Car Insurance

What is Car Insurance?

Car insurance is a financial protection plan that every car owner should understand and have to suit their needs. At its core, it helps you manage expenses if your vehicle is damaged, stolen, or causes harm to another person. In India, it is mandatory to have at least a third-party car insurance policy. This ensures that if your car injures someone or damages their property, you are not personally burdened with the costs.
However, relying only on third-party cover leaves your own vehicle unprotected. This is where a comprehensive four-wheeler insurance plan becomes important. It not only meets the legal requirement but also covers accidents, theft, fire, natural calamities, and personal injuries. Many people today prefer to buy car insurance online as the process is simple. You can check plans, compare car insurance quotes, and purchase or renew your policy in minutes.
Bajaj Allianz General Insurance Company offers car insurance plans tailored to meet various needs. Whether you are buying a new car policy, renewing your existing one, or fulfilling the mandatory requirement of third-party cover under the Motor Vehicles Act, Bajaj Allianz General Insurance Company has options for you. You can choose between a standalone own-damage policy, a legally required third-party policy, or comprehensive car insurance.
For broader protection, comprehensive car insurance is recommended as it covers third-party liabilities as well as damages to your own vehicle. With Bajaj Allianz General Insurance Company, you also gain access to over 7,200 cashless garages and the option to enhance your policy with add-on covers, including zero depreciation, engine protector, consumables cover, and roadside assistance, among others, making your car insurance both flexible and reliable.

Key Features & Benefits of a Car Insurance Policy

Car Insurance for Electric Vehicles

Electric vehicles differ from regular cars, and so do their insurance needs. A standard EV car insurance policy covers third-party liabilities and damages from accidents, theft, or natural disasters. Still, EVs raise new concerns, including battery safety, motor repairs, and charging equipment. That is why choosing comprehensive four-wheeler insurance becomes important when you buy car insurance online for an electric vehicle.
With Bajaj Allianz General Insurance Company, EV owners receive coverage that extends beyond the basics. Along with standard protection, you also receive 24/7 roadside assistance designed explicitly for EVs, including on-site charging and towing in the event of a battery failure, as well as an SOS-enabled helpline.
You can also choose add-on covers that provide extra value, such as battery and motor protection, key and lock replacement, consumables coverage, or even a conveyance benefit to cover your travel while the car is in repair. You can easily check car insurance online, compare car insurance quotes, and manage everything through our Caringly Yours App. Additionally, with access to over 7,200 cashless garages across India, your car policy provides support whenever and wherever you need it.

How is Car Insurance Premium Calculated?

When it comes to buying an insurance policy, the premium plays a 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, the insurance buying decision becomes easier, simpler, and quicker.

Steps To Calculate Car Insurance Premium Online

With our quick and straightforward 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 that it’s a new car if your vehicle has not yet been registered.. 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.

Factors that Affect Car Insurance Premium

Understanding what affects your car insurance price can help you choose the right car insurance policy. Your premium depends on several factors, from the car’s age to the type of coverage you select. Here are the key factors that determine your 4-wheeler insurance cost:

●      Age of the Vehicle
As your car ages, its value declines due to wear and tear, which reduces the Insured Declared Value (IDV) and typically lowers your premium.

●      Insured Declared Value (IDV)
IDV represents your car’s current market value and is the maximum payout in case of total loss or theft. A higher IDV increases your car insurance price, while a lower one reduces it. Setting the right IDV balances coverage and affordability.

●      Geographical Location
Your car’s registration location and where it is usually parked influence premiums. Areas with higher accident or theft rates typically have higher premiums.

●      Car Model and Engine Capacity
Luxury cars and vehicles with engine capacities above 1500cc typically cost more to insure because repairs and replacements are more expensive. Standard models or smaller engines have lower premiums.

●      Fuel Type
Diesel cars often attract higher premiums due to their higher repair costs and increased theft risk, while petrol and CNG vehicles typically have lower premiums.

●      Type of Cover
Comprehensive car insurance covering both own damage and third-party liability costs more than standalone third-party policies, which only cover damages to others.

●      Claims History / No Claim Bonus (NCB)
Maintaining a claim-free record earns a No Claim Bonus, which can reduce your premium by up to 50% after consecutive claim-free years.

