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Top 10 Car Insurance Companies in India 2023

Whether you’re looking to insure your new vehicle or simply looking to renew your existing policy, finding the right car insurance company is important. It’s worth taking a look at a few of the top car insurance companies in India to get a feel for the range of services they offer and the benefits they offer.

Comprehensive motor

Investing in a comprehensive car insurance policy is a good idea. It provides coverage for your car against fire, theft and natural disasters. The policy is also a good way to reduce your insurance premium.

There are two types of car insurance in India. Comprehensive insurance and third party insurance. A comprehensive plan provides the most coverage and pays for damage caused to other people or their property. However, third party insurance is cheaper.

A comprehensive policy will also pay for damage to your car if it is damaged by riots or other causes. However, a standalone third party policy does not cover fire and damage caused to your car by riots.

Third party insurance is compulsory in India. The Motor Vehicles Act, 1988 mandates that every vehicle is insured against third party liabilities. A comprehensive policy also covers your own damages.

Car Insurance
Car Insurance

Third-party motor

Getting a third party insurance is mandatory for all vehicle owners in India. Insurers offer a range of third party only and comprehensive policies.

Third party insurance covers the legal liability of an insured vehicle for damages caused to a third party. It also covers the medical expenses and hospitalisation costs incurred by a third party. The insurance cover is valid only if the vehicle is insured and has a valid driver’s license.

Various factors determine the premium of a third party vehicle insurance policy. It depends on the cubic capacity of the vehicle and the IRDAI insurance rates. IRDAI has not altered the tariffs in the last two fiscal years.

The cost of acquiring a vehicle is a major factor in the pricing of motor insurance. It is estimated that one-third of motor insurance expenditure is attributable to the cost of acquisition.


‘Pay As You Drive’ (PAYD) motor insurance is a unique product, which allows you to pay premium as per the usage of your car. It is ideal for people who commute on a daily basis or drive outside the city limits. It offers discounts over normal premiums.

Insurers are using telematics technology to monitor and transmit accurate data about the kilometres you drive. This data is interpreted to reward safe driving and penalize negligent driving.

The pay-as-you-drive concept is a clever one. Insurance companies can soon offer analytics-based insurance products that give you the option to choose a premium based on your driving behaviour. This option will give you the opportunity to choose the best policy to suit your needs.

Pay-as-you-drive is a good choice for people who have multiple vehicles. They can also take advantage of discounts if they have a low mileage vehicle.

Road-side assistance

Adding road-side assistance to your car insurance plan is a smart idea. The service offers a great deal of convenience and peace of mind when your car breaks down. It can help you tow your vehicle, retrieve your spare keys, jump start a flat battery, and arrange fuel for your vehicle.

The best part about this service is that it is free of cost. If you buy a road-side assistance plan from a large insurance company, you can rest assured that it will be available if you need it. If you are on the road in another country, you can also request for on-site assistance. Some of the insurance companies even offer hotel accommodation in extreme cases.

Adding road-side assistance to your car policy can be an important add-on, especially if you are a novice driver. The service is available in various forms, from on-phone assistance to a mechanic’s tow truck.

Losses in general insurance

During the year, losses in general insurance grew by 26%. This was partly due to the Covid-19 pandemic that triggered heavy inflow of patients and caused a lot of stress on insurance firms and hospital authorities. The General Insurance Council has collected data on the number of people infected with the virus, the number of hospitalisations and the amount of money spent on related expenses.

General insurers have been paying out 60 per cent of the COVID-19 claims so far. This has led to a spike in health insurance claims, but it is only a one-off event. The insurance companies have been aggressively quoting low premiums to capture the group insurance business. This has affected their bottom lines. However, the government is also trying to improve the capital utilisation of these loss-making firms. It is planning to infuse Rs 3,475 crore in three general insurance companies in the current financial year.

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