Uncertainties or mishappenings are part of life. Insurance is basically a contract in which an insurer party agrees to pay an agreed amount to an insured party for the losses or damages occurred.
In this fast paced era, it is very important for a person to get insured not only for one’s life but also for their assets or investments. Yes people, as we all know, insurance is of two types – Life and General.
Car insurance policy is a type of vehicle insurance wherein a car insurance company protects the owner’s car from any type of accidental or on-road damage. In this article, one will understand the importance of buying car insurance along with the list of top 5 car insurance companies in India.
Why Car Insurance Policy Is Needed?
As earlier told, mishappenings can occur to anyone. To get protected against these, car insurance is the only solution beforehand.
- It is an agreement where a car insurance company pays for any damage arise due to collision, accident, natural calamity etc.
- Some company policies have the clause to provide for hospital expenses of driver in case of accident.
- Premium amounts can be decided via Insured Declared Value. If IDV is high, premium is high and vice versa.
How To Choose Best Car Insurance Policy In India?
Before going for any of the policy, a person has to campare various policies of distinct companies in the insurance market.
- First of all, prepare a list of your financial expectations for your vehicle’s insurance. Choose your insurance policy wisely which will cover most of your financial expectations.
For example:- If a person has more touring and travelling in its car, then probably chances of accidental damages are high. A comprehensive policy can be taken.
For example:- If a car remains at one place for much time and security issues are there, then policy covering theft clause can be taken.
- Go for a company where the easy and quick renewal process of insurance is covered. You can also refer to the list of the top 5 car insurance companies in India. Nowadays in this digital world, online payments and renewals should be prompted. Compare the premium prices online and go for a ‘one size fits all policy.
- Comprehensive coverage and add-on covers can be found while taking a policy for your car insurance. For example engine cover, third-party liability, roadside assistance, zero depreciation and personal accidental cover etc.
- Review the suggestions of your family members or your relatives as they are the people who have suffered and will give you a better option for your car insurance.
- Do not risk your vehicle by taking a policy of any inauthentic company. Choose an authentic one and do check the financial capabilities of company for settling the claims.
Types of Car Insurance Policy
1. Comprehensive Car Insurance Policy
As the name suggests, this type of car insurance policy provides wider coverage and more benefits under one umbrella cover.
- Medical or hospital expenses.
- Zero depreciation cover.
- Add ons covers like for accessories or denting and painting.
- Accidental or losses due to theft.
2. Third Party Vehicle Insurance
In this type of insurance, your insurance company agrees to pat you for the losses or damages occurring to the third person because of your vehicle’s involvement in the damages.
3. Pay As You Drive Insurance
It is also known as usage-based insurance whereby an insured party has to pay the premium amount on the basis of miles or distance driven. Similarly, the insured party or company agrees to pay for the damage on the basis of the reading of the odometer of a car.
Top 5 Car Insurance Companies In India
There are basically n number of companies selling their insurance policies to insure people against the risks to their vehicles. These include Bajaj Allianz, National insurance, oriental insurance, Bharti AXA, ICICI Lombard car insurance, Edelweiss car insurance, some public companies like Reliance, TATA AIG, SBI car insurance, etc. Following are some of the companies of which, features are highlighted along with the risk coverage capacity in their policies.
1. Bajaj Allianz Car Insurance:-
It is one of the top 5 car insurance companies in India. It provides you the cover against comprehensive as well as third-party insurance. Maximum financial expectations are met at affordable prices.
- Online renewals
- Zero depreciation cover available.
- Membership discounts.
- Add ons like denting & painting, key & lock replacement, engine & battery protector, accessories shield etc.
2. Cholamandalam Car Insurance Company In India
A car insurance company based in Ludhiana city, has a network of over 8300+ cashless garages.
- Protects against third-party liability.
- Compulsory personal accident cover of worth 15 lakhs INR in case of injury, disability or death.
- Accumulated no claim bonuses for the period of not filing for any claim since you have taken the policy.
3. National Insurance Company In India
National insurance company is a public company which provides various types of insurance policies for one’s life as well as property. Motor insurance is also one type of insurance provided by it.
- Third-Party liability or liability arising due to death or injury of the third party.
- Any damages or risks to one’s own car due to natural calamities, terrorist attacks, accidental damages, riots or strikes, etc.
- Also covers pay for additional minor expenses like 1500 INR for towing charges from place of damage to the workshop.
4. TATA AIG Insurance Company
TATA AIG is a general insurance company which is a collaborative association between TATA group of companies and American International Group(AIG). Various type of insurance covers are provided by this company and some of the features of motor insurance provided by this company are-
- 7500+ network garages.
- Instant policy for all products.
- Zero depreciation cover.
- Accidental damage and theft cover.
- 13 type of add ons are provided and customized policy can be taken by choosing add ons as per requirement.
How Insurance Premium is Calculated?
Insurance premium is calculated on the basis of Insured Declared Value that is IDV. It is basically the value of the asset and in first year, it is the purchase price itself. Premium is calculated on the basis of this formula= IDV * Premium rate as per insurance company + add ons – discounts or benefits.
5. SBI Car Insurance
SBI car insurance under the category of general insurance is the most trusted policy which one can take. State Bank of India is one of the country’s largest and leading commercial banks in terms of its financial position.
- Compulsory third-party liability with personal accidental cover.
- Multiple risks coverage but with additional costs.
- Key and lock replacement.
- Bi-fuel kit.
- Incurred claim ratio- 102.07%
- 1500+ network garages.
Car is an important asset for anyone as it is comfortable and easier to travel in. It has right to get insured along with the owner’s or third party insurance. Risks are uncertain and a car insurance policy should be chosen wisely as per one’s financial expectations and company’s authenticity & capability.