Best Third Party Car Insurance Plans in India

Third party car insurance is required by law in India, but with regulated pricing and standard coverage across the industry, it can be difficult to decide which company is best. Our experts have analysed dozens of companies and hundreds of quotes to help you choose the best third party car insurance policy.

The law mandates every driver in India must at minimum have an active third party car insurance policy. Third party insurance strictly covers damages to third party vehicles and property, and covers injuries or death of a third party due to an accident, up to Rs. 7.5 lakhs. It provides no protection for your own car against natural or man-made calamites, or for yourself as the owner or driver of the car, as a comprehensive policy would.

The Indian government regulates third party coverage pricing, which means that all third party plans cost the same at every insurer. The only factors that affect your rates are the make and model of your car.


Best Third Party Car Insurance Policies

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Button\" data-eventlabel=\"Reliance General Insurance\" class=\"ShortcodeLink--root AffiliateButton--button js-event-click\" rel=\"nofollow noopener\" target=\"_blank\" title=\"Reliance General Insurance\" href=\"\/redirect?link=https%3A%2F%2Faffiliate.valuechampion.in%2Fredirect%3Flink%3Dhttps%253A%252F%252Fad.admitad.com%252Fg%252Fu2weg666vh2bc4fc0fc88fb05eb159%252F\"\u003EGet a Quote \u003C\/a\u003E\n\u003C\/div\u003E\n \u003C\/div\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\n\u003Cdiv class=\"AffiliateBannerDesktop--root\"\u003E\n \u003Cdiv class=\"AffiliateBanner--root \"\u003E\n \u003Cdiv class=\"AffiliateBanner--image\"\u003E\n \u003Cdiv class=\"ShortcodeImageBare--root \"\u003E\n \u003Cdiv class=\"ShortcodeImageBare--image-container\"\u003E\n \u003Ca class=\"js-event-click\" data-eventcategory=\"Affiliate car_insurance_companies: Reliance General Insurance - Image\" data-eventlabel=\"Reliance General Insurance\" rel=\"nofollow noopener\" target=\"_blank\" title=\"Reliance General Insurance\" href=\"\/redirect?link=https%3A%2F%2Faffiliate.valuechampion.in%2Fredirect%3Flink%3Dhttps%253A%252F%252Fad.admitad.com%252Fg%252Fu2weg666vh2bc4fc0fc88fb05eb159%252F\"\u003E\u003Cimg alt=\"Reliance General Insurance\" class=\"ShortcodeImage--image\" style=\"width: 200px;\" src=\"https:\/\/res.cloudinary.com\/valuechampion\/image\/upload\/c_fit,dpr_1.0,f_auto,h_1600,q_auto,w_200\/v1\/referral_logos\/in\/insurance\/reliance-1\" srcset=\"https:\/\/res.cloudinary.com\/valuechampion\/image\/upload\/c_fit,dpr_1.0,f_auto,h_1600,q_auto,w_200\/v1\/referral_logos\/in\/insurance\/reliance-1 1x, https:\/\/res.cloudinary.com\/valuechampion\/image\/upload\/c_fit,dpr_2.0,f_auto,h_1600,q_auto,w_200\/v1\/referral_logos\/in\/insurance\/reliance-1 2x\"\u003E\u003C\/a\u003E\n \n \u003C\/div\u003E\n\u003C\/div\u003E\n \u003C\/div\u003E\n \u003Cdiv class=\"AffiliateBanner--link\"\u003E\n \u003Cdiv class=\"AffiliateButton--root \"\u003E\n \u003Ca data-eventcategory=\"Affiliate car_insurance_companies: Reliance General Insurance - Button\" data-eventlabel=\"Reliance General Insurance\" class=\"ShortcodeLink--root AffiliateButton--button js-event-click\" rel=\"nofollow noopener\" target=\"_blank\" title=\"Reliance General Insurance\" href=\"\/redirect?link=https%3A%2F%2Faffiliate.valuechampion.in%2Fredirect%3Flink%3Dhttps%253A%252F%252Fad.admitad.com%252Fg%252Fu2weg666vh2bc4fc0fc88fb05eb159%252F\"\u003EGet a Quote \u003C\/a\u003E\n\u003C\/div\u003E\n \u003C\/div\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\n","\n\u003Cdiv class=\"AffiliateBannerMobile--root\"\u003E\n \u003Cdiv class=\"AffiliateBanner--root \"\u003E\n \u003Cdiv class=\"AffiliateBanner--image\"\u003E\n \u003Cdiv class=\"ShortcodeImageBare--root \"\u003E\n \u003Cdiv class=\"ShortcodeImageBare--image-container\"\u003E\n \u003Ca class=\"js-event-click\" data-eventcategory=\"Affiliate car_insurance_companies: Liberty Insurance - Image\" data-eventlabel=\"Liberty Insurance\" rel=\"nofollow noopener\" target=\"_blank\" title=\"Liberty Insurance\" href=\"\/redirect?link=https%3A%2F%2Faffiliate.valuechampion.in%2Fredirect%3Flink%3Dhttps%253A%252F%252Fwww.libertyinsurance.com.sg%252Fprivate-car\"\u003E\u003Cimg alt=\"Liberty Insurance\" class=\"ShortcodeImage--image\" style=\"width: 200px;\" src=\"https:\/\/res.cloudinary.com\/valuechampion\/image\/upload\/c_fit,dpr_1.0,f_auto,h_1600,q_auto,w_200\/v1\/referral_logos\/in\/insurance\/liberty-1\" srcset=\"https:\/\/res.cloudinary.com\/valuechampion\/image\/upload\/c_fit,dpr_1.0,f_auto,h_1600,q_auto,w_200\/v1\/referral_logos\/in\/insurance\/liberty-1 1x, https:\/\/res.cloudinary.com\/valuechampion\/image\/upload\/c_fit,dpr_2.0,f_auto,h_1600,q_auto,w_200\/v1\/referral_logos\/in\/insurance\/liberty-1 2x\"\u003E\u003C\/a\u003E\n \n \u003C\/div\u003E\n\u003C\/div\u003E\n \u003C\/div\u003E\n \u003Cdiv class=\"AffiliateBanner--link\"\u003E\n \u003Cdiv class=\"AffiliateButton--root \"\u003E\n \u003Ca data-eventcategory=\"Affiliate car_insurance_companies: Liberty Insurance - Button\" data-eventlabel=\"Liberty Insurance\" class=\"ShortcodeLink--root AffiliateButton--button js-event-click\" rel=\"nofollow noopener\" target=\"_blank\" title=\"Liberty Insurance\" href=\"\/redirect?link=https%3A%2F%2Faffiliate.valuechampion.in%2Fredirect%3Flink%3Dhttps%253A%252F%252Fwww.libertyinsurance.com.sg%252Fprivate-car\"\u003EGet a Quote \u003C\/a\u003E\n\u003C\/div\u003E\n \u003C\/div\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\n\u003Cdiv class=\"AffiliateBannerDesktop--root\"\u003E\n \u003Cdiv class=\"AffiliateBanner--root \"\u003E\n \u003Cdiv class=\"AffiliateBanner--image\"\u003E\n \u003Cdiv class=\"ShortcodeImageBare--root \"\u003E\n \u003Cdiv class=\"ShortcodeImageBare--image-container\"\u003E\n \u003Ca class=\"js-event-click\" data-eventcategory=\"Affiliate car_insurance_companies: Liberty Insurance - Image\" data-eventlabel=\"Liberty Insurance\" rel=\"nofollow noopener\" target=\"_blank\" title=\"Liberty Insurance\" href=\"\/redirect?link=https%3A%2F%2Faffiliate.valuechampion.in%2Fredirect%3Flink%3Dhttps%253A%252F%252Fwww.libertyinsurance.com.sg%252Fprivate-car\"\u003E\u003Cimg alt=\"Liberty Insurance\" class=\"ShortcodeImage--image\" style=\"width: 200px;\" src=\"https:\/\/res.cloudinary.com\/valuechampion\/image\/upload\/c_fit,dpr_1.0,f_auto,h_1600,q_auto,w_200\/v1\/referral_logos\/in\/insurance\/liberty-1\" srcset=\"https:\/\/res.cloudinary.com\/valuechampion\/image\/upload\/c_fit,dpr_1.0,f_auto,h_1600,q_auto,w_200\/v1\/referral_logos\/in\/insurance\/liberty-1 1x, https:\/\/res.cloudinary.com\/valuechampion\/image\/upload\/c_fit,dpr_2.0,f_auto,h_1600,q_auto,w_200\/v1\/referral_logos\/in\/insurance\/liberty-1 2x\"\u003E\u003C\/a\u003E\n \n \u003C\/div\u003E\n\u003C\/div\u003E\n \u003C\/div\u003E\n \u003Cdiv class=\"AffiliateBanner--link\"\u003E\n \u003Cdiv class=\"AffiliateButton--root \"\u003E\n \u003Ca data-eventcategory=\"Affiliate car_insurance_companies: Liberty Insurance - Button\" data-eventlabel=\"Liberty Insurance\" class=\"ShortcodeLink--root AffiliateButton--button js-event-click\" rel=\"nofollow noopener\" target=\"_blank\" title=\"Liberty Insurance\" href=\"\/redirect?link=https%3A%2F%2Faffiliate.valuechampion.in%2Fredirect%3Flink%3Dhttps%253A%252F%252Fwww.libertyinsurance.com.sg%252Fprivate-car\"\u003EGet a Quote \u003C\/a\u003E\n\u003C\/div\u003E\n \u003C\/div\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\n","\n\u003Cdiv class=\"AffiliateBannerMobile--root\"\u003E\n \u003Cdiv class=\"AffiliateBanner--root \"\u003E\n \u003Cdiv class=\"AffiliateBanner--image\"\u003E\n \u003Cdiv class=\"ShortcodeImageBare--root \"\u003E\n \u003Cdiv class=\"ShortcodeImageBare--image-container\"\u003E\n \u003Ca class=\"js-event-click\" data-eventcategory=\"Affiliate car_insurance_companies: Oriental Insurance - Image\" data-eventlabel=\"Oriental Insurance\" rel=\"nofollow noopener\" target=\"_blank\" title=\"Oriental Insurance\" href=\"\/redirect?link=https%3A%2F%2Faffiliate.valuechampion.in%2Fredirect%3Flink%3Dhttps%253A%252F%252Forientalinsurance.org.in%252Fmotor-insurance-policy\"\u003E\u003Cimg alt=\"Oriental Insurance\" class=\"ShortcodeImage--image\" style=\"width: 200px;\" src=\"https:\/\/res.cloudinary.com\/valuechampion\/image\/upload\/c_fit,dpr_1.0,f_auto,h_1600,q_auto,w_200\/v1\/referral_logos\/in\/insurance\/oriental-1\" srcset=\"https:\/\/res.cloudinary.com\/valuechampion\/image\/upload\/c_fit,dpr_1.0,f_auto,h_1600,q_auto,w_200\/v1\/referral_logos\/in\/insurance\/oriental-1 1x, https:\/\/res.cloudinary.com\/valuechampion\/image\/upload\/c_fit,dpr_2.0,f_auto,h_1600,q_auto,w_200\/v1\/referral_logos\/in\/insurance\/oriental-1 2x\"\u003E\u003C\/a\u003E\n \n \u003C\/div\u003E\n\u003C\/div\u003E\n \u003C\/div\u003E\n \u003Cdiv class=\"AffiliateBanner--link\"\u003E\n \u003Cdiv class=\"AffiliateButton--root \"\u003E\n \u003Ca data-eventcategory=\"Affiliate car_insurance_companies: Oriental Insurance - Button\" data-eventlabel=\"Oriental Insurance\" class=\"ShortcodeLink--root AffiliateButton--button js-event-click\" rel=\"nofollow noopener\" target=\"_blank\" title=\"Oriental Insurance\" href=\"\/redirect?link=https%3A%2F%2Faffiliate.valuechampion.in%2Fredirect%3Flink%3Dhttps%253A%252F%252Forientalinsurance.org.in%252Fmotor-insurance-policy\"\u003EGet a Quote \u003C\/a\u003E\n\u003C\/div\u003E\n \u003C\/div\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\n\u003Cdiv class=\"AffiliateBannerDesktop--root\"\u003E\n \u003Cdiv class=\"AffiliateBanner--root \"\u003E\n \u003Cdiv class=\"AffiliateBanner--image\"\u003E\n \u003Cdiv class=\"ShortcodeImageBare--root \"\u003E\n \u003Cdiv class=\"ShortcodeImageBare--image-container\"\u003E\n \u003Ca class=\"js-event-click\" data-eventcategory=\"Affiliate car_insurance_companies: Oriental Insurance - Image\" data-eventlabel=\"Oriental Insurance\" rel=\"nofollow noopener\" target=\"_blank\" title=\"Oriental Insurance\" href=\"\/redirect?link=https%3A%2F%2Faffiliate.valuechampion.in%2Fredirect%3Flink%3Dhttps%253A%252F%252Forientalinsurance.org.in%252Fmotor-insurance-policy\"\u003E\u003Cimg alt=\"Oriental Insurance\" class=\"ShortcodeImage--image\" style=\"width: 200px;\" src=\"https:\/\/res.cloudinary.com\/valuechampion\/image\/upload\/c_fit,dpr_1.0,f_auto,h_1600,q_auto,w_200\/v1\/referral_logos\/in\/insurance\/oriental-1\" srcset=\"https:\/\/res.cloudinary.com\/valuechampion\/image\/upload\/c_fit,dpr_1.0,f_auto,h_1600,q_auto,w_200\/v1\/referral_logos\/in\/insurance\/oriental-1 1x, https:\/\/res.cloudinary.com\/valuechampion\/image\/upload\/c_fit,dpr_2.0,f_auto,h_1600,q_auto,w_200\/v1\/referral_logos\/in\/insurance\/oriental-1 2x\"\u003E\u003C\/a\u003E\n \n \u003C\/div\u003E\n\u003C\/div\u003E\n \u003C\/div\u003E\n \u003Cdiv class=\"AffiliateBanner--link\"\u003E\n \u003Cdiv class=\"AffiliateButton--root \"\u003E\n \u003Ca data-eventcategory=\"Affiliate car_insurance_companies: Oriental Insurance - Button\" data-eventlabel=\"Oriental Insurance\" class=\"ShortcodeLink--root AffiliateButton--button js-event-click\" rel=\"nofollow noopener\" target=\"_blank\" title=\"Oriental Insurance\" href=\"\/redirect?link=https%3A%2F%2Faffiliate.valuechampion.in%2Fredirect%3Flink%3Dhttps%253A%252F%252Forientalinsurance.org.in%252Fmotor-insurance-policy\"\u003EGet a Quote \u003C\/a\u003E\n\u003C\/div\u003E\n \u003C\/div\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\n"],"offsetPercentage":20}

