Do you find it complicated to choose and buy a car insurance policy because of factors such as mandatory coverage, insurance premiums, and add-on covers? If yes, then it is time to put your anxiety to rest. Today, in this article, we will discuss everything related to the cost of car insurance in India in 2021 to help you simplify the process and choose a suitable coverage plan for your car. Let’s look at the details one by one:
What is car insurance?
Car insurance is just like any other insurance policy that gives you complete peace of mind against financial losses in case of a mishap or damage to your car. In any unwanted situation or car damage, you can claim the repair or replacement and other covered costs from your car insurance company.
Different types of car insurance in India 2021
Following are some of the common car coverage options available in India in 2021:
- Own damage car insurance – Covers damages to your car
- Third-party car insurance – Covers damages to a third party involved in an accident with your car
- Comprehensive car insurance – covers damages to your car + personal accident + damages to a third party
Factors influencing car insurance premium
The following factors are critical contributors to the overall cost of car insurance in India:
- The car’s IDV or Insured Declared Value
- Make and model of the car
- Age of car
- Geographical location
- Extra accessories bought together
- Add-ons selected
- Overall risk involved
Third-party car insurance premium rate in India in 2021
The third-party cover has a fixed premium across insurers. The insurance regulatory body, IRDAI, has standardized the third-party insurance premium in India. Check out the current premium rates:
| Private cars with an engine ability | Premium rate |
| Not exceeding 1000cc | Rs 2,072 |
| Exceeding 1000cc but not exceeding 1500cc | Rs 3,221 |
| Exceeding 1500cc | Rs 7,890 |
As, it’s the same for all insurers in India, check their claims servicing process and claim settlement ratios before choosing the best car insurance policy for you.
How to know the possible cost of car insurance?
To know the approximate cost of your car insurance, you can use various online car insurance premium calculators. A car insurance calculator can assist you in calculating the estimated premium. With this online tool, you just need to enter your car’s registration number, and the calculator will create the premium quote for you.
Can car insurance be purchased online?
Yes, you can easily buy car insurance online. Many insurance companies provide facilities to avail a car insurance policy in easy steps. You only need to find the right policy for you.
Top benefits of car insurance coverage
- If any third party gets injured or their vehicle or property gets wrecked because of an accident with your car, you stay protected against any financial liability as a result of accidental damage.
- The insurance policy provides financial coverage to owner/driver under instances where they get injured (or in the case of demise) while driving the insured car. An identical cover for the co-passengers can be acquired or availed of as an add-on at an additional cost.
- Mishaps caused to your car because of any public violence, hooliganism, or acts that are destructive are covered under car insurance in India.
- If your car gets stolen, your insurance policy provides coverage for such financial loss as well.
- If your car suffers damage because of an accident or any natural disasters such as earthquakes, floods, tsunami, etc., the related expenses can be claimed under the policy.
Points to keep in mind during car insurance policy purchase or renewal:
- Accessibility to consumer assistance: Some car insurers offer customer assistance services 24×7, while some offer customer support only during specific timings on specific days.
- Claim settlement ratio: The claim settlement ratio shows the portion of claims an insurer has settled out of the total number of claims collected in a fiscal year. It is a vital standard while choosing a car insurance plan. An insurer might be giving car insurance at the cheapest rate but may not offer an effective claim settlement ratio, which can be a good reason to not go forward with it.
- The convenience of policy purchase/restoration: It is an important parameter that you must consider while buying a new policy or renewing the existing one. You should verify whether the insurance purchase/restoration process is convenient, spontaneous, and paperless.
- Cashless service: Check if the insurer provides cashless protection coverage because this feature can benefit you to get your car repaired without needing to pay cash upfront.
If you are plan to get the best car insurance policy in India or want to renew your existing policy, or even want to change your insurance provider, look online. It takes less time and eliminates the hassle of visiting offices of various insurance providers to know about their offerings. You can easily compare the policies offered by different providers, check the premiums and easily calculate the insurance cost by using tools like online calculators.
