Car Insurance

What is Car Insurance?

Car insurance is an agreement between you and your insurer to protect you from financial losses due to accidents, theft, or natural disasters. In India, third-party car insurance is mandatory by law and covers damages to others' life or property caused by your car.

A comprehensive car insurance policy, also known as a package policy, offers broader coverage. It protects against damage to your own vehicle due to accidents, natural disasters, riots, or theft.

Choosing the right car insurance is essential. When buying online, ensure you understand the policy details, terms, and conditions. Bajaj Allianz General Insurance helps you find the right cover with ease.

Why Should You Buy A Car Insurance Policy?

Owning a car is one thing, but protecting it is another. Roads are unpredictable—accidents, negligence, or bad luck can lead to costly damages. From minor dents to major accidents or natural disasters, your car faces risks daily. Car insurance helps cover these expenses, making it essential for every owner.

Key Reasons to Get Car Insurance

- Covers Own Damage
Cars can be damaged due to accidents or natural disasters. Insurance helps cover repair costs, reducing your financial burden.

- Third-Party Liabilities
If your car causes damage to someone’s property or injures a third party, you are legally responsible for compensation. Car insurance takes care of these costs.

- Personal Accident Cover
Car insurance provides financial support in case of injuries, disability, or even death due to an accident. It also covers passengers for accidental death or disability.

- Legal Requirement
As per the Motor Vehicles Act, third-party car insurance is mandatory in India. Driving without it is an offence and can lead to penalties.

- Enhanced Protection with Add-Ons
You can boost your policy with add-ons like engine protection, breakdown assistance, and zero depreciation cover for extra security.

- Easy Online Process
Digital policies offer paperless applications, quick claim settlements, and instant support, making car insurance more convenient than ever.

Types Of Car Insurance In India

A four-wheeler insurance is inevitable. If you’re looking for an ideal car insurance policy, Bajaj Allianz General Insurance Company offers three types of car insurance policies to choose from. Car insurance prices vary depending on their type. Based on your requirements and budget, you can choose the one that is most appropriate to you.

Let’s look at some of the types of car insurance we offer

Package Car Insurance (Comprehensive Car Policy)

Package car insurance also called, Comprehensive car insurance, covers a broad range of incidents including damage to your car and other vehicles or property. This is the most complete and airtight car insurance policy you could get for your online four-wheeler insurance. Apart from third-party liability, package car insurance covers own damages expenses such as burglary, explosion, flooding, water clogging, and more.

A Package car insurance policy offers you the liberty to include add-ons to your policy and bring in a range of extensive benefits for the protection of you and your car. This includes an engine protector, personal baggage, depreciation shield, accessories cover, and more.

This is the ultimate online four-wheeler insurance that gives you a holistic protection

Key Benefits

- Third-party liability

- Own Damage expenses

- Options to include add-ons

- Option to include personal accidental cover

Third-party Car Insurance

This is the most basic and mandatory car insurance policy you can take for your car. When you third third-party car insurance, you are letting us – your insurance company – take care of all legal obligations that could arise due to an accident caused by you. Your insurer will take care of your legal liability you incur due to your car accident which could be death, injury, disability, or damage to third-party life and property.

For Electric vehicles, there are rates variations, please visit the Electric Vehicle Insurance page

Key Benefits

- You don’t have to pay for the damages caused by your involvement in an accident.

- Your expenses would be taken care of by the insurance company when you experience damage, death, or disability.

Usage-based Motor Insurance

As the name suggests, this type of car insurance policy lets you pay a premium that is based on the number of kilometers driven. This is a new class of motor insurance policy that requires you to estimate the amount of kilometers you intend to drive or are most likely to drive during your premium tenure. This is highly beneficial for you if you don't use your car frequently and would like to keep car insurance prices at a bare minimum. There are three slabs you are required to declare one from - 2,500km, 5,000km, and 7,500km. It’s simple to buy car insurance that is usage-based and all you have to do is go to the website or an app and select a usage-based motor insurance option to get your car insured in three minutes.

Read more about: Pay As You Drive Insurance.

While this may give you an overview of car insurance coverage, you should always check with insurance providers, to know more about your desired policy. Also, to peruse the detailed list of inclusions & exclusions, refer to the car insurance policy wordings.

