How is car insurance premium calculated?

Premium depends on car model, age, city, engine capacity, add-ons, and No Claim Bonus (NCB).

What is cashless claim in car insurance?

In a cashless claim, your insurer directly pays the repair cost to the network garage, reducing your out-of-pocket expense.

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plus Plans starting from ₹2,094/year

plus Plans starting from ₹2,094/year

Car Insurance Online in India -
Compare, Buy or Renew

Q: What is car insurance?

Car insurance is a policy that provides financial protection against accidents, damages, theft, and third-party liabilities.

Q: Is car insurance mandatory in India?

Yes, third-party insurance is mandatory under Indian law. Driving without insurance can lead to heavy penalties.

Q: What is the difference between third-party and comprehensive insurance?

Third-party insurance covers damages caused to others, while comprehensive insurance also covers your own car damages, theft, and natural disasters.

Q: What is No Claim Bonus (NCB)?

NCB is a reward for not making claims during the policy period. It gives up to 50% discount on renewal premium.

Q: What documents are required to buy car insurance?

You typically need RC (Registration Certificate), previous policy details, and basic personal details.

Q: How can I reduce my car insurance premium?

You can reduce premium by maintaining NCB, choosing higher voluntary deductible, installing anti-theft devices, and comparing multiple insurers.

Q: What are add-ons in car insurance?

Add-ons are extra covers like zero depreciation, engine protection, roadside assistance, and return to invoice.

Q: How to file a car insurance claim?

Inform your insurer, submit documents, get vehicle inspection, and repair at a network garage for cashless claims.

Secure your car against covered events such as accidents, theft, fire,
natural calamities, and other unforeseen risks.
Explore car insurance policies offered by leading insurers and select
a plan that matches your vehicle, budget, and protection requirements.

Get a Car Insurance Quote

Compare third-party, standalone own-damage, and comprehensive policies
Review premiums, coverage, and policy features
Select relevant add-on covers
Locate cashless network garages
Purchase or renew car insurance digitally

What Is Car Insurance?

Car insurance is a financial protection plan designed to cover certain losses and liabilities arising from the ownership or use of a vehicle.

Based on the type of policy selected, it may provide coverage for:

Accidental damage to the insured car
Theft of the vehicle
Loss or damage caused by fire
Damage resulting from covered natural calamities
Damage caused to third-party property
Bodily injury or death of a third party
Personal accident protection, wherever applicable

Under Indian law, every vehicle used on a public road must have valid third-party motor insurance.

A comprehensive car insurance policy provides broader protection by generally combining mandatory third-party liability coverage with own-damage protection for the insured vehicle.

Get a Car Insurance Quote

Provide a few essential details to view car insurance options that may be suitable for your vehicle.

Full Name*

Mobile Number*

+91

Vehicle Registration Number

Policy Expiry Date

Compare Car Insurance Plans

Car insurance policies can vary significantly in terms of pricing, benefits, add-on options, deductibles, service quality, and network garage availability.

Before purchasing a policy, compare:

Policy category

Premium payable

Insured Declared Value

Available add-on covers

Number and location of cashless garages

Compulsory and voluntary deductibles

No Claim Bonus benefits

Claim registration and settlement process

Major policy exclusions

Customer assistance services

Avoid selecting a plan purely because it offers the cheapest premium.

The right policy should provide an appropriate balance between affordability, coverage, and protection for your car.

Compare Car Insurance Plans

Types of Car Insurance in India

There are three main types of car insurance.

Comprehensive

Third Party

Own Damage

Comprehensive car insurance generally includes:

Third-party liability protection
Own-damage coverage for the insured car

It offers more extensive protection than a third-party-only policy.

Optional add-on covers may also be purchased to enhance the policy benefits.

Cashless Garages

Claims Settled

Starting Premium

Tata Aig

10,000+

99%

₹6,000/-*

Check Premium

Hdfc Ergo

12,277+

98%

₹6,500/-*

Check Premium

Go Digit

10,000+

97%

₹5,500/-*

Check Premium

Zurich Kotak

6,499+

97%

₹6,000/-*

Check Premium

Future Generali Insurance

3,500+

96%

₹5,500/-*

Check Premium

ICICI Lombard

13,000+

98%

₹6,500/-*

Check Premium

Bajaj General Insurance

7,200+

97%

₹6,000/-*

Check Premium

Third-party car insurance provides coverage for legal liabilities arising from injury, death, or property damage caused to another person.

It may cover:

Injury suffered by a third party
Death of a third party
Damage caused to third-party property

This policy does not pay for repairs or losses related to your own vehicle.

Third-party insurance is the minimum motor insurance cover legally required for vehicles operating on public roads in India.

