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Is it possible to buy insurance for a new car in India before it is registered at the Regional Transport Office (RTO)? The answer is yes. This is possible with ‘Brand New Car Insurance.’ Read ahead to know how to insure your brand-new car quickly, easily, and conveniently.
Thanks to ‘Brand New Car Insurance’ you can insure your new vehicle even before it is registered at a Regional Transport Office (RTO). Usually, brand-new cars are insured by the car dealer. This feels like a convenient process as the car dealer takes the responsibility of getting the vehicle registered at the RTO as well as insuring it. However, insuring your brand-new car from the car dealer is not your only option. There’s a better way — online car insurance.
You can simply visit ACKO’s website or use the ACKO app to insure your brand-new car within minutes at an affordable price. You also have the option to customise the policy with a wide variety of add-ons and choose from multiple plans such as a Standard Comprehensive Policy or a Zero Depreciation Standard Policy (Bumper to Bumper Insurance Plan) while buying new car insurance online.
Here’s the step-by-step process to buy new car insurance online via ACKO’s website. You can scroll up on this page to the car insurance widget and initiate the following process.
Step 1: Select what will you use your car for.
Step 2: Share your PIN code to confirm service availability.
Step 3: Select the RTO where your vehicle shall be registered.
Step 4: Share car details, mobile number, and expected car delivery date.
Step 5: Choose your preferred new car insurance price, plan and make the online payment.
Step 6: Download your new car insurance policy.
If you are looking for types of car insurance for new cars, then you have at least two options to choose from. Your new car insurance price will depend upon the chosen option. Have a look.
This is a must-have policy in India as per the law. A Third-party Car Insurance Policy covers you against third-party liabilities. Injuries to third parties (death included) and damages to their property are covered in this plan. As per (new car insurance rules) the Insurance Regulatory and Development Authority of India (IRDAI), brand-new cars must be insured with this policy straightaway for three years (three-year plan). Note that damages to your car are not covered under this plan as this is a basic cover.
Buying this policy is not a legal requirement. However, it is suggested to opt for a Comprehensive Policy, especially while looking for new car insurance online, due to its significant advantages over the basic plan. A Comprehensive Policy includes mandatory insurance coverage. It also insures your car in case of damages (calamities, accidents, etc.) and theft. With this cover, you also get the chance to enhance your coverage with the help of suitable add-ons such as Zero Depreciation, Roadside Assistance, etc.
Insuring your brand-new car online instead of depending upon the car dealer can work in your favour. Here’s how this option can be beneficial for you.
If you buy car insurance online, you can compare policies easily and insure your car with a suitable policy of your choice. There’s no such choice in case of dealer-offered insurance.
Usually, dealer-insurer tie-ups include agent commission and can result in a hike in the final price of the policy. Skip the dealer route to go online and save money spent on commission.
You can make informed decisions while insuring your car online by going through the policy features, coverages, and exclusions. Car insurance is not a one-time affair; the more you know about it, the better it is in the long run.
Here’s why ACKO should be your numero uno choice when it comes to insuring a new car.
ACKO is a digital insurance company. Thus, our processes are tech-based, paperless, and quick, resulting in low operational costs. This, coupled with a Zero Commission model, ensures savings that are passed on to you in the form of low premiums.
ACKO’s door-to-door claims service reduces your stress and increases your convenience. Simply call 1800 266 2256 (toll-free), and your damaged car shall be picked, repaired, and delivered to your doorstep. (terms and conditions apply).
Insure your car with customised plans to ensure maximum coverage. You can do this by generating an insurance quote for your prefered car plan on our website/app and making a payment. Additionally, you can also avail of attractive discounts on plans.
Money spent on new car insurance premium might seem like an additional expense. However, if spent correctly, it can help you save a lot of money in the future.
The higher the coverage, the higher the new car insurance cost. Insurance charges for a new car will be high because the car’s Insured Declared Value (IDV), understood as the car’s approximate current market price, is high. With time, the IDV reduces, and so does the corresponding payable premium.
Since your new car is a costly asset, it’s best to insure it extensively to avoid financial loss in case of a mishap. Insuring your car by paying a fraction of the bill is always a better option than paying a hefty garage bill.
The elated feeling with the purchase of a new car will remain intact for long if the car is secured with insurance. But, buying the right policy requires basic knowledge of how car insurance works. This could be quite challenging if you are the first time car insurance buyer. Here, we have simplified this challenge and created some tips for buying car insurance for the first time.
Understanding commonly-used terms used on the car insurance policy will help you know your coverage better. So, before you begin searching for the right car insurance policy or insurance company go through the following list of auto insurance jargons:
First-party and Second-party: The very first thing you will come across when you buy car insurance is your role as a buyer. The owner of the car, who is buying insurance is referred to as First-party. Similarly, an insurance company which is insuring the car becomes the Second-party.
Third-party(TP): Third-party is any person who is affected by the insured car, say in an accident. For example, during a collision, owner of the other car in question becomes the third-party.
Own Damage(OD): Any damage to the insured car or injuries to the owner of an insured car is termed as Own Damage.
No Claim Bonus(NCB): If the owner of the insured car or third-party does not raise a claim in an active policy year, the owner will be entitled for a discounted premium on the next renewal.
Insured Declared Value(IDV): The current market value of car is the Insured Declared Value. IDV in car insurance includes depreciation.
Add-on/Rider: Additional coverage options available with a Comprehensive Car Insurance Policy.
Claim Settlement Ratio(CSR): The ratio of number of claims settled to the number of claim received in one year by an insurance company.
