What is car insurance?
Car insurance helps you get financial coverage against loss or damage sustained by your car due to accidents, thefts, or natural calamities. It also covers you for any third-party damages caused by your car. There are three major types of car insurance policies – comprehensive, own damage, and third-party policies. A third-party car insurance policy covers damages or injuries caused to a third-person or their property. It is a mandatory policy to own as per the Motor Vehicles Act of 1988. An own damage policy only covers damages sustained by the insured car. Finally, a comprehensive policy covers both own damage and third-party liabilities.
Key features and benefits of car insurance policies
Here are some of the key benefits of car insurance policies offered by our insurance partners.
Key features |
Benefits |
Third-party damages cover |
Covers personal accidents, third-party injuries, and property damages |
Own damage cover |
Covers accidents, fire, explosion, theft, and natural calamities |
No Claim Bonus |
Up to 50% |
Car insurance premium |
Starts at Rs. 2,762* |
Personal accident cover |
Up to Rs. 15 lakh* |
Cashless garages |
6,500+* across India |
Add-on covers |
6 add-on covers |
Buying/renewal process |
Online |
Extensive coverage at low premiums
Choose from a host of affordable policies that provide comprehensive damage coverage and the convenience of cashless repairing.
Cashless car repairing at 6,500+ garages
Get your car repaired at any of the 6,500+ network garages across India without paying in cash.
Personal accident cover
Get a personal accident cover of up to Rs. 15 lakh in case of accidental injuries, disabilities, or death. This coverage is applicable to the owner-driver of the vehicle.
Buy insurance without paperwork
No need to fill out physical forms or submit a list of documents to buy a car insurance policy online.
Avoid claim deductions due to depreciation
The zero-depreciation add-on coverage lets you claim coverage against your four-wheeler insurance without any deductions for depreciation.
No claim bonus up to 50% of premium
Save up to 50% on your insurance premium while renewing your car insurance online.
Engine protection add-on cover
Covers the repair/replacement cost of the car's engine. In a city with heavy rainfall, engine protection add-on cover you must carry.
Roadside assistance
This add-on coverage gets you 24x7 roadside assistance for a diverse range of car issues.
Key replacement coverage
This four-wheeler insurance add-on benefit covers your expenses incurred for replacing a lost or misplaced car key and lockset.
Types of car insurance policies
There are three types of car insurance policies, each designed to address the varying needs of the customers and the best coverage they need:
Comprehensive insurance
A comprehensive car insurance policy covers the damages caused to the insured car and the third party. It covers the damages caused due to theft, fire, malicious activity, or a natural calamity or accident.
Third-Party Insurance
You are subject to pay the damages for the third party if you are at fault in case of a collision. Third-party car insurance is mandatory in India and covers the damage caused by your car to other people's vehicles and property. However, it will not cover the damages to your car if you are at fault.
Own damage insurance
An own damage car insurance covers you against any accidental damages to your four-wheeler. These could be due to natural disasters like earthquake, flood, cyclone, and landslide. Or due to man-made disasters like theft, burglary, riot, or strike. You can buy this insurance policy if you have an active third-party vehicle insurance policy to get complete coverage for your vehicle.
Available add-ons with car insurance policies
Here are some of the add-on benefits offered under car insurance policies.
Zero depreciation cover
Also known as a bumper-to-bumper cover, with the zero-depreciation add-on, you can nullify the depreciation factored in during claim settlement. In this cover, you receive the full claim amount as mentioned in the Bajaj car insurance policy documents initially. Also, it covers the depreciation of the value of spare parts.
Engine protection cover
A standard four-wheeler insurance plan does not cover the expenses incurred due to engine damage. The engine protector add-on helps you save up to 40% of the amount you would spend on getting your car’s engine fixed.
Key and lock assistance
This add-on is designed to cut down on the costs associated with missing or damaged keys. It takes care of the entire purchasing and replacement of not just the car key but the entire locking system.
Compulsory personal accident cover
Personal accident cover for the owner and driver is available as an add-on benefit. So, if you suffer injuries due to an accident while driving your car, the insurer will pay up the amount mentioned in the defined cover.
