Indian roads are constantly teeming with vehicles of all shapes and sizes. The overall car sales in India crossed the mark of 4 million in 2023 (Source). If you own a car or have plans to buy the same, ensuring your vehicle's safety is paramount. This is where you need a suitable car insurance policy.
Car insurance can provide a financial safety net against unexpected mishaps on the road, offering protection to your vehicle and financial well-being. However, choosing the right car insurance provider can be a tough nut to crack amidst the myriad of options available in the market.
Many individuals overlook the importance of thoroughly researching different car insurance companies before purchasing a policy. This oversight can lead to potential regrets later on. Each company offers varying levels of coverage, customer service quality, and claim settlement efficiency. Ignoring these differences can result in inadequate coverage or unnecessary financial burdens during critical times.
Complete List of Car Insurance Companies (Including ICR)
The following table covers the list of IRDAI-approved car insurance companies based on their Incurred Claim Ratio (ICR) as per the Annual Report 2022-23/2021-22:
| Car insurance companies | Founded in (Year) | ICR (2021-22) | ICR (2022-23) |
|---|---|---|---|
| ACKO General Insurance Ltd. | 2016 | 86.87 | 86.94 |
| Bajaj Allianz General Insurance Co. Ltd. | 2001 | 68.53 | 74.48 |
| Cholamandalam MS General Insurance Co. Ltd. | 2001 | 65.05 | 75.33 |
| Future Generali India Insurance Co. Ltd. | 2007 | 62.43 | 64.72 |
| Go Digit General Insurance Ltd. | 2016 | 79.54 | 68.76 |
| HDFC ERGO General Insurance Co. Ltd. | 2002 | 74.66 | 78.09 |
| ICICI LOMBARD General Insurance Co. Ltd. | 2001 | 70.88 | 72.40 |
| IFFCO TOKIO General Insurance Co. Ltd. | 2000 | 84.12 | 83.34 |
| Kotak Mahindra General Insurance Co. Ltd. | 2015 | 82.67 | 80.53 |
| Liberty General Insurance Ltd. | 2013 | 62.84 | 73.33 |
| Magma HDI General Insurance Co. Ltd. | 2009 | 69.37 | 73.36 |
| National Insurance Co. Ltd. | 1906 | 90.68 | 108.81 |
| Navi General Insurance Ltd. | 2016 | 117.97 | 136.77 |
| Raheja QBE General Insurance Co. Ltd. | 2007 | 92.55 | 83.02 |
| Reliance General Insurance Co. Ltd. | 2000 | 75.57 | 79.62 |
| Royal Sundaram General Insurance Co. Ltd. | 2001 | 85.76 | 79.29 |
| SBI General Insurance Co. Ltd. | 2009 | 93.58 | 89.97 |
| Shriram General Insurance Co. Ltd. | 2006 | 72.97 | 69.86 |
| Tata AIG General Insurance Co. Ltd. | 2001 | 74.51 | 73.81 |
| The New India Assurance Co. Ltd. | 1919 | 91.00 | 97.52 |
| The Oriental Insurance Co. Ltd. | 1947 | 97.95 | 106.66 |
| United India Insurance Co. Ltd. | 1938 | 98.90 | 103.43 |
| Universal Sompo General Insurance Co. Ltd. | 2007 | 91.32 | 83.46 |
| Zuno General Insurance Limited (Formerly Edelweiss General Insurance Co. Ltd.) | 2016 | 84.61 | 79.83 |
Top 10 Car Insurance Companies in India Based on ICR
The following table covers top car insurance companies based on their ICR:
| Car insurance companies | ICR (2022-23) |
|---|---|
| Navi General Insurance Ltd. | 136.77 |
| National Insurance Co. Ltd. | 108.81 |
| The Oriental Insurance Co. Ltd. | 106.66 |
| United India Insurance Co. Ltd. | 103.43 |
| The New India Assurance Co. Ltd. | 97.52 |
| SBI General Insurance Co. Ltd. | 89.97 |
| ACKO General Insurance Ltd. | 86.94 |
| Universal Sompo General Insurance Co. Ltd. | 83.46 |
| IFFCO TOKIO General Insurance Co. Ltd. | 83.34 |
| Raheja QBE General Insurance Co. Ltd. | 83.02 |
**The data mentioned in the table above is taken from the IRDAI Annual Report 2022-23. The numbers may change over time.
Top 10 Car Insurance Companies in India Based on Network Garages
The following table covers top car insurance companies based on their network garages:
| Car insurance companies | Network Garages |
|---|---|
| SBI Car Insurance | 16000 |
| HDFC Ergo Car Insurance | 8200 |
| Reliance Car Insurance | 8200 |
| TATA AIG Car Insurance | 7500 |
| Chola MS Car Insurance | 4636 |
| Liberty Car Insurance | 4500 |
| IFFCO Tokio Car Insurance | 4300 |
| Bajaj Allianz Car Insurance | 4000 |
| Future Generali Car Insurance | 3500 |
| Universal Sompo Car Insurance | 3500 |
Now that you know about the complete list of car insurance companies, the next important thing you would want to know is how to select the best car insurance company in India. Let’s get into it.
How to Choose the Best Car Insurance Company in India?
