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What is Car Insurance?
Car insurance is a contract between you and an insurer that financially protects you in case of accidents, theft, or damage to your vehicle. In India, it's also a legal requirement every car owner must have at least third-party coverage to drive on public roads.
With traffic on the rise and roads becoming busier, having the right car insurance policy gives you peace of mind every time you drive. Whether you're exploring car insurance for a new car, planning a smooth car insurance renewal online, or ready to buy car insurance online, the right plan keeps you protected.
Our Car Insurance Plans at a Glance
There's a perfect policy for every type of car owner. Whether you want legal compliance or complete protection, car insurance in India offers flexible options to match your needs.
Here's a quick comparison to help you understand the difference between Own Damage, Third-Party, and Comprehensive motor insurance.
| Feature | Own Damage Insurance | Third-Party Insurance | Comprehensive Insurance |
|---|---|---|---|
| Coverage | Covers damage to your own vehicle or theft | Covers only third-party liabilities | Covers both own damage and third-party liabilities |
| Add-ons | Available | Limited add-ons available | Available |
| Tenure | 1 year | 1 year, 3 years or 5 years | 1 year |
| Premium | Based on the vehicle's IDV | Fixed by IRDAI | Based on IDV + third-party premium (fixed by IRDAI) |
Tip: If you're looking for complete peace of mind and broader protection, a comprehensive car insurance policy with useful add-ons like Zero Depreciation or Engine Protection could be your best bet.
Choose The Right Option
Own damage four-wheeler plan
- Available if you have an existing third-party policy
- Covers only the damages suffered by the car
- Offered for one year
- Range of optional add-ons to boost the coverage like Personal Accident, Zero Depreciation and more
Third-party liability plan
- Annual or 3-year coverage
- Covers third party liabilities
- Low premiums as determined by the IRDAI (Insurance Regulatory and Development Authority of India)
Comprehensive car insurance plans
- Covers both own damage and third party liability
- Personal accident coverage
- Optional add-ons to boost coverage
Types of Car Insurance Policy in India
Every car owner has different needs when it comes to protecting their vehicle. That’s why it’s important to understand the main types of car insurance policies available in India, so you can make an informed choice based on your usage, budget, and level of protection required.
What Is Covered and Not Covered Under a Four-Wheeler Insurance Policy & How to Choose the Right
Car Insurance Option
What Is Covered Under a Four-Wheeler Insurance Policy?
A four-wheeler insurance policy, especially a comprehensive car insurance policy, offers wide-ranging protection for your car. It safeguards you from a variety of unfortunate situations, ensuring financial relief when you need it most. Here’s what’s typically covered:
- ● Accidental and Collision Coverage: Covers repair or replacement costs if your vehicle is damaged in a road accident or collision.
- ● Theft and Burglary: If your car is stolen or forcefully broken into, the insurer compensates you up to the Insured Declared Value (IDV).
- ● Fire and Explosion: Provides coverage for damage or loss caused by fire, explosion, or self-ignition of the vehicle.
- ● Natural Calamities: Includes protection from floods, earthquakes, landslides, cyclones, and other natural disasters.
- ● Riots and Strikes: Covers loss or damage resulting from riots, vandalism, political disturbances, and civil commotion.
- ● Falling Objects: Protects your car from damage caused by falling trees, poles, or debris during storms or accidents.
- ● Third-Party Liability: Covers legal liabilities arising if your car causes injury, death, or property damage to a third party.
- ● Personal Accident Cover: Offers financial compensation to the owner-driver in case of permanent disability or accidental death.
What Is Not Covered by a Four-Wheeler Insurance Policy?
While a car insurance policy offers vital protection, knowing the exclusions is equally important. Here’s what is not covered under standard plans:
- ● Mechanical Breakdown: Any electrical or mechanical failures that aren't a result of an accident are excluded from coverage.
- ● Wear and Tear : Natural ageing, rusting, and gradual wear and tear of your vehicle are not covered.
- ● Driving Under Influence: If the driver is found under the influence of alcohol or drugs during the accident, the claim will be denied.
