Top 10 Best Car Insurance in India

If you own a car then you need a car insurance policy, period. It is foolish not to take an insurance for your automobile. Value of gross premiums written by motor vehicle insurance companies in India in 2025 is projected to be 17.4 Billion dollars! (Source). Considering the number of accidents and other unforeseen situations, car insurance is only getting more important in India.

In India, it is mandatory to have an auto insurance. Car insurance mostly covers protection against any theft, fire or natural calamities. Getting car insurance can be tricky, with several companies offering competitive rates and confusing offers. Many people make the mistake of picking up the cheapest insurance only to realize the mistake when they get in to unforeseen situations. Calculating insurance premiums too is tricky. There’s a lot that goes into calculating premiums. Usually, the premium amount is decided on the basis of Insured Declared Value of the vehicle. If you increase the IDV the premium rises and if you reduce the IDV the premium reduces. So by comparing the various insurance options you can decide the best insurance policy that works for you. Here are best car insurance companies in India today.

Benefits of getting car insurance

  • It gives coverage for the loss or damage of your vehicle.
  • It gives coverage against damage caused by theft, fire, explosion, riots, strike, and natural calamities
  • It provides coverage against injury or death of a third party.
  • Personal Accident Cover.

Types of car insurance in India

Third party liability cover: Here the insurance provides coverage for the damage or injury caused by you to the third party. This is legally mandatory in India under the Motor Vehicles Act.

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Collision Coverage: Collision Coverage provides protection for the damage caused to your car by accident. It does not cover theft or vandalism and is not included in the collision coverage.

Comprehensive Cover: The Comprehensive cover includes all like theft, accident and third party legal liability. The policy has add on benefits like accessories cover, zero depression, engine protector and medical expenses etc.

How is your insurance cover calculated?

First the insured cars selling price and its list of accessories price is calculated.

From this the depreciation value is calculated for the year and is deducted.

The final number is the Insured Declared Value (IDV).

Best Car Insurance in India

Let’s start with the first one.

1. Reliance Car Insurance

Reliance has number of insurance products for its customers. The motor insurance offers its services in over 102 cities and 24 states of India. The car insurance covers the damages relating to your own vehicle and relating to third party. It also gives the privilege of getting an accident cover for the owner of the car.

Reliance car insurance benefits

  • Cashless benefits at over 2100 network service stations.
  • Avail reimbursement of up to 1500 for towing charges.
  • Get your policy issued instantly online.
  • Customer service 24×7.
  • A TAT of 24 hours for survey of your vehicle.
  • Many attractive discounts and offers.
  • Avail extra insurance covers.
  • Get car insurance on and off the road with Reliance Car Insurance.

Add on Benefits

  • Personal Accident Cover in case of death or disablement irrespective of whoever is driving.
  • NCB retention: This is available for cars above 2 years old. This allows retainers to avail no claim bonus percentage even after a claim has been made.
  • Motor Secure Plus Cover: This includes Nil Depreciation Cover, Consumables Cover and Engine Cover.
  • Engine Cover: Here all expenses included are fixing damage done to your car engine, differential parts and gear box parts by water, leakage of lubricating oil.

Exclusions

  • Depreciation or the normal wear and tear of the vehicle.
  • Mechanical or electrical damage in your car.
  • Vehicle used outside the geographical area.
  • Damages which are caused by civic disturbances or war.
  • Damage caused by the influence of alcohol or drugs.
Insurance Coverage
Third party coverage Up to 10 lakhs
Claim Ratio 107.49%
Personal Accident Rate Up to 5 lakhs
Network Garages 2100
No claim bonus Yes

Summary

Among all the car insurance policies in India, Reliance holds a very good offer from the customer point of view. It has around 2100 service stations across India and its 24×7 customer service centers are available to its users for any assistance. It offers one of the highest third party and Personal accident coverage of up to 10 lakh and 5 lakhs respectively. Even the claim ratio of 107.49% shows they have been prominent in providing and settling the claims of the customers. Official website and details here.

2. ICICI Lombard Car Insurance

ICICI Lombard Car Insurance is a joint venture between the ICICI Bank and a Canadian financial service Fairfax Financial Holding. The insurance is highly customer centric and is in accordance with customer needs. Some of its highlights include 24×7 customer support, road-side assistance, cashless claims at 3100+ network garages, option to purchase policy online etc.