Also read: Partial & Full Car Insurance Coverage.

Compulsory Personal Accident Cover for Owner Driver In Car Insurance

There have been quite misconceptions about personal accident cover being mandatory. So, let us shed some light on this. According to the Motor Vehicles Act of 1988, car owners and drivers are mandatorily required to have third-party liability insurance as a minimum car insurance policy. As you know, this covers expenses on 3rd party lives and property damages because of an involvement in an accident.

However, what also needed attention was the losses car owners or drivers incurred because of the accident. From car damages to bodily harm of drivers, the expenses were significantly high for them as well. To decrease the financial burden for car owners and drivers, it was made mandatory for owners to have personal accident cover as well. From January 2019, the Motor Vehicles Act made it compulsory for car owners to include personal accident cover in their policy.

There are two major changes implied -

- A waiver that can be offered to car owners/drivers when they have personal accident cover in their policy with a minimum insured amount of Rs.15lacs

- The vehicle owner/driver having this personal accident cover in their policy for an existing vehicle does not have to buy a fresh insurance policy for a new vehicle Regardless of which car insurance policy you choose, you can include personal accident cover in your policy seamlessly.

Also read: Driver/Passenger Cover Under Car Insurance

Calculate Your Car Insurance Premium

When it comes to buying an insurance policy, a premium plays an extremely crucial role. The insurance premium is dependent on various factors. A car insurance calculator is an online tool that helps to determine the vehicle insurance premium. Knowing the premium amount helps to make an informed decision. With the help of the calculator insurance buying decisions makes it easier, simpler, and quicker.

Steps To Calculate Car Insurance Premium Online

With our quick and simple car insurance premium calculator, you can get car insurance quotes online in seconds. To know your premium amount, just follow the steps below.

Step 1: Head to our car insurance calculator

Step 2: Enter your name & provide additional details like your existing Bajaj Allianz policy and your contact details

Step 3: Provide the registration number of your car or specify it’s a new car if your car is yet to roll out. Specify details of your car’s make, model, and variant

Step 4: Mention the geographical location of your car’s registration and specify the date of registration. Mention your PIN code

Step 5: Your premium will reach your email address instantly

Why Should You Buy a Car Insurance Policy Online?

- Convenience – Purchasing car insurance online saves time as you can compare and buy policies from the comfort of your home without visiting an office.

- Lower Premiums – Since there are no middlemen involved, online policies often come at a lower cost, making them more affordable.

- Instant Policy Issuance – The entire process is digital, allowing you to get your policy instantly without dealing with lengthy paperwork.

- Faster Renewals & Claims – Online platforms enable quick policy renewals and hassle-free claims processing, reducing wait times and effort.

- 24/7 Access – You can access your policy details, make changes, or file claims at any time, ensuring uninterrupted assistance whenever needed.

Also read: Reasons Why You Should Choose A Comprehensive Car Insurance Plan

Benefits Of Buying Car Insurance Online

The internet is all about experiencing convenience. The technological advancements in recent times have allowed mankind to operate vehicles from remote places and send rovers to distant planets. Buying car insurance online is not a big deal. It’s easy, user friendly and allows you to avail one in minutes.

If you have been apprehensive about buying a car insurance online, let us remind you that buying online is one of the simplest and quickest ways to insure your car or 4 wheeler. To help you get a better idea of how convenient it is. Here are some benefits of buying car insurance online.

Car Insurance Claim Procedure

Once your car insurance is active, you can claim compensation for accident-related damages. A motor insurance claim requests your insurer to cover costs based on your policy’s terms. For third-party insurance, claims involve your insurer handling settlements for damages caused to others.

There are two types of claims: cashless and reimbursement. Let’s explore both and their procedures.

Cashless Car Insurance Claims

Availing cashless insurance claims is easy. Simply follow the steps mentioned below:

- Call your insurance provider or visit your provider’s website or an app to register your cashless claim.

- Receive the claims registration number that is sent to you on successful registration.

- Move your damaged car to an authorized cashless garage shed to initiate the repairs. For a cashless garage, you can take your vehicle only to network garages as transactions between your insurance provider and the garage happen directly.

