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Car Insurance Companies
Car insurance, also known as 4-wheeler insurance, is an agreement between you and an insurance company. According to the Motor Vehicle Act of 1988, every car owner must have at least third-party insurance. Car insurance helps protect you financially if your car is damaged, stolen, or needs repairs. It also covers costs if your car causes injury to someone or damages their vehicle or property.
Buying or renewing car insurance online is now very easy, giving you a quick and hassle-free way to ensure your car, yourself, and your family are financially and legally secure.
Motor Insurance Plans
Top Car Insurance Companies in India 2025
In India, there are more than 20 car insurance companies that provide the best plans online and give various benefits. Before buying car insurance, it is highly crucial to select the right company. Here is the list of car insurance companies to help you find the best company for yourself.| Sr. No. | Companies Name | Claim Settlement Ratio | Network Garages |
|---|---|---|---|
| 1 | Acko Car Insurance | 91.14% | 2000+ |
| 2 | Bajaj Allianz Car Insurance | 88.14% | 4000+ |
| 3 | Bharti AXA Car Insurance | 94.84% | 5200+ |
| 4 | Chola MS Car Insurance | 85.04% | 4636+ |
| 5 | Digit Car Insurance | 90.72% | Repair anywhere |
| 6 | Future Generali Car Insurance | 94.29% | 3500+ |
| 7 | HDFC ERGO Car Insurance | 88.22% | 6800+ |
| 8 | ICICI Lombard Car Insurance | 85.45% | 5600+ |
| 9 | IFFCO Tokio Car Insurance | 89.09% | 4300+ |
| 10 | Kotak Mahindra Car Insurance | 98.00% | 2327+ |
| 11 | Liberty Car Insurance | 90.10% | 4500+ |
| 12 | Magma HDI Car Insurance | 86.11% | 4000+ |
| 13 | National Car Insurance | 84.03% | 3100+ |
| 14 | New India Car Insurance | 92.43% | 3000+ |
| 15 | Oriental Car Insurance | 88.05% | 3100+ |
| 16 | Raheja QBE Car Insurance | 92.63% | 1000+ |
| 17 | Reliance Car Insurance | 85.06% | 8200+ |
| 18 | Royal Sundaram Car Insurance | 91.56% | 3300+ |
| 19 | SBI Car Insurance | 90.15% | 16000+ |
| 20 | Shriram Car Insurance | 88.58% | 2000+ |
| 21 | Tata AIG Car Insurance | 88.26% | 7500+ |
| 22 | United India Car Insurance | 81.63% | 3100+ |
| 23 | Universal Sompo Car Insurance | 90.72% | 3500+ |
| 24 | Zuno Car Insurance | 85.49% | 1500+ |
Disclaimer: The Claim Settlement Ratio (CSR*) listed above comes from the IRDAI motor insurance annual report for 2022-23. Square Insurance does not recommend, rate, or endorse any specific insurance company or product. For a full list of insurance companies in India, please visit the Insurance Regulatory and Development Authority of India (IRDAI) website at www.irdai.gov.in.
Types of Car Insurance in India?
So, if you are looking to buy the right plan for your car, get the best car insurance companies quotes online with Square Insurance.
Standalone Own Damage Car Insurance
This type of insurance covers only the damage to your own car. It does not include protection for damages or injuries caused to others. You can buy it along with a third-party policy for full coverage.
Third-Party Car Insurance
This is mandatory by law and covers damages or injuries caused by your car to other people, their vehicles, or property. It does not cover your own car's damage or theft.
Comprehensive Car Insurance
This is a complete plan that covers both your car's damage and any harm caused to a third party. It also includes protection against theft, fire, and natural disasters.
Third-Party Vs Comprehensive Car Insurance Vs Standalone Own Damage Car Insurance
| Sr. No. | Feature | Third-Party Insurance | Comprehensive Insurance | Standalone Own Damage Insurance |
|---|---|---|---|---|
| 1 | Covers Own Car Damage | No | Yes | Yes |
| 2 | Covers Third-Party Damage | Yes | Yes | No |
| 3 | Covers Theft/Fire | No | Yes | Yes |
| 4 | Covers Natural Disasters | No | Yes | Yes |
| 5 | Mandatory by Law | Yes | No | No |
| 6 | Cost | Low (basic coverage) | Higher (extensive coverage) | Moderate (covers own car only) |
| 7 | Ideal For | Basic legal compliance | Complete protection for your car and others | Protecting your car when paired with third-party |
Key Factors to Consider With Choosing a Car Insurance Plan
- 01
Check the insurance type you need
Decide whether you need third-party insurance, own damage insurance, or comprehensive coverage based on your car and usage.
- 02
Check the Insured Declared Value (IDV)
It is the highest amount that can be recovered if your car gets stolen or gets completely damaged. Ensure that IDV matches with the value of your car.
- 03
Claim Settlement Ratio
Look at the insurer's claim settlement ratio, so that it becomes easier for you to assess the reliability in payment of the claim. A high ratio is the key to more trust.
- 04
No Claim Bonus (NCB)
Check if they provide an NCB discount at the time of renewal when there is no claim made during the term of policy.
- 05
Age of the Car
The car's age affects the premium and eligibility for certain add-ons like zero depreciation cover. Choose a plan that suits your car's condition.
- 06
Cashless Garage Network
Pick an insurer with a wide network of cashless garages where you can get repairs done without paying upfront.
- 07
Add-ons offered
Check the add-ons like roadside assistance, engine protection, or zero depreciation, and choose the ones you need for better coverage.
Why Renewing Your Car Insurance Is Important?
Renewing your car insurance means extending your coverage for another year. Car insurance policies usually last for one year, and you need to renew them before they expire. Here's why it's important:
- 01
Legal Compliance
Having third-party insurance is required by law under the Motor Vehicle Act of 1988. If you don't renew your policy, you may face fines or even legal trouble.
- 02
Financial Protection
If your policy expires, you lose all coverage. This means you'll have to pay for car repairs, damages, or third-party claims out of your own pocket.
- 03
No Claim Bonus (NCB)
If you don't make any claims during the year, you get a discount or bonus on your next premium. Skipping insurance renewal makes you lose this benefit.
FAQs
The top three car insurance companies in India are HDFC ERGO, Universal Sompo, and Future Generali. These companies are highly recommended due to their high claim settlement ratio and reliable coverage.
The best car insurance provider varies for everyone. It's important to compare different plans and choose one that best meets your specific needs.
Comprehensive car insurance is generally the best option, as it provides extensive coverage against a wide range of incidents, including accidents, theft, and natural disasters.