If you are going to drive a car or already own a car, then it is important for you to get car insurance. Insurance is not just a legal requirement, but it also protects you and your car. But the question arises that which car insurance company will be the best in 2025? Today we will understand this topic in detail so that you can get the best car insurance policy.
What is Car Insurance and Why is it Important?
Car insurance is a financial protection plan that covers your car from accidents, theft, and other risks. In India, third-party car insurance is mandatory as per the Motor Vehicles Act, 1988. Meaning, if due to you, any third-party’s life or property is lost, then the insurance company will cover it.
Types of Car Insurance
Car insurance is mainly of two types:
- Third-Party Car Insurance – Covers only the damages of others.
- Comprehensive Car Insurance – Covers the damages of others as well as your car.
If you are a new driver or your car is quite expensive, then taking comprehensive car insurance will be the best option.
Best Car Insurance Companies 2025
Which is the best car insurance for you? It depends on your need and budget. Below we have explained the features and plans of top car insurance companies of India.
| Insurance Company | Claim Settlement Ratio (CSR) | Key Benefits | Customer Ratings |
|---|---|---|---|
| ICICI Lombard | 98% | Instant claim settlement, cashless garages | 4.5/5 |
| Bajaj Allianz | 97% | 24×7 roadside assistance, paperless process | 4.6/5 |
| HDFC ERGO | 96% | No claim bonus (NCB), zero depreciation add-on | 4.4/5 |
| Tata AIG | 95% | High coverage, fast claim approval | 4.5/5 |
| New India Assurance | 94% | Government-backed, budget-friendly plans | 4.3/5 |
1. ICICI Lombard Car Insurance
ICICI Lombard is a top-rated car insurance provider that comes with a high claim settlement ratio (98%). Its key benefits are:
- Instant claim settlement
- Wide network of cashless garages
- Zero depreciation cover
- 24/7 customer support
2. Bajaj Allianz Car Insurance
Bajaj Allianz’s CSR is 97%, which shows that their claim settlement process is quite fast. Features:
- 24×7 roadside assistance
- Hassle-free policy renewal
- Personal accident cover
- High claim settlement ratio
3. HDFC ERGO Car Insurance
The claim settlement ratio of HDFC ERGO is 96%. If you want to take a zero depreciation add-on, this is the best choice.
- No claim bonus up to 50%
- Zero depreciation cover
- Engine protection add-on
- 24/7 claim assistance
4. Tata AIG Car Insurance
Tata AIG’s CSR is 95%. Its key benefits are:
- Multiple add-ons
- Fast claim approval
- Good customer support
5. New India Assurance Car Insurance
This is a government-backed insurance company in which you get budget-friendly plans.
- Affordable premium rates
- Third-party & comprehensive coverage
- Large network of garages
What Things Should You Pay Attention to While Taking Car Insurance?
If you want to take the best car insurance policy, then keep these points in mind:
- Claim Settlement Ratio (CSR): The higher the CSR, the better it will be.
- Premium Cost: Choose the plan according to your budget.
- Coverage Type: Select the best from Third-party or Comprehensive plan.
- Add-ons: Look for add-ons like zero depreciation, engine protection, roadside assistance.
- Customer Reviews: Check reviews about the insurance company‘s service and support.
FAQs – Frequently Asked Questions
1. Which car insurance company is the best?
If you want fast claim settlement and high customer satisfaction, then ICICI Lombard, Bajaj Allianz, and HDFC ERGO are the best options.
2. Should you take Zero Depreciation Cover?
Yes, if your car is of a new model, then it is better to take zero depreciation cover. This will give you more claim amount.
3. Is it right to take online car insurance?
Yes, it is better to take online car insurance because:
You get instant policy
You can get discount and cashback
There is an option to compare policies
4. What is No Claim Bonus (NCB)?
If you drive for a year without any claim, then you get a premium discount. This reduces your renewal premium.
5. Which plan will be best – Third-Party or Comprehensive?
If you want a budget-friendly option, then a third-party plan is right, but if you want full protection, then comprehensive insurance will be best.
Conclusion
If you are looking for the best car insurance 2025, then you should select the policy according to your need. ICICI Lombard, Bajaj Allianz, HDFC ERGO, Tata AIG, and New India Assurance are the best options. Before taking car insurance, definitely check the premium, claim settlement ratio, and add-ons so that you get the best deal.
