Car Insurance

Protect your vehicle and finances today with Car Insurance.

Plan Ahead Invest in Car Insurance

Roads are unpredictable, but with car insurance, you’re always in control.

By clicking on above you agree to our Privacy Policy and Terms of use.

Your car’s safety, your priority – Let’s enhance its protection with BTWIMF Car Insurance!

Car Insurance Coverage in India

What is Car Insurance ?

Definition:

Car Insurance is a type of insurance policy that provides financial protection against damages, theft, or accidents involving a vehicle. It covers third-party liabilities and own damage expenses as per the policy terms.

Purpose:

Offers financial security against unforeseen car-related expenses, ensuring policyholders do not face a financial burden due to accidents, theft, or natural calamities.

Benefits:

Protection against accidental damages
Coverage for third-party liabilities
Compensation for vehicle theft or loss
Compliance with legal requirements
Peace of mind while driving

Car insurance

With millions of vehicle owners on our roads, car insurance in India is one financial protection you cannot afford to do without. Given that the country has over 32 crore (320 million) vehicles registered and 7 crore (70 million) four-wheelers among them, the need to protect them is inevitable.

Car insurance isn’t just a legal requirement; it’s a major financial protection for those with cars that covers them for risks such as accidents, theft and damage, regardless of how busy a city street may be or how wide open a highway.

As per the 1988 Motor Vehicles Act, every vehicle owner has to buy a third party insurance cover of the car at least, and operating a car without a third party insurance cover is illegal in India. Damages or injuries which another person (or his assets) has suffered in an accident, this law of cover.

The coming process of any insurance company is dictated by the rules and regulations of the very important body known as the Insurance Regulatory and Development Authority of India, or IRDAI, hence matters pertaining to the safety of vehicle owners come along with the public.

Car insurance doesn’t only cover the accident that can cause another car or property to be damaged but also protects against very expensive repairs or medical expenses in case the policyholder was involved in an accident.

Today, truck accidents are a common way of life, and thus there’s a need for insurance that will cover you should an unfortunate incident occur. Four wheelers contribute to about 17 percent of all road accidents recorded in 2022, MoRTH says and hence, car insurance is required by all the drivers across the nation.

Why Car Insurance policy important?

Car insurance provides financial protection in the event of accidents, theft, or damage to your vehicle. It covers expenses related to vehicle repairs, medical bills, and liability claims, offering peace of mind and security on the road. With the right car insurance policy, you can drive with confidence knowing that you’re prepared for whatever comes your way. You can also explore other insurance policies like life insurance, bike insurance, motor insurance, and health insurance.

Why you need to invest in car insurance in India

Legal Mandate:

The minimum under the Motor Vehicles Act of 1988 is third-party insurance on every car. For the violation, it imposes very stiff penalties—the first time you can be pulled up for ₹2,000 and the next time for ₹4,000. That also means you could face suspension of your license to drive or be put behind bars if you are found without any insurance at all.

Financial Protection:

An accident can be met by a car. The repair costs may even be more than ₹ 20,000 up to ₹ 1,00,000 or even more, depending upon the intensity of the damage. All such expenses in fixing up the car are borne by comprehensive car insurance so that there is no strong economic burden on the owner. If any other person is hurt or property damage occurs, you are likely to be liable for paying a great amount of money as damages; hence, car insurance becomes very vital to you.

Defense against uninsured drivers:

While car insurance is not compulsorily required, millions of uninsured cars exist in India, and that becomes a problem for those who ultimately end up in collisions with uninsured drivers. A good policy guards you financially whether or not the other driver happens to be an uninsured or underinsured guy. That is, more four-wheelers—it means more cars on the roads that lead to more chances of an accident—which number is that of four-wheelers in India that is likely to rise at 6-8% every year. Growing growth in urbanization and automobile usage leads to preventing all this from causing damage by covering with a car insurance policy.

Other Additional Coverages:

The insurance companies offer other additional coverages such as zero depreciation, engine cover and roadside assistance for general extra coverage. It therefore provides these additional benefits for comprehensive protection in case of any event.

Government Initiatives:

IRDAI had provided third-party long-term insurance to the automobile buyers. This means that now new automobiles are to be purchased with a three-year third-party liability insurance cover, which offers much wider protection for the new automobile owners.

Types of Car Insurance Policies in India

Third party liability insurance:

The most basic type of car insurance in car insurance, third-party liability insurance is totally compulsory in India. It will cover your liability for damage or injury to another caused by you in case you cause an accident with no fault of yours.

Coverage:

This cover avails compensation for damage or death caused by another person or his vehicle to the insured, his property availed of, or to himself during an accident. It only provides for that in an accident, the victim and his property availed of are compensated. It does not, however, cover damage of the insured car and any injury suffered by the driver.

Premium:

Third party liability insurance premium is ruled by IRDAI, a bit lesser than the comprehensive plans. For example, the annual premium of the vehicles, whose engine capacity would fall between 1000 cc to 1500 cc, for the fiscal year 2023-24, is at ₹ 3,416.

Comprehensive Car Insurance:

This insurance will cover the third party liabilities also along with taking care of damages to the car owned by the insured.

