What is Car Insurance?

Car insurance is a type of insurance policy that provides financial protection to vehicle owners in the event of damage or loss to their car. It is designed to protect against the financial burden of repairs, medical expenses, or legal costs from accidents or theft. Four wheeler insurance policies include coverage for both damages caused to the insured vehicle as well as liability for damage caused to others.

Best Car Insurance Companies in India

Whether you are looking for comprehensive coverage that offers complete protection against damages and accidents, or a third-party liability plan that meets the legal requirements, it is important to compare the various companies, their features, and prices to make an informed decision.

Insurance Provider Cashless Garages Claim Settlement Ratio Car Insurance
HDFC ERGO Car Insurance 8200 99% Get A Quote
Bajaj Allianz Car Insurance 4000 98.5% Get A Quote
Reliance General Insurance 8200 98% Get A Quote
Kotak General Insuran 2327 98% Get A Quote
Future Generali Car Insurance 3500 96.3% Get A Quote
Digit Car Insurance Repair at any Garage 96% Get A Quote
Chola MS Car Insurance 4636 96% Get A Quote
IFFCO Tokio Car Insurance 4300 95.8% Get A Quote
Oriental Insurance 3100 94% Get A Quote

Disclaimer: The claim settlement ratio (CSR) mentioned above is based on the data provided in the IRDA's 2021-22 annual report on motor insurance. Okbima doesn't approve, rate, or recommend any insurer or any insurance product offered by any insurer.

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Benefits of Buying Car Insurance Online

Buying car insurance online comes with several benefits such as instant quotes, lower premiums, easy comparison, and zero paperwork.

Instant Quotes

By providing your car details, you can receive instant premium quotes from multiple insurers. This allows you to quickly compare prices and choose the best option for your needs and budget.

Easy Comparison

Okbima makes it easy to compare car insurance plans from various insurers. You can evaluate coverage, features, and premiums side by side, helping you make an informed decision based on your preferences and requirements.

Fast & Convenient

Okbima offers a fast and convenient process to buy four wheeler insurance. You can complete the entire transaction from the comfort of your home or office.

Zero Paperwork

Buying car insurance online with Okbima eliminates the need for extensive paperwork. Instead of filling out physical forms, you can complete a short online form and make the payment.

24/7 Accessibility

Okbima is accessible 24/7, allowing you to buy or renew insurance at any time that suits you.

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What is Covered in Car Insurance Policy?

Car insurance policies typically include various types of coverage to protect against different risks such as liability coverage, collision coverage, comprehensive coverage, and more.

  • Accidents

    Car insurance policies provide coverage for damages caused by accidents, whether they involve collisions with other vehicles, stationary objects, or even incidents like rollovers.

  • Natural Disasters

    Car insurance policies often offer protection against damages caused by natural disasters such as floods, earthquakes, hurricanes, hailstorms, or other severe weather conditions.

  • Third-Party Liabilities

    Car insurance policies include coverage for any damages or injuries caused to a third party involved in an accident with your car.

  • Fire

    Car insurance policies generally cover damages caused by a fire, whether it is an accident, a malfunction, or arson.

  • Manmade Acts

    Car insurance policies may also provide coverage for damages caused by intentional or malicious acts, such as vandalism, riots, or acts of terrorism.

  • Theft

    Car insurance policies typically cover theft or the stolen parts of your vehicle. In case your car is stolen, the insurance company will compensate you for the loss based on the terms and limits of your policy.

  • In-transit Damages

    If your vehicle gets damaged while being transported, such as during loading or unloading onto a carrier, car insurance policies often cover such damages.

  • Rat Bite Damages

    Some car insurance policies may cover damages caused by rat bites. Rats can chew through car wiring, causing significant damage. If your car is affected by rat bites, your insurance policy may cover the repair costs.

What is Not Covered in Car Insurance Policy?

While car insurance provides coverage for a wide range of risks, certain situations and events are typically excluded from standard four wheeler insurance policies.

