Car Insurance 2025 - Compare Best Car Insurance Plans Online
Compare car insurance policies from 20+ insurers in India. Get instant quotes, cashless claim settlement, and comprehensive coverage for your vehicle.
Car insurance is mandatory in India under the Motor Vehicles Act, 1988. As of 2025, over 28 crore vehicles are registered in India, with car insurance premiums ranging from ₹2,500 to ₹25,000 annually depending on vehicle value, age, and coverage type. Third-party insurance is legally required, while comprehensive coverage provides complete protection against own damage, theft, and third-party liabilities. Use our Car Insurance Premium Calculator to get instant quotes.
Choosing the right car insurance involves comparing coverage, claim settlement ratio, network garages, and add-on covers. The average claim settlement ratio across insurers is 95%, with top insurers like HDFC ERGO and ICICI Lombard maintaining ratios above 97%. Consider factors like IDV (Insured Declared Value), No Claim Bonus (NCB), and add-ons such as zero depreciation and engine protection. Also explore Bike Insurance if you own a two-wheeler, or check your Credit Score for better insurance rates.
Important: Third-Party Insurance is Mandatory
Driving without valid car insurance can result in a fine of ₹2,000 and/or imprisonment up to 3 months for first offense. Ensure your policy is renewed before expiry to avoid legal penalties and financial risks.
Typically 90-95% of car value
Premium Breakdown
Compare Car Insurance Plans
HDFC ERGO
Annual Premium
₹12,500
Claim Settlement
98.5%
Key Features:
- Cashless garages: 6500+
- Zero depreciation cover
- 24/7 roadside assistance
- Engine protection
ICICI Lombard
Annual Premium
₹12,800
Claim Settlement
97.8%
Key Features:
- Cashless garages: 7000+
- Instant policy issuance
- Key replacement cover
- Return to invoice
Digit Insurance
Annual Premium
₹11,500
Claim Settlement
95.2%
Key Features:
- Cashless garages: 4000+
- Instant claim approval
- No inspection needed
- Depreciation reimbursement
Bajaj Allianz
Annual Premium
₹11,900
Claim Settlement
96.5%
Key Features:
- Cashless garages: 5500+
- Personal accident cover
- Consumables cover
- Invoice cover
Acko General Insurance
Annual Premium
₹10,800
Claim Settlement
94.8%
Key Features:
- Cashless garages: 3500+
- Fully digital process
- No paperwork
- Quick claim settlement
New India Assurance
Annual Premium
₹2,500
Claim Settlement
93.5%
Key Features:
- Legal liability cover
- Mandatory by law
- Affordable premium
- Wide network
Types of Car Insurance
Provides complete coverage including own damage, theft, third-party liability, natural calamities, and man-made disasters.
- Own damage cover
- Third-party liability
- Theft and fire protection
- Natural calamities cover
Best for: New cars, high-value vehicles, and complete peace of mind
Mandatory by law, covers only third-party liabilities including bodily injury, death, and property damage caused to others.
- Third-party bodily injury
- Third-party property damage
- Legal liability cover
- No own damage cover
Best for: Old cars, budget-conscious buyers, minimum legal compliance
What is Covered in Car Insurance?
- Accidents and collisions
- Fire and explosion
- Theft and burglary
- Natural calamities
- Man-made disasters
- Third-party liability
- Drunk driving accidents
- Driving without valid license
- Normal wear and tear
- Mechanical breakdown
- Consequential damages
- War and nuclear risks
- Zero depreciation
- Engine protection
- Return to invoice
- Consumables cover
- NCB protection
- Roadside assistance
Related Resources
Frequently Asked Questions
Yes, at minimum third-party car insurance is mandatory by law under the Motor Vehicles Act, 1988. Driving without valid insurance can result in a fine of ₹2,000 and/or imprisonment. Comprehensive insurance is optional but highly recommended for complete protection.
IDV (Insured Declared Value) is the maximum amount the insurance company will pay in case of total loss or theft of your vehicle. It is typically 90-95% of the current market value of your car and decreases with vehicle age due to depreciation.
NCB is a discount on your premium for every claim-free year. It ranges from 20% for one claim-free year to 50% for five consecutive claim-free years. NCB belongs to the policyholder, not the vehicle, and can be transferred to a new car.
Zero depreciation cover is highly recommended for new cars (0-5 years old) as it ensures you get the full claim amount without depreciation deduction on parts. While it increases premium by 15-20%, it provides significantly better claim settlement, especially for expensive parts.
For cashless claims at network garages, approval typically takes 2-6 hours. For reimbursement claims, settlement takes 7-15 days after submitting all required documents. Top insurers with high claim settlement ratios process claims faster.
Yes, car insurance can be transferred to the new owner when you sell your vehicle. The new owner must submit a transfer request within 14 days of vehicle purchase along with required documents. Alternatively, the new owner can buy a fresh policy.