24x7 roadside assistance
This is one of the most useful four-wheeler insurance add-ons. You can get a tyre changed, have an expert look into your car’s engine, or more with just a call or a click, 24x7.
Consumables expenses
Consumable items of a car include nuts and bolts, screws, washers, grease, lubricants, and related parts. The basic car insurance policy does not cover such consumable items. However, a consumables add-on cover will cover any expenses arising out of damage or loss to these parts.
Points to check before buying a car insurance policy
Following are some pointers that you must keep in mind before availing of an insurance policy.
Type of policy coverage
Keep an eye on the policy coverage inclusion and exclusion. Since there are multiple offers available, you need to choose one per your requirement.
Processing time
Whether it is a car insurance renewal or buying a new one, it is imperative to note the processing time. Insurance providers that process purchase and claim settlement applications faster are always preferable, saving you time.
No claim bonus and other discounts
Irrespective of buying four-wheeler insurance online or offline, take note of no claim bonus and additional discounts associated with a policy. This will help you decide the policy's total cost and plan accordingly.
Claim settlement ratio
Lastly, checking the claim settlement ratio while buying four-wheeler insurance is vital. It helps you to gauge the efficiency of an insurance provider.
Apart from these, you should also evaluate the add-on coverages and network garages before buying an insurance policy.
Network garages
You need to check the number of network garages offered by the insurer in the area where you reside. Network garages help you avail cashless facility to repair your vehicle. So, you will not need to pay cash from your own pocket.
Add-on covers
Add-on covers help you enhance the policy coverage and maximise its benefits. You can choose from various add-on coverages depending on your requirement. You should ideally choose a policy that offers a gamut of add-on coverage options.
Insured Declared Value (IDV)
IDV is the maximum amount that your car insurer will settle in case of a completely damaged or stolen car. The IDV of your car depends on its present market value. A car’s market value reduces with wear and tear. Therefore, a newer car will usually have a higher market value. The higher the IDV, the higher the premium you need to pay for the policy.
Premium
The premium of your car insurance policy varies depending on your car’s IDV, model, fuel type, and tenure. The coverage benefits can also vary between insurers even when the premium remains the same. Therefore, you must compare and choose the policy accordingly.
Customer assistance
While choosing your car insurance policy, you must consider the customer assistance factor. The insurer should be able to settle queries and provide claim assistance 24x7.
Compare car insurance policies
To choose your preferred four-wheeler insurance policy, you must compare the coverage offered by each type of policy. Here is a comparison of the coverage offered by car insurance policies.
Coverage offered |
Comprehensive policy |
Own damage policy |
Third-party policy |
Own damage |
Yes |
Yes |
No |
Third-party property damage |
Yes |
No |
Yes |
Third-party bodily damage |
Yes |
No |
Yes |
Car theft |
Yes |
Yes |
No |
Add-on coverage |
Yes |
Yes |
No |
Personal accident coverage |
Yes |
Yes |
Yes |
Step-by-step guide to buy car insurance plans on Bajaj Finance Insurance Mall
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Step 1
Click here to visit the online application form.
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Step 2
Enter the vehicle type, registration number, mobile number, and residential PIN code. Check the terms and conditions and click on the ‘Get Quote’ button below.
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Step 3
Choose the IDV, NCB value, optional add-on covers, and plan type to get a list of relevant car insurance policies. You need to update the expiry date of your current car insurance policy here.
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Step 4
Click on the ‘Buy Now’ button. You will need to add owner-driver personal accident cover mandated by the RTO. Click on Next to proceed.
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Step 5
Confirm the vehicle registration date and the previous policy type (Comprehensive/third-party). Click on ‘Proceed’.
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Step 6
Enter vehicle owner’s name, date of birth, residential address, and contact number. Also, enter vehicle engine and chassis number (as per the RC) and previous four-wheeler insurance policy details.
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Step 7
Review your previously filled details and make the payment through your preferred online payment mode – Net banking, UPI, Credit/Debit card to buy the policy.
