Top car insurance plans for cars worth under 15 lakhs

Posted on: Jun 18, 2025 | 3 mins | Written by: HDFC ERGO Team

Top car insurance plans for cars worth under 15 lakhs

There are tons of car options in all budget categories available in the current Indian four-wheeler market. Among them, the mid-budget car segment is quite popular, especially among the youth buyers and middle-class families. If you own a car worth under ₹15 lakhs, it becomes very crucial that you pick the right car insurance policy coverage for it. On this page, we will take a detailed look at the top car insurance plans India for mid-budget cars and share some tips to help you find the best deal.

Why is car insurance required for cars under ₹15 lakhs?

The Motor Vehicles Act 1988 makes it mandatory for all four-wheelers to have valid car insurance in India. Otherwise, it will be illegal to drive a vehicle without insurance on public roads in India. So, regardless of whether you own a cheap, mid-budget or luxury car, you need to have it covered with a valid car insurance plan that at least comes with third-party liability cover.

Now, insurers offer various types of car insurance in India. Depending on your coverage goals and budget, you can pick a plan for your car. Cars worth under ₹15 lakhs are generally considered mid-budget cars. Owners of such cars often fail to understand the importance of car insurance policies. If you own a mid-budget car, you need to pick car insurance wisely in order to avoid financial distress in the future.

Types of car insurance for mid-budget cars

If you want the best car insurance for your mid-budget car, the very first thing you need to understand and figure out is the different policy types available. Here are the three main types of car insurance in India;

1. Third-party car insurance

The third-party car insurance plan is the most basic coverage type. It only offers coverage for accidental third-party property damage, bodily injury and death caused by the insured vehicle. It doesn’t cover own damages, and premiums are lowest for this policy type.

2. Standalone own damage car insurance

The standalone own damage plan only offers coverage for damages or losses suffered by the insured car due to accidents or other covered perils like theft, natural calamities, man-made hazards, fire, etc. It doesn’t offer coverage for third-party liabilities. So, if you already have a third-party liability policy for your car, which is a compulsory requirement, you can add the standalone OD cover to enhance the extent of your vehicle’s overall coverage.

3. Comprehensive car insurance

The comprehensive car insurance comes at a higher price tag compared to the other two options. It offers all-around protection under one plan, covering both third-party liabilities and own damages sustained by the insured vehicle. It is the most recommended vehicle insurance plan, especially for mid-budget car owners who want to have financial peace of mind.

Best car insurance add-ons for mid-budget cars

Now that you understand the different types of vehicle insurance plans for cars in India, you need to learn about the best car insurance add-ons to pick for your mid-budget car to get enhanced coverage. Add-ons are offered with comprehensive and standalone own damage car insurance plans, and here are some of the popular ones you can consider getting;

1. Zero depreciation

Regardless of how much your car is worth brand new, it depreciates in value with time and usage. When settling claims, insurers factor in the depreciation value, which results in smaller payouts. With a zero depreciation add-on, you can get the full claim amount for the damaged part during settlements without it being subject to any deduction of depreciation value.

2. Emergency roadside assistance

If your car breaks down in the middle of the road, you will not feel stranded if you have this add-on. It covers emergency assistance for stuff like flat tyre replacements, emergency refuelling, towing charges, etc., so you can get out of such a pinch with ease.

3. Engine protection cover

Even the cost of repairing and replacing the engine of a mid-budget car can take a massive toll on your finances. If you have this add-on, the cost of repair and replacement of the engine and gearbox components will be covered if they get damaged due to water ingress, lubricant leakage, accidents, etc.

4. Consumables cover

The cost of consumable items during repairs can stack up to a major bill, even for a mid-budget car. Bearing such expenses from your own pocket can be difficult. However, if you have the consumables cover add-on, you don’t have to worry about such bills. It covers costs of consumables, such as grease, nuts, bolts, screws, engine oil, etc.

5. Return to invoice

The return to invoice is a very popular add-on offered with top car insurance plans India. It lets you recover the invoice value of your vehicle in case it gets damaged beyond repair or stolen. With such substantial compensation, you can easily replace your mid-budget car without any worries.

How to find the best car insurance for mid-budget cars?

By choosing the ideal policy type and add-ons, you can find the best insurance for mid-budget cars. Here are some additional checks you need to do to ensure you get the best deal;

1. Insurer’s credibility: When buying car insurance under 15 lakh valued car, you need to make sure that the insurer you pick is reputable and has a high Claim Settlement Ratio (CSR).

2. Choice of coverage: While the third-party car insurance is enough to comply with the law, it is not sufficient in terms of damage protection. Hence, you should really consider getting a comprehensive plan alongside a few essential add-ons to ensure you have the best coverage for your mid-budget car.

3. Deductible: Deductible is the amount you are liable to pay from your end before the insurer covers the remaining claim. A higher deductible means a lower premium, while a lower deductible means a higher insurance premium. It is important that you carefully evaluate and consider this aspect when buying car insurance.

4. Premium: The car insurance premium depends on various factors, including the make & model of the car, vehicle age, selected coverage parameters, etc. Getting better coverage means paying a higher premium. However, considering the coverage offered, it is better to shell out a bit extra for car insurance if you want to protect your finances down the line.

5. Features and benefits: Prefer insurance plans from insurers that come with good features and benefits. Offering features and benefits such as a wide cashless network garage, digital app-based vehicle inspection, online policy payment and renewal, etc., are indicators of a good car insurance plan.

6. Claim process: One of the main things to consider when finding the best insurance for mid-budget cars is the claim procedure. Make sure the insurer handles claims in a fast manner and the process is easy to navigate.

Conclusion:

There are tons of cars from reputed manufacturers under the ₹15 lakhs price tag. Similarly, there are tons of car insurance plans from various insurers for mid-budget cars. Hence, it is crucial for car owners to put equal emphasis on research and consideration when choosing a car insurance plan for their mid-budget four-wheeler, just as they do when buying the car itself.

Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.

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