Best And Cheapest Auto Insurance Policy Online In India 2024

Updated On: 2023-07-21

Author : Team Policybachat

Auto insurance is insurance coverage for risks associated with owning or using a car, light truck, motorcycle, or another type of motorized vehicle. It may protect against physical damage to the automobile, medical payments arising from injuries sustained in accidents while driving the car, and can also include liability coverage for damage caused to others (up to the limits insured).

A car is a wheeled motor vehicle used for transportation. Most meanings of the term specify that cars are designed to run primarily on roads, to have seating for one to eight people, typically have four tires (sometimes two or three), and be constructed principally to transport people rather than goods.

How to Find Cheap Auto Insurance Policy?

Finding cheap auto insurance is not difficult. All you have to do is compare the prices of various providers and choose the one that is best for you.
Many factors affect your insurance premium, so it’s essential to review your policy regularly. Some of these factors are the type of car that you drive, the company that insures your car, how much coverage you have for theft or damage to your car, etc.

Auto Insurance Claims:

Auto insurance claims are one of the most common types of claims in the world. However, in recent years, the number of claims has been on the rise due to several factors. Today’s drivers are more aware of their coverage and have become less hesitant to claim if they need to.

There are three different types of auto insurance claims that are usually filled with an insurance company. These are bodily injury, property damage, and uninsured/underinsured motorist. The bodily injury deals with medical expenses while property cover damage deals with physical damages to the vehicle. Uninsured/underinsured motorist deals with the difference in cost between what is owed for vehicle repairs and what is covered by the driver's insurance

Process for making an Auto Insurance Claim:

The process for making an auto insurance claim is where the process of filing a claim begins. When filing a car insurance claim, you need to know how to notify the company and what you need to do to receive compensation. The first step in filing a claim is reporting the accident. Three steps need to be taken to file a claim: report, estimate, and repair.

Factors that influence the amount of your Auto Insurance Premium:

  • The three biggest factors that influence the amount of your auto insurance premium are Car type,
  • Add-ons,
  • Company,
  • State.
  • Factors like how many accidents you've had recently,
  • How much coverage do you want, and
  • What kind of car you drive can also affect the cost of your premium.

Auto Insurance Quotes:

Online auto insurance quotes can be easily obtained by entering the location and the type of vehicle.

There are many benefits of getting an online quote, such as a quick and convenient process, easy to compare prices and coverage options.

The customer will get all the insurance information about the rates by inputting their location and car type. This will allow them to compare various rates from different insurance companies in their area.

What does NCB stand for in Auto Insurance?

NCB in Auto insurance stands for No claim bonus, which is a form of discount given to the insured customer at the time of renewal for not making any claims during the previous year policy year. No claim bonus discount is given on the own damage section of the Auto insurance policy. The no-claim bonus increases level-wise each year from 0% and reach a maximum of 50% within 5 years for each claim-free year.

NCB in auto insurance can be availed only at the time of renewal of the auto insurance policy. NCB can be transferred from one insurance company to another at the time of renewal. The limit of NCB in the auto insurance policy copy would be mentioned under the own damage section in the comprehensive policy. No claim bonus would become Nil or 0% under the following scenarios:-

  • If there is a claim made in the previous year by the insured.
  • If the ownership of the vehicle is changed at the time of renewal.
  • If the policy is not renewed within 90 days of the expiry of the previous vehicle insurance policy.

The No claim bonus slabs are mentioned below:

Claim Free years NCB
New vehicle 0%
1st Year 20%
2nd year 25%
3rd year 35%
4th year 45%
5th year and above 50%

No claim bonus discount would be applicable only on the own damage section of the vehicle insurance policy as the third party premium would be decided by the IRDA and the Govt of India. No claim bonus protection add-on is a specific kind of add-on offered by the insurance companies in which the customer can retain the NCB even after making one claim during the policy period. If more than one claim is made during the policy, the NCB would become 0% even though the customer has taken an NCB protection add-on.

No claim bonus as mentioned earlier is a reward in the form of a discount calculated on the Own Damage section of your car insurance policy. The Own damage section premium is first discounted according to the make, model of the car and then the discounted premium is again discounted for the No Claim Bonus thus arriving at the final premium.

Own Damage Premium   Rs. 20,000
Company Discount (-70%) Rs. 14,000
Premium after company discount Rs. 6,000
No Claim Bonus (Fifth claim free year) (-50%) Rs. 3,000
Premium to be paid after NCB discount Rs. 3,000

No claim bonus is calculated only on the Own Damage section of your car insurance policy and not on the Third party section as the TP premium is decided by the IRDA and cannot be further discounted. If you opt only for Third party insurance then the NCB discount will not be applicable on your car insurance policy. The No Claim Bonus is applicable only if you take the Comprehensive or the Package policy. NCB would not applicable on the add-on section of the car insurance premium.

In case of a claim in any year, the no claim bonus for the next year would become “Zero” and the cycle repeats.

It is important to note that the No claim bonus is given to the owner/driver of the vehicle and not the vehicle insured. So, in the case of a vehicle being sold or transferred to a different customer, the NCB would not be valid.