Features

  • Cashless repair across wide network of garages.
  • Free pick up, wash benefit at selected garages.
  • You can issue policy online immediately.
  • Trauma/Towing services available through 24×7 call center.
  • Cashless claim settlement at network dealers.

Add on Covers available

  • Zero depreciation: This cover saves you from the deductions on account of wear and tear due to ageing of the vehicle.
  • Roadside assistance: In case of a breakdown or accident you can get roadside assistance with a maximum of 4 times in a policy year.
  • Consumables: The consumables include nuts, bolts, grease, lubricants, brake fluid etc. In case of an accident you get coverage for this.
  • Engine Protect Plus: This will cover expenses like repair of the engine, gearbox or differential parts like the leakage of lubricating oils, water ingression etc
  • Loss of personal belongings: For this you will need to produce an FIR stating the details of theft or loss and there will be a deduction of Rs 500 too.
Features Coverage
Third party coverage As per the policy
Claim ratio 87.38%
Personal Accident Insurance Up to 1 lakh
Network Garages 3100
No claim Bonuses Nil

Exceptions

  • Normal wear and tear due to aging of vehicle.
  • Mechanical or electrical breakdown
  • Loss/ damage due to war, mutiny or nuclear risk
  • Depreciation or any consequential loss

Summary

ICICI Lombard offers one of the best car insurance for its customers. It has more than 3100 plus garages under its tie up which is easy to access. If you wish for additional coverage you can opt for add on covers that is available with this policy. The claim ratio of 87.38% is a positive number which gives a clear idea as to how well they are involved in claim settlement. Official website and details here.

3. Bharti Axa Car Insurance

Bharti Axa is another joint venture between the Bharti Enterprises and AXA group a world leader in financial protection. This is one of the first general insurance companies to get the dual certifications of ISO 9001:2008 and ISO 27001:2005.Some of its highlights include cashless servicing in 2000+ network garages across India, robust 24×7 claim assistance, hassle free claim settlement process and No Claims Bonus (NCB) amounting to 50% on car insurance renewal from Bharti AXA or any other insurance provider.

Bharti Axa Car insurance has two covers which include:

Basic Cover: This includes damages caused by theft, damage by fire, accident, earthquake, flood etc. as specified in the contract.

  • Third party liability
  • Personal accident: Rs.2 lakhs in case of death/total permanent dismemberment.
  • Basic + Roadside Assistance
  • On road repairs (breakdowns)
  • Towing services
  • Change of tyre
  • Lost key/lockout
  • Emergency fuel

Add on covers

  • Depreciation: Depreciation coverage up to 5 years
  • Invoice price: Here it is calculated as Compensation = Insured Value + registration + road tax + insurance.
  • Medical Expenses: Up to Rs.10, 000 for treatment of injuries (driver + passengers).
  • Personal Accident: Claim up to Rs 1 lakh in case of total permanent dismemberment or death.
  • Hospital Cash: Daily limit up to Rs.10, 000 subject to a maximum of 30 days of hospitalization.
Insurance Coverage
Third party coverage Up to 7.5 lakhs
Claim Ratio 83.79%
Personal Accident Rate Up to 2 lakhs
Network Garages 1600
No claim bonus Up to 50% on renewal

Exceptions

  • General wear and tear.
  • Breakdowns like Electrical/Mechanical
  • Events occurring outside specified areas.
  • Driving under intoxication
  • Using the vehicle beyond the authorized limits.

Summary

Now Bharti Axa is a prominent name in the insurance sector. Its insurance claim ratio is 83.79% which is a good number. It’s third party coverage and the personal accident coverage is good to go for. They also allow up to 50% no claim bonus on the renewal of your policy. This is provision is not available with all policies. ICICI Lombard is not giving this in their policy. Official website and details here.

4. HDFC Ergo Car Insurance

HDFC Ergo Car Insurance is another perfect insurance that totally focuses on the customer needs and it has some of best features in terms of benefits. The policy looks into the safety of the vehicle, the passengers boarding it or any possible damage or death or injury due to the accident.

Features

  • You get access to 3400+ authorized list of garages across India for cash less claim.
  • Purchase the insurance online without much of a difficulty.
  • A customer support team to help you out at any time.
  • Numerous discounts based on membership to an association or profession or age.
  • Damages caused due to theft, fire, explosion, lightning, terrorism, earth quake and many more.
  • The policy also covers injury or damage that maybe caused to a third party.

