Buying a 1 year car insurance policy can be a great way to save money and get the coverage you need. It offers several advantages, such as no claim bonus on private cars, discounts on renewing a motor vehicle policy online, 24x7 roadside assistance, and more. In addition, it allows you to spread out your payments over 12 months instead of paying for the entire year upfront. This makes it easier to budget for and manage your car insurance costs.
A 1 year car insurance policy is a policy that provides coverage for your car for a period of one year. It is a great way to ensure that you are protected against any potential damages or accidents that may occur while driving your vehicle. In India, it is mandatory to have a car insurance policy in order to drive legally on the roads. With a 1 year insurance policy for car, you can enjoy the benefits of having comprehensive coverage for your vehicle at an affordable cost.
One year car insurance policies are gaining popularity in India as they offer a more cost-effective and flexible option when compared to long-term car insurance policies. In this article, we will be discussing everything you need to know about 1 year auto insurance policies in India - from the types of coverage available to the benefits of opting for one. We will also provide useful tips on how to get the best deal when it comes to 1 year car insurance policies in India.
Car Insurance Price for 1 Year
The 1 year car insurance cost in India can vary depending on several factors such as the make and model of the car, the age of the car, the geographical location of the owner, the usage of the car, and the coverage benefits and add-ons opted for by the owner.
The Insurance Regulatory and Development Authority of India (IRDAI) fixes the third-party liability component of a 1-year car insurance policy. For private cars with an engine capacity of up to 1000cc, the third-party liability premium is fixed at Rs. 2,072 for the 1-year policy period, while for cars with an engine capacity of over 1000cc, the premium is Rs. 3,221 for the 1-year policy period.
The premium for the own damage component of the policy is based on the Insured Declared Value (IDV) of the car, which is the maximum sum insured in case of a total loss or theft of the car. The premium increases as the IDV of the car increases. The premium can also be reduced by opting for voluntary deductibles, which is the amount the car owner agrees to bear in case of a claim.
The premium for a 1-year car insurance policy in India can range from a few thousand rupees to several lakhs of rupees, depending on the factors mentioned above. Car owners should compare policies and premiums offered by different insurers and choose a policy that provides adequate coverage at a reasonable price.
| Engine Capacity |
Comprehensive Coverage |
Third Party Car Insurance |
Own Damage Car Insurance |
| Less than 1000 cc |
4482 |
2072 |
2583 |
| More than 1000 cc but less than 1500 cc |
5292 |
3200 |
3026 |
| More than 1500 cc |
7292 |
4094 |
4527 |
*The above mentioned prices are for user reference only, for exact readings compare quotes at the top of this page*
Features of 1 Year Car Insurance Policy
- Coverage for Own Damage and Third-Party Liability: A 1-year car insurance policy in India provides coverage for both own damage and third-party liabilities. Own damage coverage is meant to provide financial protection to the insured vehicle against damages caused due to accidents, natural calamities, theft, or fire. Third-party liability coverage is meant to cover any legal liabilities arising from bodily injuries or damages caused to a third party's property or vehicle.
- Add-On Covers and their Benefits: Insurers in India offer various add-on covers that can be added to a 1-year car insurance policy for enhanced protection. Some of the commonly offered add-ons include zero depreciation cover, engine protection cover, roadside assistance cover, and consumables cover. These add-ons provide additional benefits such as covering the cost of replacement of damaged car parts or providing emergency assistance during breakdowns.
- No-Claim Bonus and How It Works: A no-claim bonus is a discount offered on the car insurance premium for every claim-free year. The discount increases with every claim-free year and can go up to a maximum of 50%. If the policyholder makes a claim during the policy term, the accumulated no-claim bonus gets reset to zero. The no-claim bonus is a significant benefit of a 1-year car insurance policy in India and can lead to substantial savings on the premium amount.
- Cashless Facility and Claim Settlement Process: Most insurers in India offer a cashless facility wherein the policyholder can get their car repaired at any of the network garages without having to pay for the repair costs upfront. The insurer directly settles the repair bills with the garage. In case of accidents or damages, the policyholder needs to inform the insurer immediately and file a claim. The claim settlement process usually involves a survey of the damaged vehicle, submission of necessary documents, and inspection by the insurer's appointed surveyor. Once the claim is approved, the policyholder can get their car repaired at a network garage or get reimbursed for the repair costs.
