Written by Square Insurance » Updated on: July 07th, 2025 83 views
Vehicle insurance is one of the most important things every car or bike owner in India should have. It protects you from unexpected accidents, financial losses, and legal issues. Choosing the right insurance company is just as important as buying insurance. With so many options available, it can get confusing.
In this blog, we will help you understand how to choose the best vehicle insurance company in India and also provide you with a list of the top 10 car insurance companies in India. This guide will help you make the right decision based on your needs.
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Why is Vehicle Insurance Important?
Whether you own a two-wheeler or a car, insurance protects you in many ways. Here’s why it's important:
• It covers repair costs due to accidents.
• It protects you from third-party liabilities.
• It helps in case your vehicle gets stolen or damaged.
• It is mandatory under Indian law.
Now, let’s understand how to choose the best motor insurance company in India and look at the companies that offer the most reliable service.
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Factors to Consider Before Choosing an Insurance Company
Before we move on to the top companies, here are some simple points you should keep in mind while choosing the best car insurance company in India:
1. Claim Settlement Ratio (CSR)
What is it?
The Claim Settlement Ratio (CSR) is the percentage of insurance claims that a company has settled out of the total claims received in a year.
Why is it important?
A high CSR means the company is more likely to approve and settle your claim smoothly. For example, if an insurance company receives 1,000 claims and settles 980, their CSR is 98%. This indicates trustworthiness and reliability.
What should you look for?
Always prefer insurers with a CSR above 90%. It shows that they are financially strong and focused on customer satisfaction. You can find this data on the IRDAI (Insurance Regulatory and Development Authority of India) website.
2. Cashless Garage Network
What is it?
A cashless garage is a service center or repair workshop that has a tie-up with your insurance company. When your insured car is repaired at these garages, the insurer pays the bill directly, so you don't have to pay upfront.
Why is it important?
Having a wide cashless garage network means you’ll find a partner garage near you, no matter where you are. It’s especially helpful in emergencies when you don’t want to deal with paperwork and upfront expenses.
What should you look for?
Look for an insurance company that has thousands of cashless garages across India, including in your city or nearby areas. The larger the network, the more convenient it is for you.
3. Customer Service
What is it?
Customer service refers to how well an insurance company handles your queries, complaints, and support requests — especially during claim processing.
Why is it important?
Fast and helpful customer service can save you from unnecessary stress. In case of an accident, you may need urgent help, and a reliable insurer will guide you through the claim process smoothly.
What should you look for?
Choose companies that offer:
24/7 customer support
Multiple contact channels (phone, email, app, WhatsApp, etc.)
Quick turnaround time for queries and claims
Easy-to-use websites and mobile apps
Check customer reviews on platforms like Google, Trustpilot, or insurance comparison websites to know how responsive the company really is.
4. Policy Features
What are they?
Policy features refer to the benefits and add-ons you can include in your basic car insurance policy for extra protection.
Why is it important?
While basic third-party insurance is mandatory, it covers only damages caused to others. A comprehensive policy with useful add-ons gives you much better coverage.
Popular add-ons to look for:
Zero Depreciation Cover – Ensures full claim on replaced car parts without deduction for depreciation.
Roadside Assistance – Offers help if your car breaks down on the road (towing, fuel delivery, flat tire repair, etc.).
Engine Protect Cover – Covers damage to your engine due to water ingression or oil leakage.
Return to Invoice Cover – In case of total loss, you get the full invoice value of the car (not just the depreciated value).
Consumables Cover – Includes costs of consumables like engine oil, nuts & bolts, etc., usually excluded in standard policies.
What should you look for?
Pick an insurer that offers a variety of add-ons and lets you customize the policy as per your needs. Also, check how these features impact the final premium.
5. Premium Price
What is it?
The premium is the amount you pay every year to keep your car insurance active. It depends on the type of coverage, car model, location, and selected add-ons.
Why is it important?
While a lower premium may look attractive, it shouldn’t come at the cost of weak coverage or poor service. Always compare value for money, not just the price.
What should you look for?
Compare premiums from multiple insurers using online platforms.
Check what’s included and excluded in the plan.
Avoid hidden charges and terms that could limit claim amounts.
Choose a plan that fits your budget but offers solid protection.
Final Tip: Balance All Factors
Each of these five factors plays a key role in deciding the best car insurance company in India for you. Don't choose based only on price or ads. A company with strong CSR, good features, helpful support, and a wide garage network will save you time, money, and stress in the long run.
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List of Top 10 Car Insurance Companies in India
Here’s the list of the top 10 car insurance companies in India based on claim ratio, coverage, service, and overall performance.
1. New India Assurance Company Ltd.
A government-owned company, it is known for its strong customer base and wide network. It’s often rated as the best vehicle insurance company in India for those looking for affordable and trusted coverage.
2. National Insurance Company Ltd.
Another public sector giant, it offers competitive premiums and a strong presence in tier-2 and tier-3 cities. It’s a good car insurance company in India for families and senior citizens.
3. ICICI Lombard General Insurance
Known for digital services and fast claim processing, ICICI Lombard is often seen as one of the best auto insurance companies in India. Their mobile app and customer care are excellent.
4. HDFC ERGO General Insurance
With a high claim settlement ratio and wide network of cashless garages, HDFC ERGO is a trusted name. It is considered among the best motor insurance companies in India.
5. Bajaj Allianz General Insurance
Bajaj Allianz offers many customizable plans, including long-term and third-party coverage. It’s one of the top 10 insurance companies in India across general insurance categories.
6. Tata AIG General Insurance
Tata AIG offers excellent customer service, flexible add-ons, and a strong digital experience. It is a popular choice among young car owners.
7. Oriental Insurance Company Ltd.
This is a government-owned insurer known for low premiums and decent service. It is a good car insurance company in India for those who want budget-friendly coverage.
8. United India Insurance Company Ltd.
With a solid market presence, this PSU insurer offers standard coverage with wide acceptance. A great choice for commercial vehicle owners too.
9. Reliance General Insurance
Fast policy issuance and competitive pricing make Reliance a popular private player. It also offers useful features like instant online renewals.
10. SBI General Insurance
Backed by State Bank of India, this company offers strong customer support and plans for both new and used cars. It’s gaining popularity for its simplicity and trust.
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How to Pick the Best Policy for Your Vehicle?
After knowing the top 10 insurance companies in India, you may still wonder which one is right for you. Here’s what you can do:
• Compare policies online on aggregator websites.
• Look for customer reviews on claim process and service.
• Always read the policy document carefully before buying.
• Choose a plan that offers balance between premium and coverage.
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Government vs. Private Car Insurance – Which is Better?
There are both government-owned and private car insurance providers in India. Government insurers like New India Assurance and National Insurance are safe, reliable, and offer basic coverage at lower costs. Private insurers like ICICI Lombard and HDFC ERGO provide better digital service, more add-ons, and faster claims.
If you are someone who values trust and low premiums, go with a public sector company. If you prefer convenience and speed, private companies might be better.
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Conclusion
Choosing the best insurance company in India for your vehicle should be based on your individual needs. Whether it is a car, bike, or any other vehicle, insurance protects your hard-earned asset and gives you peace of mind.
From our research and expert reviews, companies like New India Assurance, ICICI Lombard, and HDFC ERGO are often ranked as the best vehicle insurance companies in India due to their strong service, high claim settlement, and customer satisfaction.
Don’t forget to compare plans, read the fine print, and pick the one that suits your needs. The right decision today can save you time, money, and stress in the future.
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