- Submit the required documents to your surveyor.

- Once surveyed, your insurance company confirms the liability.

Also read: Cashless Car Claim Settlement

Reimbursement Claims Insurance Policy

In this, you have to shell out money from your wallet to recover the damages to your car. Your insurance company then intervenes and reimburses the expenses you incurred in the process after successful verification of documents and coverages.

Here’s how you can avail reimbursement claims:

- Call your insurance provider or visit your provider’s website or an app to register your reimbursement claim.

- Receive the claims registration number which is sent to you on successful registration.

- Move your damaged car to a garage near you. In this case, it is not mandatory to get your car serviced from a network authorized garage.

- Submit the required documents to your surveyor.

- Once surveyed, your insurance company confirms the liability and initiates the reimbursement procedure.

- Car Insurance OTS Claims

- This is the latest offering that has been made seamless because of tech intervention. OTS stands for On-The-Spot and like the name suggests, this allows you to make spot claims of your insurance.

Also read: How to file car insurance claim using the Motor OTS feature

What Happens If Your Car Insurance Expires?

As imperative as it is to buy car insurance, it is even more important to renew car insurance timely. The vehicle insurance policy should be active as it financially protects from any adversity. Now, let us understand what happens if the insurance policy gets expired:

- Financial Liability: If the car incurs any loss or damage after the car insurance policy lapses, the individual will end up paying from their pocket.

- Not Abiding by Laws: In India, third-party motor insurance is a mandate. If found driving the car without a valid insurance policy, it could lead to legal or financial implications. Driving a car without insurance implies not abiding by the laws and makes you liable to pay a hefty penalty and sometimes also leading to imprisonment.

- Loss of No Claim Bonus: No Claim Bonus is a reward given to the insured as a reduction on the insurance premium for every claim-free year. The accumulated NCB that is earned from the vehicle insurance over the years will get nullified if the policy is not renewed timely. The period for the same may vary from insurer to ins

The Need for Car or Four Wheeler Insurance in India

In India, there are various modes of transportation. However, people often prefer having their own car because then the dependence on public transport decreases. As per the Motor Vehicles Act, of 1988, third-party insurance is a mandate. But for complete safety, it is better to have comprehensive motor insurance in place. Here’s how a comprehensive motor insurance plan becomes useful:

- Protects against financial implications

- Makes you a law-abiding citizen

- Offers protection against third-party liabilities

- Gives coverage for own-damage

- Gives peace of mind

Renew Long-term Car Insurance

In case you bought your four-wheeler after September 1, 2018, you would have compulsory 3-year third-party insurance, which is a mandate. Perhaps your car insurance renewal is around the corner.

If you are an existing Bajaj Allianz Car Insurance customer, all you need to do is just enter your car policy number. Next enter the vehicle registration number and begin the process of renewal in a hassle-free way. Renew your motor vehicle insurance and be secured for the long run.

Also read: How To Find Vehicle Registration Details Online

Buy/Renew Four Wheeler Insurance for Old/Second hand Car

Similar to your brand new car, a pre-owned car requires a substantial insurance policy as well. But there are several overlapping layers attached to this as the previous owner of your car would have already gotten a valid car insurance online. If there is insurance, get it transferred to your name. This happens in less than two weeks.

So, when you intend to buy car insurance online for your pre-owned car, ensure to look at the following factors.

- Look for your car’s claims history as it will give you an idea of the previous claims made. Once the policy is transferred to your name, you can simply enter your policy number on your provider’s website and get the details.

- Ensure you transfer your no claims bonus to your car insurance to continue to avail benefits.

- If there is no insurance availed by the previous owner or if it has expired, you can get new insurance for your car immediately.

- Once the transfer of a car insurance policy happens, make sure you check for its expiry date. If the validity of your four wheeler insurance is about to expire soon, renew it on time.

Read more: Old Car Insurance

Benefits Of Renewing Car Insurance Online

All car insurance policies have a specific duration of validity and you have to be mindful of your plan’s expiry date. This is because when your four wheeler insurance policy expires, you are completely vulnerable to the risks involved. To secure your car and your financial standings from taking a dent, you need to ensure your insurance policies are renewed consistently. For those of you who are new to this, driving without a valid insurance is an offence as well.

