10 Questions to Ask While Buying Motor Insurance
Choose the right motor insurance policy by asking these quick questions
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Procedure to claim in motor insurance
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A Car Insurance is a contract between the car owner and a general insurance company wherein the company ensures to provide financial support to the car owner in case of any unfortunate event where there is damage to the car.
Car insurance safeguards your car against any financial loss that may occur in case of an accident or any event unfortunate. This agreement helps in protecting the interest of the policyholder against monetary loss due to car damage.
The roads are uncertain and keeping this in mind, car insurance has been made mandatory in India under the Motor Vehicle Act, 1988. Owning a car is exciting but it is also important to keep it secured with insurance given the rise of vehicles on the roads and accidents as well. A car insurance policy comes to rescue when and lowers the cost of damage or repair significantly.
When buying car insurance, the first thing that comes to mind is the premium that is to be paid. One can calculate his / her Car Insurance premium online through a suitable web portal in order to get a fair estimate of the amount that would have to be spent on the coverage. There are many sites available online which can help a person calculate his/her Car Insurance and also compare the policies offered by the various companies.
A Car Insurance calculator, which is available online, generally asks for the car brand, name of the city in which the car is registered, the year in which the car was bought and whether any claims were made in the previous year or not. Some other details may be asked for as per the requirements however, the above-mentioned ones are the most common.
Thereafter, a person may go through the plans, policies and other details provided by the Car Insurance Calculator and then make a decision. The same process is followed for calculating Four-Wheeler Insurance premium online where, at last, after entering the Name and Mobile Number, an OTP is sent. On entering the OTP, one gets various policy premium quotes to choose the plan that suits them the most.
Car Insurance policies can be classified into the following types depending upon the extent of coverage:
To ensure uninterrupted benefits, one must make sure to renew the policies from time to time. Let us understand them in detail:
Third-Party liability
This plan protects against the claims made by the third party like the driver of the other vehicle, passengers or owner of the other vehicle, pedestrians, etc. This plan is specifically designed to provide the policyholder cover against the claims made for any bodily damage or injuries to the third party and the damage caused to the vehicle. This is a mandatory policy for all vehicles in India under Motor Vehicle Act, 1988.
Comprehensive Car Cover
This insurance policy comes with higher protection for the vehicle insured. The advantage of buying this insurance policy is that this policy protects the policyholder and covers own vehicle damage due to accident, fire, theft, vandalism, etc. This policy also includes third party liability. Added benefits and features are also provided under this plan which makes it one of the best plans for car insurance.
Standalone Car Insurance
If you already have the mandatory third-party insurance cover for your car, you have the option to go for an own-damage standalone cover. Under this cover, the damages that are suffered by your vehicle due to an accident, theft or because of a natural/ man-made disaster will be covered. You also have the option of including add-ons to your policy.
Bundled Car Insurance
In case you are looking for a long duration coverage for your car, you can opt for Bundled Car Insurance. Under this policy, your vehicle will be covered for third-party liabilities for 3 years. The own-damage cover can be renewed on an annual basis.
Pay As You Drive Car Insurance
Pay As You Drive Car Insurance is a new concept that has been introduced recently in the motor insurance market. It can be quite helpful for people who have multiple cars but do not use them regularly. A kind of comprehensive car insurance, this policy is a combination of OD (Own Damage) and a third-party plan. In such a policy, the premium is charged on the basis of the car’s usage or the total distance that the car covers in a given year.
An insurance company is judged on the basis of the claim settlement ratio and the incurred claim ratio. Keep in mind that CSR is not a readily available data that is published by the IRDAI annual report. It is an internal data of the company wherein the entire company’s CSR data is available which is not specific to car insurance. Hence a more relatable and trustworthy data is to depend on is the percentage of claims that are settled within 3 months, which is available in the IRDAI Annual Report (2021-22) Here is a list of few leading car insurance companies’ Claim Settlement Ratio and Incurred Claim Ratio (Motor) 2020-21.