- ● Using a Car for Commercial Purposes: Policies meant for private vehicles don’t cover damages incurred while using the car for commercial or rental purposes.
- ● Nuclear Risks: Loss or damage caused by nuclear events or radiation exposure is not included.
- ● War and War-Like Situations: Any damage resulting from war, invasion, or military action is excluded from your policy.
Choose the Right Car Insurance Option
Every car owner has different needs, and selecting the right car insurance policy depends on the level of protection you're looking for. Here's a quick overview to help you decide:
- ● Own Damage Car Insurance Plan
- ● Suitable if you already have a valid third-party policy
- ● Covers damage to your own vehicle due to accidents, fire, theft, or natural disasters
- ● Offered as a one-year standalone policy
- ● Optional add-ons like Zero Depreciation, Engine Protection, and Personal Accident Cover can be included for enhanced protection
- ● Third-Party Liability Car Insurance
- ●Mandatory under Indian law
- ● Covers legal and financial liabilities arising from injury, death, or property damage caused
- ● Available with 1-year or long-term (3-year) coverage options
- ● Premiums are affordable and regulated by IRDAI
- ● Comprehensive Car Insurance Plan
- ● Offers all-round protection by covering both own damage and third-party liabilities
- ● Includes Personal Accident Cover for the owner-driver
- ● Wide range of add-ons like Roadside Assistance, Consumables Cover, and more available for extended protection
- ● Ideal for those looking for complete peace of mind
Reasons to Buy Car Insurance Online
We’re committed to making your car insurance online experience faster, smarter, and more rewarding. Here's why buying your policy online is the preferred choice for millions of Indian four-wheeler insurance owners:
| Benefit | Why It Matters |
|---|---|
| Cost Savings | Online policies are cheaper as they avoid agent commissions and office overheads. |
| 100% Paperless Process | No lengthy forms or documentation, just fill in your details and you're good to go. |
| Time-saving & Convenient | Skip the queues—buy car insurance online anytime, anywhere from the comfort of your home. |
| Instant Policy Issuance | Get your policy in minutes, directly to your email and phone. |
| Secure Digital Backups | Never worry about losing your policy—your documents stay safe in your inbox. |
| Easy Comparisons | Compare car insurance quotes, features, and add-ons from insurers instantly. |
| Automated Renewal Reminders | Stay protected year after year with timely reminders via SMS and email. |
With us, car insurance renewal online is not just easier—it’s smarter, safer, and more cost-effective.
One of the most common questions is, “How much will my car insurance cost?” The answer depends on the car type, engine capacity, IDV (Insured Declared Value), location, and selected add-ons. Here's a quick comparison:
| Vehicle Type | Car Example | Approx. Annual Premium (Comprehensive) |
|---|---|---|
| Hatchback | Maruti Swift, Hyundai i10 | ₹6,000 – ₹8,500 |
| Sedan |
Honda City, Hyundai Verna |
₹8,500 – ₹12,000 |
| SUV | Hyundai Creta, Tata Harrier | ₹11,000 – ₹17,000 |
Disclaimer: These are indicative premiums for cars less than 5 years old in metro cities with standard coverage and no claims.
Opting for the best car insurance in India with add-ons like Zero Depreciation or Engine Protection can slightly increase premiums, but offers much better coverage. Use our platform to get a real-time quote for car insurance and save more.