Since annual premium pricing and base coverage packages are standard across the car insurance market in India, certain companies like Reliance General Insurance, Liberty Insurance and Oriental Insurance stand out by having strong claim settlement rates and good reviews from their policyholders.

Generally, additional coverage features are not available for third party insurance plans, but Reliance, Liberty and Oriental uniquely offer consumers the option to enhance their policy with add-ons.

Average Annual Premium Prices For Indian Car Insurance
Average Annual Premium Prices For Indian Car Insurance

Reliance General Insurance

Reliance's third party car insurance plan offers personal accident coverage for yourself as the owner or driver of the car, a feature offered by just half of the third party policies in our study. While this does not cover any damages to your car, it does cover what's most important: yourself. Policyholders who include this add-on on their third party policy will be fully covered for injuries sustained in an accident.

Reliance has proven to be a leader across many different categories in the car insurance market, and was rewarded with India's General Insurance of the Year Award in 2015. With so few differentiators among third party policies, winning such a prestigious award sets Reliance apart from their competitors.

RelianceMarket Average
Market Share5.14%3.57%
Incurred Claims Ratio85%90%
Claim Settlement Rate98.1%94.3%
Cashless Garages4,6003,870
PolicyBazaar Star Ratings4.9 (22 reviews)4.2 (22 reviews)
InsuranceDekho Star Ratings4.9 (152 reviews)4.9 (167 reviews)

The company is one of the highest-rated car insurers on the market, earning a 4.9-of-5 stars on both PolicyBazaar and InsuranceDekho. Reliance's repair garage network also includes over 4,600 cashless options, nearly 1,000 more than the average car insurer in India. With such a vast network of facilities, policyholders can rely on a garage being in a convenient area for repairs to the third party car.

Reliance is one of the top-10 largest car insurers in India, owning a 5.14% market share, and they boast a 98.1% claim settlement rate, so it's highly likely your claims will be settled in a timely manner. Reliance's 85% incurred claims ratio (ICR) indicates a strong ability to settle claims against annual premium collection. The optimal, healthy range for an insurer is 75-90%, and this company's ratio is the best of any insurer in our study.

Read more: Reliance Car Insurance Review

Liberty Insurance

Liberty, like Reliance, allows their third party policyholders to opt for personal accident coverage. They also offer an additional add-on - legal liability for paid drivers and workers - which is the same as personal accident coverage, but covers any paid employee driving the car, as opposed to the owner of the car. Liberty is one of just four insurers we analysed to offer this add-on to their third party plan.

The company also uniquely offers discounts on their third party policy, and is one of just two insurers in our study to do so. They allow consumers to apply a claims free discount, which lowers the annual premium cost if you haven't previously filed a claim and is the most popular among their customers. Liberty also provides a discount if you are a member of an approved automobile association, or if you provide personal information like occupation and credit score.