After successful payment, your policy document will be available for you to download instantly. A copy of the policy document will also be mailed to your registered email ID within 5-7 working days.
You will also receive an SMS confirmation immediately after the payment process is completed.
You can also access your policy details through the My Account section within 5-7 days after purchase.
Step-by-step guide to renew car insurance plans
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Step 1
Before your policy expires, click here to choose your preferred plan.
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Step 2
Enter the vehicle type, registration number, mobile number, and residential PIN code. Check the terms and conditions and click on the ‘Get Quote’ button below.
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Step 3
Choose the IDV, NCB value, optional add-on covers, and plan type to get a list of relevant car insurance policies. You need to update the expiry date of your current car insurance policy here.
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Step 4
Click on the ‘Buy Now’ button. You will need to add owner-driver personal accident cover mandated by the RTO. Click on Next to proceed.
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Step 5
Confirm the vehicle registration date and the previous policy type (Comprehensive/third-party). Click on ‘Proceed’.
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Step 6
Enter vehicle owner’s name, date of birth, residential address, and contact number. Also, enter vehicle engine and chassis number (as per the RC) and previous four-wheeler insurance policy details.
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Step 7
Review your previously filled details and make the payment through your preferred online payment mode – Net banking, UPI, Credit/Debit card to buy the policy.
After successfully making the payment, your policy document will be available for you to download instantly. A copy of the policy document will also be mailed to your registered email ID within 5-7 working days.
You will also receive an SMS confirmation immediately after the payment process is completed.
You can also access your policy details through the My Account section within 5-7 days after purchase.
Key inclusions and exclusions
Here’s a quick look at the inclusions and exclusions of car insurance policies:
- Key inclusions
- Key exclusions
| Key inclusions | Description |
|---|---|
| Third-party liabilities | Coverage against damages caused to a third-person’s body, property, or vehicle |
| Personal accident cover | Coverage in case of the insured’s demise or permanent total disability due to an accident |
| Accidental damage | Coverage against damages caused due to accidents |
| Fire damage | Coverage against damages caused due to fire explosion, self-ignition, or lightning |
| Theft | Provides coverage if the insured car is stolen |
| Natural and man-made calamities | Coverage against damages from both natural and man-made calamities |
| Key exclusions | Description |
|---|---|
| Location | Any loss or damage caused to your car outside the geographical limits of India |
| Pre-existing damages | Any damage that your car has suffered before buying this car insurance policy online |
| Normal wear and tear | Repair or replacement costs of car parts damaged over time due to regular usage |
How to raise a cashless claim with ACKO
Follow these steps to raise cashless claim requests with ACKO Car Insurance.
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Step 1 - Contact the insurer
Log in to acko.com or ACKO app and click on ‘Claim Now’ to register your claim request.
You can also call 1800-266-2256 (toll-free) to register your claim or send an e-mail to hello@acko.com.
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Step 2 - Locate your nearest network garage
Once the claim is registered, take the car to an ACKO network garage near you. In some cases, a crew may be assigned to take your vehicle for repairs at network garages.
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Step 3 - Repair cost and coverage is estimated
A surveyor along with a mechanic will discuss and let you know the repair cost and the coverage amount based on the applicable terms and conditions of the four-wheeler insurance policy.
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Step 4 – Bill is settled between ACKO and the garage
The garage will repair the car and settle the bill directly with ACKO.
The balance (deductibles) amount needs to be paid by you to the garage.
How to raise a reimbursement claim with ACKO
To reimburse your car repairing bills with ACKO Car Insurance, follow these steps.
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Step 1 - Contact the insurer
Log in to acko.com or ACKO app using your registered mobile number or call 1800-266-2256 (toll-free) to register your claim and inform ACKO about the damage to your vehicle.
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Step 2 – Repair your car at any of your preferred garages
Get your vehicle repaired at your preferred garage, pay the bills, and retain the invoice.
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Step 3 - Submit the required documents
Submit the reimbursement claim with ACKO. Log in to their website or app and upload the invoice and other necessary documents for the four-wheeler insurance policy.