Selecting the best car insurance company in India can seem overwhelming, but it doesn't have to be. Here are some key factors to consider when making your decision:
Coverage options
Ensure the chosen insurance company offers a variety of coverage options tailored to your needs. Basic liability coverage must be supplemented with comprehensive coverage and personal injury protection to ensure complete protection for your vehicle and yourself in case of accidents or other incidents.
Claim Settlement Ratio
Claim Settlement Ratio or CSR indicates how efficiently an insurance company processes and settles claims. A higher ratio implies that the majority of claims are settled, providing confidence that the company will fulfill its obligations promptly in the event of a claim. This will eventually minimize delays in claim settlement.
Customer Service
A responsive and helpful customer service team is essential for addressing queries, handling claims efficiently, and providing assistance when needed. Positive customer service experiences can significantly enhance the overall satisfaction with an insurance company, ensuring a smooth and hassle-free experience.
Premiums
While comparing premiums charged by the top-rated car insurance companies is important, it's equally crucial to assess the value offered for the price. Cheaper premiums may indicate limited coverage or higher deductibles, while slightly higher premiums may provide more extensive coverage and additional benefits. Here, you need to strike a balance between affordability and adequate coverage to ensure comprehensive protection.
Add-Ons
Additional coverage options and discounts can enhance the value of your insurance policy. Look for companies offering add-on covers such as roadside assistance, zero depreciation cover, and engine protection. Besides this, you can also look for discounts offered based on factors like safe driving habits, installing anti-theft devices, or bundling multiple policies.
Insurer’s Financial Stability
Detailed assessment of the financial stability of the best car insurance companies can help ensure it meets its financial obligations, particularly during times of economic uncertainty or when processing large volumes of claims. You can check the company's credit ratings and financial reports to gauge its stability and ability to fulfill claims promptly and effectively.
Ease of purchase and renewal
You can opt for car insurance companies that offer user-friendly online platforms for policy purchase and renewal. A streamlined process for obtaining quotes, comparing options, and completing transactions online saves time and effort, providing convenience and flexibility in managing your insurance policies.
Types of Policies Offered By Car Insurance Companies in India
Car insurance companies in India offer three common types of policies to suit different needs, including:
Third-Party Liability Insurance
This type of policy covers damages caused to third parties, including bodily injury or property damage, in accidents where you are at fault. It is mandatory by law for all vehicle owners in India to have at least third-party liability insurance.
Comprehensive Insurance
Comprehensive car insurance offers extensive coverage, including third-party liability and coverage for damages to your vehicle due to accidents, theft, natural disasters, and other unforeseen events. It provides comprehensive protection and is highly recommended for optimal coverage.
Standalone Own Damage Insurance
Standalone own damage insurance provides coverage exclusively for damages to your vehicle, excluding third-party liability coverage. It is ideal for those who already have third-party liability coverage through other means, such as government-mandated insurance or bundled policies. This type of policy allows you to customize your coverage according to your specific needs and preferences.
The following table covers a detailed comparison between these three types of car insurance policies:
| Parameter | Third-Party Liability Insurance | Comprehensive Insurance | Standalone Own Damage Insurance |
| Coverage | Covers damages to third parties | Covers damages to third parties and own vehicles, including accidents, theft, natural disasters, etc. | Covers damages to own vehicle only, excluding third-party liability |
|---|---|---|---|
| Mandatory Requirement | Mandatory by law | Not mandatory by law but highly recommended | Optional, often chosen as a supplement to existing third-party coverage |
| Scope of Coverage | Limited coverage | Extensive coverage | Coverage limited to damages to own vehicle |
| Protection | Provides protection against liabilities arising from accidents where you are at fault | Provides comprehensive protection for own vehicle and liabilities arising from accidents | Provides protection against damages to own vehicle only |
| Additional Benefits | - | Additional benefits such as personal accident cover, roadside assistance, zero depreciation cover, etc., as per chosen add-ons | - |
| Premium | Generally lower premiums | Relatively higher premiums | Can be tailored to specific coverage needs; premium may vary |
| Recommended Usage | Basic coverage for legal compliance | Recommended for comprehensive protection against various risks | Supplement to existing third-party coverage, ideal for those seeking additional coverage for their own vehicle |
How to Buy The Best Car Insurance Policy in India?
Here's a step-by-step guide to help you buy the best car insurance policy:
- Start by evaluating your insurance needs, considering the age and value of your car, your driving habits, and your budget. This will help you determine the type and level of coverage you require.
- Research reputable car insurance companies in India to compare their offerings, including coverage options, CSRs, customer reviews, and premiums. Look for companies with a strong track record of reliability and customer satisfaction.
- Once you've shortlisted a few car insurance companies, compare the policies they offer to find the one that best fits your requirements. Pay attention to coverage limits, exclusions, add-on options, and any discounts available.
- Don't settle for the first quote you receive. Instead, request quotes from multiple car insurance companies to compare prices and ensure you're getting the best deal.
- Depending on your needs, consider adding optional coverage extensions or add-ons to your policy.
- Before finalizing your car insurance policy, carefully read the terms and conditions, including any exclusions or limitations. Make sure you understand what is covered and what is not, as well as the process for filing claims and renewing your policy.
- Once you've selected the best car insurance policy for your needs, complete the purchase process either online or through an authorized agent. Make sure to provide accurate information and payment details to ensure your policy is valid.
Start your car insurance purchase process here.