What is Car Insurance?
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.
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.
| Companies Name | Claim Settlement Ratio | Network Garages | Call to Action |
|---|---|---|---|
| Acko Car Insurance | 91.14% | 2000+ | Check Premium |
| Bajaj Allianz Car Insurance | 88.14% | 4000+ | Check Premium |
| Bharti AXA Car Insurance | 94.84% | 5200+ | Check Premium |
| Chola MS Car Insurance | 85.04% | 4636+ | Check Premium |
| Digit Car Insurance | 90.72% | Repair anywhere | Check Premium |
| Future Generali Car Insurance | 94.29% | 3500+ | Check Premium |
| HDFC ERGO Car Insurance | 88.22% | 6800+ | Check Premium |
| ICICI Lombard Car Insurance | 85.45% | 5600+ | Check Premium |
| IFFCO Tokio Car Insurance | 89.09% | 4300+ | Check Premium |
| Kotak Mahindra Car Insurance | 98.00% | 2327+ | Check Premium |
| Liberty Car Insurance | 90.10% | 4500+ | Check Premium |
| Magma HDI Car Insurance | 86.11% | 4000+ | Check Premium |
| National Car Insurance | 84.03% | 3100+ | Check Premium |
| New India Car Insurance | 92.43% | 3000+ | Check Premium |
| Oriental Car Insurance | 88.05% | 3100+ | Check Premium |
| Raheja QBE Car Insurance | 92.63% | 1000+ | Check Premium |
| Reliance Car Insurance | 85.06% | 8200+ | Check Premium |
| Royal Sundaram Car Insurance | 91.56% | 3300+ | Check Premium |
| SBI Car Insurance | 90.15% | 16000+ | Check Premium |
| Shriram Car Insurance | 88.58% | 2000+ | Check Premium |
| Tata AIG Car Insurance | 88.26% | 7500+ | Check Premium |
| United India Car Insurance | 81.63% | 3100+ | Check Premium |
| Universal Sompo Car Insurance | 90.72% | 3500+ | Check Premium |
| Zuno Car Insurance | 85.49% | 1500+ | Check Premium |
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?
- 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.
So, if you are looking to buy the right plan for your car, get the best car insurance companies quotes online with Square Insurance.
Third-Party Vs Comprehensive Car Insurance Vs Standalone Own Damage Car Insurance
| Feature | Third-Party Insurance | Comprehensive Insurance | Standalone Own Damage Insurance |
|---|---|---|---|
| Covers Own Car Damage | No | Yes | Yes |
| Covers Third-Party Damage | Yes | Yes | No |
| Covers Theft/Fire | No | Yes | Yes |
| Covers Natural Disasters | No | Yes | Yes |
| Mandatory by Law | Yes | No | No |
| Cost | Low (basic coverage) | Higher (extensive coverage) | Moderate (covers own car only) |
| 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
1Check the insurance type you need
Decide whether you need third-party insurance, own damage insurance, or comprehensive coverage based on your car and usage.
2Check 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.
3Claim 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.
4No 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.
5Age 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.
6Cashless Garage Network
Pick an insurer with a wide network of cashless garages where you can get repairs done without paying upfront.
7Add-ons offered
Check the add-ons like roadside assistance, engine protection, or zero depreciation, and choose the ones you need for better coverage.
Why Choose Square Insurance for Car Insurance Online?
1Instant Policy Issuance
Square Insurance ensures you get your car insurance policy instantly without any waiting. Once you complete the process and make the payment, the policy is issued and sent directly to your email. This saves time and makes the entire process simple and quick.
253+ Insurers
Square Insurance partners with more than 53 trusted car insurance companies, giving you a wide variety of plans to choose from. This allows you to compare benefits, premiums, and coverage easily, helping you find the perfect policy that suits your budget and needs.
324/7 Customer Support
With Square Insurance, help is always available. Their dedicated customer support team works round the clock to assist you with any questions or issues, ensuring a smooth experience whether you're buying, renewing, or making a claim.
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:
1Legal 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.
2Financial 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.
3No 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.
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