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Step 4 - Claim settlement
ACKO will review your claim and verify the documents to process the reimbursement as per the policy's terms and conditions.
How to raise a cashless claim with Bajaj Allianz General Insurance
Follow these steps to raise cashless claim requests with Bajaj Allianz Car Insurance.
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Step 1 - Contact the insurer
Register your claim: Call the toll-free number 1800-209-5858. Or Write an email at: bagichelp@bajajallianz.co.in. OrDirectly visit the insurer's website.
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Step 2 - Provide some basic details
Share some basic details with the insurer:
Contact number, engine and chassis number, date, time, description, and location of the accident, vehicle inspection address, kilometre reading on the vehicle. -
Step 3 - Receive claim reference number
You will receive a claim reference number from the insurer and an SMS about the exact status of your claim.
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Step 4 – Locate your nearest network garage
Take your vehicle or have it towed for repair to the nearest network garage.
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Step 5 - Bill is settled between the insurer and the garage
The vehicle will be repaired at a network garage and delivered to your doorstep. The insurer will settle the bills directly with the garage.
How to raise a reimbursement claim with Bajaj Allianz General Insurance
Follow these steps to raise reimbursement claim requests with Bajaj Allianz Car Insurance.
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Step 1 - Contact the insurer
Register your claim: Call the toll-free number 1800-209-5858. Or Write an email at: bagichelp@bajajallianz.co.in. Or Directly visit the insurer's website.
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Step 2 - Provide some basic details
Share some basic details with the insurer:
Contact number, engine and chassis number, date, time, description, and location of the accident, vehicle inspection address, kilometre reading on the vehicle. -
Step 3 – Receive claim reference number
You will receive a claim reference number from the insurer and an SMS about the exact status of your Bajaj car insurance claim.
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Step 4 – Repair your car at any of your preferred garages
Get your vehicle repaired at your preferred garage, pay the bills, and retain the invoice.
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Step 5 - Submit the required documents
Submit bills along with the documents online or to the nearest Bajaj Allianz office.
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Step 6 - Claim settlement
Reimbursement will take approximately 7-30 days (for a net of loss) from the date of submission of bill. All documents should be in order and within policy purview.
How to raise a cashless claim with SBI General Insurance
Follow these steps to raise cashless claim requests with SBI General Private Car Insurance Policy.
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Step 1 - Contact the insurer
Log in to https://www.sbigeneral.in/ or the SBI app with your registered mobile number and click on ‘Intimate Claim’ section.
In case of an accident, you can call on 1800-102-1111 (toll-free) to register your claim or send an email to customer.care@sbigeneral.in.
You can also send an SMS typing ‘CLAIM’ to 561612.
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Step 2- Fill the claim form
Fill out the claim form with the required details. In case of accident or theft claims, the list of required documents will be specified in the form. The insurer will send a surveyor to assess the vehicle damage and suggest a list of nearest network garages.
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Step 3 – Take the car to a network garage
You can either drive your car to the network garage or choose the towing service provided by the insurer.
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Step 4 - Bill is settled between SBI General and the network garage
The insurer will settle the bill up to the sum insured with the network garage directly. You will only need to clear the balance (deductibles) amount needs with the garage.
Fastlane Claim Settlement (FCS)
The insurer also offers ‘Fastlane Claim Settlement’ that facilitates quick motor claim settlement. A dedicated claim handler will be in touch with you to guide you through the process and the claim settlement will be initiated instantly.
How to raise a reimbursement claim with SBI General Insurance
To reimburse your car repairing bills with SBI General Private Car Insurance Policy, follow these steps.
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Step 1 - Contact the insurer
Log in to https://www.sbigeneral.in/ or the SBI app with your registered mobile number and click on ‘Intimate Claim’ section.
In case of an accident, you can call on 1800-102-1111 (toll-free) to register your claim or send an email to customer.care@sbigeneral.in.
You can also send an SMS typing ‘CLAIM’ to 561612.
