Best car insurance in India in 2025

With more than 235 million registered vehicles and one of the world’s highest rates of road fatalities, having valid car insurance in India is both a legal requirement and a practical necessity. The Motor Vehicles Act mandates that every vehicle owner purchase at least third-party liability insurance, reflecting the nation’s effort to address frequent risks such as traffic accidents, vehicle theft, and natural disasters. Many drivers, however, face the dilemma of underinsurance, limited policy coverage, and uncertainty in claim settlements—issues amplified by the country’s diverse regional risks and varying insurer standards.

Choosing the right car insurance saves you from steep out-of-pocket repair costs, unexpected legal liabilities, and claim rejections caused by hidden exclusions or insufficient coverage. Whether it’s the need for cashless garage networks, hassle-free claim service, or tailored add-on benefits, the gap between an adequate and inadequate policy can make a significant financial difference.

At HelloSafe, our dedicated experts compare India’s leading insurance providers, analyse local price trends, demystify contract details, and offer unbiased tools to match your specific needs. We are committed to bringing clarity, independence, and peace of mind to your journey for the best car insurance coverage in India.

How does car insurance work in India?

Car insurance in India is a mandatory contract between a vehicle owner and an insurance provider, ensuring financial protection against losses from accidents, theft, natural disasters, or third-party liabilities.

Insurance policies can be tailored to include basic third-party coverage, comprehensive protection, or a mix of useful add-ons to match individual driving habits and risks.

Choosing car insurance helps you comply with Indian law, avoid hefty traffic fines, and secure affordable reimbursement for repair or replacement costs after an incident.

You gain the flexibility to select plans based on your budget and needs, including higher claim limits, special benefits, and even coverage for accidental damage or legal expenses abroad.

What does car insurance cover?

Car insurance in India offers a range of covers, starting with the basic third-party liability policy required by law, which protects you against claims for injury or damage caused to others.

You can enhance this with optional add-ons such as own damage protection, coverage for natural disasters, theft, or loss caused by fire, vandalism, or accidents.

The main difference lies in what is included by default—basic plans cover third-party liabilities only, while more comprehensive policies and add-ons protect your own vehicle and provide additional benefits like roadside assistance or zero depreciation.

Reimbursement is typically offered up to set policy limits after you file a claim, minus any mandatory deductible and subject to the terms of your policy; some benefits may have a waiting period or specific exclusions.

What is not covered by car insurance?

In India, car insurance policies commonly exclude claims arising from intentional or deliberate damage, as well as losses due to normal wear and tear, mechanical or electrical breakdowns, and routine maintenance costs.

Claims will also be denied if the driver was under the influence of alcohol or drugs, or if an unlicensed or unapproved driver was operating the vehicle at the time of the accident.

Personal belongings kept inside the car are generally not covered, and claims that exceed the policy limits, involve racing, commercial use without disclosure, or take place outside the geographical area specified in the policy, are also excluded.

Additional exclusions include damages resulting from war, nuclear risks, or driving outside permitted boundaries, and most policies have waiting periods or deductibles before benefits are paid out.

How much does car insurance cost in India?

Car insurance pricing in India depends on several essential factors, including the driver’s age, driving history, type of coverage chosen (such as third-party liability or comprehensive), voluntary deductible amount, geographical location, make and model of the car, and annual mileage.

Younger and older drivers often pay higher premiums because they are statistically at greater risk, while a clean driving record rewards drivers with lower rates.

Living in urban or high-risk areas generally increases premiums due to higher chances of accident or theft, and insuring newer, expensive, or high-performance vehicles also adds to cost.

Premiums typically increase with age due to risk perception, at-fault claims, traffic violations, choosing lower deductibles, upgrading to broader coverage, or when adding add-ons and riders.

Best car insurance plans in India

Best for everyday commuting (school/work)

HDFC ERGO “Comprehensive Motor Insurance” is a strong choice for daily commuters in India. This plan offers extensive coverage including personal accident cover up to ₹15 lakh, third-party liability, and own damage caused by accidents, theft, or natural disasters. It suits office workers and students with fast digital claim settlement and cashless repairs at a wide network of garages.

