In olden days, most of the car buyers were unaware of the importance of car insurance and some of them got their car insured considering it just as a legal requirement. But, nowadays, most of the car purchasers in India has understood the importance of getting their car insured. This is because, many of them have understood the fact that the insurance not only covers their car, but also covers them from large medical expenses to be incurred in the case of any accidents while in the car.

Car insurance in India is classified into two types namely third party insurance and comprehensive policy. Some of the details regarding both these policies are given below:

Comprehensive Insurance:

A comprehensive car insurance policy, covers the owner against any possible damage that includes car thefts, accidents, repairs, technical problems and dents. Therefore, most of the new car buyers are advised to take this policy. While, going for this type of insurance, the car owner will have to check whether the insurance cover damages caused due to natural calamities like lightning, earthquake, flood, etc… and from accidents from other means like terrorist activity, strike, etc…

Third Party Insurance:

The third party insurance offers only a limited coverage wherein the car insurance claims are payable to the third party in the event of any accident. It can be referred as an insurance compulsory under law. Under this type of insurance, the owners cannot claim any amount in the case of any repairs or damages to the car. This type of insurance is mostly offered by government-owned insurance companies in India. Only a few private insurance companies offer this type of car insurance coverage.

The name of top car insurance service providers in India are given below:

Top four car insurance companies in India:

• ICICI Lombard

• Oriental Insurance

• National Insurance Company

• New India Assurance Company

Some of the details regarding the type of coverage offered by these companies to car owners are given below:

ICICI Lombard:

ICICI Lombard is a joint venture between ICICI Bank Limited and Fairfax Financial Holdings Limited of Canada. The car insurance policy offered by this company covers:

• Personal accident coverage

• Damage/loss to the car against man-made calamities

• Damage/loss to the car against natural calamities

• Third party legal liability

Oriental Insurance:

Oriental Insurance Company came into existence in the year 1947. They offer car insurance policy in the name of private car package policy and the coverage offered by them in this policy includes:

• Damages by accidents

• Damage due to malicious acts

• Natural calamities like storm, hurricane, typhoon, lightning

• Theft

National Insurance Company:

National Insurance Company came into existence in the year 1906 and this company is operating from its registered office in the city of Kolkata. They are offering car insurance coverage in the name of motor policy – private car and this policy covers the car against the following risks:

• Coverage against liability towards third party

• Burglary of vehicle

• Loss due to theft

New India Assurance Company:

This company came into existence in the year 1919 and it holds the pride of being the first fully Indian owned insurance company. They offer car insurance coverage in the name of motor policy and this covers the private car against the following risks:

• Accidental External means

• Earthquake

• Malicious act

• Strike & riot

• Theft, housebreaking, burglary

Apart from these companies, there are also other car insurance service providers in India like Bajaj Allianz, Tata AIG, United India Insurance Company, Reliance General Insurance, HDFC Ergo and Royal Sundaram and these companies are also offering the best coverage against the dream car of individuals.