  • Pre-existing Damages

    Car insurance usually does not cover damages that were already present before the insurance policy was taken out. This means that any damages or issues that existed before obtaining the insurance coverage will not be covered.

  • Normal Wear and Tear

    Car insurance policies do not cover normal wear and tear of the vehicle. This includes damages caused by aging, rust, or mechanical deterioration due to regular use.

  • Mechanical and Electrical Damage

    Car insurance policies do not cover damages caused by mechanical or electrical failures. Repairs and replacements of these components are primarily the responsibility of the vehicle owner.

  • Driving Without Valid Documents

    If you are driving without a valid driver's license, valid registration, or valid insurance documents, your car insurance policy will not provide coverage for any damages or losses that occur during this time.

  • Illegal Driving

    Car insurance policies typically exclude coverage for damages from illegal activities, such as driving under the influence of drugs or reckless driving. Any damages caused while engaging in these activities will not be covered.

  • Loss Outside Geographical Limits

    Car insurance policies usually have geographical limits specified in the terms and conditions. If any damages or losses occur outside these boundaries, the policy may not provide coverage.

  • Drunk Driving

    Car insurance policies often exclude coverage for damages or injuries while driving under the influence of alcohol or drugs. If an accident occurs while the driver is intoxicated, the insurance company may deny coverage.

  • Breakdown

    Car insurance typically does not cover expenses related to vehicle breakdowns, such as engine or transmission failures. Breakdown coverage usually falls under separate policies like roadside assistance or extended warranties.

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Add-On Covers in Four Wheeler Insurance Policy

Add-on covers are additional features that can be included in a four wheeler insurance policy to provide extra protection beyond the standard coverage.

Zero Depreciation Cover

With this feature, you will be provided compensation for the decreasing value of your car. You won't have to bear the cost of depreciating your vehicle's parts with the help of this feature. However, please note that there are a limited number of claims that can be made under this cover during the policy period.

Engine Protection Cover

With an engine protection cover, you can receive compensation for the expenses incurred in repairing damages to the engine caused by lubricating oil leakage and water ingress. This cover extends to the gearbox parts, engine parts, and differential parts.

No Claim Bonus (NCB) Protection

The policyholder is given a discount on the renewal premium for each year without a claim, known as the No Claim Bonus (NCB). The NCB is accumulated over time and grows annually, ranging from 10% to 50%, it offers significant savings on your car insurance premium.

Consumables Cover

Consumables cover the costs associated with consumable items in the event of any risks in the policy. Consumable items consist of screws, nuts and bolts, washers, AC gas, grease, lubricants, bearings, clips, engine oil, distilled water, oil filter, brake oil, and fuel filter.

Key Protection Cover

At some point in life, individuals will misplace or lose their car keys. In these circumstances, the insurer offers key protection coverage to reduce the financial burden of replacing or repairing your car keys.

Daily Allowance Benefit

If your vehicle is undergoing repairs in the garage after an accident, the daily allowance add-on can help you out. With this add-on, your insurer will provide you with a daily travel stipend if your damaged vehicle remains in the garage for more than 3 days.

Personal Accident Cover

A comprehensive car policy offers third-party coverage, but it also protects against personal accidents. With personal accident cover, you receive a predetermined amount in the event of death or permanent total disability from an accident. death or permanent total disability from an accident.

Roadside Assistance Cover

If you find yourself in any part of the country within the allowed distance in your insurance policy, the insurer will offer roadside assistance by dispatching a mechanic to your location to repair any car damages. It's important to note that roadside assistance does not affect your No Claim Bonus (NCB), meaning it remains unaffected even though you utilize this service.

Return To Invoice Cover

If you opt for the Return to Invoice add-on cover, your car will be protected in the event of theft or irreparable damage in a total loss. The insurance company will then provide coverage based on the amount you paid for the car at the time of purchase.