Overall, a 1-year car insurance policy in India provides comprehensive coverage for car damages and legal liabilities, with the added benefit of various add-ons and no-claim bonus. The cashless facility and claim settlement process further make it a convenient and hassle-free insurance option for car owners.
Benefits of 1 Year Car Insurance Policy
Apart from the features mentioned earlier, a 1-year car insurance policy in India offers several benefits to car owners, which are as follows:
- Comprehensive Coverage for Car Damages: A 1-year car insurance policy in India provides coverage for damages caused to the insured car due to accidents, theft, natural calamities, and other such incidents. This coverage ensures that car owners don't have to bear the repair costs themselves and can get financial assistance from the insurer.
- Protection Against Legal Liabilities: Third-party liability coverage provided by a 1-year car insurance policy protects car owners from legal liabilities arising from bodily injuries or damages caused to a third party's property or vehicle. This coverage ensures that car owners don't have to bear the legal and financial consequences of such incidents.
- Financial Assistance in Case of Accidents, Theft, or Natural Calamities: A 1-year car insurance policy provides financial assistance to car owners in case of accidents, theft, or natural calamities. This assistance can be in the form of repair costs, reimbursement of expenses, or compensation for total loss of the car.
- Peace of Mind and Stress-Free Driving Experience: By opting for a 1-year car insurance policy, car owners can enjoy peace of mind and a stress-free driving experience. They don't have to worry about unexpected expenses in case of car damages or legal liabilities. The policy provides them with financial protection and a sense of security while driving on the roads.
In conclusion, a 1-year car insurance policy in India provides comprehensive coverage, protection against legal liabilities, financial assistance, and peace of mind to car owners. It is a must-have insurance policy for all car owners to ensure a safe and secure driving experience.
Exclusions of 1 Year Car Insurance Policy
- Damages due to regular wear and tear
- Consequential losses or damages
- Intentional damages or accidents
- Driving under the influence of drugs or alcohol
- Driving without a valid license.
Tips to Choose the Right 1 Year Car Insurance Policy
- Assessing the Coverage Needs: Car owners should assess their coverage needs based on factors such as the type of car, usage, and geographical location. They should choose a policy that provides adequate coverage for their car and its usage.
- Comparing Policies and Premiums: Car owners should compare different 1-year car insurance policies offered by various insurers and their premiums. They should check the coverage benefits, add-ons, and exclusions offered by each policy to make an informed decision.
- Checking the Insurer's Reputation and Claim Settlement History: Car owners should check the insurer's reputation and claim settlement history before purchasing a 1-year car insurance policy. They can read customer reviews and ratings online or check with their friends and family for feedback.
- Understanding the Policy Terms and Conditions: Car owners should read and understand the policy terms and conditions before purchasing a 1-year car insurance policy. They should check for any hidden clauses, deductibles, or exclusions and clarify any doubts with the insurer before making the purchase.
By following these tips, car owners can choose the right 1-year car insurance policy that suits their coverage needs and budget and provides them with peace of mind and financial security while driving on the roads.
Cheap Car Insurance 1 Year No Claims:
If you have a 1-year no-claims bonus (NCB), you may be eligible for a discount on your car insurance premium. The NCB is a reward given by the insurer to the policyholder for not making any claims during the policy period. The discount on the premium increases with each consecutive year of no claims, up to a maximum of 50% after 5 years of no claims.
To find cheap car insurance with a 1-year no-claims bonus, you can follow these tips:
- Shop around and compare quotes from different insurers to find the best deal.
- Opt for a higher voluntary deductible, which is the amount you agree to pay out of your own pocket in case of a claim. This can lower your premium, but make sure you can afford the deductible amount.
- Choose a car with a lower engine capacity or a lower IDV, as these factors can affect the premium.
- Consider taking only the third-party liability coverage, which is the mandatory component of car insurance.