LibertyMarket Average
Market Share1.32%3.57%
Incurred Claims Ratio70%90%
Claim Settlement Rate97.0%94.3%
Cashless Garages4,3003,870
PolicyBazaar Star Ratings4.6 (7 reviews)4.2 (22 reviews)
InsuranceDekho Star Ratings5.0 (150 reviews)4.9 (167 reviews)

Liberty also has a large network of cashless garages, nearly 500 more than themarket average competitor, and their policyholders have given them strong reviews on both PolicyBazaar and InsuranceDekho. Their 97% claim settlement rate is one of the five-best among the insurers we studied, and while their incurred claims ratio is 5% below the most optimal range for an Indian car insurer, their 70% ICR is still a healthy number, and consumers can rely on fast and smooth settlement processes.

Read More: Liberty Car Insurance Review

Oriental Insurance

Oriental, like both Reliance and Liberty, offers the important personal accident coverage for the owner or driver. They also uniquely offer discounts on their third party policy, but their list is much shorter than Liberty's.

Policyholders may receive reduced annual premiums if they are a member of an approved automobile association, but the most popular discount is the voluntarily increased deductible. Using this feature, you can pay a reduced annual premium in exchange for a higher deductible in the event of an accident. This is best for safe drivers with a very small accident history, since their risk of paying a deductible is much lower.

OrientalMarket Average
Market Share5.78%3.57%
Incurred Claims Ratio113%90%
Claim Settlement Rate89.6%94.3%
Cashless Garages1,0003,870
PolicyBazaar Star Ratings4.9 (2 reviews)4.2 (22 reviews)
InsuranceDekho Star Ratings5.0 (93 reviews)4.9 (167 reviews)

Oriental's claim settlement and incurred claim rates are less than optimal, but they're one of the 10 largest car insurers in India, so consumers can take comfort in knowing a large portion of drivers trust their coverage. They are also one of the highest-rated car insurers in the country, with a perfect 5-star rating on InsuranceDekho and a 4.9-of-5 star rating on PolicyBazaar.

