Car Insurance Companies in 2019


Car insurance is a contract or agreement between you and the insurance provider. The agreement is that the insurance provider will pay you a sum of money if you pay a premium. Money should be paid by the insurer to the victim after accident. A car insurance id the best way to protect your car. The costs of repair after accidents are huge. So you will not want to be unable to pay those high costs after accidents. There is a lot of competition between car insurance companies. So, the insurance is available for low prices too. Having auto insurance is compulsory in many countries. Therefore, you must purchase car insurance. If you don’t have car insurance then you may have to pay fines. So, let’s get to the next part!

Car insurance is mandatory so you must purchase it wisely. Car insurance also protects you from legal liability, bodily injury, collision, etc. If the car gets stolen then also it will cover the loss. The premium amount of your car depends on the Insured Declared Value (IDV). If the IDV increases then premium increases. If the IDV is decreased then the premium decreases. Premium is the monthly or quarterly amount you pay for your policy every time.
So, let’s get to the next part!

Car insurance plan has following benefits:

  • Coverage for loss or damage to the vehicle
  • Coverage against accident, theft, fire, terrorism, etc.
  • Accidental insurance cover
  • Coverage against financial liability

Claim Ratio of Car Insurance Companies

Every time you purchase car insurance, you should check this. Many times companies do not pay the compensation. This is because sometimes they are not able to verify the accident claim. So, this is the ratio of how many times the company has paid or not. A high claim ratio indicated good and positive points.
So, let’s get to the next part!

Why Compare Auto Insurance?

It’s important to compare auto insurance because you might get a better plan. Every insurer offers different plans. You should choose the plan which suits you best. However, comparing policies is a hard task. We will help you with this thing. We are going to compare many insurance companies here. So that you may choose the best company to choose a policy from.
So, let’s get to the next part!

Claim Ratio Comparision

Now we are going to compare the claim ratio of various companies. So, let’s start.

  • Bharti AXA General Insurance – 81.74% claim ratio
  • Future Generali India Insurance – 76.50% claim ratio
  • Liberty General Insurance – 69.62% claim ratio
  • National Insurance – 84.16% claim ratio
  • Bajaj Allianz General Insurance – 62.20% claim ratio
  • Cholamandalam MS General – 79.65% claim ratio
  • HDFC Ergo General Insurance – 84.37% claim ratio
  • IFFCO Tokio General Insurance – 79.19% claim ratio
  • Magma HDI General Insurance – 81.71% claim ratio

How to compare car insurance companies?

  • Find out your requirements – Note down what your needs are for the policy. No need to purchase unnecessary things in the policy. You should purchase on that much which is necessary for you. After finding your needs, then start searching accordingly. Car insurance companies have lots of plans according to your needs.
    So, let’s get to the next part!
  • Compare the Coverage Option – One of the most important thing in the insurance policy of car is the coverage option. Check whether you need the liability coverage plan or comprehensive plan. A liability plan offers you liability protection. Whereas comprehensive insurance offers you protection against theft, fire, weather, etc.
    So, let’s get to the next part!
  • Compare the Insured Declared Value – The insured declared value is important. The different IDV rate reflects on your premium. It can decide whether you pay costly or cheap premium rates or not. The IDV depends on the age of your car. Higher the age of your car, higher the premium will be. Lower the age of your car, lower the premium will be. This also affects the sum insured. So, you should choose this wisely.
    So, let’s get to the next part!
  • Compare claim settlement process – Everyone wants to have a hassle free claim settlement process. Each insurer has its own practice of settling claims. This is an important factor to check. You will definitely not want to be roaming here and thereafter the accident to receive your claim.
    So, let’s get to the next part!

Coverage Policies

There are three types of car coverage policies offered by car insurance companies. They are:

  • Third Party Liability Coverage – It provides you coverage against legal liability when you are at the fault. It will provide you with money to compensate the other victim too. A third party liability insurance is legally mandatory in India under the Motor Vehicles Act.
    So, let’s get to the next part!
  • Collision Coverage – It protects you from financial risks after damaging your car. If a collision is found to be the cause then the compensation is given by the company. This is useful for accidents. Also collisions these days are common. So, it might be good for normal uses too.
    So, let’s get to the next part!
  • Comprehensive Coverage – It covers your car against theft, fire, terrorist attacks, liability cover, etc. Comprehensive coverage can be extended to engine depletion, accessories cover, medical expenses, etc. This is popular among buyers because it provides end-to-end coverage.
    So, let’s get to the next part!

No Claim Bonus

For every claim free year, the insured is awarded a discount on renewal premium. This is called no claim bonus (NCB). This discount is cumulative and increases each year. A No Claim Bonus may go as far as 50% which will definitely save you a lot of amount in renewal.
So, let’s get to the next part!

Personal Accident Rider

This is another feature that can be added to the comprehensive insurance coverage. This can be added by paying the extra premium. The rider is provided with medical treatment costs after accidents if this add-on is taken in comprehensive insurance.
So, let’s get to the next part!

What isn’t covered by Car Insurance Companies?

  • Damage if the policy is not in force.
  • Gradual wear and tear of car parts.
  • An accident when driving without driving license.
  • Driving after drinking alcohol in unsafe limits, Etc.

So, let’s get to the next part!


So, as you saw in this article. We compared various car insurance companies. You advised to choose a policy wisely. There is no need to buy unnecessary add-on but you should definitely buy basic plans. Afterall, all of these things are to protect you only.

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