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What Type of Car Insurance is Best for a New Car?

Q: 3. How much does car insurance for a new car cost?

Insurance premiums depend on various factors, such as the car model, location, selected add-ons, claims history, and the insurer. Even though full coverage policies are priced higher than third-party ones, they offer a lot more protection in terms of financial safety, especially for new cars.

Q: 4. Can I buy car insurance online for a new car?

Definitely. You can get car insurance through an online platform like ACKO in just a few minutes. Besides, you can also compare the coverage, select the add-ons, and get your policy immediately, all this without any paperwork.

Nikhila PSDec 8, 2025

In most cases, a comprehensive car insurance policy is the best option for a new car. Purchasing a new car is undoubtedly a significant accomplishment. Along with the new car smell and the satisfying ownership, the smooth performance comes as a delight. But with all this fun, it also comes with the obligation to keep your investment safe from the very first day, and that is why choosing the right car insurance is very important

New cars are more susceptible to risks such as accidents, theft, natural disasters, and even minor damages that can cost you thousands or lakhs in repairs. Therefore, taking an inadequate insurance plan (or choosing insufficient coverage) can lead you to have costly car repairs and financial troubles. We help you understand which is the best type of car insurance for a new car, the coverage it should provide, and what kind of extra options make the most sense for brand-new cars in this ‍‌‍‍‌guide.

Contents

Why Comprehensive Car Insurance Is the Best Choice for a New Car
- Why your new car needs comprehensive cover
Why Not Just Buy Third-Party Insurance?
Must-Have Add-ons for New Cars
Real-World‍‌‍‍‌ Example (Simple Scenario)
Conclusion
Frequently Asked Questions

Why Comprehensive Car Insurance Is the Best Choice for a New Car

In‍‌‍‍‌ India, you have to have third-party car insurance by law. However, here is the catch, it only pays for the damage that you cause to others. Your car? Not covered at all. And that is a huge risk for a brand-new car.
That is why Comprehensive Car Insurance is the solution. It covers:

Third-party liabilities
Damage to your own car
Theft
Fire and explosions
Flooding, cyclones, storms
Riots or vandalism
Accidents and collisions

Simply put, it keeps your vehicle safe from almost all the major risks.

Why your new car needs comprehensive cover

New vehicles are costly to fix
Small scratches may cost you a lot
Spare parts are highly priced
Theft risk is quite high in many areas
Weather damage (especially floods) cannot be predicted

If you recently bought your dream car, comprehensive insurance is the perfect way to give it the protection it ‍‌‍‍‌deserves.

Why Not Just Buy Third-Party Insurance?

Third-party‍‌‍‍‌ insurance is the one that pays for the damages that your car causes to other people's property or vehicles. Yeah, it is obligatory. But it does not cover the damages to your own car, not even a scratch.
Just to illustrate:

Someone damages your brand-new bumper - No coverage
Floodwater goes through the engine - No coverage
Your new car gets stolen - No coverage

A third-party-only insurance can seem more affordable, but the risk is very high. So, it is absolutely not a good idea for a new ‍‌‍‍‌car.

Must-Have Add-ons for New Cars

One‍‌‍‍‌ wise move would be to buy a comprehensive plan. However, it is only when you add the suitable add-ons that you get real protection. These optional covers elevate your policy to a higher level, keeping your new car safe from costly repairs.

Zero Depreciation Cover: As soon as the car is taken out of the showroom, its value starts to drop. With this add-on, you can claim the full amounts without any depreciation deductions. It is an indispensable item on the list for every new car.
Engine Protection Cover: The engine of a modern vehicle is a very delicate one. It can be waterlogging or oil leakage that leads to engine damage, and subsequently, the repair cost can easily exceed ₹1 lakh. This add-on is designed to keep your engine safe, which is particularly helpful in a city prone to flooding.
Return to Invoice (RTI): If your new car is stolen or damaged beyond repair, this add-on allows you to recover the full purchase price, including all on-road accessories and add-ons, rather than just the depreciated value. It is an excellent fit for brand-new vehicles.
Roadside Assistance: This includes a list of potential issues that can arise with the car and the benefits the driver will receive in the event of an issue. For example, towing, battery jump-start, flat tyre help, etc., in case the car breaks down unexpectedly and the driver needs help immediately.
Consumables Cover: Protects consumable items that are small but necessary, such as engine oil, brake fluid, nuts, bolts, and lubricants, which are generally not accounted for in standard policy ‍‌‍‍‌provisions.

Real-World‍‌‍‍‌ Example (Simple Scenario)

Suppose you purchased a brand-new hatchback. After two months, a heavy downpour causes waterlogging in your area where your car is parked. As a result, your engine gets damaged - repair cost: ₹ 75,000.

If you have third-party insurance only, you will bear the entire cost of ₹75,000.

If you have a comprehensive + engine protection cover, your insurer bears the repair cost. You pay almost nothing.

That is why your decision to select the right policy is ‍‌‍‍‌important.

Conclusion

It‍‌‍‍‌ would be best if you did not just settle for basic and minimum insurance for your new car. What you need is a Comprehensive Car Insurance Policy backed by additional features, such as Zero Depreciation, Engine Protection, and Return to Invoice.

And if you want insurance that’s simple, quick, and specially made for digital-first customers, ACKO is here for you. ACKO keeps it super easy and convenient, from buying to paperless claims and quick settlements.

With excellent coverage and a trouble-free experience, you should be free to enjoy every drive with the peace of mind that your new car is fully ‍‌‍‍‌protected.

Frequently Asked Questions

1. Which type of insurance is best for a brand-new car?

A comprehensive Car Insurance Policy is the perfect option for a brand-new car. The policy protects your car against damages resulting from accidents, theft, fire, floods, natural calamities, along third-party liabilities. The plan becomes more robust by simply adding necessary covers such as Zero Depreciation and Engine ‍‌‍‍‌Protection.

2. Is third-party insurance enough for a new car?

No. Third-party insurance is required by law; however, it does not extend any protection to your own vehicle. In case your new car is damaged or stolen, you will have to cover the costs yourself. Third-party-only plans are not advised for new ‍‌‍‍‌cars.

3. How much does car insurance for a new car cost?

Insurance‍‌‍‍‌ premiums depend on various factors, such as the car model, location, selected add-ons, claims history, and the insurer. Even though full coverage policies are priced higher than third-party ones, they offer a lot more protection in terms of financial safety, especially for new cars.

4. Can I buy car insurance online for a new car?

Definitely.‍‌‍‍‌ You can get car insurance through an online platform like ACKO in just a few minutes. Besides, you can also compare the coverage, select the add-ons, and get your policy immediately, all this without any ‍‌‍‍‌paperwork.