Car Insurance Companies | Incurred Claim Ratio (Motor)** | Claim Settlement Ratio (CSR)* |
---|---|---|
Bajaj Allianz insurance | 68.06% | 98.48% |
New India Assurance insurance | 78.20% | – |
ICICI Lombard insurance | 68.77% | – |
Bharti Axa insurance | 64.27% | 98.55% |
Tata AIG insurance | 87.96% | – |
HDFC ERGO insurance | 70.02% | – |
Reliance Nippon Insurance | 76.89% | 95.03% |
United India insurance | 80% | – |
Oriental Insurance | 95% | – |
*Claim Settlement Ratio is CSR is the total claims paid by the insurance company as against the total number of claims received in any given year.
**Incurred Claim Ratio or ICR is the total claims paid by the insurance company as against the total premium collected across all policies in any given year.
The following points should be considered when choosing a four-wheeler insurance policy online:
Note: CSR refers to the percentage of claims settled by the insurers in a year.
The following are the benefits of having an insurance policy for your car
The following are few salient features of a car insurance policy
Here are a few reasons why having car insurance is necessary
Key Highlights | Details |
---|---|
Own Damage Cover | Available under Comprehensive and Stand Alone plans, own-damage provides coverage for the loss incurred by the insured four-wheeler |
Third- Party Cover | Covers third-party injury and property damage |
Car Insurance Add-ons | A number of add ons available like zero depreciation cover, roadside assistance etc. that enhance the coverage |
Personal Accident Cover | Up to INR 15 lakhs |
Cashless repairs | Available |
Buying/Renewal of Policy | Available both online and offline |
No Claim Bonus | Upto 50% |
While investing in car insurance, there are a few steps that you must follow before buying the insurance-
Insurance companies provide add-on covers which are additional covers to protect your car and provide extra coverage with the basic insurance cover. Add-on covers can be taken upon payment of extra premium which is added to car insurance quotes to get the final premium payable for the policy. Add-on covers are available under comprehensive car insurance policies. Some common add-ons include the following –
The Application Process for car insurance plans in India
The application process for buying car insurance cannot get easier than this. The online buying option allows the user to get their car insured in just a few clicks without any hustle.
The eligibility and requirement of documents for buying car insurance are
The car insurance claim process has also become as easy as buying car insurance. You can also claim your insurance offline by connecting with the insurance company representative and inform them about the claim to be made.
You will have to follow the following steps
There are generally two types of car insurance policies- third-party plans and comprehensive plans. To calculate the four wheeler premium online, first you need to determine the type of plan you want to choose.
If you invest in a third-party policy, you can calculate the premium by first checking the premium determined by the Insurance Regulatory and Development Authority of India (IRDAI) and then adding 18% GST to it.
However, for comprehensive policies, various details are required before calculating the premium and it varies from company to company depending on the price. Thus, you can use the premium calculator offered by the other companies or online platforms like Turtlemint.
Let us take a quick look at what is Covered in Car Insurance:
A third-party motor insurance covers:
As Comprehensive car insurance has a wider scope, it provides more coverage, such as:
Whenever you buy car insurance, keep the following exclusions. Not every damage needs to be entertained by the insurance.
Though the renewal process may vary from site to site, but a basic structure of renewal process is followed by all the websites which is discussed below:
Non-renewal of expired car insurance policy can make a person more susceptible to legal and financial risks, some of which are discussed below:
If you are willing to buy car insurance for your new car or want to renew your insurance but in a dilemma about the company, then Turtlemint is just the right place for you. Turtlemint allows you to choose from the best plans after comparing them on various parameters. All you have to do is:
While planning to buy insurance for your new car, you might want to avail the best car insurance policy available and suitable to your requirements as well. If you’re in a dilemma about the company, then Turtlemint is just the right place for you. You get to compare all the plans before choosing the right one for you, based on various parameters. To compare the policies, all you need to do is-
All you need to know about car insurance in India
Basics of car insurance in India
Car Insurance not only provides financial protection to the car but also provides cover for injuries to driver, passengers or pedestrians, and their property. It pays for damages to your car due to accidents, vandalism, theft, fire, man-made/ natural disasters, and third-party liability. Considering the exorbitant repair costs these days even a minor damage can cost a fortune. The Motor Vehicles Act also requires every vehicle on the road to at least have a valid third-party liability cover, i.e. cover that pays for bodily injury, loss of life and damage to property of a third person that was caused by an accident with your car.