So, car insurance renewal becomes all the more crucial. However, renewing your insurance policy shouldn’t be complex as you can do them instantly online. Here are some benefits you experience when you renew car insurance online.

Save Time

Similar to buying a new car insurance policy online, renewing one is time-saving, too. In just a few clicks, you can renew your policy and get it delivered directly to your inbox.

Modify Your Plans

If you require a different plan because your car has become old or if you intend to pay lesser premiums, you can do them seamlessly when renewing online. From customizing your plan to modifying existing plans, renewals can be done in the simplest of ways.

Prolong Your No Claims Bonus

When you renew, you also get to avail your no claims bonus if you haven’t availed an insurance during your previous tenure.

Post-Sales Services

Because you are extending your collaboration with your insurance provider, you also get added perks and bonuses for your continued patronage and support.

Expert Consultation

If you have any questions about your car insurance renewal or looking for better and more ideal plans, you could get in touch immediately with your insurance company’s experts and get your questions answered. Better decisions are just a call away.

Safe

Online car insurance renewals are safe and convenient. All you have to ensure is that you are renewing through a verified or credible website. The best options would be to go to your insurance provider’s official website or an app.

Also read: 07 Smart Tips to Save Money When Renewing Car Insurance

How to Reduce the Cost of Your Car Policy?

Now, let us know some of the key ways of reducing car insurance premiums. Yes, you read it right! You can reduce the premium amount without compromising insurance coverage. Here are some tips to reduce the vehicle insurance premium:

- Do Not Make Small Claims: By now you would know, that for every free claim year, you earn a No Claim Bonus status and can further enjoy its benefits.  For a claim-free record, you could save money as high as 50% (On basic OD premium) at the time of renewal. So, if you make even the smallest claim, you will not be able to enjoy the NCB benefit.

- Opt Voluntary Deductible: You may decrease insurance premium by increasing  the voluntary deductible. It helps to reduce the insurance premium amount.

- Choose the Right Car Insurance Cover: Choosing the cover that is essential for the car. With an array of add-on covers, it is not necessary to include all of them. Rather be mindful and tactful of what coverage you want.

- Install Security Devices: Installing a security device is indeed a smart choice as it not only keeps the car safe but also reduces the risk of your vehicle being stolen. It implies that low risk is equal to low insurance premiums.

*Standard T&C apply

Also read: Proven Tips to Get Concessions on Car Insurance

How Can You Save on Your Car Insurance Premium?

Listed below are some easy tips that may help you to reduce or save on the car insurance premium:

Have a Good Driving Record:

Driving safely and responsibly is extremely important. Do not over-speed your vehicle as doing so may lead to accidents. It's better to have a good driving track record as insurance companies offer a lower insurance premium to the ones with a clean record as compared to those with a history of traffic offences.

Choose the Add-on Wisely:

Undoubtedly, including the add-on riders enhances the overall security of the plan. However, it is recommended to only choose the add-ons that are required and are going to be advantageous in the long run. Hence, be selective and pick the add-ons that are going to be beneficial.

Increase the Voluntary Deductible:

In case no claims were made in the recent 4-5 years or you paid for the damages from your pocket, you may look at increasing the voluntary deductible. Increasing the voluntary deductible helps to decrease the insurance premium for the four-wheeler

Important Terminologies Related to Car Insurance

Furthermore, let us now get an understanding of the various important car insurance terminologies listed below:

- Coverage: It refers to the financial security of the plan. The coverage of the vehicle insurance policy will differ on the premise of the plan that has been bought.

- Premium: It is the sum that the policyholder needs to pay as per the policy. To enjoy the maximum benefits of the policy, it's important to pay the insurance premium timely.

- Depreciation: Every year the value of the car gets decreased by a specific percentage. The decrease in the value is known as depreciation. Also during partial loss claim certain % of deductions are applied on the allowed parts depending of the nature of parts are also called depreciation.

- Own Damage: Any losses or damages incurred by the owner fothe cart by way of damage to the car is referred to as own damage. It could be due to various factors such as natural or man-made calamity, etc.

- Fixed Deductible: It is an amount that needs to be paid during an insurance claim fixed as per the standard wordiong decided by the regulator . The fixed deductible charges are also known as compulsory or file charges.