●      Voluntary Deductibles (Excess)
Opting for a higher voluntary deductible reduces the insurer’s liability and lowers your premium.

●      Add-Ons
Additional covers such as zero depreciation, roadside assistance, engine protector, and consumables cover may increase your premium. Choose add-ons that suit your needs when you buy car insurance online.

How can you save on your Car Insurance Premium?

Listed below are some easy tips that may help you reduce or save on your car insurance premiums:

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 record, as insurance companies offer lower premiums to those with a clean record 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 choose only the add-ons that are required and will be advantageous in the long run. Hence, be selective and select the add-ons that will be beneficial.

Increase the Voluntary Deductible

If no claims have been made in the recent 4-5 years or you have paid for the damages out of pocket, you may consider increasing the voluntary deductible. Increasing the voluntary deductible helps to decrease the insurance premium for the four-wheeler.

Steps to Secure Your New Car Insurance Policy from Bajaj Allianz

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 such as Zero Depreciation Cover, Personal Accident Cover, and an extensive network of over 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:

1. Visit the Website or Mobile App

2. Enter Vehicle Details

3. Choose Coverage and Add-ons

4. Complete Payment and Receive Documents

5. 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 complete the car insurance application or process in minutes seamlessly -

1. Details about your vehicle, including registration number

2. A valid driver’s license

3. Bank details

4. Tax receipts

5. Filled insurance forms

We are one step ahead when it comes to providing you with hassle-free and straightforward motor insurance.

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

Having the right car insurance is more than just a legal requirement. It helps you protect your car, manage unexpected expenses, and drive with confidence. Here is why getting a policy matters:

●      Reliable Claim Settlement
 A good car insurance policy means you can handle accidents or damages without worrying about delays. Quick claim support gives peace of mind when you need it most.

●      Access to Cashless Garages
 Repairs are more straightforward when you can visit a vast network of cashless garages, which avoids upfront payments and saves time.

●      Fast and Simple Claims
 Digital claim registration and document uploads make it easier to get your car repaired quickly, so minor damages do not disrupt your routine.

●      Flexible Coverage Options
 You can choose third-party, standalone own-damage, or comprehensive 4-wheeler insurance, depending on whether you want protection only for liabilities or also for your own car.

●      Customisable Add-Ons
 Add-ons like zero depreciation, roadside assistance, consumables coverage, or engine protection allow you to tailor your car insurance policy to your specific needs.

●      Online Savings and Loyalty Benefits
 Making payments online and keeping a claim-free record can help you save on premiums. Bajaj Allianz offers a No Claim Bonus starting at 20%, which can go up to 50% after five consecutive claim-free years on the own damage portion of your policy. You can also manage your policies easily through their website or mobile app, with a fully digital and paper-free experience.

●      Convenient Digital Access
 From checking car insurance quotes to buying car insurance online for a new vehicle, the entire process can be done quickly and easily.

Documents Required for Filing a Car Insurance Claim Online

When you file a car insurance claim with Bajaj Allianz General Insurance Company, submitting the correct documents helps ensure a smooth and timely settlement. The records required may vary depending on whether the claim is for cashless or reimbursement.

General Documents (All Claims):

●      A duly filled and signed claim form.

●      Copy of the Registration Certificate (RC). For new vehicles (less than 3 months old), the purchase invoice and tax receipts may be submitted if the RC is not yet available.

●      One officially valid ID proof, such as Aadhaar or PAN.

Additional Documents Required for Reimbursement Claims

●      Original claim form along with a NEFT mandate form for direct bank settlement.

●      Copy of the RC (or provisional documents like purchase invoice and tax receipts for new vehicles).

●      Copy of the driving licence of the person driving at the time of the accident.

●      Copy of the insurance policy, either physical or digital.

●      Certified copy of an officially valid document and PAN/Form 60 for KYC or income proof.

●      A FIR or police report, if required,is mandatory in cases of theft or third-party injury/death.

●      Garage estimate and original repair invoice as proof of expenses.

●      Cancelled cheque for NEFT payment in non-cashless cases.

Compulsory Personal Accident Cover for Owner-Drivers' Car Insurance

There have been several misconceptions surrounding the mandatory nature of personal accident cover. So, let us shed some light on this.

