How to Buy Car Insurance Online in India: Step-wise Guide 2026

The evolving era of the internet has completely revolutionised the way individuals buy car insurance in 2026. Whether you are looking to buy a new policy or renew your existing insurance, here's your guide on how to buy car insurance.Read more

How to Buy the Right Car Insurance Online?

You can either buy car insurance online or use the traditional way and buy it through agents offline. Since the modern day is heavily dependent on the digital world, we recommend that you purchase a policy online after comparing prices from various insurers.

You can go through these simple steps to choose the most suitable car insurance online:

1. Step 1: Compare Multiple Car Insurance Quotes

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

2. Step 2. Choose the Type of Policy

   There are three types of car insurance based on their coverage. You can choose any of the following types of policies depending upon your needs and budget:

   • Third-Party Car Insurance: By law, third-party car insurance is mandatory for all vehicles. The policy covers bodily injury, death, and property damage caused to a third party by the 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 car insurance covers both own damage and third-party damage. It is one of the best options when you are buying car insurance, as you can also include several add-ons to enhance the coverage.

3. Step 3. Pick the Necessary Add-Ons

   While standard policies do not cover certain damages, policyholders can purchase various add-ons with car insurance by paying an additional cost. 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: The zero dep cover helps the policyholder get a better claim amount without deducting any depreciation cost on the repaired or replaced vehicle parts during an accident.
   • Engine Protection Cover: This add-on helps to cover expensive engine and gearbox repairs from water ingress, hydrostatic lock, and lubricant oil leakage, etc. The engine protection cover is common in flood-prone areas.
   • Return to Invoice Cover: If your car is stolen or damaged beyond repair, you are entitled to receive the depreciated value or the IDV. However, with the RTI add-on, policyholders receive the full invoice amount instead of the IDV.
   • Roadside Assistance (RSA) Cover: This add-on is helpful in case your car is stranded in the middle of the road. The RSA add-on helps with minor repairs, towing, fuel delivery, battery jumpstart, etc., 24x7.

4. Step 4. Choosing The Right IDV

   The Insured Declared Value (IDV) is the current market value of your car. It is the maximum amount you will receive when there is a total loss of your vehicle, either due to theft or due to an accident.

   The IDV directly impacts your premium. 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 the correct IDV is essential, ensuring you're adequately covered without overpaying.

5. Step 5. Check For Discounts

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

6. 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. You can also estimate your premium using a car insurance premium calculator.

How to Choose a Car Insurance Company?

Here are some tips you should follow while choosing the best car insurance companies in India:

1. Know The Claim Procedure Look for insurance providers that offer a cashless facility and not only reimbursement. So that you don't have to pay when you take your car for repair, and hence, you can be stress-free, come what. The claim procedure should be simple and easy to understand.
2. Renewal Procedure and Payment Options Choose a car insurance company 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 insurance claims. 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 Online 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 not just a legal formality, but also 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.