Buying a car is a big financial decision, and it directly impacts your car insurance policy too. Whether you go for a brand-new car or a second-hand car, understanding the cost, insurance implications, and long-term value is essential. Here's a quick comparison to help you decide:
| Parameter | New Car | Second-Hand Car |
|---|---|---|
| Initial Cost | High upfront cost due to market price and taxes | Lower upfront cost, better value within budget |
| Depreciation | Loses value quickly in the first 2–3 years | Already depreciated; future value remains relatively stable |
| Insurance Premium | Higher premium based on higher IDV | Lower premium due to lower IDV |
| Registration Charges | One-time RTO, road tax, and other fees payable | Already paid by previous owner; no extra charges |
| Accessories | Add-ons like alloy wheels, spoilers come at a cost | Often included by the previous owner at no extra price |
| Vehicle Condition | Brand new; zero wear and tear | Needs inspection; depends on usage and maintenance |
| Warranty | Covered under manufacturer warranty | Some organised dealers offer limited warranty |
| Environmental Impact | High manufacturing emissions | Eco-friendly by reducing the need for new production |
| Documentation | Fresh documents generated | Must verify original RC, invoice, insurance, etc. |
| Insurance Tip | Buy car insurance with add-ons like Zero Dep recommended | Policy transfer and claim history check is essential |
| Claim History | Clean claim record starts from scratch | Review existing claim history before policy transfer |
| No Claim Bonus (NCB) | Earn NCB over time | May benefit from seller’s unused NCB if eligible |
Whether it’s a new or used car, securing the best car insurance ensures financial protection and peace of mind.
Selecting the right car insurance policy is all about understanding what protection each one offers. Here’s a simple comparison:
| Parameter | Third-Party Car Insurance | Comprehensive Car Insurance |
|---|---|---|
| Meaning | Mandatory cover for third-party liabilities | Covers both third-party and own vehicle damage |
| Coverage | Only injury, death, or property damage to others | Damage from theft, fire, disasters, accidents + third-party cover |
| Add-on Availability | Not available | Multiple add-ons available |
| Multiple add-ons available | Compulsory | Optional but highly recommended |
| Premium | Lower | Higher, with more protection |
| Rate Structure | Fixed by IRDAI | Varies by insurer based on many factors |
| Discounts | No | Yes (NCB, anti-theft, deductibles) |
| Is It Enough? | Basic legal cover only | Offers full coverage for your car |
Not sure which one to choose? Let us help you get the best car insurance policy based on your needs and usage.
How to Buy
Car Insurance Online?
Step 1
Log in to the ABCD App and go to the “Motor Insurance” section under Insurance.
Step 2
Enter your car’s registration number and other required vehicle details.
Step 3
Compare car insurance quotes from top insurers, select useful add-ons like Zero Depreciation, and adjust your IDV.
Step 4
Choose the best plan that fits your needs and pay the premium using UPI, debit/credit card, or net banking.
Step 5
Your policy is instantly issued and sent to your email. Need help? Our support team is just a tap away.
Step 1
Log in to the ABCD App and go to the “Motor Insurance” section.
Step 2
Enter your car’s registration number and previous policy details.
Step 3
Compare renewal options, select useful add-ons, and update your IDV (ideally not more than 10% lower than last year).
Step 4
Choose a plan that suits your needs and pay using UPI, debit/credit card, or net banking.
Step 5
Your renewed policy is instantly issued and sent to your email and app.
Step 1
Inform your insurance provider about the incident via toll-free number or email.
Step 2
Submit the claim form along with necessary documents like RC, policy copy, and driving licence.
Step 3
Get a repair estimate from a garage and have the insurer’s surveyor inspect the vehicle.
Step 4
Move the car to a network garage for repairs after the survey is complete.
Step 5
Submit the final invoice.
● For cashless claims, the insurer pays the garage directly.
● For reimbursement, share bills to get your money back
Documents Required for Filing a
Car Insurance Claim Online
Eligibility criteria
- Identity Proof
- Aadhaar Card
- PAN Card
- Voter ID
- Passport
- Driving Licence
- Address Proof
- Aadhaar Card, Voter ID, Passport, Driving Licence
- Utility Bill (Electricity/Water)
- Registered Lease Agreement
Eligibility criteria
- Vehicle-Related Documents
- Registration Certificate (RC) of your vehicle
- Previous Insurance Policy (for renewals)
- Photograph
- Recent passport-size photograph (only if requested)
Get Started with car insurance
How to Buy Car Insurance Online?
- Buying a car insurance policy through the ABCD App is simple and convenient. Follow these steps:
- Step 1: Log in to the ABCD App and go to the "Motor Insurance" section under Insurance.
- Step 2: Enter your car's registration number and other required vehicle details.
