Best Car Insurance in India 2025: Compare & Choose Wisely
Buying car insurance is not just a legal requirement under the Motor Vehicles Act, 1988 — it’s your financial safety net on the road. Whether it's damage to your vehicle or liability for third-party injury/property, the right policy protects you from unexpected costs and legal trouble.
There are three main types of car insurance in India:
- Third-Party Insurance: Mandatory basic cover for third-party damage or injury.
- Comprehensive Insurance: Covers your car + third-party liabilities, with optional add-ons.
- Pay-As-You-Drive (PAYD): Ideal for low-mileage drivers — pay based on usage.
Top Car Insurance Companies in India (Based on Gross Written Premium)
Here’s a curated list of leading insurers (including general & life insurers offering motor products) ranked by Gross Written Premium (GWP) and financial strength (Capital & Surplus). Data reflects latest available IRDAI reports.
| Rank | Company | Gross Premium Written (₹ Lakh) | Capital & Surplus (₹ Lakh) |
|---|---|---|---|
| 1 | General Insurance Corporation of India | 64,19,814 | 69,96,758 |
| 2 | New India Assurance Company Limited | 45,12,f487 | 51,45,356 |
| 3 | ICICI Lombard General Insurance Co. Ltd. | 19,55,441 | 11,08,238 |
| 4 | Bajaj Allianz General Insurance Company | 17,23,859 | 10,27,465 |
| 5 | HDFC ERGO General Insurance Co. Ltd. | 16,99,219 | 4,44,273 |
| 6 | Tata AIG General Insurance Company Ltd. | 11,70,799 | 4,74,726 |
| 7 | IFFCO TOKIO General Insurance Co. Ltd. | 11,64,006 | 3,79,200 |
| 8 | Reliance General Insurance Company Ltd. | 11,47,758 | 2,81,112 |
| 9 | SBI General Insurance Company Limited | 11,34,949 | 3,84,466 |
| 10 | Cholamandalam MS General Ins Co. Ltd. | 6,00,856 | 2,61,014 |
| 11 | Go Digit General Insurance Limited | 4,42,885 | 1,67,934 |
| 12 | Future Generali India Insurance Co. Ltd. | 5,32,396 | 1,55,425 |
Source: IRDAI Annual Reports (filtered for motor-own-damage & liability segments). Note: Life insurers like LIC, SBI Life appear in overall GWP but do not offer standalone motor insurance.
How to Choose the Right Car Insurance Company?
Investing in a car is a big decision — protecting it shouldn’t be complicated. Here’s a step-by-step guide to help you pick the best policy:
1. Know Your Needs
Drive a lot or own a high-value car? Go for comprehensive cover. Need just legal compliance? Third-party is enough.
2. Compare Premiums & Coverage
Use online comparison tools. Look for:
- Lowest premium for maximum coverage
- IDV (Insured Declared Value) offered
- No-Claim Bonus (NCB) protection
3. Explore Add-Ons
Enhance your policy with:
- Zero Depreciation Cover
- Roadside Assistance
- Engine Protection
- Return to Invoice
Note: Add-ons only available with comprehensive policies.
4. Check Claim Settlement Ratio (CSR)
Aim for companies with CSR above 90%. This shows reliability in paying claims.
5. Network of Cashless Garages
More garages = faster repairs. Top insurers have 5,000+ cashless workshops pan-India.
6. Read Policy Exclusions Carefully
Avoid surprises. Common exclusions:
- Driving without valid license
- Mechanical breakdown
- Use for racing or commercial purposes
7. Check Customer Reviews & Solvency Ratio
Look for consistent positive feedback on:
- Claim speed
- Customer support
- Transparency
Car Insurance FAQs
1. Which is the best car insurance company in India?
There’s no one-size-fits-all. The “best” depends on your needs. Focus on:
- Coverage & add-ons
- Claim settlement ratio
- Cashless garage network
- Premium affordability
Top picks (2025): ICICI Lombard, HDFC ERGO, Bajaj Allianz, Tata AIG.
2. Private vs Government insurers — which is better?
Private insurers often offer faster digital services and better customer support. Government insurers (like New India, Oriental) are trusted for stability and lower premiums. Choose based on service, not ownership.
3. Do insurers check vehicle condition before issuing policy?
Yes, for new policies or after a break in coverage, a surveyor inspects the car. Renewals usually don’t require inspection unless claimed recently.
4. Is an Incurred Claim Ratio (ICR) below 80% good?
Yes — it means the insurer is settling claims efficiently without heavy losses. But don’t rely only on ICR. Check CSR and solvency too.
5. How is IDV (Insured Declared Value) calculated?
IDV = Manufacturer’s listed price – Depreciation (based on car age).
Example: A 2-year-old car worth ₹10 lakh may have IDV of ₹8.5 lakh after 15% depreciation.
Always verify latest premiums and terms directly with insurers. This guide is for informational purposes only.