Personal Possession Cover

The personal possession add-on cover protects you in the unfortunate event that your belongings are damaged or stolen from your car during a car accident or while it is parked in an authorized parking area. The coverage amount may vary depending on the insurer and is subject to certain limits.

Tyre Protection Cover

If your car's tyres become damaged, a comprehensive plan will not offer coverage. Therefore, it is advisable to get a tyre protection cover that will provide insurance for any potential harm to your car's tires and tubes.

Driver and Passenger Cover

With this add-on, you will receive coverage in the event of any injuries sustained by drivers or passengers involved in the accident. The insurance company will offer financial support for medical costs.

Types of Car Insurance Policies in India

There are three types of car insurance policies you can buy third-party, own damages, and comprehensive four wheeler insurance.

Third-Party Car Insurance

Third-Party Car Insurance

All vehicle owners in India must have a third-party or liability-only policy to drive on the roads. This policy provides compensation for death or injuries caused to a third person, as well as property damage up to Rs 7.5 lakh. However, it does not offer coverage for damages to the insured car.

Comprehensive Car Insurance

Comprehensive Car Insurance

A comprehensive car insurance policy provides coverage for both liabilities towards third parties and damages to one's vehicle. With this plan, individuals can conveniently access cashless repair services at affiliated garages. Additionally, policyholders can expand their coverage by opting for extra features like roadside assistance and zero depreciation coverage, for which they will need to pay a small additional premium.

Standalone Own Damage

Standalone Own Damage

A standalone own-damage car policy provides financial coverage for any accidental damages that occur to the insured car. This type of insurance can be in addition to an existing third-party insurance policy. In India, it is required by law for every car owner to have at least a third -party insurance cover. However, having a standalone insurance policy offers financial assistance for damage to the insured car as well as any third-party liabilities that may arise.

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Difference Between Third-Party, Own Damages, and Comprehensive Car Insurance

Third-party car insurance only covers damages to other people's property or injuries caused by you. Own damages car insurance covers damages to your vehicle caused by accidents or natural disasters. Comprehensive car insurance provides coverage for both third-party damages and damages to your vehicle, including theft or vandalism.

Coverage Offered Third-party Car Insurance Cover Standalone Own Damage Cover Comprehensive Car Insurance Cover
Third-party property damage Yes No yes
Third-party bodily injury Yes No yes
Own damages of the car No Yes yes
Car theft No Yes yes
Personal accident coverage Yes Yes yes
Availability of add-ons No Yes yes
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Factors Affecting Car Insurance Premium

Several factors can affect car insurance premiums such as age, gender, location, type of car, and coverage options.

Car's Engine Capacity

The premium you are required to pay for your 4-wheeler insurance plan is determined by the cubic capacity (cc) of your car's engine. An increase in engine cc can increase the premium amount.

Insured Declared Value (IDV)

The premium you pay for your car depends on its estimated market value, also known as the IDV. This IDV represents the maximum amount of money you can claim from your insurance provider.

Driving record

A clean driving record with no accidents or traffic violations will typically result in lower premiums.

Location

Insurance premiums can vary depending on where the insured person lives. If they live in an area with high crime rates or a high number of accidents, their premiums may be higher to compensate for the increased risk.

Usage

The purpose for which a car is used can impact insurance premiums. Cars used for regular commuting or business purposes may have higher premiums compared to cars used solely for personal use.

Coverage options

The coverage options chosen by the insured also affect insurance premiums. Policies with higher coverage limits and lower deductibles tend to have higher premiums.

Third-Party Car Insurance Premium

The premium rates for Motor Third-Party Liability Insurance for Private Cars, effective from June 1st, 2022, are as stated in the notification issued by IRDAI for the financial year 2022-2023.

ENGINE CUBIC CAPACITY (CC) THIRD-PARTY PREMIUM
Less than 1,000cc Rs. 2,094
More than 1,000cc and less than 1,500cc Rs. 3,416
More than 1,500cc Rs. 7,897

Why Do You Need Car Insurance?

