New Car Insurance

New Car Insurance

In India, securing insurance for new car purchases is a multi-year commitment regulated strictly by the IRDAI. As of 2026, the rules ensure that every driver on the road has a long-term safety net, but understanding the difference between legal "minimums" and "best protection" is key to saving money and safeguarding your asset

Compare Premiums & Savings for Top-Selling New Cars

When you request a new car insurance quote, the price is split into two parts: the fixed Third-Party (TP) premium and the flexible Own-Damage (OD) premium. In 2026, the new car insurance rate for popular models starts from approximately ₹8,416 for a Maruti Swift and ₹11,878 for a Tata Nexon.

By comparing car insurance quotes for new car options online, you can often find significant savings over dealer-provided insurance, which sometimes includes hidden commissions. A digital new car insurance quotation allows you to tweak your Insured Declared Value (IDV)—typically set at 95% of the ex-showroom price for new cars—to find the perfect balance of cost and cover.

Types of Insurance Plans for Brand-New Cars

For a brand new car insurance policy, IRDAI mandates a long-term structure to prevent policies from lapsing frequently:

• Bundled Policy (The Standard): This is the most common new car policy. it includes a 3-year Third-Party cover and a 1-year Own-Damage cover. You renew the OD part every year while the TP remains active for three.
• 3-Year Comprehensive Policy: An optional but hassle-free new vehicle insurance plan where both TP and OD are covered for three years straight, protecting you from annual premium hikes.
• Standalone Third-Party: The bare legal minimum for car insurance on new purchase. It covers only damages to others and offers no protection for your own car.

What Does New Car Insurance Cover? (Inclusions & Exclusions)

Inclusions:

• Accidental Damage: Repairs for your car due to road accidents.
• Natural Calamities: Coverage against floods, cyclones, and earthquakes.
• Theft: The full IDV is paid out if your car is stolen.
• Third-Party Liability: Unlimited cover for third-party death/injury and up to ₹7.5 lakh for property damage.

Exclusions:

• Illegal Driving: Accidents while driving without a valid licence or under the influence of alcohol.
• Consequential Loss: Damage that isn't a direct result of an accident (e.g., trying to start a submerged engine).
• Wear and Tear: Routine ageing of tyres, tubes, and mechanical parts.

Best Add-On Covers for Brand-New Car Insurance

To truly protect a brand-new car purchase, these car insurance add-ons are highly recommended:

• Zero Depreciation: Ensures the insurer pays the full cost of replacing parts like plastic or rubber without deducting for "ageing".
• Return to Invoice (RTI): If the car is stolen or totalled, RTI pays you the original new car insurance price (on-road cost) rather than just the depreciated IDV.
• Engine Protection: Covers repairs for engine damage due to water ingression (common in monsoons), which standard policies exclude.
• Roadside Assistance (RSA): 24/7 help for towing, flat tyres, or emergency fuel.

How to Buy Insurance for a Brand-New Car (Step-by-Step)

You can buy new car insurance online in five simple steps:

• Enter Details: Visit an aggregator or insurer site and enter your car's make, model, and RTO.
• Compare Plans: View different car insurance for new vehicle options and compare their network of cashless garages.
• Customise Add-ons: Select Zero Dep or RTI based on your needs.
• Verify IDV: Ensure the IDV is correctly set (usually 95% of ex-showroom).
• Make Payment: Pay via UPI or Net Banking to buy new insurance for car and receive the policy instantly via email.

New Car Insurance Claim Process Explained

If your car meets with an accident:

• Inform the Insurer: Use the insurer's app to log the claim within 24–48 hours.
• Surveyor Inspection: A surveyor will be appointed within 72 hours to assess damages.
• Cashless Repair: If you use a network garage, the insurer settles the bill directly, minus the Standard Deductible (₹1,000–₹2,000 depending on CC).

Documents Needed to File a New Car Insurance Claim

• Copy of the new car insurance policy.
• Car's Registration Certificate (RC).
• Valid Driving Licence of the person at the wheel.
• FIR (Mandatory for theft or third-party injury).