Up to 1000 CC

1001–1500 CC

Above 1500 CC

Tata Aig

₹2,094/-*

₹3,416/-*

₹7,897/-*

Check Premium

Hdfc Ergo

₹2,094/-*

₹3,416/-*

₹7,897/-*

Check Premium

Go Digit

₹2,094/-*

₹3,416/-*

₹7,897/-*

Check Premium

Zurich Kotak

₹2,094/-*

₹3,416/-*

₹7,897/-*

Check Premium

Future Generali Insurance

₹2,094/-*

₹3,416/-*

₹7,897/-*

Check Premium

ICICI Lombard

₹2,094/-*

₹3,416/-*

₹7,897/-*

Check Premium

Bajaj General Insurance

₹2,094/-*

₹3,416/-*

₹7,897/-*

Check Premium

Own-damage car insurance provides financial protection against specified loss or damage to the insured vehicle.

Subject to the policy conditions, it may cover:

Road accidents
Vehicle theft
Fire-related damage
Flood damage
Cyclones
Earthquakes
Other events listed in the policy

A standalone own-damage policy does not include third-party liability coverage.

Therefore, the vehicle owner must maintain a separate and valid third-party insurance policy.

Starting Approx. OD Premium*

Tata Aig

₹3,900 – ₹4,200

Check Premium

Hdfc Ergo

₹4,400 – ₹4,700

Check Premium

Go Digit

₹3,400 – ₹3,700

Check Premium

Zurich Kotak

₹3,900 – ₹4,200

Check Premium

Future Generali Insurance

₹3,400 – ₹3,700

Check Premium

ICICI Lombard

₹4,400 – ₹4,700

Check Premium

Bajaj General Insurance

₹3,900 – ₹4,200

Check Premium

Key Features of Car Insurance

Car insurance provides financial protection and legal compliance for vehicle owners. Key features include:

Financial Protection

Car insurance can help limit the financial burden arising from accidents, vehicle theft, fire, natural calamities, and other covered incidents.

Third-Party Liability Cover

The policy may protect you against eligible legal liabilities for injury, death, or property damage caused to another person.

Own-Car Damage Cover

Standalone own-damage and comprehensive policies may pay for approved repair or replacement costs relating to damage to the insured vehicle.

Cashless Garage Service

Most insurers provide access to a network of authorised repair garages. For an approved cashless claim, the insurer directly settles the admissible repair expenses with the network garage. The policyholder remains responsible for deductibles, depreciation, consumables, and any expenses not covered under the policy.

Optional Add-On Covers

Add-ons are additional covers that can be selected to strengthen the protection offered by the base policy.

Online Purchase and Renewal

Car insurance policies can be compared, purchased, and renewed online through a quick and convenient digital process.

Coverages Under Car Insurance

A typical car insurance policy may cover the following:

Accidents, theft, fire & natural disaster protection

Third-party liability coverage

Add-ons like roadside assistance & zero depreciation

Quick car insurance online purchase & renewal

Easy car insurance claim process

Coverage for personal accident of the driver and passengers

Cashless repairs at network garages

Continuous protection with timely vehicle insurance renewal

Optional coverage for engine, electrical, and tyre damages

24×7 customer support and assistance

Types of Vehicle Insurance Policy

Choose a policy according to the type of vehicle, its usage, your budget, and your coverage expectations.

Third-Party Insurance

Provides protection against legal liability for third-party injury, death, or property damage. It does not compensate for damage to the insured vehicle.

Own-Damage Insurance

Covers eligible loss or damage to the insured vehicle caused by accidents, theft, fire, natural calamities, and other specified risks.

Comprehensive Insurance

Combines third-party liability protection with own-damage coverage, offering wider financial security.

Commercial Vehicle Insurance

Designed for vehicles used for commercial or business purposes, including taxis, trucks, buses, delivery vehicles, and vans.

Two-Wheeler Insurance

Provides third-party or comprehensive insurance protection for motorcycles, scooters, and other eligible two-wheelers. A standard car insurance policy may include coverage or benefits such as:

Protection against accidents, theft, fire, and specified natural calamities
Coverage for third-party injury, death, and property damage
Optional add-ons such as zero depreciation and roadside assistance
Convenient online policy purchase and renewal
Simple claim registration and processing
Personal accident protection for the owner-driver and passengers, where applicable
Cashless vehicle repairs at authorised network garages
Uninterrupted protection through timely policy renewal
Optional engine, tyre, electrical, and consumable protection
Round-the-clock customer assistance, subject to insurer availability

Why Buy Car Insurance?

Car insurance is both a legal necessity and an important financial safety measure.