Add on Benefits

Return to Invoice: In case of a total loss then the insurance company pays the difference between the Insured’s Declared Value (IDV) and the actual purchase value (as listed on the invoice) of the vehicle.

Emergency Assistance Add On: This would include

  • On-Site Minor Repairs of the Insured Vehicle
  • Getting a set of duplicate keys delivered to the insured’s address.
  • Tyre change or battery jump start of your vehicle
  • Fuel delivery in case your vehicle runs out of it.
  • You can get your vehicle towed to the nearest tow point.
Insurance Coverage
Third party coverage Up to 7.5 lakhs
Claim Ratio 90.35%
Personal Accident Rate Up to 2 lakhs
Network Garages 3400
No claim bonus 3 claims in a year with add on cover

Exceptions

  • Mechanical or electrical breakdown.
  • Depreciation due to wear and tear
  • Damage to vehicle by war, mutiny or nuclear attacks.
  • Loss of vehicle or damage occurred when you are outside India.
  • Loss occurred when the driver was under the influence of alcohol or any other mind stimulating drug.

Summary

HDFC has a large network of garages that offer its services for the insured customers. The policy also covers the major portions of accident and third party coverage which is needed for car insurance. Apart from this you can also avail the add on features like the emergency assistance but it will come with higher premium. The no bonus claim is also available as add on benefit with a provision to use it at a maximum of 3 claims per year.  Official website and details here.

5. All India Insurance Car Insurance

The All India Insurance is a fully owned subsidiary of Indian government and has some of best insurance policies for its customers. The car insurance protects the individuals form the loss arising from accident or theft of the vehicle.

Features

  • Burglary or theft.
  • Fire, explosion or self-ignition.
  • The plan also protects form malicious events.
  • Rights and strikes are also covered.
  • Fire and earthquake is also covered in this policy.
  • It also protects form natural calamities like hail, storm, flood hurricane etc.
  • Landslides are also covered under this plan.

Add on benefits

  • Personal Accident Cover
  • Paid driver under the plan
  • Passenger under the plan
  • Loss of damage of accessories under the plan.
  • Legal non fare paying passengers under the plan.
Insurance Coverage
Third party coverage Up to 7.5 lakhs
Claim Ratio 98.78%
Personal Accident Rate Depends on sum insured.
Network Garages Yes
No claim bonus Yes

Exclusions

  • Depreciation due to wear and tear.
  • Driving with invalid driving license or consumption of alcohol.
  • Loss due to civil war.
  • Usage beyond specified borders.
  • Tyres damaged.

Summary

All India Car insurance is a government owned insurance firm and has a good reputation with its insurance products. It has very high claim ratio of 98.78% which is good as compared to insurance companies like Tata AIG which gives only 76%.They also have personal accident insurance and No claim bonuses along with their plan too. All together it is a good package to go for. Official website and details here.

6. Tata AIG General Insurance

Tata AIG offers some of the best insurance products to its customers. They offer services to both individual and corporate needs. The vehicle insurance protects the person from a lot of risk on the road. It covers not only third party liability but also damages arising from theft or accident. You also options to increase your coverage by going for add on benefits that come with the plan.

Benefits

  • You can avail 6 months accident repair warranty.
  • Good quality spares and materials guaranteed.
  • Direct settlement at special garages.
  • Free pick up of the car.
  • You can claim settlement in 7 days.
  • Enhanced protection through add on covers.

Add on benefits

  • Protection from Personal belongings loss.
  • Emergency transport and hotel expenses plan.
  • No claim bonus protection
  • Key replacement plan.
  • Repair of glass, fiber and rubber parts.

Exclusions

  • Depreciation or the normal wear and tear of the vehicle.
  • Mechanical or electrical damage in your car.
  • Vehicle used outside the geographical area.
  • Damages which are caused by civic disturbances or war.
  • Damage caused by the influence of alcohol or drugs.
Insurance Coverage
Third party coverage Up to 7.5 lakhs
Claim Ratio 75.63%
Personal Accident Rate Yes
Network Garages 2000
No claim bonus Yes

Summary

Tata AIG offers up to 7.5 lakhs as its third party insurance cover. The car insurance policy covers all the major areas including repair facility, claim settlement, enhanced protection as add on covers and more .You can easily avail the policy even online and they have shown a good response with the insurance claim settlement. As per statistics they have given 75.63% in insurance claim settlement which is good but the Reliance insurance policy has shown a bigger response with 107.49%. Official website and details here.