- Step 3: Compare car insurance quotes from multiple top insurers, select useful add-ons like Zero Depreciation, and adjust your IDV.
- Step 4: Choose the best plan that fits your needs and pay the premium using UPI, debit/credit card, or net banking.
- Step 5: Your policy is instantly issued and sent to your email. Need help? Our support team is just a tap away.
- You can easily buy car insurance online for new cars or during car insurance renewal, all from the comfort of your home.
How to Renew Car Insurance Policy Online?
- Completing your car insurance renewal online via the ABCD App is quick and stress-free:
- Step 1: Log in to the ABCD App and go to the “Motor Insurance” section.
- Step 2: Enter your car’s registration number and previous policy details.
- Step 3: Compare renewal options, select useful add-ons, and update your IDV (ideally not more than 10% lower than last year).
- Step 4: Choose a plan that suits your needs and pay using UPI, debit/credit card, or net banking.
- Step 5: Your renewed policy is instantly issued and sent to your email and app.
- Use ABCD to renew car insurance policy online and stay protected with the best car insurance in India.
How to Claim Car Insurance?
- Raising a claim under your 4 wheeler insurance policy is simple. Follow these steps:
- Step 1: Inform your insurance provider about the incident via toll-free number or email.
- Step 2: Submit the claim form along with necessary documents like RC, policy copy, and driving licence.
- Step 3: Get a repair estimate from a garage and have the insurer’s surveyor inspect the vehicle.
- Step 4: Move the car to a network garage for repairs after the survey is complete.
- Step 5: Submit the final invoice.
- For cashless claims, the insurer pays the garage directly.
- For reimbursement, share bills to get your money back
Customer Satisfaction Stories
Aditya Birla Sun Life Insurance Customer
Due to seamless branch support and timely communication from ABSLI, my maturity payout process was quite smooth.
Aditya Birla Sun Life Insurance Customer
Haryana, India
Aditya Birla Sun Life Insurance Customer
Entire surrender process was quite smooth with timely documentation and payout. Great experience!
Aditya Birla Sun Life Insurance Customer
Gujarat, India
ABCD - One app for
Secure your vehicle against loss, damages and third-party liabilities. Buy motor insurance plans in a few steps with the ABCD app.
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Choice of plans for both bikes and cars -
Simple online process to buy and renew motor insurance
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One-click premium payments and instant policy issuance
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Understanding Car Insurance
What is Car Insurance ?
Car Insurance is an insurance policy for private cars. It covers the damages the car might suffer and compensates for the financial loss.
Car Insurance also covers damages caused by the car to third parties and pays the underlying financial liability on your behalf.
Every car must have a car insurance policy to run on Indian roads legally.
What are the features of Car Insurance ?
A car insurance policy offers several essential features that help protect your car and finances in case of accidents, theft, or third-party damage. Whether you choose comprehensive, own-damage, or third-party cover, the features offer peace of mind on the road.
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Multiple Plan Options :
Choose between comprehensive, third-party, or standalone own-damage plans based on your needs. -
Long-Term Third-Party Cover for New Cars :
Car insurance for new cars includes a 3-year third-party policy as mandated by law. -
Personal Accident Cover :
Receive a lump sum benefit in case of accidental death or permanent disability. -
Third-Party Liability Protection :
Offers unlimited liability coverage for third-party injuries or deaths caused by your vehicle. -
Easy Claims :
Enjoy cashless claims at network garages or opt for reimbursement based on your convenience.
Explore and buy car insurance online for quick access to these features from the comfort of your home
What are the benefits of Car Insurance ?
Having a car insurance policy is more than just meeting a legal requirement—it’s about protecting your finances and your vehicle. Here are some key benefits of choosing the best car insurance in India:
Legal Protection
Covers third-party injury, death, or property damage, helping you avoid legal and financial liabilities.
Financial Security
Covers expenses due to accidents, theft, natural disasters, and more, giving you peace of mind.
Legal Compliance
Buying a four wheeler insurance policy fulfils the law and helps avoid fines or legal trouble.