- Avoid making small claims, as these can reduce or nullify your no-claims bonus and increase your premium.
By following these tips, you can find a cheap car insurance policy with a 1-year no-claims bonus and save money on your premium.
Best Car Insurance Companies that Offer 1 Year Car Insurance Policy
Several car insurance companies in India offer 1 year car insurance policies. Some of the best car insurance companies that offer one-year car insurance policies in India are:
| Companies |
Average Premium |
| Future Generali |
4125 |
| National |
6349 |
| TATA AIG |
4584 |
| New India Assurance |
4095 |
| IFFCO TOKIO |
5192 |
| BAJAJ ALLIANZ |
4234 |
It is important to compare the rates and coverage options offered by multiple insurance companies and choose a policy that meets your specific needs and budget.
FAQs of 1 Year Car Insurance Policy:-
Can we take 1 Year Insurance for New Car?
Yes, it is possible to purchase a 1 year insurance policy for a new car. In fact, most insurance companies offer policies that cover vehicles for one year at a time. When purchasing insurance for a new car, it is important to consider factors such as the level of coverage needed, deductible amounts, and any additional coverage options that may be available. It is also recommended to shop around and compare rates from multiple insurance providers to ensure you are getting the best deal possible.
How much does Car Insurance reduced after 1 Year?
The amount of car insurance premiums may be reduced after one year largely depending on various factors such as the driver's age, driving record, the type of vehicle, location, and the insurance company's policies. In general, drivers with a clean driving record and no accidents may see a reduction in their insurance premiums after one year of coverage. On average, drivers may see a reduction of 5-10% in their premiums after one year, three years, five years, or multiyear insurance. However, this reduction may vary widely depending on the factors mentioned above and the insurance company's policies. It is important to note that insurance premiums may also increase or remain the same depending on changes in circumstances or claims history, so it's always a good idea to regularly review your policy and shop around for the best rates.
How much is Car Insurance for 1 Year?
The cost of car insurance for one year in India varies depending on various factors such as the type of vehicle, location, age of the driver, driving record, and the coverage options chosen. The mandatory third-party liability insurance, which covers damages caused to third-party individuals and property, typically costs around Rs. 2,000 to Rs. 4,000 per year. However, comprehensive insurance, which provides coverage for both third-party liability and damages to the insured vehicle, can cost significantly more. The cost of comprehensive insurance can range from Rs. 2,500 to Rs. 10,000 or more per year, depending on the factors mentioned above and the insurance company's policies. It is important to compare rates from multiple insurance providers and choose a policy that provides adequate coverage at a reasonable price.
What is Insurance 1 Year OD Plus 3 in Cars?
In India, Insurance 1 Year OD Plus 3 in cars is a type of comprehensive car insurance policy that provides coverage for own damage (OD) and third-party liability for a duration of one year. Additionally, the policy includes an add-on cover that offers protection against depreciation for up to three years. This means that in case of a claim for damage or total loss of the insured vehicle, the insurance company will pay the amount based on the original value of the car without factoring in the depreciation. This type of policy is usually more expensive than a standard comprehensive policy, but it provides coverage that is more extensive and can offer greater peace of mind to car owners. It's important to carefully review the terms and conditions of any insurance policy and choose a coverage that meets your needs and budget.
Conclusion:
In conclusion, we recommend that car owners assess their coverage needs, compare policies and premiums, check the insurer's reputation and claim settlement history, and understand the policy terms and conditions before purchasing a 1-year car insurance policy. By doing so, they can choose the right policy that provides adequate coverage and financial security, and enjoy a stress-free driving experience on the roads.
To conclude, a 1-year car insurance policy is an essential investment for car owners in India. It offers comprehensive coverage for damages to the insured car, protection against legal liabilities, financial assistance in case of accidents, theft, or natural calamities, and peace of mind while driving on the roads.
Car owners should assess their coverage needs, compare policies and premiums, check the insurer's reputation and claim settlement history, and understand the policy terms and conditions before purchasing a 1-year car insurance policy. This will help them choose the right policy that provides adequate coverage and financial security, and enjoy a stress-free driving experience on the roads.