Car insurance policies are a must should you possess a car. The Cars Act, 1988 lays down the traffic rules which are that must be followed by vehicles that run on Indian roads. One particular rule imposed through the Act is the dependence on a legitimate car insurance. So, besides needing a driving license to drive, additionally you require a valid car insurance plan.


 Car insurance types


There are two types of auto insurance policies which are available in the market. These are the following –



  • Third party policies which cover just the 3rd party liabilities which you face in case your car causes any third party damage. This damage includes physical and bodily injury to organizations in addition to damage to property. 3rd party coverage is the mandatory coverage for cars as specified under the Cars Act, 1988.

  • Comprehensive policies that have two coverage benefits. They cover the required 3rd party liability as well the damages suffered by the car itself.

Click around the button to see more about detailed comparison between a third party and car insurance plan.



List of the 10 best and cheapest auto insurance plans


Here is really a list showing the best and also the cheapest auto insurance policies available in the market –



  • HDFC Ergo Auto insurance Plans HDFC Ergo offers a range of car insurance policies for different coverage needs. There are long-term plans as well as annual and bundled auto insurance plans. The features which will make HDFC's car insurance plans one of the best include the following –

    • There is a network of more than 6800 cashless garages throughout India

    • You get a selection of add-ons to boost your coverage

    • The company promises overnight car repair services in 13 main cities of India

  • TATA AIG Private Car Package Policy TATA AIG is also a leading name in the insurance industry that provides cheap car insurance plans. The features of TATA AIG's auto insurance plans are as follows –

    • There are 13 car insurance add-ons which promise to supply an exhaustive coverage

    • The premium rates are low and affordable

    • The company promises 24*7 assistance in case of claims

  • ICICI Lombard Auto insurance Plan ICICI Lombard's car insurance plans have the following features which will make them popular –

    • There tend to be more than 3900 cashless garages tied-up with the company

    • Even lapsed car insurance plans could be renewed instantly

    • The company offers a comprehensive roadside assistance coverage in the auto insurance plans

  • Royal Sundaram Car Shield Plan Royal Sundaram also provides low cost car insurance policies that have the following benefits –

    • Free roadside assistance cover is allowed underneath the policy.

    • There is definitely an add-on cover which offers 100% cost to become paid in the event of theft of the car or total loss.

    • The clients are involved in 4600+ garages across India for easy cashless claim settlements.

  • New India Private Car Policy New India is really a public sector general insurance provider with a large subscriber base. This enables the company to provide low cost car insurance plans which have the next benefits –

    • Long term, annual and bundled car insurance plans can be purchased through the company

    • There will vary add-ons to make the coverage comprehensive

  • Bharti AXA Car Insurance Plan Bharti AXA offers both comprehensive as well as 3rd party plans. Its auto insurance policies have the following advantages –

    • A range of add-on covers can be found under Bharti AXA's comprehensive policy

    • A network of 4500+ garages make availing cashless claims easier

    • The company offers round the clock claim related assistance

  • Reliance Car Insurance Policy Another leading name in the general insurance industry, Reliance provides a multitude of car insurance policies for its customers. The characteristics of Reliance's car insurance plans range from the following –

    • The policy is issued and delivered within 10 seconds

    • There is really a free roadside assistance cover under the plan worth INR 500

    • The company has a tie-up with more than 4450 garages all over India. This makes claim settlements easier.

  • Bajaj Allianz Car Insurance Bajaj Allianz offers cutting edge yet low cost car insurance plans. The features from the company's auto insurance plans include the following –

    • The company offers 24*7 spot assistance in case of claims

    • The Motor-on-the-spot feature allows you to claim through videos and pictures from the spot of the accident

    • There are more than 4000 cashless garages which are tied-up using the company

  • IFFCO Tokio Car Insurance Policy IFFCO Tokio offers the best benefits in its car insurance plans including the following –

    • There is unlimited zero depreciation cover which lets you make multiple zero depreciation claims under the plan.

    • 24*7 roadside assistance is provided by the company

    • There is a network of more than 4300 garage in India for cashless claims

  • United India Motor Insurance Policies United India is yet another public sector general insurance provider that provides both comprehensive and third party plans. The company offers cheap car insurance plans that have the following features –

    • Premiums are low and affordable

    • There really are a range of premium discounts which further lower the premium

    • Inbuilt as well as optional coverage benefits are available under the plan.

These are the best plans that are also cheap.


Most important 5 advantages of car insurance policies


Besides as being a mandatory legal requirement, car insurance policies also provide you with the following advantages –



  • If any individual dies within an accident involving your car, you face a limitless financial liability. You may have to pay for a huge amount of compensation to the bereaved family which may produce a economic crisis for you personally. Auto insurance policies cover this liability and spend the money for compensation for you freeing you against the economic crisis that you face otherwise.

  • Even in case of injuries suffered by individuals or any property being damaged, you have to make amends for the financial loss caused. The vehicle insurance policy covers this compensation too giving you financial relief.

  • If you buy an extensive car insurance, you also get coverage for the damages suffered by your car. So, the repairs are paid through the policy and also you do not have to shoulder the burden yourself.

