Insurance · Motor — car

Car Insurance

Mandatory under Indian Motor Vehicles Act. Choose between Third-Party only (cheap, legally minimum) or Comprehensive (covers your own car too — recommended for cars worth ₹3L+). Premium depends on IDV (Insured Declared Value), city, age of car, claim history.

Who needs this

Every Indian car owner — Third-Party is legally mandatory. Comprehensive is highly recommended for cars valued ₹3L+, all new cars, and city driving (theft + parking damage risk).

Key decisions

Q1
Third-Party or Comprehensive?
Comprehensive for new cars, EVs, expensive cars (>₹5L), city use. Third-Party only if car is >10 years old and worth <₹2L.
Q2
Add-ons worth taking?
Zero Depreciation (yes — pays full part replacement cost). Engine Protect (yes for monsoon cities). Roadside Assistance (yes — cheap). Return to Invoice (yes for new cars, first 3 years).
Q3
Bumper-to-bumper or basic?
Bumper-to-bumper (zero dep + engine + roadside + RTI) for first 5 years. Switch to basic comprehensive after.
Q4
Cashless garage — what to check?
Check garage network at your home + office + frequent travel routes. Tata AIG and Bajaj Allianz have widest networks.

Top insurers ranked by claim settlement

Car Insurance — Claim Settlement Ratio

Source: IRDAI Annual Report 2024-25 · published values

Tata AIG
90.00%
Bajaj Allianzbest
89.86%
Acko (digital)
86.39%
ICICI Lombard
86.00%
HDFC Ergo
84.00%

Bajaj Allianz:Drive Assure — wide cashless garage network + fast claim processing.
Tata AIG:Auto Secure — competitive add-ons + good app experience.
ICICI Lombard:Comprehensive Insurance Policy — bank-distribution advantage.
HDFC Ergo:Comprehensive — strong claim ratios + Optima Secure brand consistency.
Acko (digital):Pure-play digital insurer — paperless claim, lower premiums.

IRDAI rules + scheme specifics

Third-Party premium is set by IRDAI annually — same across all insurers for same car class.
Own-Damage premium varies — comparison shopping yields 20-30% savings.
No-Claim Bonus (NCB): up to 50% discount after 5 claim-free years. Transfers across insurers.
Long-term policies: 3-year for cars, 5-year for two-wheelers — locks discount + reduces hassle.