Another important factor on which the car insurance price in India depends is the RTO location where you are registering the car. Depending on whether you are registering the car in a urban location, a semi-urban location, or a rural location, the price of insurance will differ. Thus, if you buy same insurance plan from same insurance provider and for the same car, still the premium might differ if you register the car in two different cities or in different regions of the same city.

Also Read: Car Insurance Calculator – How to Use

Does the cheap car insurance plans serve well for car owners ?

Choosing an insurance by looking at the car insurance price list in India might not suffice your requirement of the car policy. So, focusing only on the price is not worthy unless other factors like benefits and coverage also fit into your bill.

Moreover, it is also not required that the cheap insurance plans offering lowest rate of premium will serve as the best policy for your vehicle.

Here are some other factors that you must verify along with determining the price of insurance policy while purchasing a car insurance:

• Availability of 24/7 customer care: There are many insurance companies which provide 24/7 customer support for all seven days a week. On the other hand, some companies provide customer support for limited duration of the day for 5/6 days a week.
• Ratio of Settlement of Claims: A person willing to buy a car insurance should buy it from an insurance company offering the best claim settlement ratio. It is because the ratio of claim settlement represents the claim percentage that the insurance provider has settled during a year. So, claim settlement ratio serve as an important yardstick in the selection of a car insurance plan. Thus, if a car insurance company is providing cost-effective policy with a poor claim settlement ratio, it might not benefit you much.
• Add-ons offered by the insurer: The add-on covers are the additional coverage that insurance companies generally provide. These add-on covers can be bought with a comprehensive insurance plan as well as with standalone policies that provide cover against own damages. Depending on the insurance company, you can avail the add-ons as offered by the insurance provider. Some providers might offer more add-ons as compared to others. So, this is another yardstick of choosing insurance plans.
• Policy Purchase/Renewal process: The process of purchasing or renewing a policy also serve as a crucial factor in buying an insurance.  People like to buy policies from insurance companies which offer easy buying and renewal process. Companies offering instant buying option and less paper work are considered more than the ones with cumbersome process.

Key points to search for the most cost-effective Car Insurance Plans

Here are some tips to find the best car insurance plans:

• While buying an insurance, it is important to compare quotes and features online and then buy a policy to get most economical deal.
• It is also important to consider features like Deductibles, IDV, NCB etc.
• Another important thing is to check the availability of cashless cover offered by the insurance company.
• Cashless cover allows insured to get the repairs done on their car without paying any money from his/her pocket in the event of an accident.
• It is also important not to use the services of insurance agents to buy an insurance policy, rather you should buy it from an authorized broker.
• Always opt for policies offering cover for personal accident along with the regular plan. This way you can insure the person driving the car as well as the passengers sitting on the car. You can buy this cover as an add-on by paying an extra premium amount.
• Also, remember to enter the correct information while submitting the insurance policy form at the time of buying it, else it can cause you trouble during claim settlement.
• Always maintain safety while driving your vehicle, and don’t drive your car when you are drunk. Also don’t violate any traffic rule. This will help you in making less claim and in earning NCB.

Takeaway

To avail the cheap and the most beneficial car insurance policy, it is always better to buy it online. Not only it is simple and quick, but it also allows you to have good comparison of plans, quotes, features, and benefits of different insurance policies.  This way you can make sure to purchase the cheapest car insurance available offering maximum benefits.

Also Read: Best Car Insurance Companies in India 2022

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