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Car insurance guide

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What is car insurance?


When your vehicle is harmed in an accident or natural disaster, a comprehensive auto insurance coverage, usually referred to as motor package insurance, helps you avoid spending too much money. It also covers your vehicle against theft and burglary. Sometimes accidents happen where you hurt someone else or cause damage to something. Such third-party obligations are also covered by auto insurance.

You must get third party auto insurance if you own a car in India. To avoid legal trouble and maintain coverage for vehicle damages, it is essential to purchase and renew your policy on time. Our dependable auto insurance policy shields you from all these hazards for a reasonable rate, allowing you to drive carefree. In addition to comprehensive car insurance, other options include third-party only and own-damage only car insurance. According to your demands, you can select the type of policy.

What are the different types of car insurance policies?

Third party car insurance

In this type of car insurance policy, you are covered against legal liabilities arising out of an accident. If your car causes injuries to a third party or damages surrounding property, then we will take care of the expenses.

Stand-alone own-damage car insurance

With our stand-alone own-damage car insurance, you are covered for any accidental damages to your car. These could be due to natural disasters like earthquake, flood, cyclone, and landslide, or due to manmade disasters like theft, burglary, riot or strike. To buy this car insurance, you should have an active third party insurance policy of the vehicle.

Private car package policy

A comprehensive car insurance policy offers complete protection to you. It covers not only the costs incurred on damages to a third party but also the damages to your car. This policy type also covers car theft and damages caused by fire, burglary and natural disasters.


Why should you buy a comprehensive car insurance policy?

1.Third-party car insurance is mandatory

As per the Motor Vehicles Act of India, it is compulsory for all vehicles running on the road to be insured. As a car owner, you must have third party liability coverage.

2.Gives easy access to cashless garages

We have a network of 5100+ cashless garagesC that take care of your car post damage. We pay for the repairs as per the claim and settle the dues directly with the garage.

3.Covers damages to the car

Our car insurance policy covers any damages to your car due to accidents or natural calamities and takes care of the repair costs.

4.Saves you from traffic fine

As per the new Motor Vehicle Act 2019A, you can get a traffic fine of ₹2000 for driving without car insurance. If you get caught for a second time, the penalty would be ₹4000.

5.Provides personal accident coverage for owner driver

Our car insurance policy provides ₹15 lakh coverage for injuries to the registered owner driver while travelling in the car, or getting in or off the car.

6.Covers your car against theft

In case your car is stolen and cannot be recovered, we pay for your loss.


Things to keep in mind while buying a car insurance policy

When you’re shopping for the right car insurance online, here are some points to remember.

1.Policy coverage

Check the policy inclusions and exclusions thoroughly to know what’s covered and what’s not. Choose the right type of policy & coverage to ensure that you are well protected at the time of claim.

2.Add-ons

Add-ons come with great benefits at a nominal extra charge and each one of them serves a specific purpose. Evaluate them closely and pick the ones you need to cover your car against accidental damages reasonably.

3.Service benefits

Availability of cashless garages, easy claims process and reliable customer support are a must.

4.Right Insured Declared Value (IDV)

While you can save on premium by choosing a lower IDV, it will serve you good at the time of claim if you get an IDV close to your car’s market value while buying the policy.

How is car insurance premium calculated?

Your car insurance premium includes three major components:

1.Third-party liability premium – this is stipulated by the Insurance Regulatory and Development Authority of India (IRDAI), and it is directly proportional to your car’s cubic capacity.

Cubic capacityPremium with effect from 1st June 2022 (Rs.)
Not exceeding 1000 cc₹2,094
Exceeding 1000 cc but not exceeding 1500 cc₹3,416
Exceeding 1500 cc₹7,897

Own damage premium – this is calculated as IDV X [Tariff Rate] – [Discounts] + Add On Covers

Personal accident cover premium + Additional covers

Factors that affect these three components and your final car insurance price, include:

  • IDV – IDV is the maximum amount you can claim under your policy. The higher your car’s market value, the higher your IDV and premium will be.
  • Make and model – Higher-end models are insured at a higher price, simply because the cost of repairs/replacement for such vehicle is higher.
  • Fuel type – Repairing petrol-fuelled cars is cheaper than those that run on diesel and CNG. As a result, they are also less expensive to insure.
  • Year of manufacture – Certain new cars may be costly to cover since their spare parts may not be available yet.
  • Location – Since urban areas have denser traffic, there’s a greater probability of accidental damages. Thus, your premium may vary depending on your location.
  • Claim history – If you have made no car insurance claims in the past year, you stand to gain a No Claim Bonus on your premium.
  • Add-ons – A small additional cost will be included in your premium for the 

Why should you buy car insurance online from ICICI Lombard?

We make life simpler!

Affordable premiums, easy renewals, quick claim settlement are some of the key features of our private car package insurance policy. We also have a set of certified workshops that provide digital surveyE for speedy claim processing, pick-up and drop, sanitisation of high touch points on your car, dedicated customer service manager and quality assuranceE on repairs.

Besides, we also offer unique additional covers at a nominal extra premium that can significantly boost your car insurance plan. By opting for add-ons in a car insurance policy, you can save a lot of money in repairs

What is covered by ICICI Lombard Car Insurance Policy?