Read more: Oriental Car Insurance Review

Best Online Third Party Car Insurance

{"items":["\u003Cdiv class=\"AffiliateBannerMobile--root\"\u003E\n \u003Cdiv class=\"AffiliateBanner--root \"\u003E\n \u003Cdiv class=\"AffiliateBanner--image\"\u003E\n \u003Cdiv class=\"ShortcodeImageBare--root \"\u003E\n \u003Cdiv class=\"ShortcodeImageBare--image-container\"\u003E\n \u003Ca class=\"js-event-click\" data-eventcategory=\"Affiliate car_insurance_companies: HDFC Ergo - Image\" data-eventlabel=\"HDFC Ergo\" rel=\"nofollow noopener\" target=\"_blank\" title=\"HDFC Ergo\" href=\"\/redirect?link=https%3A%2F%2Faffiliate.valuechampion.in%2Fredirect%3Flink%3Dhttps%253A%252F%252Fad.admitad.com%252Fg%252Frn2sg7cxp32bc4fc0fc8995a4b6d27%252F\"\u003E\u003Cimg alt=\"HDFC Ergo\" class=\"ShortcodeImage--image\" style=\"width: 200px;\" src=\"https:\/\/res.cloudinary.com\/valuechampion\/image\/upload\/c_fit,dpr_1.0,f_auto,h_1600,q_auto,w_200\/v1\/referral_logos\/in\/insurance\/hdfc-1\" srcset=\"https:\/\/res.cloudinary.com\/valuechampion\/image\/upload\/c_fit,dpr_1.0,f_auto,h_1600,q_auto,w_200\/v1\/referral_logos\/in\/insurance\/hdfc-1 1x, https:\/\/res.cloudinary.com\/valuechampion\/image\/upload\/c_fit,dpr_2.0,f_auto,h_1600,q_auto,w_200\/v1\/referral_logos\/in\/insurance\/hdfc-1 2x\"\u003E\u003C\/a\u003E\n \n \u003C\/div\u003E\n\u003C\/div\u003E\n \u003C\/div\u003E\n \u003Cdiv class=\"AffiliateBanner--link\"\u003E\n \u003Cdiv class=\"AffiliateButton--root \"\u003E\n \u003Ca data-eventcategory=\"Affiliate car_insurance_companies: HDFC Ergo - Button\" data-eventlabel=\"HDFC Ergo\" class=\"ShortcodeLink--root AffiliateButton--button js-event-click\" rel=\"nofollow noopener\" target=\"_blank\" title=\"HDFC Ergo\" href=\"\/redirect?link=https%3A%2F%2Faffiliate.valuechampion.in%2Fredirect%3Flink%3Dhttps%253A%252F%252Fad.admitad.com%252Fg%252Frn2sg7cxp32bc4fc0fc8995a4b6d27%252F\"\u003EGet a Quote \u003C\/a\u003E\n\u003C\/div\u003E\n \u003C\/div\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\n\u003Cdiv class=\"AffiliateBannerDesktop--root\"\u003E\n \u003Cdiv class=\"AffiliateBanner--root \"\u003E\n \u003Cdiv class=\"AffiliateBanner--image\"\u003E\n \u003Cdiv class=\"ShortcodeImageBare--root \"\u003E\n \u003Cdiv class=\"ShortcodeImageBare--image-container\"\u003E\n \u003Ca class=\"js-event-click\" data-eventcategory=\"Affiliate car_insurance_companies: HDFC Ergo - Image\" data-eventlabel=\"HDFC Ergo\" rel=\"nofollow noopener\" target=\"_blank\" title=\"HDFC Ergo\" href=\"\/redirect?link=https%3A%2F%2Faffiliate.valuechampion.in%2Fredirect%3Flink%3Dhttps%253A%252F%252Fad.admitad.com%252Fg%252Frn2sg7cxp32bc4fc0fc8995a4b6d27%252F\"\u003E\u003Cimg alt=\"HDFC Ergo\" class=\"ShortcodeImage--image\" style=\"width: 200px;\" src=\"https:\/\/res.cloudinary.com\/valuechampion\/image\/upload\/c_fit,dpr_1.0,f_auto,h_1600,q_auto,w_200\/v1\/referral_logos\/in\/insurance\/hdfc-1\" srcset=\"https:\/\/res.cloudinary.com\/valuechampion\/image\/upload\/c_fit,dpr_1.0,f_auto,h_1600,q_auto,w_200\/v1\/referral_logos\/in\/insurance\/hdfc-1 1x, https:\/\/res.cloudinary.com\/valuechampion\/image\/upload\/c_fit,dpr_2.0,f_auto,h_1600,q_auto,w_200\/v1\/referral_logos\/in\/insurance\/hdfc-1 2x\"\u003E\u003C\/a\u003E\n \n \u003C\/div\u003E\n\u003C\/div\u003E\n \u003C\/div\u003E\n \u003Cdiv class=\"AffiliateBanner--link\"\u003E\n \u003Cdiv class=\"AffiliateButton--root \"\u003E\n \u003Ca data-eventcategory=\"Affiliate car_insurance_companies: HDFC Ergo - Button\" data-eventlabel=\"HDFC Ergo\" class=\"ShortcodeLink--root AffiliateButton--button js-event-click\" rel=\"nofollow noopener\" target=\"_blank\" title=\"HDFC Ergo\" href=\"\/redirect?link=https%3A%2F%2Faffiliate.valuechampion.in%2Fredirect%3Flink%3Dhttps%253A%252F%252Fad.admitad.com%252Fg%252Frn2sg7cxp32bc4fc0fc8995a4b6d27%252F\"\u003EGet a Quote \u003C\/a\u003E\n\u003C\/div\u003E\n \u003C\/div\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\n","\n\u003Cdiv class=\"AffiliateBannerMobile--root\"\u003E\n \u003Cdiv class=\"AffiliateBanner--root \"\u003E\n \u003Cdiv class=\"AffiliateBanner--image\"\u003E\n \u003Cdiv class=\"ShortcodeImageBare--root \"\u003E\n \u003Cdiv class=\"ShortcodeImageBare--image-container\"\u003E\n \u003Ca class=\"js-event-click\" data-eventcategory=\"Affiliate car_insurance_companies: Edelweiss Car Insurance - Image\" data-eventlabel=\"Edelweiss Car Insurance\" rel=\"nofollow noopener\" target=\"_blank\" title=\"Edelweiss Car Insurance\" href=\"\/redirect?link=https%3A%2F%2Faffiliate.valuechampion.in%2Fredirect%3Flink%3Dhttps%253A%252F%252Fwww.edelweissinsurance.com%252Fcar\"\u003E\u003Cimg alt=\"Edelweiss Car Insurance\" class=\"ShortcodeImage--image\" style=\"width: 200px;\" src=\"https:\/\/res.cloudinary.com\/valuechampion\/image\/upload\/c_fit,dpr_1.0,f_auto,h_1600,q_auto,w_200\/v1\/referral_logos\/in\/insurance\/edelweiss-1\" srcset=\"https:\/\/res.cloudinary.com\/valuechampion\/image\/upload\/c_fit,dpr_1.0,f_auto,h_1600,q_auto,w_200\/v1\/referral_logos\/in\/insurance\/edelweiss-1 1x, https:\/\/res.cloudinary.com\/valuechampion\/image\/upload\/c_fit,dpr_2.0,f_auto,h_1600,q_auto,w_200\/v1\/referral_logos\/in\/insurance\/edelweiss-1 2x\"\u003E\u003C\/a\u003E\n \n \u003C\/div\u003E\n\u003C\/div\u003E\n \u003C\/div\u003E\n \u003Cdiv class=\"AffiliateBanner--link\"\u003E\n \u003Cdiv class=\"AffiliateButton--root \"\u003E\n \u003Ca data-eventcategory=\"Affiliate car_insurance_companies: Edelweiss Car Insurance - Button\" data-eventlabel=\"Edelweiss Car Insurance\" class=\"ShortcodeLink--root AffiliateButton--button js-event-click\" rel=\"nofollow noopener\" target=\"_blank\" title=\"Edelweiss Car Insurance\" href=\"\/redirect?link=https%3A%2F%2Faffiliate.valuechampion.in%2Fredirect%3Flink%3Dhttps%253A%252F%252Fwww.edelweissinsurance.com%252Fcar\"\u003EGet a Quote \u003C\/a\u003E\n\u003C\/div\u003E\n \u003C\/div\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\n\u003Cdiv class=\"AffiliateBannerDesktop--root\"\u003E\n \u003Cdiv class=\"AffiliateBanner--root \"\u003E\n \u003Cdiv class=\"AffiliateBanner--image\"\u003E\n \u003Cdiv class=\"ShortcodeImageBare--root \"\u003E\n \u003Cdiv class=\"ShortcodeImageBare--image-container\"\u003E\n \u003Ca class=\"js-event-click\" data-eventcategory=\"Affiliate car_insurance_companies: Edelweiss Car Insurance - Image\" data-eventlabel=\"Edelweiss Car Insurance\" rel=\"nofollow noopener\" target=\"_blank\" title=\"Edelweiss Car Insurance\" href=\"\/redirect?link=https%3A%2F%2Faffiliate.valuechampion.in%2Fredirect%3Flink%3Dhttps%253A%252F%252Fwww.edelweissinsurance.com%252Fcar\"\u003E\u003Cimg alt=\"Edelweiss Car Insurance\" class=\"ShortcodeImage--image\" style=\"width: 200px;\" src=\"https:\/\/res.cloudinary.com\/valuechampion\/image\/upload\/c_fit,dpr_1.0,f_auto,h_1600,q_auto,w_200\/v1\/referral_logos\/in\/insurance\/edelweiss-1\" srcset=\"https:\/\/res.cloudinary.com\/valuechampion\/image\/upload\/c_fit,dpr_1.0,f_auto,h_1600,q_auto,w_200\/v1\/referral_logos\/in\/insurance\/edelweiss-1 1x, https:\/\/res.cloudinary.com\/valuechampion\/image\/upload\/c_fit,dpr_2.0,f_auto,h_1600,q_auto,w_200\/v1\/referral_logos\/in\/insurance\/edelweiss-1 2x\"\u003E\u003C\/a\u003E\n \n \u003C\/div\u003E\n\u003C\/div\u003E\n \u003C\/div\u003E\n \u003Cdiv class=\"AffiliateBanner--link\"\u003E\n \u003Cdiv class=\"AffiliateButton--root \"\u003E\n \u003Ca data-eventcategory=\"Affiliate car_insurance_companies: Edelweiss Car Insurance - Button\" data-eventlabel=\"Edelweiss Car Insurance\" class=\"ShortcodeLink--root AffiliateButton--button js-event-click\" rel=\"nofollow noopener\" target=\"_blank\" title=\"Edelweiss Car Insurance\" href=\"\/redirect?link=https%3A%2F%2Faffiliate.valuechampion.in%2Fredirect%3Flink%3Dhttps%253A%252F%252Fwww.edelweissinsurance.com%252Fcar\"\u003EGet a Quote \u003C\/a\u003E\n\u003C\/div\u003E\n \u003C\/div\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\n","\n\u003Cdiv class=\"AffiliateBannerMobile--root\"\u003E\n \u003Cdiv class=\"AffiliateBanner--root \"\u003E\n \u003Cdiv class=\"AffiliateBanner--image\"\u003E\n \u003Cdiv class=\"ShortcodeImageBare--root \"\u003E\n \u003Cdiv class=\"ShortcodeImageBare--image-container\"\u003E\n \u003Ca class=\"js-event-click\" data-eventcategory=\"Affiliate car_insurance_companies: GoDigit - Image\" data-eventlabel=\"GoDigit\" rel=\"nofollow noopener\" target=\"_blank\" title=\"GoDigit\" href=\"\/redirect?link=https%3A%2F%2Faffiliate.valuechampion.in%2Fredirect%3Flink%3Dhttps%253A%252F%252Fwww.godigit.com%252Fmotor-insurance%252Fcar-insurance\"\u003E\u003Cimg alt=\"GoDigit\" class=\"ShortcodeImage--image\" style=\"width: 200px;\" src=\"https:\/\/res.cloudinary.com\/valuechampion\/image\/upload\/c_fit,dpr_1.0,f_auto,h_1600,q_auto,w_200\/v1\/referral_logos\/in\/insurance\/digit-3\" srcset=\"https:\/\/res.cloudinary.com\/valuechampion\/image\/upload\/c_fit,dpr_1.0,f_auto,h_1600,q_auto,w_200\/v1\/referral_logos\/in\/insurance\/digit-3 1x, https:\/\/res.cloudinary.com\/valuechampion\/image\/upload\/c_fit,dpr_2.0,f_auto,h_1600,q_auto,w_200\/v1\/referral_logos\/in\/insurance\/digit-3 2x\"\u003E\u003C\/a\u003E\n \n \u003C\/div\u003E\n\u003C\/div\u003E\n \u003C\/div\u003E\n \u003Cdiv class=\"AffiliateBanner--link\"\u003E\n \u003Cdiv class=\"AffiliateButton--root \"\u003E\n \u003Ca data-eventcategory=\"Affiliate car_insurance_companies: GoDigit - Button\" data-eventlabel=\"GoDigit\" class=\"ShortcodeLink--root AffiliateButton--button js-event-click\" rel=\"nofollow noopener\" target=\"_blank\" title=\"GoDigit\" href=\"\/redirect?link=https%3A%2F%2Faffiliate.valuechampion.in%2Fredirect%3Flink%3Dhttps%253A%252F%252Fwww.godigit.com%252Fmotor-insurance%252Fcar-insurance\"\u003EGet a Quote \u003C\/a\u003E\n\u003C\/div\u003E\n \u003C\/div\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\n\u003Cdiv class=\"AffiliateBannerDesktop--root\"\u003E\n \u003Cdiv class=\"AffiliateBanner--root \"\u003E\n \u003Cdiv class=\"AffiliateBanner--image\"\u003E\n \u003Cdiv class=\"ShortcodeImageBare--root \"\u003E\n \u003Cdiv class=\"ShortcodeImageBare--image-container\"\u003E\n \u003Ca class=\"js-event-click\" data-eventcategory=\"Affiliate car_insurance_companies: GoDigit - Image\" data-eventlabel=\"GoDigit\" rel=\"nofollow noopener\" target=\"_blank\" title=\"GoDigit\" href=\"\/redirect?link=https%3A%2F%2Faffiliate.valuechampion.in%2Fredirect%3Flink%3Dhttps%253A%252F%252Fwww.godigit.com%252Fmotor-insurance%252Fcar-insurance\"\u003E\u003Cimg alt=\"GoDigit\" class=\"ShortcodeImage--image\" style=\"width: 200px;\" src=\"https:\/\/res.cloudinary.com\/valuechampion\/image\/upload\/c_fit,dpr_1.0,f_auto,h_1600,q_auto,w_200\/v1\/referral_logos\/in\/insurance\/digit-3\" srcset=\"https:\/\/res.cloudinary.com\/valuechampion\/image\/upload\/c_fit,dpr_1.0,f_auto,h_1600,q_auto,w_200\/v1\/referral_logos\/in\/insurance\/digit-3 1x, https:\/\/res.cloudinary.com\/valuechampion\/image\/upload\/c_fit,dpr_2.0,f_auto,h_1600,q_auto,w_200\/v1\/referral_logos\/in\/insurance\/digit-3 2x\"\u003E\u003C\/a\u003E\n \n \u003C\/div\u003E\n\u003C\/div\u003E\n \u003C\/div\u003E\n \u003Cdiv class=\"AffiliateBanner--link\"\u003E\n \u003Cdiv class=\"AffiliateButton--root \"\u003E\n \u003Ca data-eventcategory=\"Affiliate car_insurance_companies: GoDigit - Button\" data-eventlabel=\"GoDigit\" class=\"ShortcodeLink--root AffiliateButton--button js-event-click\" rel=\"nofollow noopener\" target=\"_blank\" title=\"GoDigit\" href=\"\/redirect?link=https%3A%2F%2Faffiliate.valuechampion.in%2Fredirect%3Flink%3Dhttps%253A%252F%252Fwww.godigit.com%252Fmotor-insurance%252Fcar-insurance\"\u003EGet a Quote \u003C\/a\u003E\n\u003C\/div\u003E\n \u003C\/div\u003E\n \u003C\/div\u003E\n\u003C\/div\u003E\n"],"offsetPercentage":20}

