Which Insurance Company Provides the Cheapest Car Insurance In India?

In today’s time, car insurance is a compulsion for all car owners. From protecting you against any unforeseen event that may take place on the road to offering coverage against third-party liability, the benefits of having car insurance are many. This is why a number of insurance companies now offer varied car insurance plans so that you can easily pick the one that suits your preference. However, with multiple plans available, it may become difficult to pick the best one. So, to help you out, we have compiled a list of car insurance plans that are not only affordable but highly preferred by many customers. 

List Of Cheapest Car Insurance Companies

Now, let us also discuss the most lowest car insurance companies available in India. Scroll through the section to know all about the same:

1. HDFC Ergo

The premium of HDFC Ergo Car Insurance Plans has a starting price of just Rs. 2094 which is why people easily buy car insurance plans with HDFC Ergo without having to worry much about the budget. Moreover, in addition, HDFC Ergo has over  8200+ cashless garages network that makes it very easy for policyholders to get their cars repaired. 

2. TATA AIG

TATA AIG is yet another popular insurance company that provides a range of affordable car insurance plans. TATA AIG has a 98% claim settlement ratio which indicates the reliability of the company in getting the claims settled. With TATA AIG, you can get your preferred car insurance plan in just three easy steps.

3. Royal Sundaram

With a vision to ensure 100% protection on road, Royal Sundaram now offers varied car insurance plans. Policyholders are also given an option to upgrade the plan offerings by adding several add-ons such as depreciation waiver cover, tyre cover, NCB protector, and so many more.

4. ICICI Lombard

With a network of 5100+ garages, ICICI Lombard car insurance plans have a lot of benefits. From third-party car insurance to standalone car insurance, you can get a range of car insurance plans from ICICI Lombard. Moreover, at ICICI Lombard, you can also enjoy easy claim settlements, faster policy renewal, and many more.

Factors Affecting Car Insurance Premium In India

There are several factors affecting the premium of car insurance. Read on to learn more:

• Past Claim Records: In case the frequency of filing a car insurance claim from your end is greater, then in such cases, the premium of car insurance is higher. 

• Model of the Car: Another factor that determines the car insurance premium is the model of the car. For instance, the premium of luxury cars is higher than other normal cars. This is because the repair and overall maintenance costs for such models are higher. 

• Age of Car: The older the car, the more expensive will be its car insurance premium. For example, the car insurance premium for a car bought in 2018 will be higher than that bought in 2021.

• Geographical Location: Depending on the policyholder’s geographical location, the premium of car insurance varies significantly. This simply means that in regions where the chances of accidents, and theft, are higher than in such locations the insurer sets a higher car insurance premium.
• Add-ons: The cost of availing of add-on covers adds to the car insurance premium cost. The more add-ons purchased, the higher will be the car insurance policy’s premium.

Tips to Get Cheap Car Insurance in 2024

• Compare quotes from multiple insurance providers to find the best deal.
• Opt for a higher deductible, as it can lower the premium amount.
• Maintain a good driving record and avoid accidents or traffic violations.
• Consider bundling car insurance with other policies to avail of multi-policy discounts.
• Install safety devices in your car to reduce the risk of theft or accidents.
• Ask for discounts based on factors like low mileage, good student grades, or membership in certain organizations.

Limitations of Buying Cheap Car Insurance

When you buy a cheap car insurance plan, it has its own limitations. While it may be easy on your pocket in the beginning and it may seem like a wise decision to save money, when in an emergency, this will end up costing you much more out of your pocket than estimated. Here are the pitfalls of buying cheap car insurance plans online:

• Inadequate Coverage: While it may seem like a great saving decision and getting insurance coverage at the same time, buying a cheap car insurance can leave you in stress later. When you buy a cheap car insurance policy, you end up getting inadequate coverage with a lot of conditions applied which may not look like much in the beginning but will end up costing you more.
• Lack of Add Ons: Since you are buying a cheap car insurance, you will have limited or no options to take an add on. Add ons are supplements that make your car insurance a complete package. These add ons can be chosen as per your requirement and needs. Add ons such as zero depreciation, consumables cover, engine protect are all essential to safeguard your car in any unforeseen circumstances.
• High Deductibles: When you choose a cheap car insurance plan, you end up paying a huge amount out of your pocket when your car meets with an accident or there is compensation to be made to a third party. Deductibles are basically an amount you and your insurer agree on which will be paid by you and will be your share in case an accident, damage or loss happens.
• Impact on your IDV: Your car’s insured declared value or IDV is the resell or current value of your car. When you go for a cheaper car insurance without any protection for your car, it may also impact the IDV and there is a high chance you will not get the right price for your car while resale.

Conclusion

To conclude, whenever you are looking to buy car insurance, don’t always check on the premium as the only factor. . Buy a policy that always offers adequate coverage. Before choosing a car insurance plan, read reviews and ratings of the insurance company. Additionally, always compare car insurance plans from different insurers so that you can make an informed decision.

FAQs

Q. Is it necessary to buy car insurance from a dealer?

Ans. No, it is not necessary to buy car insurance from a dealer. You can always take time to research about the best plan as per your need on a platform like InsuranceDekho and then buy one as per your need.

Q. Which policy is better for car?

Ans. A comprehensive car insurance policy is always recommended for car insurance. This is because it offers full coverage for your car as well as any damage caused to third party property or injury/ death to third party person.

Q. What is the minimum car insurance cost?

Ans, The minimum car insurance cost depends on the type of insurance you take, type of car, fuel type and your gender. This is true for buying comprehensive or stand alone own damage insurance. However, the cost of third party insurance is finalised by IRDAI at INR 2094/-

Q. Which car insurance is the best?

Ans. Based on the latest claim settlement ratio (CSR) , HDFC Ergo Car Insurance is the best as it has a claim settlement ratio of 100% as of July 2024. 

Q. At what age is car insurance most expensive?

Ans. When you are in the age of 16-24 years, you pay the maximum for your car insurance. 

Q. Which is the cheapest age to buy car insurance?

Ans. Car insurance is cheapest when you are between the age of 25 to 30 years.

Q. Which type of car insurance is best?

Ans. Taking a comprehensive car insurance type is best as it gives complete coverage to your car while safeguarding you from any kind of legal and financial liabilities arising from an accident with a third party involved.

Q. How to buy the cheapest insurance for a car?

Ans. Make sure you check the details provided by the insurer on the coverage and coverage type, IDV or insured declared value of your car, list of add ons you require, deductibles you are agreeing to pay and claims settlement ratio of the insurer.

Q. Is 3 year insurance mandatory for a car?

Ans. As per the orders of the Supreme Court, every new car owner will have to buy at least a 3 year third party car insurance if you are buying your car after 1st September 2018.

Q. What is the least amount of car insurance you need?

Ans. A third party car insurance is a car insurance which covers you legally and financially in case of an accident involving a third party person or property. It is mandatory as per law along with taking a personal accident cover. These are the least amount of insurance that you must have as per the Motor Vehicle Act of 1988.

Q. Which insurance is better for an old car?

Ans. Having a comprehensive car insurance is better for an old car between the age of 8 to 10 years. If your car is older than 10 years, then taking only third party insurance is recommended.

For further reading:

How To Buy Acko Car Insurance Policy Online?

Is Third Party Insurance Enough For Car?

Disclaimer: This article is issued in general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.