  • If your vehicle is stolen, a comprehensive car insurance plan pays you a lump sum benefit which lets you bear the financial loss that you suffer.

  • There are helpful add-ons under car insurance plans which, when opted, promise assistance in case of car related contingencies. You're, therefore, assured of assist in case of car related contingencies that makes it simpler for you to face emergencies.

Car insurance coverage are, therefore, beneficial. If you have a policy on your car, you would be also saved from high legal fines and/or imprisonment if you are found they are driving your vehicle with no valid cover. So, you need to purchase a car insurance for your car.



Car insurance premiums depend on these 7 factors


When you buy an automobile insurance plan, you have to pay premiums on a single. The premium of your car insurance depends on the next factors –



  • Make, model and variant from the car which determines its value. The greater expensive the car may be the higher would be the premium.

  • Age from the car which cuts down on the worth of the vehicle due to depreciation. The older the vehicle the low would be its value and also the premium from the car insurance policy.

  • The kind of policy you buy – third party plans have low cost car insurance premiums while comprehensive coverage is expensive.

  • Fuel type of the car as the fuel variant determines the car's value. Higher the value, higher would be the premium.

  • City of registration – cars in metropolitan cities have higher premium rates compared to non-metro cities

  • Add-ons selected – each add-on has an additional premium. If you choose a number of add-ons, the premium would increase.

  • Policy discounts – there are different types of policy discounts available in car insurance plans. The larger the discounts that you could claim the low will be the premium from the car insurance policy.

It is a great option to calculate your vehicle insurance premium online utilizing a auto insurance premium calculator before choosing an automobile insurance online.



Top 7 tips for low cost car insurance policies


Now you know how the premiums of auto insurance policies are calculated but do you know you are able to reduce them?


Yes, there are ways in which you can help to eliminate the premiums of your car insurance to avail an inexpensive auto insurance plan. These ways are listed below –



  • Avoid making small claims in your policy. When you don't make claims you earn a no claim bonus. This bonus starts at 20% and keeps increasing after every successive claim-free year. You can aquire a maximum no claim bonus of 50% which allows a premium discount. However, whenever you claim, the power reduces to zero and you do not get the discount. So, for those who have small claims, outlay cash yourself instead of losing your accumulated no claim bonus.

  • If you're a person in an approved automobile association, you can aquire a premium discount.

  • If you put in safety gadgets inside your car, you can get a premium discount and revel in low cost car insurance coverage.

  • If you utilize your vehicle sparingly or if the vehicle is very old, you can opt for only 3rd party liability cover. Since third party allows cheap car insurance cover, your premiums would be really low.

  • Choose just those add-ons that you require. For instance, if you do not take your car on trips, roadside assistance cover would not be required. Similarly, if you live within an area without any water-logging problem in monsoons, avoid engine protect add-on. When you choose just the necessary add-ons, you are able to reduce unnecessary additional premium payments and revel in cheap car insurance cover.

  • Choose a voluntary deductible if you are a safe driver. Voluntary deductible represents negligence claim that you simply are willing to cover yourself. If you select voluntary deductible, you lower the claim burden from the insurance provider. Because of the reduced burden, the organization offers you a premium discount.

  • Always compare and buy car insurance policies. Comparing lets you look into the coverage details vis-à-vis premium rates of different auto insurance plans. Through comparing you will get the least expensive car insurance for the car without compromising on the coverage.

Top 4 points to consider before purchasing cheap car insurance policies


Before purchasing low cost car insurance online, the following points should be remembered –



  • Skimping on the coverage If the premiums are very low, the coverage benefits could be limited. You would get what you pay for. The insurance policy might not offer value-added benefits which provide better coverage. So, dot skimp on the coverage and purchase cheap car insurance online simply to lower the premium rates otherwise you would suffer huge claims which may prove financially disastrous.

  • Ignoring add-onsYou might choose to disregard the add-ons to reduce the premium cost. Add-ons, however, are quite beneficial because they provide unmatched coverage and boost the quantity of claim payable. So, don't avoid add-ons that are necessary.

  • The other side of deductibles If you're availing reasonably limited discount by selecting a voluntary deductible, keep in mind that you would have to foot the quantity of deductible that you have chosen. There is already a component of compulsory deductible under car insurance plans that you've to pay in a claim. Choosing voluntary deductible would increase your claim burden. So, always weight the savings in premiums to the cost that you'd be bearing. Choose voluntary deductibles only if it proves economical.

  • Claim processAlways check the claim procedure for the insurer before buying the plan. When the company is offering cheap car insurance online but has a complicated claim settlement process, you'd eventually suffer. So, pay heed towards the claim process and choose an insurer which has a simplified process.Auto insurance plans are mandatory but they don't need to be expensive. Know how car insurance premiums are calculated and employ the afore-mentioned tips to lower the premiums. Buy cheap car insurance policies in the best companies and enjoy plans with the best coverage benefits. Turtlemint is an online platform which helps you to compare auto insurance plans. Through Turtlemint you can compare the best policies and select cheap car insurance online according to your coverage needs.

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