Car Insurance in India: How to Save Money on Premiums (2025 Guide)
Introduction
In India, car insurance is not just a safety net—it’s a legal requirement under the Motor Vehicles Act. Every car owner must have at least third-party insurance. But with premiums rising every year, many car owners are looking for smart ways to save money on car insurance without compromising on coverage.
In this article, we’ll explain different types of car insurance, tips to reduce premiums, and the best practices to get maximum value from your policy.
.jpeg)
....... Link 👇👇 ତଳେ ଅଛି 👇👇Below Section .....
Types of Car Insurance in India
-
Third-Party Car Insurance
-
Mandatory by law.
-
Covers damages to another person’s vehicle, property, or injury/death.
-
Does not cover your own car.
-
-
Comprehensive Car Insurance
-
Covers third-party liability + own car damage.
-
Protects against accidents, theft, natural calamities, fire, and more.
-
Can be customized with add-ons.
-
-
Pay-As-You-Drive Insurance (New in India)
-
Premiums based on kilometers driven.
-
Best for people who use cars occasionally.
-
Popular Add-Ons to Consider
✔ Zero Depreciation Cover – Ensures full claim without depreciation cuts.
✔ Roadside Assistance – Helpful during breakdowns.
✔ Engine Protection Cover – Covers damages due to waterlogging or oil leaks.
✔ Return to Invoice Cover – In case of total loss/theft, you get full invoice value of the car.
✔ No Claim Bonus (NCB) Protector – Keeps your NCB intact even if you make a small claim.
Tips to Save Money on Car Insurance Premiums in 2025
-
Compare Policies Online
-
Use insurance comparison portals to find the cheapest premiums with maximum coverage.
-
-
Opt for Higher Deductibles
-
A higher voluntary deductible lowers premium but increases out-of-pocket costs during claims.
-
-
Transfer No Claim Bonus (NCB)
-
If you sell your old car, transfer your NCB to your new vehicle to save up to 50% on premiums.
-
-
Avoid Small Claims
-
Don’t claim for minor repairs. Save your NCB for bigger claims.
-
-
Install Safety Devices
-
Anti-theft devices approved by ARAI can get you discounts on premiums.
-
-
Bundle Policies
-
If you buy car insurance + health insurance + home insurance from the same insurer, you may get discounts.
-
-
Renew on Time
-
Late renewals may increase premium or require inspection of the vehicle.
-
Top Car Insurance Companies in India (2025)
-
ICICI Lombard Car Insurance – Known for quick cashless claim settlement.
-
HDFC ERGO General Insurance – Offers pay-as-you-drive policies.
-
Bajaj Allianz Car Insurance – Affordable premiums with wide add-on options.
-
Reliance General Car Insurance – Strong roadside assistance service.
-
TATA AIG Car Insurance – Zero depreciation and customizable add-ons.
Documents Required for Car Insurance
-
RC (Registration Certificate) of the vehicle.
-
Previous insurance policy (for renewals).
-
Driving license of the owner.
-
Pollution Under Control (PUC) certificate.
FAQs
Q1. Is third-party insurance enough?
No. It only covers third-party damages. For full protection, go for a comprehensive plan.
Q2. What happens if I don’t renew my car insurance on time?
Your policy lapses, you lose NCB benefits, and the insurer may inspect the car before issuing a new policy.
Q3. How can I lower my car insurance premium?
Maintain a clean driving record, transfer NCB, and compare online before buying.
Conclusion
Car insurance in India is more than just compliance—it’s financial protection for you and your vehicle. By choosing the right policy, using add-ons wisely, and following money-saving tips, you can reduce premiums without sacrificing coverage.
