IRDAI: IRDA/DB797/2024
phoneHelp
language
Encaret
Insuraksha Logo
INSURAKSHA
Insuraksha Logo
IRDAI Licensed INSURANCE BROKER

CAR INSURANCE

Protect yourself from financial loss due to accidents, theft, third-party damage, and natural calamities. As per the Motor Vehicles Act of 1988, car insurance is mandatory in India.

Get Instant Quote

Up to 90% discount with work email ID

What Is Car Insurance?

Car Insurance is a legal agreement between a car owner and an insurance company. The insurance company promises to cover the costs if any damage occurs to your car that could lead to financial loss.

There are three different types of car insurance policies: Third-Party Car Insurance, Standalone Own-Damage (OD) Car Insurance, and Comprehensive Car Insurance. It's important to renew your policy on time to keep enjoying the benefits of your chosen coverage.

Why do you need Car Insurance?

Keeps you in accordance with the law

Car insurance helps you comply with the law as it is mandatory for car owners in India to have at least third-party car insurance. Failure to comply can result in a fine of ₹2,000 and/or imprisonment for up to 3 months.

Financial protection against losses

A car insurance policy can help you save money by covering huge expenses incurred due to damages and losses caused during accidents, natural calamities, fire, theft and other unforeseen circumstances.

Protection against third-party liabilities

In case you accidentally hit someone, a car, or someone's property, your car insurance will cover the damages and losses incurred to the third-party. There is no compensation cap for third-party bodily injuries, disability or death.

Own-damage protection

Car insurance covers the own-damage expenses of your car incurred in road accidents, natural calamities, man-made disasters, fire, explosion, vandalism, and other unforeseen events.

Coverage against theft

Car insurance covers you in case your car gets stolen. Your insurance company provides you with your car's Insured Declared Value (IDV) as compensation.

Personal accident cover

Car insurance offers personal accident cover of up to ₹15 Lakh in case of death, bodily injuries, or disability of the policyholder in a car accident.

Key Features of Car Insurance Policy

HighlightsBenefits
Third-Party CoverCoverage for third-party injury and property damage.
Own Damage CoverCovers the damage and loss incurred by the insured car.
Customizable Add-on CoversVarious add-ons available such as zero depreciation cover, return to invoice cover, roadside assistance, etc.
Compulsory Personal Accident (PA) coverCover of ₹15 lakh for permanent disability/death while driving.
Cashless ClaimAvailable at the network garages of the insurer.
No Claim BonusUp to 50%

Types of Car Insurance Policies

1

Third-party Car Insurance

Mandatory for driving in India. Covers costs of bodily injury, disability, or death of a third party and property damage up to ₹7.50 lakh caused by your vehicle.

2

Comprehensive Car Insurance

Most extensive coverage including third-party liability and damages to your own car from accidents, theft, natural disasters, fire, and other incidents.

3

Own Damage Car Insurance

Standalone policy covering damages to your own car. Can be purchased only with an active third-party policy, offering flexibility in choosing providers.

Benefits of Insuraksha's Car Insurance

When it comes to safeguarding your vehicle, Insuraksha's Car Insurance stands out as a leading choice, offering advantages that go beyond conventional coverage.

Icon

Up to 90% discount on premiums

Saving on your insurance premium is now easier than ever with Insuraksha. Enjoy a remarkable up to 90% discount on premiums.

Icon

Cashless claims at 7500+ network garages

Access to a vast network of over 7500+ cashless claim garages, making the claims process smoother and more convenient.

Icon

No paperwork required

Streamlined insurance experience by eliminating paperwork, enabling you to complete the process efficiently.

Icon

Right insurance at best price

Providing you with not just the cheapest insurance, but the right insurance that perfectly aligns with your needs.

Icon

Best-in-class claim assistance

Team of experienced and dedicated claims experts committed to ensuring that your claims are managed effortlessly.

Icon

AI-based recommendation

Meet Mitra, your AI-powered advisor with friendly guidance and AI-driven recommendations tailored to your requirements.

What is Covered vs What is Not Covered

✓ What is Covered

  • Third-party injury and property damage
  • Own damage due to accidents
  • Damages from natural calamities
  • Fire, explosion, and vandalism
  • Theft of the vehicle
  • Personal accident cover (up to ₹15 lakh)

✗ What is Not Covered

  • Driving without valid license
  • Driving under influence of alcohol/drugs
  • Normal wear and tear
  • Mechanical or electrical breakdown
  • War, nuclear risks, or terrorism
  • Using private car for commercial purposes

Add-on Covers in Car Insurance Policy

Add-on covers are extra benefits that you can add to your car insurance policy to increase your protection. Here are some options you can choose from:

Zero Depreciation Cover

Recover the deducted cost of depreciation on your car's parts when you make a claim for damages.

Return to Invoice

Cover the difference between the purchase price and compensation amount in case of total damage or theft.

Engine Protection Cover

Safeguards your car's engine and covers the cost of repairing or replacing it in case of damage.

Roadside Assistance

24/7 breakdown assistance including towing, fueling, and mechanic services.

Key Replacement

Covers the cost of repairing or replacing your car keys and locks if they are damaged or lost.

Personal Accident Cover for Passengers

Covers passengers in your car in case of accidents leading to permanent disability or death.

How to Buy Car Insurance Online

1

Enter Vehicle Details

Provide your car registration number and basic vehicle information.

2

Compare Plans

Compare different insurance plans and choose the best one for your needs.

3

Customize Coverage

Select add-ons and customize your coverage based on your requirements.

4

Make Payment

Pay online securely and receive your policy instantly via email.

How to File a Car Insurance Claim?

It's important to know the right steps to take when making a car insurance claim. Follow these steps to make a valid claim:

1

Report the Claim

Inform your insurer immediately after the accident and provide proper documentation and photographic evidence.

2

Inspection

Once registered, an insurer's surveyor will inspect the damage and you'll need to provide necessary documents.

3

Repair

After inspection, you can send your car to a network garage for repairs.

4

Settlement

For cashless claims, the insurer settles bills directly with the garage. For reimbursement, pay first then claim.

Factors Affecting Car Insurance Premium

Car insurance premiums are determined by various factors that assess the risk associated with the policy holder:

Vehicle-Related Factors

  • Vehicle type, make, and model
  • Age of the vehicle
  • Engine cubic capacity
  • Insured Declared Value (IDV)
  • Anti-theft and safety features

Personal & Policy Factors

  • Geographical location (RTO)
  • Driving history and experience
  • No Claim Bonus (NCB)
  • Policy type and coverage
  • Add-ons and voluntary deductibles

How to Reduce Car Insurance Premium

While car insurance provides essential protection, you can reduce your premium without compromising on coverage:

Compare Policies

Look for policies that provide comprehensive coverage at competitive rates using online comparison tools.

Opt for Voluntary Deductibles

Agreeing to pay a higher deductible amount can significantly lower your premium.

Install Security Features

Anti-theft alarms, immobilizers, and GPS tracking can earn you discounts.

Maintain Clean Driving Record

Avoiding accidents and violations can lead to significant NCB discounts.

Renew Online Timely

Online renewals often come with discounts and help maintain your NCB benefits.

Choose Right Coverage

Assess your needs and avoid paying for unnecessary coverage while ensuring adequate protection.

Car Insurance FAQs