According to the Motor Vehicles Act of 1988, car owners and drivers are required to have a minimum third-party liability insurance policy. As you know, this covers expenses for third-party lives and property damages resulting from an accident.

However, what also needed attention was the losses car owners or drivers incurred because of the accident. From car damage to bodily harm, 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 coverage in their policy.

There are two significant 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 ₹15 Lakhs

●      The vehicle owner/driver with this personal accident cover in their policy for an existing vehicle does not need to purchase a new insurance policy for a new vehicle. Regardless of which car insurance policy you choose, you can easily include personal accident cover in your policy.

Best Insurance Cover Options for Different Car Types

Car Insurance for a Second-Hand Car

Just like a brand-new car, a pre-owned vehicle also needs proper insurance coverage. Since the previous owner may already have an active policy, it is important to get it transferred to your name within two weeks of purchase. This ensures that the car stays protected and you remain legally compliant.

Buying Car Insurance for a Second-Hand Car (New Policy)

●      If the previous owner did not have an insurance policy, or if the policy has expired, you must purchase a new one immediately.

●      Check the car’s claims history to understand past accidents or damages before buying coverage.

●      Evaluate whether a third-party policy is enough or if you should opt for a comprehensive policy with add-ons like zero depreciation or roadside assistance for better protection.

●      Set the right IDV (Insured Declared Value) to balance premium and claim benefits.

Renewing/Transferring Car Insurance for a Second-Hand Car

●      If an existing policy is active, transfer it promptly to your name within 14 days of purchase, as mandated by IRDAI and the Motor Vehicles Act.

●      Be aware that No Claim Bonus (NCB) cannot be transferred to the new owner; it remains with the original owner.

●      Check the expiry date and renew on time to avoid gaps in coverage.

●      During renewal, review your requirements, compare car insurance plans online, and consider upgrading to a comprehensive car insurance policy if needed.

How to Renew Long-term Car Insurance

If you purchased your four-wheeler after September 1, 2018, you are required to have compulsory 3-year third-party insurance, which is a mandatory requirement. Your car insurance renewal is around the corner.

If you are an existing Bajaj Allianz General Insurance Company Car Insurance customer, simply enter your car policy number. Next, enter the vehicle's registration number and begin the renewal process hassle-free. Renew your motor vehicle insurance and be secured for the long run.

Why Should You Renew an Expired Car Insurance Policy Immediately?

You must renew your expired four-wheeler insurance as early as possible. Like we saw, the primary reason for this is to avoid legal complications, as it is illegal to drive without a valid insurance policy. Apart from this, there are two significant reasons you should renew your car insurance immediately –

To Avail Your No Claims Bonus

When you don’t renew your policy, you will lose out on the no-claims bonus you are eligible for. Your bonus accumulates over the years to fetch you good discounts and other benefits. If you don’t renew, they will lapse.

Financial Burden

Without a car insurance policy, you should bear the financial burden that stems from misfortunes like accidents or damage to your car. You will have to pay from your savings or pocket for the recovery of your car. To prevent the financial burden of any sort, renewing four-wheeler insurance is highly recommended. You can renew car insurance online seamlessly.

Car Insurance Claim Procedure

Once your car insurance is active, you can claim compensation for accident-related damages. A motor insurance claim requests that your insurer 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 of cashless insurance claims is easy. Simply follow the steps mentioned below:

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

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

3. Move your damaged car to an authorised 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.

4. Submit the required documents to your surveyor.

5. Once surveyed, your insurance company confirms the liability.

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 coverage.

Here’s how you can avail Reimbursement Claims:

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

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

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

4. Submit the required documents to your surveyor.

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

6. Car Insurance OTS Claims: This is the latest offering that has been made seamless due to technological intervention. OTS stands for On-The-Spot, and like the name suggests, this allows you to make spot claims of your insurance.

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 based on 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 decreases by a specific percentage. The decrease in the value is known as depreciation. Also, during partial loss claims certain % of deductions is applied to the allowed parts, depending on the nature of the parts is also called depreciation.

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

● Fixed Deductible: It is an amount that needs to be paid during an insurance claim, fixed as per the standard wording 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 for the car will be low.