Claim: Requesting an insurance company to pay for the insured damage or compensation with respect to the purchased insurance policy.
Depreciation: Reduction in the monetary value of the car with time.
Car insurance can be of two types, Third-party Car Insurance and Comprehensive Car Insurance. Third-party Car Insurance is mandatory as per The Motor Vehicles Act, 1988. It covers third-party liabilities.
A Comprehensive Car Insurance Policy provides a wider coverage as compared to Third-party Liability policy. Along with providing a basic Third-party Liability cover, it provides financial protection for Own Damage as well. Plus, events like theft, fire, self-ignition, natural and man-made calamities also form a part of the coverage. Additionally, you can customize a policy with the help of Add-on covers when you buy your first car insurance.
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Zero Depreciation: With time, the value of a car reduces due to depreciation. However, with the Zero Depreciation add-on, insurer will not consider depreciation at the time of claim settlement.
Roadside Assistance: On road facilities like towing, minor repairs, fuel, battery jumpstart, etc. can be availed with this cover.
Return to Invoice: In case of total loss of the car, the amount mentioned on the invoice will be compensated to the policyholder.
Engine Protection: Covers the cost of repairing/replacing the engine of the insured car.
NCB Protect: Helps in retaining the No Claim Bonus even after making a claim. Maximum two claims are allowed with this cover.
Consumable Cover: The cost of repairing/replacing consumables such as nuts & bolts, engine oil, etc. is covered with the consumable cover add-on.
Loss of Personal Belongings: If you lose expensive personal belongings like a smartphone or laptop, you can raise a claim under this add-on.
Before you buy car insurance online, compare car insurance policies online. Choose similar type of coverage offered by the products and compare various features offered by the company.
Once you have bought the right car insurance policy and add-ons, you need to keep a track of the renewals. This is important as timely renewals help in getting a discount on the car insurance premium if no claim is raised against the policy. If you buy car insurance online, it will be easier to track renewals as well.
Equip yourself with the basics we shared above and buying insurance will be effortless each and every time!
Also, read: Vehicle Scrappage Policy in India
Before we begin with this article, cheers to your first car! As we share your excitement, we will also share with you an important checklist to ensure that you buy the best motor car insurance policy. Here is a list of things you need to do/be ready with while purchasing car insurance for the first time:
Car details are nothing but the registration number and engine capacity of your car. Engine capacity is also an important factor to calculate the amount of insurance premium.
Correct personal details like name, current residential address and details on your driver’s license, need to be on the policy document. Your address will be used to send the hard copy of your policy. Also, entering correct personal details will be helpful at the time of claims.
Understand car insurance is fairly simple. You can buy either of the two types of car insurance policy, i.e. Third-party Liability or Comprehensive Policy. The difference in these two types of policies is the extent of coverage offered.
Buying a Comprehensive Car insurance Policy is recommended as it offers a wider coverage. It includes coverage for Own Damage, i.e injuries/damages to you and your car, along with a Third-party Liability cover. Plus, you can buy Add-ons for more coverage.
This is the current market value of your car. To know the approximate value, refer to the following table:
You need to pay some part of the claim amount as a Compulsory Deductible. You can also opt to pay Voluntary Deductible, but this amount needs to be declared when you purchase the policy.
Thanks to technology, you can do car insurance comparison and calculate the premium amount before purchasing a policy. Use an online premium calculator to know your Car Insurance premium.
Choose an insurance company which provides proper after-sales services. One way to know more about the services is to read user reviews online. Select your insurer once you are satisfied.
If you are buying the policy online, you will need your online payment details, including account number/customer id, password/ATM pin and One Time Password (OTP). Make a note of this and get your car insured.
There you go! Refer to this ready-made list while buying insurance and you will buy the policy like a pro even though it is your first time.
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Here are some common questions regarding new car insurance.
Whether you are a first-time driver or a seasoned driver, it is mandatory to insure your four-wheeler with a Third-party Insurance Plan as per The Motor Vehicles Act. If it is a new car, a new policy should be purchased and renewed before its expiry.
Yes, your cars can be insured by two different insurance companies.
For new cars, it is mandatory to buy Third-party Policy for three years. However, there is no such compulsion for an Own Damage Cover. Therefore, you can buy a Comprehensive Policy that offers a Third-party Policy for three years and Own Damage coverage for one year. Note that these rules regarding the new car insurance time period are subject to changes, so please check out the available options when you buy new car insurance.
Insuring a new car without a number plate can be possible if you directly buy insurance from the insurer (ACKO). You need to look out for the online purchase journey for insuring a brand-new car on the website/app to insure to-be registered cars. You can get a free new car insurance quote by scrolling to the top of this page to the car insurance widget and following the process.
The recommended insurance coverage for a new car is a long-term Third-party Policy, coupled with wide-ranging Own Damage coverage and suitable add-ons. Zero Depreciation, Roadside Assistance, Engine Protection, Return to Invoice and No Claim Bonus add-ons are a good choice. Ideally, the best insurance policy for a new car is the one that meets your insurance needs, offers extensive coverage, and top-notch services at a low premium.
The direct answer is, yes, it is. However, there are several factors at play here. If you opt for lower coverage while insuring a new car and choose higher coverage for insuring an older car, then the insurance premium for the latter can be higher.
You can insure your new car 24x7 for 365 days via ACKO’s website/app.
You need to make sure that your car is insured all the time while you are driving it on Indian public roads. Hence, you need to keep renewing your policy before its expiry date. Therefore, temporary insurance won’t work.