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Step 2 - Repair your car at any of your preferred garages
You can repair your vehicle at any of your preferred garage, pay the bills, and retain the invoice.
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Step 3 - Submit the required documents
Submit the reimbursement claim form by logging in to their website or app and uploading the invoice and the other necessary documents.
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Step 4 - Claim settlement
SBI will review your claim and verify the documents to process the reimbursement as per the policy's terms and conditions.
Documents required for raising a claim request
Here is the list of documents you need to raise a claim request against car insurance policies.
- Copy of the registration certificate (RC) of your vehicle
- Copy of your driving licence
- Policy number
- Description of the incident and photographs of the vehicle (if possible)
- First Information Report (FIR) in case of theft, injuries to any third party or damage to their property
- The original bills for the repairs of the car to claim four-wheeler insurance policy
Frequently asked questions
Owning a car insurance policy offers a variety of benefits. Firstly, it helps you meet the legal requirement of owning at least a third-party car insurance cover. Moreover, a car insurance policy helps you meet own or third-party damages due to a road accident or other unfortunate events.
IRDAI determines the premiums of third-party car insurance plans. Whereas the premium from insurance company to insurance company. Following are some factors that affect the premium for own damage four-wheeler insurance cover:
1. Insured declared value (IDV)
2. Make and model of the car
3. Deductibles
4. Seating capacity
5. Cubic capacity
6. Previous insurance history
The type of coverage has an impact on the premiums. Do compare insurance premiums to obtain the best deal. The IRDA decides third-party premium amounts.
Depreciation in car insurance refers to the loss of the insured car’s value due to wear and tear. The depreciation rate plays a vital part in a car insurance policy. Insurance companies determine the value that they agree to provide for your car based on the car’s age and depreciation.
Comprehensive car insurance gives coverage to your third-party liabilities in addition to the damage sustained by your car. The damage could be due to an accident, theft, fire, natural calamities, and man-made disasters.
Zero Depreciation is an add-on cover in car insurance. It makes the insurer pay the complete claim amount without taking the depreciation of the parts of the car into consideration. Since it is an add-on, you will have to pay a little extra premium to avail of it.
Insured Declared Value (IDV) is the maximum sum insured set by the insurer for theft or total loss of the insured car. IDV is the present market value of the car. If your car suffers total loss, you will receive the IDV as compensation.
A cashless car insurance claim provides you with instant aid after an accident or any unfortunate event and helps you avoid paying any repair costs. However, this claim is only applicable when you repair your car at a partner network garage.
A policyholder receives a No Claim Bonus (NCB) if they have not filed any claims throughout the insurance period. The comprehensive insurance plan in India varies between 20-50%, according to current laws. A third-party motor insurance plan does not qualify for the NCB. At the time of the vehicle transfer, you can transfer the insurance plan to a new insurance provider, but not the NCB. The new buyer is responsible for paying the outstanding balance.
Yes, if the policyholder changes their motor insurance carrier at the time of renewal, they are eligible for the NCB. All you would have to do is show verification of the NCB you have earned from your existing insurance provider. You can show an authentic copy of your expired policy and certification showing you have not filed a claim against the (expiring) insurance plan.
The deductible is the amount that you need to pay out of your pocket while filing a claim. Generally, there is a standard or mandatory deductible for two-wheelers, cars, and commercial vehicles. It depends on the carrying capacity or cubic capacity of the vehicle. However, the insurance carrier may impose a larger deductible based on the vehicle's age or the frequency of filing claims.
As per the Indian Motor Tariff, every car owner in the country must own a third-party car insurance cover. Absence of a valid third-party car insurance plan is a punishable offence. It attracts a fine of Rs. 2,000 and/or imprisonment of up to 3 months for the first offence.
Car Insurance is an agreement between an insurance company and a car owner. As per the agreement, the insurer provides an insurance cover for financial damages incurred by the insured car. There are three types of car insurance plans – third-party car insurance policy, own damage car insurance and comprehensive car insurance policy. Car insurance renewal online process provides instant e-policy.