Car Insurance Companies in India
As soon as you finalise the perfect car model for purchase, you need to start hunting for a quality insurance policy for the same. Under the Motor Vehicles Act, 1988, all car owners must have a valid insurance policy for their vehicles at all times.
Failure to comply with this rule can lead to hefty fines of Rs.2000, and Rs.4000 for repeated offence.
Fortunately, there is no dearth of impressive car insurance companies or policies in India. You can choose from a wide range of options when it comes to availing financial protection for your beloved vehicle. Each policy provides different benefits and features, curtailed to a specific section of consumers.
Take a look at the list of car insurance companies in India.
List of Car Insurance Companies in India
National Insurance Co. Ltd.
Go Digit General Insurance Ltd.
Bajaj Allianz General Insurance Co. Ltd.
Cholamandalam MS General Insurance Co. Ltd.
Bharti AXA General Insurance Co. Ltd.
HDFC ERGO General Insurance Co. Ltd.
Future Generali India Insurance Co. Ltd.
The New India Assurance Co. Ltd.
Iffco Tokio General Insurance Co. Ltd.
Reliance General Insurance Co. Ltd.
Royal Sundaram General Insurance Co. Ltd.
The Oriental Insurance Co. Ltd.
Tata AIG General Insurance Co. Ltd.
SBI General Insurance Co. Ltd.
Acko General Insurance Ltd.
Navi General Insurance Ltd.
Edelweiss General Insurance Co. Ltd.
ICICI Lombard General Insurance Co. Ltd.
Kotak Mahindra General Insurance Co. Ltd.
Liberty General Insurance Ltd.
Magma HDI General Insurance Co. Ltd.
Raheja QBE General Insurance Co. Ltd.
Shriram General Insurance Co. Ltd.
United India Insurance Co. Ltd.
Universal Sompo General Insurance Co. Ltd.
Insurance Company Vs. Insurance Aggregators Vs. Insurance Brokers
Understand the difference between insurance companies, aggregators and brokers.
Any organisation, which packages and markets the various insurance policies and products to consumers.
A third-party portal where consumers can compare the various policies from all insurance companies operating in the market.
Individuals who act as a mediating party between an insurance company and its potential clients.
Employed By - None
Employed by a third party, which is unrelated to any insurance company
Individual insurance companies employ brokers.
Role - To provide quality insurance policies, which compensate the policyholder when an insured asset meets with accidents and sustains damages.
Role - To list and detail all relevant information regarding the various insurance policies available in the market for comparison purposes.
Role - Brokers sell insurance policies on behalf of their employing insurance provider.
All insurance policy claims are settled by insurance providers or companies.
Factors to look for in a Car Insurance Company
Keep an eye on the following characteristics of an insurance company to understand whether it is ideal for your need:
- The Reputation of the Brand - This is easy to gauge today, thanks to the internet. You can simply conduct an online search of the insurance provider in question and check the public review section. This should help you assess whether existing policyholders are happy with their choice.
- Should Be Approved by IRDAI - The Insurance Regulatory and Development Authority in India or IRDAI is responsible for the supervision and development of the country’s insurance sector. Companies registered with this central body are more likely to follow all the guidelines when dealing with insurance claims. Additionally, opting for a registered company is safer as there are no chances of fraudulent activities.
- Car Insurance Premiums - Even though financial security in case of accidents or theft of your car is important, you can only invest so much on your yearly car insurance premiums. Insurance aggregator portals will allow you to compare pricing between products from various companies, offering you a better idea of the average pricing of such insurance policies.
- Claim Settlement Ratio - A general insurance company’s claim settlement ratio reveals the kind the support you can expect from the provider during emergencies. High claim settlement ratio indicates that a company settles a majority of the claims that policyholders raise. Needless to say, a lower claim settlement ratio is undesirable.
- Network Garages - Every insurance company allows for cashless repairs at select garages and workshops. A higher number of such network garages ensure that you can always find one nearby. It is thus recommended to pick companies that provide a substantial number of options when it comes to cashless repair outlets.
- Quick and Convenient Claim Process - No one likes to jump through hoops every time they need to file a claim. Therefore, you should choose an insurer whose claim filing and settlement process is simple to follow, in both theory and practice. In this regard, companies offering digital claim settlement process can be extremely helpful in making the process streamlined.
Regardless of the company you choose, it is integral to buy your insurance policy directly from the company, instead of relying on your car dealership.
Why, you ask?
Why purchase Car Insurance from Direct Insurance Providers?
Most people tend to buy car insurance from their car dealership. However, doing so can set you back financially and prevent you from utilising the full benefits of your insurance policy.
Here are some reasons why purchasing a policy directly from an insurance company is a smarter move:
- Ability to Customise Insurance Policies - Car dealers often sell pre-packaged insurance policies, which come with a set of features. Therefore, your ability to customise the policy as per your needs is almost non-existent.
- Diverse Range of Options and Choices - Car dealers generally have collaborations with only a handful of insurance providers. When you buy from them, you are limited to choose a policy from only these companies and not others in the market.
- No Extra Premium Payments - Car dealerships work with insurance companies on a commission basis. This means that when you purchase a policy from them at a certain rate, a portion of that amount is pocketed by the dealership. With a direct purchase from companies, you only pay the actual price of your chosen policy and nothing extra.
- Comparison and Research - Dealerships do not allow you the benefit to compare various policies. Without comparison, you can never acquire the insurance policy with the most value.
You must, thus, read the terms and conditions of every insurance policy you consider while comparing them. The fine print can often help you look beyond just the positives of a policy before you settle for one.