The IRDAI revises premium every year, considering the ratio of claims made and loss for providers. Because of this, third party insurance rates for cars and bikes have become costly from April 1st, with the insurance rate rising up to 40%.
A basic comprehensive car insurance includes damage to your car, loss and theft of vehicle as well as third party cover. However, at additional cost in the insurance premium, the car owners can avail some extraordinary coverage options. The popular add-ons are:
For all the Nylon, Plastic and Rubber parts like tubes and tyres as well as batteries | 50% |
For all the components made of fiberglass | 30% |
Parts made of glass like windshield, etc. | NIL |
The rest of the vehicle, including all the wooden parts as well are:
Age of Vehicle | % of Depreciation |
---|---|
Vehicle less than 6 months | NIL |
Vehicle more than 6 months but less than 1 year | 5% |
Vehicle more than 1 year but less than 2 years | 10% |
Vehicle more than 2 years but less than 3 years | 15% |
Vehicle more than 3 years but less than 4 years | 25% |
Vehicle more than 4 years but less than 5 years | 35% |
Vehicle more than 5 years but less than 10 years | 40% |
Vehicle more than 10 years | 50% |
IDV Depreciation:
Age of The Vehicle | % Of Depreciation For Fixing IDV of The Vehicle |
---|---|
Vehicle less than 6 months | 5% |
Vehicle more than 6 months but less than 1 year | 15% |
Vehicle more than 1 year but less than 2 years | 20% |
Vehicle more than 2 years but less than 3 years | 30% |
Vehicle more than 3 years but less than 4 years | 40% |
Vehicle more than 4 years but less than 5 years | 50% |
The no claim bonus is 20% for the first claim-free year. Thereafter, it increases every consecutive claim-free year. The available bonus rates are as follows –
No claims in the first policy year | 20% |
No claims in two successive policy years | 25% |
No claims in three successive policy years | 35% |
No claims in four successive policy years | 45% |
No claims in five successive policy years | 50% |
Your NCB is applicable even if you change your insurer, or buy a new car. It’s a great incentive to reward safe drivers. If you make a claim, you will lose your entire NCB in next policy term. Your NCB will be mentioned on your policy.
A car insurance policy is not only legally mandatory, it is beneficial too. Here’s how –
How to choose the best car insurance policy?
The best car insurance policy can be chosen by comparing different plans available in the market. Comparing is a must because of the benefits it provides. By comparing individuals can buy a policy which has the highest possible IDV, encompasses the most coverage features and charges the lowest premium. Thus, comparing allows individuals to buy the best car insurance plan.
Turtlemint has a tie-up with leading car insurance companies. Individuals can find and compare different car insurance plans on Turtlemint’s website and then buy a plan which is the best.
To compare, the following parameters should be judged –
The IRDAI revises premium every year, considering the ratio of claims made and loss for providers. Because of this, third party insurance rates for cars and bikes have become costly from April 1st, with the insurance rate rising up to 40%.
Our insurance partners have provided us the best possible insurance rates. We pass on the highest possible discounts to you always. It unlikely you will find a better rate elsewhere. If you find let us know. We are ready for the challenge!
How to save money on your car insurance
How to make claims for your car insurance policy
In the event of an own damage claim, that is, where your own vehicle is damaged due to an accident, vandalism or natural calamity, you must immediately inform insurance company and police, wherever required.
Insurance company will depute a surveyor to assess the loss, and car will be towed, if required, to a workshop.
A claim report is prepared by the surveyor based on the assessment done. The report is submitted to the insurance company along with the claim form and related documents like –
Once the claim is approved, repairs start. The repairs are completed and delivered to the policyholder. The claim is settled by the company with the garage and the car is delivered to the policyholder.
If your policy provides for cashless service, which means you do not have to pay out of your pocket for covered damages, the insurance company will pay the workshop directly. You will need pay your share of the claim – deductibles, etc – as informed by the insurer.
As a Turtlemint customer, you can simply call us to report a claim or any issue with payment, and we will take care of the rest!