7. National Car Insurance

This is one the oldest insurance in India and it is one among the four subsidiaries of the general insurance company in India. With over 1000 offices in India the company offers car insurance among its other insurance policies. In order to get the benefits of a car insurance you need to be the registered owner of the vehicle and be using it at the time of accident or any other incident.

Benefits

  • It will cover the damages which is occurred due to the accident.
  • It will cover for the accessories that is damaged for your vehicle.
  • Avail third party liability coverage up to 7.5 lakhs.
  • This policy also accounts for no claim bonus.
  • Special discounts for blind, handicapped applicants.
  • You can also purchase this policy through online, debit or credit card.
  • If you install an anti-theft device you are also eligible for further discounts.

Add on insurance cover

  • The no claim bonus owner will get discount on the premium on renewal of the policy.
  • On using the Anti-theft device which is approved by the automobile research association you will get a discount on the premium.
  • You can also avail third party coverage and personal accident insurance along with this policy.
Insurance Coverage
Third party coverage Up to 7.5 lakhs
Claim Ratio 69.35%
Personal Accident Rate Yes
Network Garages Yes
No claim bonus Yes

Exceptions

  • Wear and tear or depreciation.
  • Loss occurred when you are driving the car under alcohol or any mind stimulating drug.
  • Mechanical or electrical breakdown.
  • If the loss has occurred in an area outside the geographical area.
  • If the loss has occurred due to failure of the parts that has occurred in the process.

Summary

National Insurance is a well-known insurance company and has numerous products for its customers. Their car insurance has third party liability and personal accident coverage. The company has a good claim ratio of 69.35% which is not bad but compared to HDFC ERGO (9.35%) you get a better deal. Their range of coverage is also good and you can access their benefits from their wide network. Official website and details here.

8. Oriental Car Insurance

Oriental insurance is headquartered in Delhi and has its 1800 branches across India. Now the car insurance is one among their many financial products offered by oriental insurance. It helps you to not lose your hard earned money spend on your car from theft, fire or even unintentional accident.

Benefits

  • Accidental damage of the vehicle
  • Damage due to natural calamities like fire, explosion, self-ignition or lightning, earthquake, flood, typhoon, hurricane, storm, tempest, inundation, cyclone, hailstorm, frost, landslide, rockslide.
  • Even incidents like theft, riot, strike, malicious act, and accident by external means, terrorist activity.

Additional Coverages

  • Nil depreciation cover: In case the vehicle is partially damaged you get the full value of the damaged part or vehicle.
  • Personal belonging cover: If the person loses his personal belongings in the incident he is entitled to Rs 5000 or 10000 depending on the loss.
  • Alternate car benefit: In the event of accident or theft you might need another car for your travel needs. This will give you a benefit for 5-15 days with a maximum cap of Rs 400 or Rs 650.
  • Free emergency ride: In case of a breakdown of a vehicle you can avail this service.But it is restricted to Delhi & NCR, Punjab, Haryana, Himachal Pradesh, Rajasthan, All Southern States, Mumbai or Kolkata
Insurance Coverage
Third party coverage Covers total medical coverage. It gives Rs 6000 for third party damage.
Claim Ratio 75.63%
Personal Accident Rate Depends on sum insured.
Network Garages 2000
No claim bonus Yes

Exceptions

  • Mechanical or electrical breakdown or failure.
  • The driver of the vehicle was under the influence of alcohol or mind stimulating drug.
  • Damage of the vehicle due to war or mutiny.
  • Damage caused to the tyres and tubes of the car.
  • The company doesn’t give its insurance cover outside India unless it is covered by additional premium.

Summary

Oriental Car Insurance gives the customers ample support in terms of cashless settlement. The insurance covers for damages caused by accident, natural calamities and even riots or strikes. They have a claim ratio of 76.63% which is good but not so high as the Reliance car insurance which gives 107.4%..If you wish to avail additional benefits you can go for add on benefits provided by the company. Official website and details here.

9. L&T Car Insurance

L&T Insurance offers numerous insurance policy like motor, health, home and corporate insurance. The car insurance offer protection in case the vehicle is damaged due to accident or there is a third party liability on your account. It also looks into property, medical and other liable expenses. But the car insurance plan is restricted to private vehicles and it does not offer services for commercial vehicles.

