Cheapest Car Insurance Plans in India from Popular Car Insurers

Updated on Oct 15, 2023

When Mani decided to buy a new insurance plan for his car, he wasn’t aware of the options available in the market. On the suggestion of his colleagues he browsed online and came to know that some companies were offering car insurance policy at a very competitive price. So, he compared the plans and bought an insurance plan from amongst them which gave him the best benefits and he also ended up saving some money.

Buying a new car insurance plan involves evaluating various parameters. Not only that, it provides methods to ensure maximum protection from potential risks that will help reduce stress and anxiety. Although purchasing cheap car insurance lowers the expenses, it is wise to consult with insurance experts to know the pitfalls.

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Key Benefits of Car Insurance

Below are some key benefits of a car insurance policy:

• Cashless Garages – Most of the top insurers have a wide network of cashless garages across India. This network allows the policyholders to take the benefit of repairing their vehicles at a cashless garage near them.  All you need is to take your vehicle to a cashless garage and get it repaired, while the insurer settles the bill. You just need to pay the deductible on your part.
• Discounts on Online Policies – Getting a policy online has many advantages like discounts on premiums, less effort and time consumed for buying and renewing policies, buying it from your home/office comfortably, and more.
• Add-ons – Add-ons covers offered by insurance providers make it easy for policyholders to customize plan coverage as per their specific needs. You just need to select the add-ons carefully so that you pay only for the features you require.
• Easy Claims Process – Buying a policy from a trusted insurance company allows the insured to avail easy process of claims, especially while raising claims online.  Besides, round-the-clock customer support is another feature that helps customers with the required assistance to raise and settle claims with ease.
• Protect your vehicle – Comprehensive vehicle insurance plans allow good coverage for your vehicle. Not only do you get compulsory third-party coverage, but also you get coverage for your car against uncertainties and damages like accidents, natural or man-made disasters, theft, and fire.
• CSR or Claim Settlement Ratio – Always go for a car insurance plan from a reputed company with high CSR. This will ensure their commitment to offering the best claim service to customers.

Cheapest Car Insurance Companies 2023

1. HDFC Ergo Car Insurance 

Insurer Company~ HDFC Ergo General Insurance Company

HDFC Ergo offers a wide range of cheap car insurance plans for customers with different coverage needs. The company provides annual, long-term, and bundled insurance plans for car owners which cater to their needs and budget. It offers overnight car repair services for customers in 13 main cities of India. Moreover, HDFC Ergo has a network of more than 6800 garages in various parts of India.

2. ICICI Lombard car insurance 

Insurer Company~ ICICI Lombard General Insurance Company

ICICI Lombard is one of the reputed insurance companies in India allowing customers to pick a plan depending on their needs. Some of the features covered by the plans include a cashless garage network, zero depreciation, personal accidental cover, no claim bonus, third-party insurance, towing facility, etc. Anyone who is looking for the lowest car insurance rates in India can select the company for meeting the exact needs. Not only that, the company provides roadside assistance coverage in car insurance plans.

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3. Royal Sundaram Car Shield Plan

Insurer Company~ Royal Sundaram General Insurance Company

Royal Sundaram car shield plan is ideal for those who want to buy a policy at cheaper price. It offers exclusive discounts for car owners thereby showing methods to save more money. The company provides low car insurance policies for customers and they can reduce their expenses while buying them. Apart from that, it has tie-ups with 4600+ garages across India enabling car owners to get easy cashless claim settlements.

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4. Bharti AXA car insurance

Insurer Company~ Bharti AXA General Insurance

Bharti AXA is the cheapest car insurance company in India that offers car insurance plans at lower prices. Some of the features covered by the plans include 24/7 claim assistance, add-ons, quick settlements, hassle-free renewal, third party car insurance coverage, and discounts. The company allows car owners to repair their vehicles in any of the 3000+ listed garages in India. Zero depreciation, hydrostatic cover, no claim bonus, roadside assistance, co-passenger cover, engine cover, and gearbox cover are some features available under add-ons.

5. Reliance car insurance

Insurer Company~ Reliance General Insurance Company

Reliance General is a leading insurance company in India that offers a wide range of car insurance plans at the best prices. The company provides ways to find cheap auto insurance plans that will help save more money. Some of the features covered by them include third-party coverage, no-claim bonus, incurred claim ratio, personal accident cover, network garages, and so on. Reliance car insurance provides huge discounts after installing anti-theft devices in vehicles and upon usage at a specific location. It provides comprehensive car insurance coverage and third-party cover for customers to safeguard their interests.

6. IFFCO Tokio car insurance

Insurer Company~ IFFCO Tokio General Insurance Company

IFFIC Tokio is one of the reputed insurance companies in India which offers a variety of plans for customers at cheaper rates. The company provides different types of car insurance at affordable rates. It allows customers to buy cheap car insurance online enabling customers to save more money. Moreover, the company has a network of more than 4300+ garages in India for cashless claims.

7. United India car insurance 

Insurer Company~ United India General Insurance

United India is a public limited company that provides a wide range of car insurance policies at low prices. It offers package policy and liability only policy in the markets allowing people to choose the right one according to needs. The company makes feasible methods to find low price car insurance plans based on the choices. Furthermore, it gives ways to select a plan at affordable rates. Some of the features offered by the plans include quick settlement, third-party coverage, NCB, etc.

