How To Buy Car Insurance?: A Step-by-Step Guide (2025)

The traditional process of buying or renewing a car insurance policy involves scheduling a call with your insurance agent or having to visit the insurance company's office physically. Nowadays, all it takes is a few clicks and a couple of minutes. Whether you are a first time car buyer or looking to renew your existing policy, here's your guide on how to buy car insurance.

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Steps to Buy the Right Car Insurance Online

There are two ways to buy four-wheeler insurance: Offline and Online. However, we recommend that you purchase a policy online after comparing prices from various insurers.

You can go through these simple steps to buy the right car insurance policy:

Step 1: Compare Multiple Car Insurance Quotes

The first thing to do when buying car insurance is compare quotes from multiple companies. This will help you review policy benefits, coverage, features, and additional services offered by the insurer.

Step 2. Choose the Type of Policy

There are three types of car insurance. Based on your preferences and needs, you can choose between the three. All types are explained below:

• Third-Party Car Insurance: By law, third-party car insurance is mandatory for all vehicles. The policy covers the bodily injury, death, and property damage of a third party by your insured vehicle.
• Own Damage Car Insurance: It covers the damage to your car in case of an accident. This is a standalone policy and only covers own damages.
• Comprehensive Car Insurance: Comprehensive coverage covers both own damage and third-party damage. It is one of the best options for car insurance, as you can also include several add-ons to enhance the coverage.

Step 3. Pick the Necessary Add-Ons

Add-ons in car insurance are the coverage you can purchase in addition to what you primarily get in a comprehensive policy. The add-ons provide coverage otherwise not included in the comprehensive car insurance policy. Below are some of the most popular add-ons:

• Zero Depreciation Cover
• Engine Protection Cover
• Return to Invoice Cover
• Roadside Assistance Cover

Step 4. Choosing The Right IDV

IDV, also known as Insured Declared Value, is the current market value of your car. The amount that you select as IDV is what you will receive when there is a total loss of your vehicle, either due to theft or due to an accident.

If you opt for a higher IDV, the payout will be higher, but the premium will also be higher. Likewise, if you opt for a lower IDV, the premium will be lower, but the payout will be less. Hence, settling on a realistic IDV is essential, ensuring you're adequately covered without overpaying.

Step 5. Check For Discounts

Every car insurance provider offers NCB (No Claim Bonus) when the car owner does not claim during a policy year. You can get up to 50% NCB if there are no claims made for five consecutive years.

Apart from the NCB in car insurance, check other discounts that an insurance provider offers. Some discounts include:

• Voluntary deductible discounts
• Bundle discounts
• Discounts for already installed anti-theft devices

Step 6. Premium Payment

Once you select the right car insurance coverage, you can pay the policy premium online via cards, UPI, or net banking. Make sure you provide accurate information about yourself and your car while filling out the application form. Upon payment, you will receive the soft copy of your car insurance policy instantly via email. The policy document will have essential details like the policy number, coverage information, and the claim procedure.

Tips to Consider While Choosing the Car Insurance Company

Here are some tips you should follow while choosing a car insurance company:

1. Know The Claim Procedure

   Knowing what claim procedures are available in car insurance and whether you can get a cashless or reimbursement facility is essential. Look for insurance providers that offer a cashless facility so that you don't have to pay when you take your car for repair, and hence, you can be stress-free, come what may.

   Also, knowing what happens when you want to make a claim is essential. The claim procedure should be simple and easy to understand.

2. Renewal Procedure and Payment Options

   Check the car insurance provider's renewal procedure to see if they offer online renewal or if you need to visit a branch to get a renewal done. Choose the one that offers flexible options for renewals.

   Also, look for an insurance provider that offers an easy mode of premium payments so that it does not feel like a burden.

3. Claim Settlement Ratio

   Talking about claims, an insurer's Claim Settlement Ratio (CSR) is a crucial aspect that you must look for before finalising anything. A claim settlement ratio is essentially the ratio of the settled claims to the claims received.

   The higher the CSR, the better the chances of seamless claim settlements.

4. Customer Support

   Customer support is an essential aspect of an insurance provider that you must consider. You will seek the right and prompt customer support in an emergency. Hence, make sure to see how good the customer support of an insurer is.

5. Go Through Customer Reviews

   The customer's review reflects how good an insurance provider is. Honest reviews from existing customers will provide useful insights and information into whether the insurer is right for you.

Conclusion

Getting car insurance is more than just a legal formality; it is an essential step towards a safe financial future. The right approach will ensure you choose the right insurance provider without much hassle. Sticking to the checklist and comparing to get the best coverage is recommended.