Benefits & Features Of An Auto Insurance Policy:

A vehicle insurance policy is composed of numerous features that are beneficial not only for car owners but also for other parties. The insurance companies allow the vehicle owner to keep their customers and others safe on the road by providing the following features.

  • A hassle-free way to acquire motor insurance online with minimal efforts
  • Avail comprehensive and third party insurance for complete protection
  • Renew the insurance online without having to waste your time traveling or filling hard copies of forms
  • Get proper coverage against natural and man-made calamities, including floods, earthquakes, theft, accidents, and vandalism.
  • Include third-party liability coverage to compensate for the financial loss of other parties
  • Making cashless claims is also easier by providing sufficient evidence in case of accidents and theft.
  • Most companies have a network of garages where you can get repair work done and ask for an evaluation of the vehicle’s condition after mishaps.
  • No claim bonus feature allows a vehicle owner to file a claim at any time and even offers transference to other insurers.
  • All motor insurance companies offer dedicated assistance and customer support service to the customers to keep them updated regarding the motor insurance policy and claim status.
  • Add-on features are also available to allow customers to add coverage in the policy at any point.

Types of Auto Insurance Plans in India:

Comprehensive motor insurance: A comprehensive vehicle insurance policy provides coverage against third-party legal liabilities as well as the losses or damages to the insured vehicle during an accident or mishap. It covers the vehicle against natural and man-made disasters, including road accidents, fire, theft, earthquake, storm, flood, etc.

Standalone OD cover: Introduced by the IRDAI, the standalone Own Damage (OD) cover policies allow the vehicle owners to get coverage against the losses or damages caused to their vehicle due to natural or man-made disasters. This type of policy can be purchased by those who already have a third-party cover from a different or the same insurer.

Third-party motor insurance: Third-party motor insurance is mandatory in India as per the law. It protects the policyholder against legal liabilities arising due to an accident involving his/her vehicle. It means that in case an insured vehicle causes bodily injuries, death, or property damage to a third party, the insurer will take care of the legal liability.

What are the Types of Auto Insurance Coverage in India?

Insurance coverage refers to the kinds of protection available. Along with basic coverage under the policy, you can choose a number of add-ons to enhance the protection under the policies. Let us first show you the five types of car insurance coverage available in India:

  1. Third-Party Liability Only Cover: Under this type of car insurance coverage, you will get the following benefits:
    • Cost of repairs/replacement of the damaged vehicle of third parties
    • Cost of hospitalization and treatment of third parties
    • Liabilities arising out of death of third parties
    • According to the Motor Vehicles Act, third-party car insurance coverage is a must to drive on the roads. The sum assured should be according to the driving conditions and sufficiently high to avoid out-of-pocket payments from your side.
  2. Collision Damage or Own Damage (OD) Cover: When you opt for collision damage car insurance coverage, the cost of repairs to your vehicle that has been damaged is reimbursed. To determine the cost of collision coverage, its age and  Insured Declared Value  are taken into account to arrive at the premium. The IDV is based on the market value of the vehicle.

    When a claim is lodged under collision coverage policy, the maximum amount payable under the policy is given by the IDV less accumulated depreciation. If you have purchased your vehicle on a loan, you should hold collision cover.

  3. Personal Accident Cover: When you wish to protect yourself, i.e., the owner-driver of the car, by opting for reimbursement of medical expenses after an accident, you are using personal accident car insurance coverage.
  4. Zero Depreciation Insurance: This coverage is generally offered as an add-on to car insurance policies in India. Suppose your vehicle is damaged and you need to replace the parts. The insurer will consider the depreciated value of the parts for claim settlement. A Zero Depreciation Cover will help you get the complete claim amount without accounting for any depreciation in the costs.
  5. Comprehensive Car Insurance: This type of coverage gives the highest level of protection as it includes liability for third parties, damage to own vehicle, personal accident cover, and all non-collision damage such as storms, floods, fire and theft. You can further enhance a comprehensive car insurance policy with a choice of add-ons.

How to Buy/Renew Auto Insurance Policy from PolicyBachat:

At renew an auto insurance policy online is easy and quickly sitting at home. Follow the below-mentioned steps to renew your policy within 5 minutes.

  • Go to 'Car Insurance Online' to compare quotes above this article. Fill in the registration number of your car and required details and tap on 'Start Save Money.
  • On the quotes section, either go with your current provider or choose another one to suit your needs.
  • Make the payment and you will receive the confirmation at your email address. If assistance needs Call: 1800-123-4003.

Conclusion: Auto Insurance Policy

To protect yourself from the risks associated with driving, you need to purchase an auto insurance policy. However, there are different types of policies and they all come with their risks and benefits. The best way to know which type is best for you is to compare auto insurance policies and learn about each one before making a decision.
Once you have made your decision and bought an auto insurance policy, there are things that you should be aware of. First of all, make sure that your vehicle has been insured for the same amount as your coverage. Secondly, auto insurance policies sometimes expire if not renewed in time. If this happens, then without a valid policy in place you will not be covered for any accidents or other incidents related to driving your car.

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