How To Choose Best Four Wheeler Insurance In India
Know What Is Covered And What Not Under Your Four Wheeler Insurance Policy
Four Wheeler Insurance: From various car accidents like Rishabh Pant Car Accident, Cyrus Mistry Car Accident, Delhi Car Accident Dragging Case, and many like these we learn the importance of Four Wheeler Insurance Policy or a Car Insurance. Car insurance helps in mitigating financial obligations that arise after an unfortunate event involving your car such as a car accident, fire in a car, theft of your car, natural calamities like earthquake, flood, etc.
It is mandatory for every car owner to buy a third party car insurance cover to be able to drive their car on Indian roads whether you own a four wheeler 7 seater or 4 seater.
In India there are more than 20 Four wheeler insurance companies.
In this article we will know everything about a four wheeler insurance policy.
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Table of Content –
- How to choose the best car insurance company in India?
- Types of Car Insurance Plans Offered By Different Insurance Companies
- What Does Your Car Insurance Cover?
- List of Car Insurance Companies and their claim settlement ratio
How To Choose The Best Car Insurance Company In India or Buy Best Four Wheeler Insurance Policy in India?
To Choose a best four wheeler insurance policy or car insurance company, you need to focus on few main points. However, Many people prefer to buy a four wheeler insurance policy based on four wheeler insurance cost or on referral of a car insurance company by known ones. We suggest you to keep following points in mind while buying a four wheeler insurance policy.
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1. Cashless Garages Network –
First and foremost point is to check nearby four wheeler cashless garage of car insurance company. You should always check the network of four wheeler cashless garage of car insurance company. Generally all good car insurance companies partner with number of garages to provide cashless car insurance claim facility. You must choose a four wheeler insurance company which has good strength of the network of cashless garages.
2. Claim Settlement Ratio of a four wheeler insurance company
Another most important aspect of choosing car insurance or a four wheeler insurance policy is Claim Settlement Ratio. The car insurance company claim settlement ratio is the number of claims which a car insurance company has settled out of all the claims received by the company during a financial year. The high claim settlement ratio resembles that the company has settled more number of car insurance claims in a year.
3. Availability of Add-ons
Before you buy an insurance for four wheeler you should check whether the company provides Add-ons to the four wheeler insurance policy. Add on is basically extra coverage which you can opt with a base car insurance policy to extend the coverage. You can buy a car insurance add on while you purchase a new four wheeler insurance policy or at the time of renewal of existing car insurance. Generally companies provide facility to buy Add-ons with own-damage and comprehensive car insurance policy.
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4. IDV amount in Four Wheeler Insurance
While choosing a car insurance policy, always check about IDV offered by car insurance company. IDV is the maximum claim your insurer will pay if your vehicle is damaged beyond repair or is stolen. Some companies may offer you insurance at lower premium but check whether they have decreased the IDV of your car or not.
Other than these points, you can check the customer service reviews of the car insurance company, ratings on various online platforms. You can also compare four wheeler insurance rate or car insurance price list before buying a car insurance. You can also use a four wheeler insurance premium calculator available on insurance company’s official websites.
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Types of Car Insurance Plans Offered By Different Insurance Companies
Generally a car insurance company offers three types of car insurance plans which are third party insurance, own damage car insurance, comprehensive car insurance.
Now let’s understand the difference among these three insurance types.
1. Third Party Four Wheeler Insurance / 3rd Party Car Insurance
This is a mandatory insurance according to Indian Motor Tariff and four wheeler scrap policy. Every car owner needs to purchase a third party car insurance policy.
Third party car insurance is a coverage for all third party liabilities such as third party bodily injuries, disability, death as well as property damage. The maximum cover which an insurance company provides under this type of insurance is Rs. 7.5 lakh.
2. Standalone Own-Damage Car Insurance
This type of car insurance is not mandatory to own legally. If you buy only own damage car insurance which basically covers own-damages incurred by your car in any unfortunate event such as road accident, natural calamity, fire, explosion, theft, riot, etc.
However, you need to buy a third party cover also with this standalone own-damage car insurance to drive cars on Indian roads.
You can choose an own-damage car insurance from one company and third party insurance from another car insurance company.
3. Comprehensive Car Insurance
When you buy both the above types of car insurance in a single plan, it is called a comprehensive car insurance plan. The comprehensive car insurance plan covers both third-party liabilities as well as own damages in an unfortunate event.
Comprehensive car insurance offers you maximum coverage and enables you to buy add ons with the policy to extend the car insurance coverage. Some examples of add-ons are zero depreciation cover, engine cover, etc.
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What Does Your Car Insurance Cover?
Although it varies policy to policy but you can see here what can be covered under a car insurance pan.
- Damage/losses caused to your car due to accident
- Theft of Four-wheeler
- Damage incurred due to fire
- Damage/losses due to natural calamity
- Damage to property and third party vehicle
- Personal Accident Cover
- Injury/ Death of Third Party due to an accident
You always have the option to buy 4 wheeler vehicle insurance add-ons to extend the coverage.
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List of Four Wheeler Insurance Companies and their claim settlement ratio
| Car Insurance Company | Motor OD Claim Settlement Ratio FY20 |
| IFFCO Tokio General Insurance | 95.30% |
| Royal Sundaram General Insurance | 92.66% |
| The Oriental Insurance Company | 91.76% |
| HDFC ERGO General Insurance | 91.23% |
| Universal Sompo General Insurance | 90.78% |
| Tata AIG General Insurance | 90.49% |
| The New India Assurance | 89.60% |
| SBI General Insurance | 89.51% |
| Bajaj Allianz General Insurance | 88.83% |
| Future Generali India Insurance | 88.69% |
| Bharti AXA General Insurance | 87.99% |
| ICICI Lombard General Insurance | 87.71% |
| Liberty General Insurance | 98% |
| Cholamandalam MS General Insurance | 85.89% |
| National Insurance Company | 85.71% |
| Edelweiss General Insurance | 84.52% |
| Reliance General Insurance | 84.26% |
| Acko General Insurance | 83.91% |
| United India Insurance Company | 82.93% |
| Kotak Mahindra General Insurance | 82.81% |
| Go Digit General Insurance | 80.47% |
| Magma HDI General Insurance | 79.60% |
| Shriram General Insurance | 77.26% |
| Navi General Insurance | 76.20% |
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