Car insurance is a legal and financial necessity for several reasons such as it is a legal requirement, provides financial protection, and liability coverage.

Legal Requirement
Having four wheeler insurance is a legal requirement. Driving without insurance can result in fines, license suspension, or even legal action.

Protection Against Third-Party Liability
It protects you from legal claims made by a third party (up to Rs. 7.5 lakhs), and ensures that any costs associated with legal settlement are taken care of, providing financial security and peace of mind.

Protection Against Own Damages
This policy provides coverage for any damages caused to the car as a result of an accident, fire, or any natural or man-made disaster. Additionally, it offers financial compensation to the IDV if the car is stolen.

Personal Injury Protection
Some insurance policies offer personal injury protection, which covers medical expenses for you and your passengers regardless of who is at fault in an accident.

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How to Choose the Best Four Wheeler Insurance Policy?

Choosing the best four wheeler insurance policy is crucial to ensure that you have comprehensive coverage and peace of mind while driving.

Coverage

Identify the coverage options offered by different insurance providers. Look for policies that include coverage for damage caused by accidents, natural disasters, theft, fire, and third-party liability.

Choose a Suitable IDV

Choose an Insured Declared Value (IDV) that closely aligns with the market value of your vehicle. Opting for a lower IDV may lower your insurance premium, but it can result in higher out-of-pocket costs when settling claims.

Price

Compare the premiums of different insurance providers. While affordability is essential, do not compromise on necessary coverage benefits for a cheaper policy.

Add-on Options

Identify the add-on options offered by insurers. These could include personal accident cover, engine protection, zero depreciation, roadside assistance, and consumables cover.

Claim Settlement Ratio

Research the claim settlement ratio of insurance providers. A higher ratio suggests a higher probability of your claim being settled without hassle.

Network Garages

Check the list of network garages provided by the insurance provider. Having a wide network of garages ensures that you have easy access to authorized repair centers in case of an accident or damage.

Reputation

Consider the reputation and financial stability of the insurance provider. Look for insurers with a strong track record of reliable service and a good reputation in the market.

Why to Buy Car Insurance From Okbima?

When it comes to four wheeler insurance, Okbima is the best choice for several reasons such as convenience, access to a range of insurers, and transparent information.

Comparison of Multiple Plans

Okbima allows you to compare car insurance plans from different insurance providers.

Convenience

Purchasing insurance through Okbima is convenient as it can be done online, eliminating the need for physical visits to insurance offices.

Access to a Range of Insurers

Okbima collaborates with a wide range of insurance companies, offering users access to policies from various providers.

Transparent Information

Okbima aims to provide transparent information about insurance policies, terms, and conditions.

Documents Required to Buy Car Insurance Online

The specific documents required to buy four wheeler insurance online can vary depending on the insurance provider.

The common documents that are required to buy car insurance online:

  • Vehicle Details: Vehicle details that contain the make and model of the car, vehicle identification number (VIN), and registration number.
  • Personal Information: Personal details that contain the full name of the policyholder, date of birth, and contact information.
  • Driving License: A driving license that contains a valid driver's license number, and details about any previous driving violations or accidents.

How to Renew Car Insurance From Okbima?

Renewing a car insurance policy in India online from Okbima is an easy process and requires less documentation. To renew your four wheeler insurance, contact our Team of Experts to buy the best plan at an affordable price.

Documents Required to Renew Car Insurance Online

When renewing your four wheeler insurance online, you will need to have certain documents and information readily available.

Registration Certificate (RC)

You will need a copy of your vehicle's RC or registration document. This contains details about your vehicle, such as its make, model, engine number, chassis number, and registration number.

Personal Identification Proof

You will be required to provide a valid photo identification document such as your Aadhaar card, passport, driving license, or PAN card.

Address Proof

You will need to provide a proof of address document, such as a passport, Aadhaar card, driver's license, voter ID card, or utility bill (electricity, telephone, gas bill, etc.).

