Car insurance is mandatory in India, but that doesn’t mean you need to overspend to stay protected. If you’re smart about it, you can get affordable car insurance without giving up on essential benefits. Whether you’re a first-time buyer or renewing your policy, this guide will show you how to get the cheapest car insurance in India—without compromising on coverage
1. Compare Quotes Online – Always!
The golden rule: Never settle for the first quote you receive. Use comparison websites like:
- Policybazaar
- Coverfox
- Turtlemint
- Acko
- Digit
These platforms allow you to compare premiums, features, and add-ons across multiple insurers within minutes.
👉 Tip: Don’t just look at the premium. Review claim settlement ratio, customer reviews, and cashless garage networks too.
✅ 2. Choose the Right Type of Policy: Third-Party vs. Comprehensive
Understand the two main types of car insurance in India:
| Policy Type | Coverage | Cost |
|---|---|---|
| Third-Party | Covers damage to other vehicles/people | Cheapest (mandatory by law) |
| Comprehensive | Covers own vehicle + third party | Slightly higher, but better protection |
If your car is new or valuable, go for comprehensive coverage. You’ll still save in the long run by avoiding huge repair costs.
✅ 3. Use NCB (No Claim Bonus) to Lower Premium
Every year you don’t raise a claim, you earn No Claim Bonus (NCB)—a discount on your renewal premium.
- 1 year: 20% NCB
- 5 years: Up to 50% NCB
👉 Tip: Even if you’re switching insurers, you can carry forward your NCB—just ask for an NCB certificate.
✅ 4. Opt for a Higher Voluntary Deductible
A deductible is the amount you pay during a claim before the insurer covers the rest.
- Voluntary Deductible: You choose to pay more out of pocket.
- Result: Lower premiums.
👉 Warning: Only choose this if you’re confident you won’t raise small claims often.
✅ 5. Avoid Unnecessary Add-Ons
Add-ons increase your premium, so only choose the ones you actually need. Popular ones include:
| Add-On | When to Use |
|---|---|
| Zero Depreciation | For new cars under 5 years |
| Roadside Assistance | For frequent travellers or highway users |
| Engine Protect | For flood-prone areas (Mumbai, Chennai) |
| Return to Invoice | For brand-new cars |
👉 Avoid: Consumables cover, key loss, and tyre protection unless absolutely necessary.
✅ 6. Install Anti-Theft Devices (IRDAI Approved)
Installing Arai-approved anti-theft devices can reduce your premium. You may get discounts from insurers for added security.
- Example: GPS trackers, steering locks, gear locks, immobilizers
- Discount: Typically 2–5% off on premium
✅ 7. Bundle Policies & Ask for Discounts
If you have multiple insurance policies (like health, life, or bike insurance), ask your insurer for multi-policy discounts.
Also ask about:
- Corporate/employee discounts
- Loyalty rewards
- Online-only purchase discounts
✅ 8. Renew Your Policy On Time
A lapsed policy can cost more to renew—and you might lose your NCB.
👉 Tip: Set a calendar reminder or opt for long-term insurance (3 years for new cars) to avoid yearly renewals.
✅ Bonus Tip: Choose Insurers With Better Claim Settlement
A cheap policy is useless if the insurer doesn’t pay out when you need it. Look for:
- High Claim Settlement Ratio (above 90%)
- Cashless garage network across India
- Easy claim process (app or WhatsApp-based)
Top-rated affordable insurers in India:
- Acko
- Digit
- ICICI Lombard
- HDFC ERGO
- SBI General
📌 Final Words
Saving on car insurance doesn’t mean cutting corners. With a little research and smart planning, you can get the cheapest car insurance in India without giving up on solid protection.
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- Cheapest car insurance India
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📝 Summary Checklist
✅ Compare online
✅ Choose comprehensive if needed
✅ Use your NCB
✅ Pick higher voluntary deductible
✅ Avoid unnecessary add-ons
✅ Install security devices
✅ Bundle and ask for discounts
✅ Don’t let your policy lapse