If your policy is not offering you cashless claims, you can choose reimbursement claims. Under reimbursement claims the policyholder bears the repair costs himself and then gets them reimbursed from the insurance company. If the car is repaired at any non-preferred garage, reimbursement claims occur.
Once your claim is accepted, you will be paid the approved claim amount minus certain deductions which you will have to pay out from your pocket:
Standard or Voluntary Deductible: this is a fixed amount that you have to bear before the policy comes into force. For private cars, this amount currently is Rs. 1,000.
Depreciation: Standard insurance pays for the actual cash value of your damaged or destroyed vehicle part. However, since the part was already in use, its value will be less than or depreciated in comparison to a new replacement part. This will be 30% for fibre components and 50% for plastics and rubber. If you do not want to bear the depreciation cost, you can buy zero depreciation add-on which is available typically for cars not older than 3 years.
If your vehicle is stolen, police and the insurance company must be informed immediately. In addition you must keep the transport department also informed. To make a claim, the vehicle needs to be covered under the comprehensive insurance policy.
You will need to submit the police First Information Report (FIR), letter intimating RTO along with requisite claim form duly filled in, to the insurance company. Your claim will be paid after police give the final “non-traceable” report.
The amount you will receive for a theft claim is the Insured Declared Value (IDV) mentioned in the policy. You will need to sign the RC in favour of the insurance company and complete other handover formalities.
A third party claim, is where your vehicle was involved, in causing bodily injury, death or damage to property. It is important to ensure that the accident is reported immediately to the police as well as to the insurance company. On the other hand, if you are a victim, that is, if somebody else’s vehicle was involved, you must obtain the insurance details of that vehicle and make an intimation to the insurer of that vehicle.
The limit for property damage liability is capped at Rs. 7.5 lakhs. Any amount above this will have to be borne by the policyholder. There is no limit for bodily injury or death claim. The amount of liability is decided by a special court, the Motor Accident Claims Tribunal, based on factors such expenses for medical treatment of the injured, and loss of income in case of death.
It’s simple, just call us on our toll-free number about a claim you want to report, dispute or discuss. Our expert claims team will help you through the entire process. Our team will also work with the insurance companies directly to advance your case, and proactively inform you about the progress.
With our experience of having processed thousands of cases successfully, you can rest assured that you will get the best service and outcome.
You can also visit the link https://www.turtlemint.com/raise-claim and raise a claim with Turtlemint easily.
Other FAQs
There is no limit to the number of add-ons one can buy under a car insurance plan. Each add-on would attract an additional premium and the policyholder can choose as many add-ons he requires.
Car insurance plans are offered for a term of one year. After each year the policy should be renewed.
Yes, insurance companies allow a grace period for renewing the car insurance plan. The period offered depends on the policy. Coverage would not be allowed during the grace period. However, the accumulated no claim bonus would be applicable and the policy can be renewed without inspections if the renewal is done in the grace period.
A comprehensive car insurance policy is the best choice because it covers damages suffered by the car too. Since such damages also incur huge costs, a comprehensive cover is best. Moreover, add-ons should be selected for making the cover as comprehensive as possible.
There are various discounts which are available in car insurance plans. These include discounts for installing safety devices, the accumulated no claim bonus, discount for choosing a voluntary deductible and discount for becoming a member of an approved automobile association.
There is also a de-tariff discount that is provided by companies but varies from company to company, location to location and from vehicle to vehicle. It depends on the vehicle’s incurred claim as per the company’s experience and the same can change due to a change in their claim experience!
After you provide these details, the calculator would calculate the premiums payable for the policy.
Car insurance plans are offered as one year contracts. Once the stipulated tenure is over, you have to renew the policy. If the policy is not renewed within the due date, i.e. the date on which the existing policy is expiring, the policy is said to expire. An expired car insurance policy is bad because of the following reasons -
To renew your car insurance policy you should follow the below-mentioned steps -
Moreover, if you are renewing within the specified duration, you can use the accumulated no claim bonus of your previous policy to claim a premium discount in the renewed plan.