Most car insurers allow you to buy third party plans online, some require you to work directly with an agent to buy and activate a new policy. Of the 13 insurers we analysed who do allow third party policies to be purchased online, HDFC Ergo General Insurance, Edelweiss Insurance and Digit Insurance offer the best, fastest and most user-friendly online platform, helping consumers buy a new policy in just minutes.

HDFC Ergo General Insurance

HDFC Ergo's third party car insurance plan carries the standard annual costs and coverage features as most other policies on the market. However, their online purchasing process is one of the best of any car insurer we studied.

Their step-by-step online buying process is convenient, smooth, easy-to-navigate, and overall one of the best platforms we studied. The tool provides a status tracker, so you know how much time you need to allocate to buying a policy and exactly how many steps remain before you're fully insured.

HDFC Ergo also provides the option to send you a quote via WhatsApp, a feature offered by just four of the 13 insurers we studied who allow online insurance, and their website has a garage locator, so you can ensure one of their over-6,800 cashless garages are in your area. If you need any assistance along the way, you can take advantage of their live chat feature, which will connect you with an agent to answer any questions you may have.

HDFC ErgoMarket Average
Market Share4.68%3.57%
Incurred Claims Ratio82%90%
Claim Settlement Rate98.8%94.3%
Cashless Garages6,8003,870
PolicyBazaar Star Ratings4.4 (62 reviews)4.2 (22 reviews)
InsuranceDekho Star Ratings5.0 (196 reviews)4.9 (167 reviews)

The company's 98.8% claim settlement rate is the second-highest among insurers in our study, so it's highly likely that your claim will be settled in a timely fashion. HDFC Ergo also boasts an 82% incurred claims ratio (ICR), which indicates a strong ability to settle claims against annual premium collection.

The International Alternative Investment Review (IAIR) awarded HDFC Ergo with the Best General Insurance Company in India award in both 2013 and 2014, and they're iAAA-rated by the Investment Information and Credit Rating Agency of India Limited (ICRA), meaning they have an extremely strong claims-paying ability. HDFC Ergo has also earned an ISO 9001:2008 certification for their outstanding success in customer and claims management, so their policyholders can feel confident that their dedicated insurance agent will be knowledgeable and available to assist in any situation.

Read more: HDFC Ergo Car Insurance Review

Edelweiss Insurance

Edelweiss's third party car insurance plan also includes the standard annual pricing and coverages as most other policies in India, as well as personal accident coverage, and like HDFC Ergo, their online purchasing process makes them a great choice.

Their step-by-step online buying process is modern, fast, and one of the most user-friendly tools we studied. The company's website, like its quoting tool, is also very modern and simple to understand, they have a garage locator, which will show you all in-network cashless garages in your area.

EdelweissMarket Average
Market Share0.14%3.57%
Incurred Claims Ratio145%90%
Claim Settlement Rate86.9%94.3%
Cashless Garages1,5003,870
PolicyBazaar Star Ratings4.5 (27 reviews)4.2 (22 reviews)
InsuranceDekho Star Ratings4.9 (118 reviews)4.9 (167 reviews)

Edelweiss's claim settlement rates are less than optimal, but they are highly-reviewed by their policyholders and provide excellent customer service and timely responses. They are also one of just four insurers to offer the legal liability for paid drivers add-on, and personal accident coverage is an optional feature for their third party plans.

Read more: Edelweiss Car Insurance Review

Digit Car Insurance

Digit's third party car insurance plan requires personal accident coverage as an add-on, but does not offer any other features or discounts. Digit is one of the newest and already one of the best car insurers in the country, winning the Insurance Company of the Year in India in 2019.

Digit’s simple approach to online car insurance has allowed them to develop a modern and convenient step-by-step purchasing process that is easy to understand for consumers of any age. Their online quoting and purchasing tool is the best offered by any of the 16 companies we studied. In addition to its simplicity and speed, it displays a status bar, so you know exactly how far along in the process you are and how much longer you’ve got to go before you’re insured.

Once insured with an affordable plan, you’ll also have the ability to file video claims from your smartphone.

DigitMarket Average
Market Share2.75%3.57%
Incurred Claims Ratio76%90%
Claim Settlement Rate97.8%94.3%
Cashless Garages1,4003,870
PolicyBazaar Star Ratings4.7 (24 reviews)4.2 (22 reviews)
InsuranceDekho Star Ratings4.9 (155 reviews)4.9 (167 reviews)

Despite only being founded in 2016, Digit has already captured a 2.75% market share, and has earned above average ratings on both PolicyBazaar and InsuranceDekho. Third party policyholders can also rely on a quick and easy claim settlement process; Digit's settlement rates are some of the best in our study and fall right in the optimal and healthy range for an Indian car insurer.

Read More: Digit Car Insurance Review

How to Choose Third Party Insurance

Since pricing is regulated by the government and does not vary by insurance company, and since many third party plans come with a standard set of included and excluded benefits, it can be a difficult and stressful process to pick which third party insurer is best suited to your needs.

