RC, FASTag & Insurance: What Comes First When Buying a New Car?

When you buy a car in India, it doesn’t roll straight out of the showroom onto the road. Before that shiny new vehicle becomes “road-legal,” a few essential steps have to be ticked off, which include a registration certificate, insurance copy, and a FASTag.Now the question most buyers ask is which comes first: RC, FASTag, or insurance? This article covers step-by-step information so that you can know exactly what to do and in what order.

The first thing that needs to be sorted out when buying a new car is insurance. In India, it is a legal requirement that every vehicle has valid insurance before it can hit the road. Without it, you cannot even take your new car out of the showroom.

When it comes to insurance for new car, you’ll usually be offered two types of policies:

Third-Party Insurance: This is the basic plan, and it covers damages or injuries caused to other people, but not your own car.

Comprehensive Insurance: This is a more complete cover. Along with third-party protection, it also pays for damages to your own vehicle in case of accidents, theft, natural disasters, or fire.

Most dealers will try to bundle insurance with the car purchase, but you don’t always have to go with their option. These days, you can compare plans and buy new car insurance, often at a better price and with the flexibility to add extra covers like zero depreciation, roadside assistance, or return-to-invoice. So, before you get excited about taking your new ride home, make sure your policy is in place. 

Once the insurance is sorted, the dealer applies for your car’s registration at the RTO. The RC acts like your car’s identity card. It contains details like the chassis number, engine number, and owner information. You’ll initially get a temporary RC if the permanent one takes time to process. But remember, without RC, your car isn’t legally registered.

The final step before driving away hassle-free is getting your FASTag fitted. FASTag is that small sticker on your car’s windscreen which uses Radio Frequency Identification (RFID) to automatically deduct toll charges when you pass through highways. Since 2021, the government has made FASTag mandatory for all four-wheelers. If you don’t have one, you’ll be charged double at toll booths.

It is vital to note that FASTag is linked to either your bank account, prepaid wallet, or a FASTag provider. Just make sure your FAST

Sequence matters because RC, FASTag, and insurance are linked in this order:
1. Insurance: Needed first so that RC can be issued.
2. RC: Proof of your vehicle’s legal identity.
3. FASTag: Activated once your RC details are updated.

Make sure you follow the sequence, as mixing the order can create delays. It is imperative to note that without insurance, you will not get RC, and without RC, FASTag activation may also be stalled.
 

Here are some common mistakes new buyers make and how you can avoid them.

Many new car owners get caught up in the excitement and forget the small but crucial steps that follow. Setting up your insurance, RC, and FASTag in the right order ensures you don’t run into legal or financial hurdles later.