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What are the factors that determine car insurance prices?

While buying a car insurance plan, one should keep certain things in mind that will help make the right decision.

• Driving records: An insurer will cross-check the driving records of customers when they want to purchase a new insurance policy. If anyone has been involved in multiple accidents, then the insurance rates will be high. Not only that, frequent registration of claims will also influence the prices. A person should try and maintain his/her driving records to get reduced premium prices.
• Type of car and its features: The car type and its features will determine the premiums of car insurance plans. Those who have luxurious cars have to pay more premiums because the costs of repairs are expensive. It is important to install safety devices in car vehicles that will reduce the premium rates to a large extent.
• Deductibles: Deductibles may impact car insurance premium costs and one should enter the deductible percentage while using a calculator. It will automatically reduce the premium prices of insurance plans effectively.
• Car age and coverage: Car age and coverage are other factors that will determine the premium rates of car insurance plans. Car owners who want to minimize their out-of-pocket expenses can buy a comprehensive plan which reduces expenses.

How to Evaluate Premium Using the Car Insurance Premium Calculator?

If you are looking at affordable car insurance policies in India, you have to compare plans to find the best policy that meets your needs of price and features. To make the task of comparing plans easy, you can take the help of the online car insurance premium calculator. There are certain details that you need to fill in the online premium calculator to get the premium rates of different policies.  Here are the details:

• Car manufacturing year
• Car make and model
• Other car model details as required

Once you submit the required details, you will see quotes for different car insurance plans on your screen.  Compare the quotes in terms of features and other details and choose the one that is apt for you.

What are the drawbacks of Buying Economical or Cheap Car Insurance? 

Cheap or economical car insurance might offer low premiums, but they have certain drawbacks to look out for. The pitfalls to consider in cheap insurance plans are mentioned below:

The plan coverage may not be sufficient  

You buy car insurance coverage to ensure that your vehicle is covered well and that you don’t have to incur any expenses in repairing major damages to your vehicle in case of an untoward situation. However, with cheap car insurance policies, the coverage may not be sufficient to protect your car against damages. The limited coverage will not suffice your needs while raising claims.

The plans may not have the add-ons you are looking for

Add-ons are acquired by policyholders as added benefits for comprehensive coverage of vehicles. A policyholder can pay an extra amount to get added coverage in the form of add-ons or riders such as Roadside Assistance, Zero Depreciation, Engine Protection, and more. However, your cheap car insurance policy may not offer the benefits of add-on covers. This is a major hindrance to buying a cheap car insurance plan.

The plan may impose a high deductible on the customer

Opting for cheap car insurance plans has another pitfall. If you buy cheap car insurance, the chances are that you will have to pay a high deductible amount. In car insurance, a deductible is a part of a claim amount that the customer has to bear. When you raise a claim, a considerable amount of the sum is charged from your pocket as deductible. So, with cheap car insurance, you may pay a low premium but end up paying a high deductible.

Ways to Lower Your Car Insurance Premium Rates 

As you have seen there are both pros and cons of buying a cheap car insurance policy. So, it is better to go for a regular car insurance plan rather than looking for a cheap policy, which does not suffice your needs.

Below are some guidelines that you may take note of for reducing your car insurance premium:

Compare plans to select the right insurance coverage 

You know how much protection you want for your car. Accordingly, you can pick a vehicle insurance plan that fulfills the need for mandatory third-party coverage along with offering protection for your car. The premium of third-party car insurance is less as compared to comprehensive insurance plans. However, the coverage of comprehensive insurance plans is all-encompassing, which makes it more cost-effective. Choosing the correct insured declared value (IDV) of your car further helps in making your comprehensive premium reasonable. So, you may go for an extensive car insurance plan rather than opting for an insufficient cheap car policy.

Don’t buy extra add-on you don’t require

There are various attractive add-ons offered by car insurance providers. It is likely to fall into the trap of these features while buying a plan and get carried away. Try to stick to the necessary add-on you require and avoid buying the rest. As such, you have to pay an additional price for each add-on you choose.

Ignore raising the minor claims 

NCB or No claim bonus is an important benefit of car insurance plans, where insurance providers offer 50 to 100 % NCB points to policyholders for a claim-free year. These points help the insured to get a discount on premiums in the next renewal. Now, if you raise a claim for minor damages to your car, you will not be able to receive any NCB points and hence will not get any option to reduce your car insurance premium price in the next renewal. So, raise claims consciously and try to avoid the minor ones to accumulate NCB points and lower your premium rate.

Install important safety devices in your car 

If you install certain safety devices like anti-theft and airbags in your car, it also helps in reducing the premium amount of your car insurance policy to some extent. Since these devices offer prevention against theft and major accidents, it lowers the risk of certain damages/issues, thereby reducing car insurance price.

Avoid car modifications 

Opting for car modifications enhances the appeal of your car as well as the premium amounts of your insurance. Things like modified alloy wheels, which are expensive, enhance the coverage amount. Therefore, it is better to stay away from such additions.

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The bottom line 

Buying a new car insurance policy is not an easy one because it should meet certain parameters. Car owners who want to buy cheap auto insurance can compare quotes online to get the best deal. PayBima’s team assists customers in purchasing an effective insurance plan that caters to their needs, gets them high protection from potential risks caused by third-party liability and more.

 

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