Affordable Premiums
Car insurance quotes are budget-friendly, and you can lower your premium through No Claim Bonus and other discounts.
Customisable Coverage
You can enhance protection with add-ons like Zero Depreciation, Roadside Assistance, and more.
With ABCD, you can easily buy car insurance online or renew car insurance policy online with flexible options that suit your needs.
Common Car Insurance terminologies ?
Understanding basic terms helps you make informed decisions when you buy car insurance or check car insurance quotes.
Insured Declared Value (IDV)
Represents your car’s market value after depreciation and forms the base for premium calculation and claims.
Compulsory Deductible
A fixed amount you must pay out of pocket during a claim; the rest is covered by the insurer.
Voluntary Deductible
An extra deductible you choose to pay to lower your car insurance premium.
Add-ons
Extra features like Zero Depreciation, Engine Protection, and more that can be added to enhance your car insurance policy.
No Claim Bonus (NCB)
A discount on premium at renewal if no claims were made in the previous year.
These terms are key when choosing the best car insurance policy and during car insurance renewal online.
What Factors Affect the Car Insurance Premium?
Your car insurance premium is calculated based on various factors. Knowing these helps when comparing car insurance quotes or deciding to renew your car insurance policy.
Type of Policy
Comprehensive plans have higher premiums than basic third-party insurance due to wider coverage.
Insured Declared Value (IDV)
Higher IDV means better coverage but also increases your premium.
Age of the Car
Older cars usually have lower premiums due to higher depreciation.
Location of Registration
Cars registered in metro cities attract higher premiums due to more risk of accidents or theft.
When you buy car insurance online, make sure to compare all these factors and choose the best car insurance that fits your vehicle and budget.
What Factors Impact Insured Declared Value (IDV) in Car Insurance?
Your car’s IDV affects how much you’ll receive in case of total loss or theft, and also determines the premium for your car insurance policy.
-
Age of the car
Older cars have lower IDV due to depreciation.
-
Type of car
Different vehicle types like hatchbacks or SUVs have different market values.
-
City of registration
Cars in metro cities may have a different risk profile.
-
Depreciation rate
Standard depreciation rates by IRDAI are applied.
-
Additional accessories
Extra fittings like music systems or alloy wheels affect IDV.
Always check your IDV while reviewing car insurance quotes or renewing your policy.
How is the IDV calculated under car insurance plans ?
The Insured Declared Value (IDV) is the estimated market value of your car and plays a major role in deciding your car insurance premium. It is the maximum sum insured you can claim in case of total loss or theft of your vehicle.
IDV Formula:
IDV is calculated by the following formula
IDV = (Car’s current market value - depreciation) + (Value of accessories - depreciation on accessories).
This calculation is done by the insurer based on the make, model, and age of your car. The higher the IDV, the higher the premium you’ll pay, but you’ll also get better coverage.
Depreciation Rates for IDV:
| Age of the Car | Depreciation rate |
| Less than 6 months | 5% |
| 6 months – 1 year | 15% |
| 1 – 2 years | 20% |
| 2 – 3 years | 30% |
| 3 – 4 years | 40% |
| 4 – 5 years | 50% |
| More than 5 years | Mutually decided |
Always review the IDV when you buy car insurance or during car insurance renewal online, especially to ensure the right premium and claim value.
How much No Claim Bonus is available under Car Insurance plans?
A No Claim Bonus (NCB) is a reward given by insurers when you don’t make any claim during the policy year. It offers a discount on the premium when you renew your car insurance policy and encourages safe driving.
Here’s how the NCB percentage increases each year without a claim:
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After 1 claim-free year: 20%
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After 2 successive claim-free years: 25%
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After 3 successive claim-free years: 35%
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After 4 successive claim-free years: 45%
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After 5 successive claim-free years: 50%
This discount can be availed when you renew car insurance policy online or even if you switch insurers. You must ensure the NCB certificate is transferred.
With ABCD’s platform, you can track your NCB, view the best options for car insurance online, and buy car insurance with the right benefits and rewards built in.
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