Best for families with multiple vehicles

ICICI Lombard “Family Floater Car Insurance” works well for families with two or more cars. The policy allows you to insure multiple vehicles under one plan, offering comprehensive, third-party, and personal accident cover for all cars and registered drivers. Discounted premiums and a single renewal date help families save on cost and paperwork.

Best for tight budgets

IFFCO Tokio “Private Car Liability Only” policy is ideal for cost-conscious users. Covering the mandatory third-party liability, it protects against legal liabilities arising from death, injury, or property damage to others, meeting government requirements at one of the lowest premium points in the market. This plan is best for those seeking essential protection at minimal cost.

Best for expats or international drivers

Bajaj Allianz “Car Insurance for International License Holders” is tailored for expats and foreigners using Indian roads. Comprehensive add-ons include worldwide personal accident cover, roadside assistance, and coverage for international driving licenses. The flexible policy, digital onboarding, and multi-language support help international professionals get insured quickly and confidently.

Best for senior drivers

Tata AIG “Senior Citizen Motor Insurance” offers tailored protection for drivers over 60, featuring covers such as third-party liability, own damage, and personal accident up to ₹15 lakh. Senior-friendly benefits like enhanced medical reimbursement, dedicated claims assistance, and doorstep inspection make it a smart and caring choice for elderly owners.

Best for students or young drivers

Digit Insurance “Standard Car Policy” suits young drivers and students with competitive premiums and digital-first service. Coverage includes third-party, own damage, theft, and zero depreciation add-ons commonly preferred by first-time car owners. Digit’s app-based claims and quick settlement are highly rated among younger, tech-savvy users.

Best for electric vehicle owners

HDFC ERGO “EV Protect Motor Insurance” is designed for electric car users, offering coverage for battery replacement, charging equipment, green card, and roadside assistance. Special benefits such as reimbursements for towing and exclusive network garages put eco-friendly owners at ease with up to ₹7.5 lakh sum insured for battery and components.

Best for self-employed or business users

Reliance General “Commercial Vehicle Insurance” is best for self-employed drivers who use their vehicles for business or deliveries. This plan covers third-party liability, own damage, and offers add-ons like goods-in-transit coverage, garage cash, and loss of license indemnity, ensuring uninterrupted operations and financial stability for entrepreneurs.

How to lower the cost of your car insurance?

Here are some of the most effective ways to reduce your car insurance premiums in India:

• Compare offers: Use the HelloSafe comparison tool at the top of the page to quickly find the most competitive car insurance rates.
• Opt for a higher voluntary deductible: Choosing a higher deductible lowers your premium, but ensure you can cover the amount out of pocket in the event of a claim.
• Maintain a clean driving record: Avoiding accidents and traffic violations helps you qualify for no-claim bonuses and safe driver discounts.
• Install approved anti-theft devices: Security features such as ARAI-certified alarms and tracking systems may earn you a discount from many insurers.
• Choose the right coverage: Evaluate whether you need comprehensive coverage or if a third-party policy is enough for your vehicle’s age and value.
• Limit claims to the essentials: Avoid making small claims so you preserve your no-claim bonus and accumulate discounts over time.
• Review and update your policy every year: Check for loyalty benefits, lower premiums, or better add-ons each renewal cycle to ensure continued savings.
• Bundle policies if possible: Some insurers offer further discounts if you purchase multiple policies, like home and car insurance, from them.

FAQ

Rohan Desai

Financial content expert

Rohan is an Indian financial content expert with a strong background in economics and digital consumer education. He earned his degree in Economics from Delhi University and completed a postgraduate diploma in Financial Planning and Investment from the Indian Institute of Management Bangalore (IIMB). Before joining HelloSafe, Rohan worked in fintech as a product content strategist, where he focused on simplifying complex financial topics for a growing audience of digital-first users. At HelloSafe, he creates clear, trustworthy, and practical content on savings, insurance, credit, and budgeting—empowering users across India to make smarter financial decisions in their daily lives.