Important reasons to purchase car insurance include:

Helps reduce financial losses caused by accidents or theft

Covers eligible third-party liabilities and legal expenses

Provides greater confidence and peace of mind while driving

Supports vehicle repairs through cashless garage facilities

May offer roadside assistance and emergency support

Fulfils the legal requirement of maintaining third-party insurance

Allows convenient online purchase and renewal through Policies365

Things to Consider While Buying Car Insurance

Before finalising a car insurance policy, evaluate the following points:

The type of protection required: third-party, own-damage, or comprehensive

The insurer’s claim servicing record and claim settlement experience

The availability of cashless garages near your location

The relationship between the premium charged and the benefits provided

The usefulness of add-ons such as zero depreciation, engine protection, and roadside assistance

No Claim Bonus eligibility and renewal savings

The quality of customer support and convenience of the claim process

A carefully selected policy can provide better coverage while helping you manage insurance costs effectively.

Factors That Affect Car Insurance Premium

The amount payable for car insurance is influenced by several factors.

Vehicle Make and Model

The brand, model, variant, market value, repair cost, and availability of spare parts can affect the premium. Vehicles with expensive components or higher repair costs may attract a higher insurance premium.

Car Age

As a car becomes older, its value generally decreases. The age of the vehicle can influence its Insured Declared Value, coverage requirements, and own-damage premium.

Engine Capacity

Cars with a higher engine capacity may carry a higher premium because of their value, performance, and associated repair or risk exposure.

Registration Location

The place where the vehicle is registered can influence the premium. Insurance pricing may vary depending on traffic density, accident frequency, theft exposure, and other location-based risks.

Request Quote Now

Understanding Third-Party, Own Damage & Comprehensive
Insurance with Policies365

Features

Third Party Insurance

Own Damage Insurance

Comprehensive Insurance

Covers Damage Caused to Others

Covers Repair or Replacement of Your Car

Legally Required Minimum Coverage

Financial Protection for All Damages

Basic protection

Protection for your car only

Full protection, including third-party and own damages

Claim Settlement Options

Protection for your car only

Covers own vehicle claims

Drivers wanting their own vehicle cover

Ideal for

Full protection, including third-party and own damages

Covers both own and third-party claims

Drivers seeking complete peace of mind

Frequently Asked Questions About Car Insurance

Get answers to common insurance queries

What is car insurance?

Car insurance is a motor insurance policy that provides financial protection against specified vehicle damage, theft, accidents, and third-party liabilities.

Is car insurance mandatory in India?

Yes. A valid third-party car insurance policy is compulsory for every vehicle driven on a public road in India.

What is the difference between third-party and comprehensive insurance?

Third-party insurance covers eligible legal liabilities arising from injury, death, or property damage caused to another person.

Comprehensive insurance includes third-party liability protection and also covers specified loss or damage to the insured car.

How is a car insurance premium calculated?

The premium may be determined using factors such as:

Make, model, and age of the car
Vehicle registration location
Engine capacity
Type of policy selected
Add-on covers chosen
Insured Declared Value
No Claim Bonus entitlement
Deductible selected
Previous claim history

What is No Claim Bonus (NCB)?

No Claim Bonus is a renewal discount that may be offered when no eligible own-damage claim is made during the previous policy period.

It can reduce the own-damage portion of the renewal premium, subject to the insurer’s terms.

What documents are required to buy car insurance?

You may be required to submit or provide:

Vehicle Registration Certificate
Details of the existing or previous insurance policy
Personal identification and contact information
Vehicle details
Previous claim information, where requested

How can I reduce my car insurance premium?

You may be able to manage the premium by:

Preserving your No Claim Bonus
Comparing policies from different insurers
Buying only relevant add-on covers
Choosing a suitable voluntary deductible
Installing an insurer-approved anti-theft device
Renewing the policy before expiry
Avoiding unnecessary claims for minor repairs

What are add-ons in car insurance?

Add-ons are optional benefits that can be purchased by paying an additional premium.

Common car insurance add-ons include:

Zero depreciation cover
Engine protection cover
Roadside assistance cover
Return to Invoice cover
Consumables cover
Tyre protection cover
Key replacement cover

How to file a car insurance claim?

Inform the insurer as soon as possible after the incident.

You may then need to submit the required documents, arrange a vehicle inspection, complete the claim form, and follow the repair or reimbursement process specified by the insurer.

For a cashless claim, the vehicle should be taken to an eligible network garage.

What is a cashless claim in car insurance?

A cashless claim allows the insurer to directly settle the approved repair amount with an authorised network garage.

The policyholder must pay applicable deductibles, depreciation, consumables, and other non-covered charges.

When should I renew my car insurance?

Car insurance should be renewed before the current policy expires.

Timely renewal helps prevent a break in coverage and may protect eligible benefits such as the No Claim Bonus.

Can I switch my insurer at renewal?

Yes. You may change your insurance provider when renewing the policy.

Your eligible No Claim Bonus can generally be transferred to the new insurer after the required verification and documentation process.