Vehicle Inspection Certificate

In some cases, the insurance provider may require a vehicle inspection certificate.

Usage

The purpose for which a car is used can impact insurance premiums. Cars used for regular commuting or business purposes may have higher premiums compared to cars used solely for personal use.

Coverage options

The coverage options chosen by the insured also affect insurance premiums. Policies with higher coverage limits and lower deductibles tend to have higher premiums.

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How to File a Car Insurance Claim Online?

The process of filing a car insurance claim can vary slightly among insurance companies, but the general steps are typical as follows.

Here is the list of all the documents that you will require:

  • Step 1: Inform your insurance company about the accident or damage. Provide details of the incident, including date, time, and location. Document the scene with photographs if possible.

  • Step 2: The insurance company will appoint a surveyor to identify the damage. Keep necessary documents like an insurance policy, vehicle registration certificate (RC), and driving license ready for the surveyor's verification.

  • Step 3: Submit the required documents to the surveyor for claim verification. These may include your ID proof, insurance policy, and other relevant documents.

  • Step 4: After the inspection, choose a network garage for repairs if your policy allows cashless claims. If not, select a garage and inform the insurer before proceeding with the repairs.

  • Step 5: If you opt for a cashless claim, the insurance company will directly settle the repair bills with the network garage.

  • Step 6: If you paid for repairs at a non-network garage, submit original repair bills, payment receipts, and other required documents to the insurer for reimbursement.

  • Step 7: Await confirmation of the claim settlement from the insurance company. Once approved, you will receive the reimbursement (if applicable) or confirmation of direct settlement with the repair facility.

Documents Required to File Four Wheeler Insurance Claim

When filing a car insurance claim, the documentation required may vary based on the type of claim (accidental, theft, third-party) and the specific requirements of the insurance company.

Duly Filled and Signed Claim Form

A form provided by the insurance company that includes details of the incident, your policy information, and other relevant information. This form needs to be filled out accurately and signed.

KYC Documents

Documents establishing the identity and address of the policyholder. This can include an Aadhar card, passport, voter ID, or any other government-issued identity proof.

Copy of Car Insurance Policy

A copy of your active car insurance policy, proving that the vehicle was insured at the time of the incident.

Copy of Vehicle Registration Certificate (RC)

The registration certificate of the vehicle (RC) is required to verify the ownership and details of the insured car.

License Copy of the Driver at the Time of Accident

The driving license of the person who was driving the vehicle at the time of the accident. This is essential to ensure that the driver is legally allowed to operate the vehicle.

Copy of Police FIR (First Information Report)

In case of theft or criminal activities leading to the incident, a copy of the FIR filed with the police is required. This document provides legal evidence of the incident.

Original Repair Bills and Payment Receipts

The original bills from the repair shop where the vehicle was repaired, including details of the repairs and the corresponding costs.

Estimated Repair Bills<

In some cases, the insurance company might require an estimate of repair costs before the actual repairs take place. This helps in assessing the claim amount.

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FAQs About Car Insurance

Yes, having car insurance is essential since the costs associated with an accident or other damage may exceed your means of support. In these unanticipated instances, car insurance offers you that financial support.

Contractor's all-risk insurance

No, car insurance does not pay for maintenance expenses. Make sure to keep your car in good repair with regular maintenance because your insurer won't pay claims resulting from wear and tear, rot, rust, or any other symptoms of negligence. Remember to take good care of the interiors as well!

Drivers sometimes want to cancel a claim, usually because they refuse to cover the deductible. Therefore, after you file a claim, insurance companies allow you to cancel it; all you have to do is get in touch with a representative.

The insurance premium cannot be paid in installments, sorry. It is required to pay the complete premium amount at once when buying car insurance coverage. No insurance company will accept a payment plan for the premium.

Owners of uninsured automobiles may face charges under The Motor Automobiles Act of 1988 that include jail time and/or other penalties. All accrued benefits are likewise lost when the car insurance coverage expires.