A Smart Approach to Selecting the Right Car Insurance Policy

Buying a new car is exciting, but choosing the right insurance policy can feel overwhelming—especially for first-time buyers navigating a crowded market of plans, add-ons and premium variations. While car dealers often bundle insurance alongside the purchase, their plans are not always the most cost-effective. In fact, opting to buy your policy directly from an insurer can help you save between 10–15% instantly. Here’s a complete guide to understanding where and how to buy a safer, more affordable car insurance policy.

Skip the Dealer and Buy Directly From the Insurer

As per IRDAI guidelines, car owners are free to purchase insurance from any recognised insurer of their choice. While dealership-issued policies are convenient, they often include commissions or higher premiums. Purchasing directly from an insurance provider—especially through their official websites or trusted online aggregators—allows you to compare multiple plans in real time and choose the most suitable one.

In many cases, the price difference is significant. For example, a dealer might quote a premium of ₹27,000 for a certain vehicle, while the exact same policy could be available online for around ₹19,500. This kind of transparency empowers buyers and ensures better value for money.

Choosing Between Comprehensive and Third-Party Insurance

India mandates that all vehicles must have at least a third-party liability insurance policy. This covers damages caused to a third party, but it does not protect your own vehicle. A comprehensive policy, on the other hand, includes third-party coverage along with protection for your car against accidents, fire, theft and natural disasters.

For new or mid-age vehicles, comprehensive insurance is strongly recommended due to higher vehicle value and repair costs. Older vehicles with lower market value often benefit from third-party policies, as they offer basic protection at a lower cost.

The Advantages of Long-Term Policies

Car owners can opt for one-year, two-year or even three-year long-term insurance policies. These longer-tenure plans help avoid the hassle of yearly renewal reminders and reduce the chances of policy lapse due to oversight. Financially too, long-term plans offer notable savings, often reducing overall premium costs by 10–15%. For example, a three-year policy could help you save thousands of rupees compared to renewing annually.

Make Use of Customisation and Add-On Benefits

Buying the policy directly gives you the freedom to customise your coverage. Depending on your driving habits, car model and budget, you can select add-ons such as:

• Zero Depreciation Cover – Ensures you receive the full claim amount without depreciation deductions

• Return to Invoice Cover – Useful in case of total loss or theft

• Roadside/Broken-Down Assistance – Offers support during emergencies

• Engine Protection Cover – Helps safeguard high-value engine components

Customising your policy ensures you get a tailor-made protection plan rather than a one-size-fits-all package.

Why Smart Selection Matters

Choosing the right car insurance is essential not only for financial protection but also for peace of mind. An informed decision taken at the time of car purchase can safeguard you from unexpected costs later. Compare online options, prioritise comprehensive coverage and consider long-term plans for better savings and uninterrupted protection.

By investing time in evaluating your insurance choices, you ensure stronger financial security and avoid unnecessary complications in the future. A smartly chosen policy becomes a valuable shield for both your car and your wallet.