A Car Insurance is a written promise between you and a company approved by the government – wherein you pay a fixed amount in advance each year and in return the company agrees to cover for any damages which might occur to your car or by your car. In India, for purchasing a Car Insurance it is mandatory your car has a registration number before you apply for it. However, when you start searching for various policies available in the market, you find various companies offering insurance with different pricing. Below are the main factors which determine the cost of your Car Insurance Policy –

  1. Sum Assured Amount – This is the amount which the insurance provider promises to pay when a claim is processed. Higher the Sum Assured, higher is the premium amount.
  2. Kind of Insurance Policy-
    • Third Party Car Insurance: This type of car insurance offers the lowest premium to the user thereby covering only the damages caused to the another person or his assets.
    • Comprehensive Car Insurance:
      • Covers all types of damages. Example, to your car, yourself, 3rd person and his assets
      • The damages include fire, theft, collision or natural calamities.
      • Zero Depreciation Cover: You may choose this rider on the top of your insurance policy. If you pay for it, the insurer won’t consider depreciation charges while settling up your claim. Such claims are allowed only twice. This add on provides you the benefit of getting maximum insurance cover possible.
  3. Year of Purchase of the Car: Older the car, lesser the Premium amount
  4. Claim History: In case of No Claim bonus, you get eligible for the discount as a reward for your driving skills.

Purchasing right Car Insurance for yourself not only protects you from any future indemnity but also gives you a great peace of mind. You should always keep the original copy of the Insurance Papers whenever you drive your car without which traffic police may fine you as per existing state laws

Looking to buy or renew your Car Insurance?
Rating: 5


  • February 26, 2020 at 1:21 pm

    I am not real great with English but I come up this very easygoing to translate.

  • February 26, 2020 at 7:07 am

    I can’t complete my order in your store!
    Why don’t you setup more stable processing like paypal.com or paymenthub.online?
    PayPal.com charges 3%, Paymenthub.online just 0.1% and setup is free.

  • October 2, 2017 at 4:31 pm

    I want to renew my car insurance policy. Which company gives cheapest plan?

    Rating: 5

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