Engine Capacity (cc)Annual Premium
< 1,000cc₹2,072
1,000cc - 1,500cc₹3,221
1,500cc+₹7,890

When it comes to third party insurance, the best way to separate the strong insurance companies from the weaker ones is to consider factors such as: customer reviews, cashless garage networks, incurred claim ratios, claim settlement rates and online buying platforms.

Insurance CompanyPolicyBazaar RatingCashless GaragesClaim Settlement RateIncurred Claims RateMarket ShareOnline Third Party Purchase
Market Average4.23,87094.3%90%3.57%Yes
AckoN/A3,00098.8%129%0.31%Yes
Bajaj Allianz4.24,00097.9%62%6.74%Yes
Bharti Axa4.45,20093.1%75%1.73%Yes
Chola MS4.47,10088.4%84%4.70%Yes
CocoN/A5,00099.4%29%0.06%Yes
Digit4.71,40097.8%76%2.75%Yes
Edelweiss4.51,50086.9%145%0.14%Yes
Future Generali4.52,50086.9%69%1.95%No
HDFC Ergo4.46,80098.8%82%4.68%Yes
Kotak4.81,30097.7%74%0.42%Yes
Liberty4.64,30097.0%70%1.32%Yes
Magma HDI4.41,00092.2%65%1.38%No
New India4.31,50089.1%104%14.08%Yes
Oriental4.91,00089.6%113%5.78%Yes
Reliance4.94,60098.1%85%5.14%Yes
SBI General4.35,40097.0%87%1.94%No

Customer Reviews

Many online review sites like PolicyBazaar and InsuranceDekho allow policyholders to leave detailed reviews and choose a rating between one and five stars. It's important to read not just the positive but also some of the critical reviews, so you can properly evaluate each insurer. It's also important to consider reviews from multiple sources, as well as expert reviews from websites like ValueChampion.

Cashless Garage Networks

Cashless garage networks are extremely important when choosing your next third party insurance policy. It's important to not only ensure your insurance company has a cashless garage in your area, but also a wide network of cashless garages, in case an accident takes place in an inconvenient location.

Car insurance companies like Reliance and HDFC Ergo provide a cashless network garage locator right on their website. It allows you to search countless locations in India, and provides a list of in-network cashless garages in the area.

Claim Settlement and Incurred Claim Rates

Claim settlement rates and incurred claim rates measure two different aspects of a car insurer, but both are of equal importance.

Claim settlement rates show how many claims submitted by policyholders are settled successfully. The market average in India, among the companies we studied, is 94.3%, with 100% being the best possible achievable rate. Purchasing a third party policy from a company with a claim settlement rate under 90% runs the risk of your potential claim not being settled in a timely manner and with obstacles along the way.

Incurred claim rates (ICR) indicate how strongly an insurer settles claims against annual premium collection. The optimal range for an Indian car insurer is between 75-90%. Companies falling within this range have a healthy balance between the annual premiums they collect and the settlements they distribute, and tend to have the most convenient settlement process with the fewest amount of obstacles.

An ICR that falls above this threshold, even if it approaches or exceeds 100%, is not a positive indicator and means that a sizable amount of the company's annual premiums are used to cover risk transfer. An ICR that falls below the threshold is also a negative indicator, as it shows that the insurer does not distribute high claim settlement payments to its policyholders.

Online Buying Platforms

Most car insurance companies in India provide a third party policy option, but some do not allow you to easily purchase a new plan online. Buying a new plan online is the fastest and most convenient way to obtain a new third party policy, so you'll want to ensure your new insurance company allows you to bypass working with an agent so you can quickly and easily purchase one online.

Some online purchasing platforms are better than others, so be sure to select an insurer with a smooth quoting and purchasing process, one that will send you a copy of your third party car insurance quote via email, SMS or even WhatsApp, and one with a live chat feature in case you need assistance along the way.

FAQ

Want to learn more about third party car insurance in India? Read our answers to some common questions on the topic.

Third party car insurance only covers damages and injuries to third party vehicles, individuals, or property in the event of an accident, usually up to Rs. 7.5 lakhs. Third party policies come with fewer benefits than comprehensive plans, but some allow consumers to include personal accident coverage to the scope of coverage.

Third party car insurance policy annual premiums are mandated by the Indian government, and are usually reevaluated annually. The cost depends only on the make and model of your car. For the current year, the yearly cost for cars under 1,000cc is ₹2,072, for cars between 1,000cc and 1,500cc is ₹3,221, and for higher-powered cars above 1,500cc is. ₹7,890.

All third party insurers in our study allowed their policyholders to submit claims via phone or email. Some insurers have a dedicated online portal where you can not only submit claims quickly, but also track the status and progress of your claims in real-time. A select few insurers have an app where policyholders can submit video claims instantly. Most insurers aim to settle claims in under a week, but some promise to settle claims within 24 hours.

Under third party insurance, claims may only be submitted for damages to third party property, cars or individuals. You cannot submit a claim for damages to yourself as the owner or driver of the car, or for damages to your car itself under a third party policy; you must have a comprehensive policy to do so.

Since pricing and coverage is generally similar across the market, there are a few other factors to consider when choosing the best third party car insurer for your needs. The most important factors to consider are customer reviews, cashless garage networks, incurred claim ratios, claim settlement rates and online buying platforms. Companies with above-average status in these areas tend to be the strongest insurers and the easiest to work with and settle claims through.

Methodology

To determine the best third party car insurance policies in India, we analysed and explored 16 insurers and collected pricing, benefits and inclusions data from over 300 car insurance quotes. We gathered quotes for both a new and used Honda Amaze, the Maruti Vitara Brezza and the Mercedes-Benz E-350 to analyse annual costs for new and used sedans, SUVs and luxury cars.

To further study, we gathered quotes for these car models across three cities: Mumbai, New Delhi and Bengaluru. We also conducted research from the IRDAI to analyse the rules and laws involving third party car insurance in India.


Mike Wagenman

Mike is a Senior Research Analyst at ValueChampion India, specializing in insurance. He holds a Bachelor of Arts degree from Rider University, and his prior work experience includes data and revenue analysis in the international travel market.