Here’s what’s included in our private car package policy:

Inclusions

✔ Coverage for natural disasters like earthquakes, floods, fires and storms
✔Coverage for theft, accidents and terrorist activities
✔₹15 lakh Personal Accident Cover
✔Third-party legal liabilities cover
✔Cashless repairs in 5100+ network garagesC
✔No claim bonusF up to 50%
✔9 add ons to choose from
✔Instant claim settlement via InstaSpectD

Exclusions

❌Car wear & tear and ageing
❌Any consequential loss
❌Damages while driving without a valid license
❌Damages while driving under the influence of drugs or liquor
❌Mechanical or electrical breakdown
❌Loss/damage due to war, mutiny or nuclear risk

ICICI Lombard car insurance plan add-on benefits

Choose from an assorted range of add-onsG, for an additional premium, when buying ICICI Lombard car insurance online.

Roadside assistance cover

Helps you in case of a breakdown/accident with – towing to network garage, battery jumpstart, minor repairs, on-call support and taxi benefits.

Zero depreciation cover

As your car ages, the value of its parts decreases or depreciates. At the time of a claim, Zero Dep. cover compensates you for the claim amount that gets deducted because of depreciation.

Engine protect cover

Pays for repair or replacement of a damaged engine. A handy add-on for those who stay in a region prone to flooding during the rains, or if you own a high-end car.

Garage cash cover

Gives a daily allowance for alternate travel while your car is repaired at the garage. You can use this money to pay for cab or auto fare.

Consumables protect cover

Pays for repair or replacement of nut and bolt, screw, washer, grease, lubricant, clips, A/C gas, bearings, distilled water, engine oil, oil filter, fuel filter, break oil and related parts.

Loss of personal belongings cover

Covers personal belongings, such as your laptop, phone and clothes in your car. It has you covered, in case these belongings go missing from your car or get damaged in an accident.

How does ICICI Lombard car insurance work?

ICICI Lombard car insurance is easy to buy and renew online. You can choose an annual or long-term insurance policy (3 year for new vehicles) on our website. Once you purchase our car insurance policy, we email your policy documents and also send a hard copy by post. You can then drive worry-free, because –

  1. Our car insurance covers you for natural and manmade calamities
  2. We’ve got 5100+ network garagesC for cashless repairs in case of damage
  3. Claiming is easy through our call centre, website and app

Compare ICICI Lombard car insurance plans

See which plan works for you!

Coverage and benefitsPrivate car package policyStand-alone own-damage car insuranceThird party car insurance
Car damages
Theft coverage
No claim bonus up to 50%
Add-ons
Cashless claim
Digital inspection on the IL Take Care appN/A
Damage to third party property
Third party’s death or injury
₹15 lakh personal accident coverage

Why should you buy a car insurance policy online?

Instant quote

Just enter your car registration number and contact details to get an instant quote.

Quick & hassle-free policy

It only takes a few minutes to buy car insurance online. Pick a plan that suits your needs, share a few details, make payment and that’s it! Your policy is issued in no time

Advice from insurance expert

Got questions? Our experts will answer all your policy related queries so that you have all the information you need.

No paperwork

You don’t have to submit any documents or fill any physical forms. Just submit a short online form, make online payment and get your car insurance policy issued with zero paperwork.

Touchless policy issuance

No human contact is needed when you buy car insurance from online. You can even complete inspection online on our IL Take Care app in case you have a gap/ break in your policy.

Transparent process

No hidden fees or charges. You get to choose the plan & coverage and customise it the way you want. What you see is what you get.

What factors impact Insured’s
Declared Value (IDV)?

IDV plays a key role in determining your car insurance price

In a car insurance policy, the Insured’s Declared Value (IDV) is the fixed value at which we insure your vehicle. We calculate the policy sum insured based on the manufacturer’s listed selling price of the vehicle + the listed cost of any accessories. We derive the amount after deducting the depreciation for every year as per the Indian Motor Tariff.

Suppose you have installed any electronic item in the car, which is not included in the manufacturer’s listed selling price. In that case, we add the actual value (after depreciation) of the item to the policy sum insured over and above the IDV.

How can you save on your car insurance premium?

No matter what type of car you drive, certain discounts can bring down your car insurance price –

No Claim BonusF

If you made no claims in the past years, you get up to 50% NCB.

Security measures

If you’ve taken special measures to keep your car from getting stolen, you are eligible for a discount on your car insurance premium. Typically, you would receive a 2.5% discount for fitting an anti-theft device (approved by ARAI) on your car.

It is unwise to reduce IDV to save on premium. In case of an accident, you would find yourself at a disadvantage. Instead, ride safe and take security measures to get discounts on car insurance.


How do you get an online car insurance quote?

How do you get an online car insurance quote?
  • Enter your car registration number and your contact details here.
  • Check out the covers at affordable prices for your car and select the cover you like.
  • You can also personalise your plan with useful add-onsG like Roadside Assistance, Zero Depreciation, Engine Protect, Garage Cash & Consumables Protect.

It’s quite simple –

Based on your choices, we will calculate and display your premium instantly.

What are the benefits of renewing your car insurance online?

Renewing your car insurance online is just a matter of a few clicks. Some of the benefits of online car insurance renewal include –

  1. Fast and convenient
  2. No break in coverage
  3. No additional paperwork
  4. No claim bonusF
  5. Instant policy

How do you renew car insurance online?

You can easily renew car insurance on our website.

  • To retrieve your policy details,

just input any of these details –

  • Mobile number
  • Car registration number
  • Policy number
  • We’ll fetch your policy details along with the premium you need to pay as per our record.
  • You can make the payment online and complete car insurance renewal online seamlessly.
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