- Consumables: These include the parts of the car like fuel filters, gearbox oil, grease, engine oil, etc. These are referred to as consumables.

- Voluntary Deductible: It is that part of the claim that is to be borne by the policyholder voluntarily. In case the voluntary deductible is high, the insurance premium of the car will be low.

*Standard T&C apply

What Factors Impact Insured’s Declared Value (IDV)?

Insured Declared Value is important as it offers an estimated market value of the vehicle. It also gives an idea about the amount that the insurance company would offer in case the vehicle incurs a complete loss.

Various factors have an impact on the IDV

Here’s a rundown of the factors that impact the IDV of the car:

- Age of the Car: Yes, the age can easily increase or even decrease the IDV of the car. As the car gets older, the Insured Declared Value does take a dip. It is because of the car parts being depreciated over the years.

- Make and Model of the Car: Over the conventional car, an advanced car offers the higher Insured Declared Value. It is because high-end cars have a better market value and remain in trend too. The overall make of the car impacts the IDV.

- Place of Registration: The market value of the vehicle is also dependent on the geographical location where it is registered. For instance, for any four-wheeler bought in a metro city, the IDV for it will be higher compared to the ones bought in Tier-III cities.

New Vehicle/Car Insurance Policy

When purchasing a new vehicle, securing the right insurance is essential. Bajaj Allianz General Insurance Company offers a New Vehicle Insurance Policy designed to provide comprehensive coverage, ensuring your car is protected from unforeseen damages, accidents, theft, and third-party liabilities. The policy also includes additional features like Zero Depreciation Cover, Personal Accident Cover, and an extensive network of 7,200+ cashless garages. With 24x7 Roadside Assistance and On-the-Spot Claim Settlements, you are guaranteed prompt support during emergencies.

Here’s how you can secure a New Vehicle Insurance Policy from Bajaj Allianz General Insurance Company in easy steps:

- Visit the Website or Mobile App

- Enter Vehicle Details

- Choose Coverage and Add-ons

- Complete Payment and Receive Documents

Protect your new car with Bajaj Allianz General Insurance Company today!

Documents Required to Buy Car Insurance Online

When you buy car insurance online, ensure you have the soft copies of the following documents in hand to seamlessly complete the car insurance application or process in minutes -

- Details about your vehicle including registration number

- A valid driver’s licence

- Bank details

- Tax receipts

- Filled insurance forms

We are one step ahead when it comes to providing you with hassle-free and straightforward motor insurance. Give us one minute to show you how by watching this video

Car Insurance Add-On Covers

Add-ons are additional features or benefits you add to your car insurance to make it more extensive. The add-on covers you add only decrease any financial burden you are likely to incur at the event of an accident or a calamity. At the same time, the more the add-ons you include in your policy, the higher the premium you have to pay. For the most ideal four wheeler insurance, we recommend you adding features that are value additions to your policy. Let’s look at some of the add-ons we offer.

Depreciation shield

This is an add-on you could add to your comprehensive car insurance policy. To understand what zero depreciation is, let’s first look at depreciation.

Zero Depreciation

This is an add-on you could add to your comprehensive car insurance policy. To understand what zero depreciation is, let’s first look at depreciation.

Cars are highly valuable until you purchase them. From the time you purchase, your car is subjected to depreciation, which means that it is losing its value in the market as it gets older. Not just the car but the spare parts powering your car as well. That is why older cars have a lower pricing in the market than their recently-purchased counterparts.

With the zero depreciation cover add-on, what you are basically doing is nullifying the depreciation associated with your car. This means that your car, technically, does not lose value in the market as the depreciation of your car is not considered by your insurer.

So, when you claim your insurance, you receive full value for your car and all of its spare parts. Bumper to bumper cover incurs the most expensive premium and is worth every penny shelled. We highly recommend this add-on especially if your car is less than 5 years old.

Features:

- Depreciation shield for the car

- Depreciation shield for the spare parts

Engine Protector

The engine is one of the most crucial parts of a car. Unfortunately, however, the expenses you incur on the damages to your car’s engine are not covered under standard car insurance. Being one of the most expensive parts for servicing, you end up spending more to recover your car’s engine from an accident.