Benefits

  • Quick and easy cashless settlement from numerous garages in India.
  • Hassle-free and instant issuing of loan.
  • You can place the claim in all days of the week.
  • Its comprehensive car insurance plan has third party liability coverage and self-care damage too.
  • If a customer has not made a claim in number of years then he shall be eligible for no claim bonus.
  • The customers can choose to add on covers for additional coverage.

Add on covers

  • Customers can insure their non-electrical equipment like seat covers and alloy wheels
  • The policy has an additional cover for your music system and A/C but the premium depends on the value of the accessory.
  • Bi-fuel injections like CNG are also included in this cover.
  • You can also take an additional personal accident insurance for himself and five more people. You can avail a maximum coverage of Rs 2 lakh per person.
  • If you wish to cover larger geographical area in terms of insurance you can pay extra premium for going beyond Indian borders.
Insurance Coverage
Third party coverage Legal liability arising out accident or death.
Claim Ratio 51.93%
Personal Accident Rate Yes.
Network Garages 1000
No claim bonus Yes

Exceptions

  • The general depreciation and wear or tear.
  • The L&T car insurance does not cover outside geographical area. Except if incase add on cover has been applied for.
  • Financial loss sustained by the customer in case of an accident.
  • Driving with invalid driving license or consumption of alcohol.

Summary

The L&T car insurance offers a good car insurance for its customers. The policy includes third party liability cover and personal accident coverage.The policy also provides for easy cashless settlement at over 1000 garages in India. This is comparatively lower when compared to ICICI Lombard Car Insurance which gives you access to over 3000 garages.It’s insurance claim ratio is also at 51.93% which is also low when compared to Reliance insurance policy has shown a bigger claim of 107.49%. Official website.

10. Bajaj Allianz Car Insurance

Bajaj Allianz is one of the popular leaders in car insurance in India. Their car insurance policy gives you full coverage on the financial loss that you or a third party incurs due to accident.It will help you in safeguarding your savings and can be a great relief in times of distress.

Benefits

  • Cashless claim can be done in over 1500 workshops.
  • Hassle-free purchase of the policy through the internet.
  • They offer towing facility in case of breakdown
  • You can avail 24X7 breakdown service in case of an accident.
  • They have the lock/key replacement cover.
  • Both private and commercial vehicles can be insured.

Add on benefits

  • Accidental shield cover: It protects the person from permanent disability or death that occurs due to accident.
  • Consumable Expenses Cover: This will cover the costs that are covered to repair or replace the consumables damaged. It includes gear box, steering wheel, lubricating oil, washers and wheel balancing.
  • Conveyance Benefit: This is amount which the customer can claim for his conveyance and it will be paid by the company. But the amount of reimbursement will depend on the premium of the policy insurance.
Insurance Coverage
Third party coverage Up to 7.5 lakh
Claim Ratio 71.63%
Personal Accident Rate yes
Network Garages 4000
No claim bonus Up to 50% of the existing policy

Exceptions

  • Third party coverage 7.5 lakh
  • Incurred claim ratio: 71.61%
  • Personal Accident Insurance: yes
  • Network: 4000 network garages
  • No claim bonus: Up to 50% of the existing policy

Summary

Bajaj Allianz is a popular name with car insurance and offers numerous services to its insurers. Car insurance comes with a third party coverage of 7.5 lakh and a personal accident coverage too. The insured claim ratio is of 71.6% which is a good rate but if you look at All India Assurance they offer 98.7% which is better.24×7 breakdown service, cashless claim at garages, lock replacement and any many more services come along with the insurance policy. Official website.

So, there you have it. The best ten car insurance companies, their benefits and offers compared. Now, which one should you take is totally up to you and how much you can afford. I hope you found the above data useful for comparing what is better for you.

About the author

Mani Karthik

Hi, Mani Karthik here. Having lived in USA, India & Middle East, and worked for big MNC's to startups, I have a lot to share with you. My aim is to help people, by sharing everything I've learned in life. This blog is read today, by more than 200K people world over! I'm basically from Kochi, Kerala and spend my time between Los Angeles and India. Here's my full story. Connect with me on FacebookInstagram, Twitter or WhatsApp (+001-408-489-4785). :)

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