If you own a vehicle in India, then having a car insurance policy isn’t just a legal requirement—it’s a smart financial decision. With the rising cost of repairs and medical expenses, having reliable coverage can save you from major out-of-pocket losses. But the question is: which car insurance plan in India truly offers value for money in 2025?
In this guide, we’ll help you compare the best car insurance plans in India so that you can save big while securing maximum protection. Whether you’re a new car owner or someone looking to renew their policy, this article is your one-stop solution to understanding coverage, features, and cost-saving tips for car insurance India in 2025.
Driving on Indian roads comes with its fair share of risks—accidents, theft, natural disasters, and legal liabilities. Here’s why car insurance in India is a must:
Legal Requirement: As per the Motor Vehicles Act, third-party liability insurance is mandatory.
Financial Protection: Covers damages due to accidents, theft, or natural calamities.
Peace of Mind: Knowing you’re protected helps you drive stress-free.
Before choosing a plan, understand the types available:
Mandatory by law
Covers legal liabilities due to damage or injury to third parties
Does not cover your own car’s damage
Covers both third-party liabilities and own vehicle damages
Protection against natural calamities, theft, fire, and vandalism
Customizable with add-on covers
Premium based on driving behavior, mileage, and usage
Ideal for people who drive less frequently
Offers lower premiums for safe drivers
We’ve compared over 25+ insurance companies to bring you the 7 best car insurance India plans based on claim settlement ratio, customer satisfaction, features, and pricing.
Claim Settlement Ratio: 98.4%
Key Benefits:
Instant online policy issuance
24×7 roadside assistance
Cashless repairs at 8700+ garages
Add-Ons: Engine protection, Zero Depreciation, Return to Invoice
Claim Settlement Ratio: 97.1%
Key Benefits:
AI-based claim processing
Paperless renewals
Up to 50% No Claim Bonus (NCB)
USP: One of the most tech-enabled car insurance plans in India
Claim Settlement Ratio: 96.5%
Key Benefits:
Up to ₹15 lakh personal accident cover
Daily allowance during repair
Lock and key replacement
Great For: Urban drivers and tech-savvy users
Claim Settlement Ratio: 98.2%
Key Benefits:
24×7 customer support
Extensive add-on coverage options
Fastest claim settlement under 30 minutes
Claim Settlement Ratio: 97%
Key Benefits:
Lowest premiums for new buyers
Network of 8,500+ garages
100% digital claim process
Claim Settlement Ratio: 96.9%
Key Benefits:
Smartphone-based claim inspections
No hidden charges
Customizable plans with 7+ add-ons
Claim Settlement Ratio: 98%
Key Benefits:
Government-backed
High trust factor among older customers
Good for commercial vehicle insurance too
| Insurance Provider | Claim Settlement Ratio | Network Garages | Key Feature | Best For |
|---|---|---|---|---|
| ICICI Lombard | 98.4% | 8700+ | Zero Dep Cover | Balanced coverage |
| HDFC ERGO | 97.1% | 8000+ | AI-based claim process | Smart digital users |
| TATA AIG | 96.5% | 7500+ | Daily Allowance | Office goers |
| Bajaj Allianz | 98.2% | 8800+ | Fast claim settlement | Quick response needed |
| Reliance General | 97% | 8500+ | Low premium | Budget buyers |
| Digit Insurance | 96.9% | 6000+ | Smartphone claim filing | Tech-savvy users |
| New India Assurance | 98% | 5000+ | Government-backed | High trust users |
Here are a few important things to compare when choosing a car insurance policy:
Don’t just choose the cheapest car insurance India plan. Ensure the coverage is adequate for your needs.
This indicates the insurer’s reliability in honoring claims. A ratio above 95% is considered good.
Useful add-ons include:
Zero Depreciation Cover
Roadside Assistance
Engine Protection
Consumables Cover
More network garages = faster and smoother repairs.
24×7 customer support ensures you get help when you need it the most.
Everyone wants the cheapest car insurance in India, but without compromising on benefits. Here’s how you can save:
Use aggregator platforms like Policybazaar, Coverfox, and Paytm Insurance Mall.
Opting for higher deductibles reduces your premium—but only do this if you’re financially prepared to pay in case of an accident.
You get up to 50% discount for claim-free years.
Certified devices can earn you a small discount.
Some companies offer discounts if you buy health and car insurance together.
ICICI Lombard and Bajaj Allianz are leading in terms of claim settlement, add-ons, and customer satisfaction.
You can check the annual IRDAI report or visit the insurer’s official website.
This cover ensures no deduction on replaced parts during claims. Highly recommended for cars less than 5 years old.
Yes, after one year you can easily switch your provider during renewal using platforms like Policybazaar.
Choosing the right car insurance in India can save you thousands of rupees every year. Whether you prioritize low premiums, top-notch service, or maximum add-ons, there’s a plan out there for you in 2025.
Make sure to compare policies thoroughly, check customer reviews, and don’t fall for just low premiums. Instead, go for a balanced car insurance policy in India that gives you the peace of mind you truly deserve.