IDV stands for Insured Declared Value. it represents the actual sum insured of the car insurance policy. IDV is calculated by deducting the age based depreciation from the market value of the car. The market value of the car would exclude registration and insurance costs for IDV calculations. The rate of depreciation would depend on the age of the car and would be as follows -
Age of the car | Applicable depreciation |
---|---|
Less than 6 months | 5% |
More than 6 months but less than a year | 15% |
More than a year but less than 2 years | 20% |
More than 2 years but less than 3 years | 30% |
More than 3 years but less than 4 years | 40% |
More than 4 years but less than 5 years | 50% |
If the car is more than 5 years old, the IDV is mutually decided between the insurance company and the policyholder.
The IDV is paid as claim if the car is damaged beyond repairs or if the car is stolen.
Premium is the amount paid to buy a car insurance policy and to keep it active.
Own damage premium is the amount of premium paid for covering damages to the car caused by events outside the control of the policyholder like earthquakes, accidents, etc.
At fault represents the degree of the policyholder’s contribution to the car collision.
A claims adjuster is an individual who investigates and settles the car insurance claim.
To buy the policy individuals would have to submit the RC book of the car, invoice of the new car or existing policy document for an old car, No claim bonus certificate of the existing policy if required.
If the policy has expired, the Insured Declared Value would be calculated after the inspection of the car has been done by the insurance company. Based on the IDV, the premium would be calculated. Moreover, if the policy is renewed within 90 days of expiry of the old policy, the no claim bonus of the old policy would be applied on the premium and the premium would be discounted.
No, you can buy online car insurance plans for used cars as well as for old cars when you renew the policy.
For online renewals you can visit the insurance company’s website or compare other plans on insurance aggregator websites before renewing. Once the plan is shortlisted, the details of the car should be provided and the premium should be paid online. The policy would then be renewed instantly.
No, car insurance premiums do not depend on the time when the comparison took place. It depends on the details of the car. So, the premium would be same whenever the policies are compared.
Yes, Turtlemint offers you the facility to save your car insurance quotes for future reference. You can generate the quotes online and then save them for later use.
There is no guarantee of cheaper premium rates for continuing with your old insurance company. Insurance companies do not give any loyalty discounts on car insurance premiums if you continue your coverage with them. So, you should compare the available plans to get the lowest premium rate.
Yes, certain changes can be made in your car insurance policy. Allowed changes include the following -
For all the changes the insurance company should be contacted with a proof of change. Additional premiums might be required in some cases which should be paid before the change is endorsed in the insurance policy.
You can claim the roadside assistance cover for a maximum of four times during the entire policy period.
To cancel the policy you would have to submit a letter requesting cancellation, proof of an alternate policy to substitute the policy being cancelled, original policy document, proof of sale of the vehicle if it has been sold, acknowledgement letter from the RTO about cancellation of the policy, a NOC certificate from the institution which has financed the car.
ARAI stands for Automotive Research Association of India. Anti-theft devices which have been approved by the ARAI and installed in the car would earn a premium discount.
Any changes made in the car insurance policy is done through an endorsement in the original policy document. Endorsement is, therefore, a written proof of changes done to the policy.
Premium bearing endorsement depicts that the change which is being made in the policy has attracted an additional premium.
CTL stands for Constructive Total Loss of the car. A loss if declared to be a CTL if the estimated repair costs exceed the IDV of the policy. In such cases, the IDV is paid as claim.
Yes, if you are selling your car to another individual you can also transfer the insurance policy of the car to the buyer. While the policy ownership would change, the no claim bonus would remain with you and you can use the bonus to claim a premium discount in another car insurance policy which you buy.
Period of policy depicts the total duration for which the car insurance policy remains effective on a particular car.
Before the final policy document is issued by the insurance company, a cover note is issued containing the details of the policy. The cover note is valid for 60 days after it is issued and serves as a proof of insurance till the final policy is issued.
In case of CTL, the value for which the damaged vehicle can be sold for salvage is called salvage value of the vehicle. This value is deducted from the IDV before the claim is settled.
A copy of the valid driving license, RC certificate of the car, insurance certificate and PUC certificate should be carried in the car at all times.
*Prices will vary on the basis of your individual profile