That’s why the engine protector add-on is the most ideal solution to feature in your insurance policy. It covers expenses arising due to water ingression, oil leakage, hydrostatic lock and more. This helps you save up to 40% of the amount you would spend on getting your car’s engine fixed.

Features

- Protection against damages to engine and engine parts

- Protection against damages to differential parts

- Protection against damages to gear box and gear box parts

24/7 Spot Assistance

One of the most helpful add-ons for your car insurance, this ensures you are never stranded on the road due to any concern associated with your car. Our team is just a call or a click away to assist you or get to you to help you deal with a car situation regardless of where you are stuck in India.

So, no matter if you have to get a tire changed, or have an expert look into your car’s engine or need assistance in settling an accident, you can reach out to us at any time and we will be there by your side in a very short duration.

Features

- Pan India Coverage

- Spot Assistance for diverse car situations

Key And Lock Replacement

Car keys are some of the most misplaced items in the world. From forgetting them at a restaurant to losing them at your own home, car keys are easily overlooked. Sadly, there are expenses involved in getting new keys for your cars as it’s not just the key that has to be replaced but the entire locking system as well.

That’s why this add-on is here to reduce the expenses you are likely to incur because of misplaced or lost keys. We take care of the entire purchasing and replacing of your car’s lock and keys.

Features

- Expense coverage on key replacement

- Expense coverage on lock replacement

Consumable Expenses

Like we said, buying a car and maintaining a car are two different things. There are frequent expenses involved when it comes to the maintenance of your car. From servicing spare parts to replacing them, there are expenses surrounding your car all the time. And we are not even talking about the different types of car oils that need to be changed every now and then and during an accident.

With the consumable expenses coverage, you can let us take care of the expenses involved in the use of consumables for your car at the time of claim or post-accident.

Features

Consumables expenses involving

- Engine oil

- Brake oil

- Coolant

- Gear box oil and more

Personal Baggage

A car is your personal and private safe where you leave your belongings inside until your work outside is done. From laptops and expensive gadgets to money or money’s worth of valuables, you keep materials inside your car very frequently.

But this is not without its threat, where it is subjected to instances like thefts and burglaries especially when you leave your car in less populated avenues or remote places. That’s why the personal baggage add-on protects your personal belongings and covers the loss you incur because of damage or their theft from the car.

Features

- Indemnification for damage to personal baggage

- Indemnification for loss of personal baggage

Conveyance Benefit

Another highly convenient add-on, where we take care of the little yet significant concerns you are likely to face in your everyday life post an accident.

When your car is getting repaired in a garage and after your claim is accepted by us, this add-on ensures you get paid from us for your everyday commute. With this, you don’t have to worry about burning a hole in your wallet for the daily cab or transportation charges you are likely to pay during your car’s servicing.

Features

- Conveyance for your everyday commute

VPAY

Industry’s first game changing add-on cover that can simplify motor insurance related worries like never before. This new age cover offers 360° coverage and umbrella protection for all motor own damage needs of Insured vehicles. It will liberate you from not only answering numerous questions asked at the time of claim but will also free from the hassles of choosing an array of add-ons to protect your private car. An add-on cover that provides a balanced solution for the vehicle insured catering to both conventional risks, addresses emerging risks and increasing cost of ownership. Under the Own Damage section of V-PAY, we are offering two plans to customers: Elite and Classic cover. VPAY plans offer below unique benefits such as:

Features

- A one-time smart repair option enables car owners to address minor damages in one visit.

- Protection for the vehicle's digital sense devices, especially with the rise of connected cars and advanced driver assistance systems (ADAS).

- Waiver of compulsory deductible.

- Cyber Risk Protection for software issues, cyber extortion, and theft of funds resulting from cyber-attack.

- Safeguard of electric and hybrid vehicles from damages caused by power surge, explosion, water ingress, and short circuit.

- Coverage of mechanical and electrical breakdowns that are not a result of accidents, which are typically excluded from standard motor insurance policies.

- Repair cost in case of vehicle towing and retrieval.

- Covering damages if the vehicle is left unattended on the accident spot.

- Covering accessories and CNG fitment if customers forgot to declare during the policy.

*T&C apply