Coverages The insurance policy gives covers losses arising due to accidents, thefts, man-made accidents of vandalism or fire and any natural calamities like floods, earthquakes, etc. Besides this, the insurance also provides personal injuries, third-party liability, and damage to the insured vehicle.
Full coverage is costlier than third-party cover because it provides an increased amount of coverage. The premium of car under mid-range ranges from ₹10,000 to ₹20,000 per year, which is only based on the model of the car, size of the car, and location of its engine.
Claim Settlement: The claim settlement ratio of any insurer has to be the first consideration while making the choice of an insurer for other inputs. The popular insurers in India have excess claim settlement ratio (above 90%) kept to get the same claimed amount processed with due timeliness and efficiency .
Add-On Benefits: Add-on optional covers that go along with the comprehensive policies include zero depreciation, engine protection, return-to-invoice, etc.

Pay-As-You-Drive Insurance:

Now, there is the newly introduced pay-as-you drive insurance policy whereby premium is tied up with how people use the car. Its model works very well for owners who do not use the car much at all, and premiums are billed according to the number of kilometers the drivers have covered.

Coverage:

That’s quite different because they are much more flexible on most of the coverage, whereas the full comprehensive isn’t. Kind of a good deal for someone who has to commute a few blocks to work. Much cheaper than for the average vehicle owner.

Premium:

This is based on what mileage you are supposed to; if the mileage is low, the premium is low. That’s why it becomes a very good fit for a city dweller who does not own his car but sometimes drives out.

Market penetration:

Pay-as-you-drive insurance is still in its infancy in India but would take off with the rise of urbanization and increasing laws on traffic.

Add-On Covers for Car Insurance:

Zero Depreciation Cover

This addon ensures that the absolute cost of replacement for damaged parts is covered, devoid of any consideration to depreciation. An insurance policy normally deducts depreciation on parts like plastic or rubber, but now with zero depreciation, the policy holder gets the whole claim amount.

Premium Increase:

It simply means that the usual premium is bumped up by 10-20% when the owner opts for this cover. However, it is very much recommended for new or even luxury cars. The cover provides financial protection for damage of the engine through any kind of effects which may include water leakage, oil drips and hydrostatic lock. It is specially helpful during the monsoon season when the risk from floodwaters and associated engine damage is heightened.

Cost: The cover for the engine protection will cost the premium of the policy ₹2,000 to ₹5,000 every year, depending upon the model of the car and the insurer.

No Claim Bonus Protection:

The no claim bonus is a discount on your premium if you do not make any claims in a year. This bonus is not nullified by claim at any point in the policy year, thereby ensuring that your accumulated discount remains for future renewals under the NCB protection cover. This add-on gives services such as towing, emergency fuel delivery and repair assistance for that roadside assistance. It is especially really great for travelers who need to drive long distances or traverse backcountry tracks very often.

Cost: A roadside assistance premium isn’t very expensive-they usually start off at ₹500 to ₹1,000 per year from an insurer.

What Is The Claim Process?

Essentially the car insurance claim process calls for claiming the accident incident to your insurer, submitting all the documentation related to it, and then awarding the damage to be rated. After taking review the insurer shall either grant you the claim and let put together the repairment in a network garage or reimburse you for any of the expenses. According to the Insurance Regulatory and Development Authority of India, over 78 percent of the car insurance claims in India get settled within a period of 30 days.

Here’s how it works with car insurance claim, easy step by step format:

Inform Incident: Notify your insurer of what’s happened or has been damaged to them as soon as possible-through their app, website, or customer helpline-within 24 hours of the accident.
File Documents: Upload FIR, photographs of damage, and your policy details.
Damage Assessment: A surveyor will be assigned to the insurer to investigate and, on the vehicle, he or she will estimate the costs of the repair.
Claim Approval: The insurer will verify the claim and will approve it and will either arrange for direct repairs at a network garage or reimburse you if repairs were carried out elsewhere.

Why Buy Car Insurance Online?

The Indian insurance sector has become a hassle-free process for car owners to buy and renew policies sitting at home because of the digital revolution. Here’s why preferring to get car insurance online has become the order of the day:

Convenience: To research, compare, and purchase a car insurance policy has gotten easier for car owners since they can do it from their homes. There is room to browse through as many insurers or policies as a car owner could want at any given time, which offers convenience that cannot be found in traditional processes.
Instant Policy Issuance. Upon payment online, the policy is issued instantly, and documents get transmitted through e-mail or can be downloaded from the system hence no paper work required, and waiting time.
Cost-Effective. Many of the companies offer premium discounts for buying an online policy while cutting out intermediaries allowing the insurance companies passing it on to benefit the client and making it considerably cheaper to buy online.
Competition tools online have made it simple for car owners to compare policies pertaining to the type of cover, premiums rate, and what customers think about the insurance services to ensure that they have the best policy in place to suit their needs.
Availability Any time: Car owners can buy or renew their insurance at any time without being shackled by the business hours because this happens to be a quick process more so for those with very busy schedules.

Factors to Consider While Choosing Car Insurance

However, before choosing a car insurance policy, several factors must be considered to ensure that the chosen policy meets the required needs with the right coverage and financial security:

Coverage Options Understand the types of coverage the policy would offer, third-party liability, own damage, and add-on covers.
Premium Costs Compare premiums from different insurers and strike the right balance between affordability and coverage.
Claim Settlement Ratio Check the insurer’s claim settlement ratio in order to gauge whether they are a reliable organization to process the claim.
Review the exclusions of the policy to know what it does not include so you don’t get unpleasant surprises later when you come to file a claim.
No-Claim Bonus (NCB) Ensure that the policy offers a no-claim bonus, since its rewards can save your money heavily after a few years.
Add-On Covers You may consider some add-on covers such as zero-depreciation cover, roadside assistance, and engine cover to increase the coverage in the insurance.
Customer Service Assess the customer service of the particular insurer you choose for its quality, including the response of the company to your queries and the help you receive during the claims.