Hi,
I've just made the move to Bangalore, and enjoying it so far !
Don't know about insurance, car rental can be had easily for around Rps35000 per month for a small car (tata indigo), that's with driver. Cost of living is low (my reference is france) unless you look for too many of the familiar things from home, which are imported.
Accomodation is a big problem, a family house in a gated community is Rps130000 pm upwards and rising fast ! + agents fees and a 10 month deposit is standard. A good place to browse is
www.craiglist.org on the bangalore page. There seems to be more properties advertised directly by the owners.
Cheers!!