Q1. Can I drive a new car without insurance?

Ans: No. You must secure your new car with at least third party insurance to legally drive on Indian roads. Without a valid car insurance policy, you might have to pay hefty traffic fines or even face imprisonment.

Q2. What type of insurance is best for a new car?

Ans: A comprehensive car insurance policy clubbed with add-on covers is the best option for a brand-new car. It ensures exhaustive financial and legal protection against own damages and third party liabilities.

Q3. What is the new car insurance cost?

Ans: New car insurance prices depend on various factors, such as the make & model of the brand new car, engine or battery capacity, and type of coverage, area of car registration, etc. You can use an online car insurance calculator to determine the estimated premium price you need to pay for your new car.

Q4. Why is new car insurance so expensive in India?

Ans: A new car has a significantly higher market value of a new car than a used or old model. Thus, with the higher value, the IDV is higher, which makes a brand new car insurance expensive.

Q5. What is the validity of new car insurance?

Ans: According to IRDAI, you must have a new car insurance policy covering TP liabilities for three years. You can choose a bundled plan of 3-year OD + 3-year TP or 1-year OD + 3-year TP.

Q6. Which insurance plan is compulsory for a new car?

Ans: Car owners must have a valid third-party insurance policy for a brand-new car to avoid any financial or legal consequences.

Q7. How can I reduce my new car insurance premium?

Ans: To reduce new car insurance premium amount, you can compare multiple car insurance quotes online, choose a higher voluntary deductible, install an ARAI-approved anti-theft device, and maintain a claim-free record.

Q8. Can I buy car insurance on EMI?

Ans: Yes. You can buy car insurance for your brand new four-wheeler online with easy EMIs on Policybazaar.com.

Q9. Should I buy new car insurance online or offline?

Ans: Whether you should purchase new car insurance online or offline depends on your choice. However, when you buy it online, you can compare car insurance from multiple insurers, get discounts on premium prices, and secure a policy instantly since it has no paperwork involved.

Q10. Is PA cover mandatory under new car insurance?

Ans: Yes. As per the motor laws of India, it is compulsory to have a Personal Accident (PA) cover when you buy new car insurance.

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What is Brand-New Car Insurance?

A brand new car insurance policy is an essential protection against various risks associated with owning a new vehicle. It covers your new car for any damage or loss that may arise due to an unfortunate incident on the road. New car insurance stands out because:

Higher IDV

A brand new car has the highest market value, and, as a result, a higher Insured Declared Value (IDV), which is the maximum amount an insurance company pays in case of theft or a total loss.

Costly Parts & Repairs

New vehicles are equipped with specialised components and advanced technologies, which are expensive to repair or replace. Thus, the premium for a brand new car insurance is higher than that for an old car.

Long-term Third-Party (TP) Cover

As per Indian motor laws, third party (TP) insurance is mandatory to legally drive on roads. All brand new cars in India must be sold with a mandatory 3-year TP policy.

Dealer v/s Policybazaar Comparison

At the price of “3yr Third-Party + 1yr Own-Damage” plan from your dealer, you can buy “3yr Third-Party + 3yr Own-Damage plan” plan from Policybazaar & Save up to 20% on premium

Dealer bundle

Buy from Policybazaar

Price

Hidden, fixed premiums

100% Transparent comparison

Add-Ons

Pressure for unwanted add-ons

Full choice, no pressure

Renewal

Dependent on the dealer process

Simple one-click online renewal

Claim help

Limited dealer-only support

Policybazaar + Insurer Dual support

Savings

Minimal or non-existent savings

Guaranteed Savings up to 20%

Price lock option

Not available

Available

Compare Price & Check Savings on Top Selling Cars

Mahindra XUV 700

Dealers price

₹82,707

Our price

₹35,649

Your Savinigs

₹47,058

Maruti Brezza

Dealers price

₹43,023

Our price

₹14,702

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₹28,332

Tata Nexon

Dealers price

₹41,676

Our price

₹15,176

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₹26,500

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Dealers price

₹41,459

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₹14,569

Your Savinigs

₹26,890

Compare price & check savings on top selling cars

Types of Brand-New Car Insurance Plans

There are two types of new car insurance plans available in India:

3 Year Own Damage (OD) +3 Year TP
1 Year OD +3 Year TP

Third-Party cover (TP)

3 Years (Mandatory with fixed term)

Own Damage cover (OD)

3 Years (Covers your car's damage)

When to renew

TP + OD renewal after 3 years

Discount benefit (NCB)

3-Year NCB discount included upfront

Best for

Long term savings

Third-Party cover (TP)

3 Years (Mandatory by Law)

Own Damage cover (OD)

1 Years (Covers your car's damage)

When to renew

After 1 year for OD, 3 years for TP

Discount benefit (NCB)

3-Year NCB discount included upfront

Best for

Long term savings

Got a New EV?

Secure an electric car insurance policy under 5 minutes

Battery & charging equipment protection

Up to 15% discount on Third Party premium

EV roadside assistance

EXPLORE Add-Ons UNDER ELECTRIC CAR INSURANCE

Zero Depreciation Cover

Battery Protection Cover

Key & Lock Replacement

Invoice Price Cover

Coverage Under New Car Insurance

What is Covered in Policy

Accidents

A comprehensive car insurance policy covers damages or losses sustained by the insured brand-new car from road accidents and collisions.

Natural/Man-made Calamities

Covers damages to the insured vehicle from man-made disasters, such as terrorist attacks, & strikes.

In-transit Damages

Any in-transit damages or losses sustained by the insured vehicle.

Vehicle Theft

Brand new car insurance also covers partial or total loss of the vehicle in the event of theft or burglary up to its IDV.

Rodent Attacks

Any loss or damage to the insured vehicle due to animal attacks.

What is Not Covered in Policy

Without DL

A motor insurance policy will not cover any damage or loss to your brand new car if it is driven without a valid driving licence.

Wear & Tear

Usual wear & tear or any mechanical/electrical failure of the insured four-wheeler or its parts is also not covered.

Drunk Driving

Accidental damages to your brand new car if driven under the influence of alcohol/drugs or for unlawful purposes or race.

Outside Geographical Location

Loss or damage to the insured vehicle if driven outside the areas mentioned in policy terms.

War & Invasion

Brand-new car insurance also doesn't offer coverage for damages due to war-like events, military operations, or invasion.

Lock Price Now, Buy Later

Tired of fluctuating price disrupting your insurance plans? Now you can lock in the current premium for 4 hrs to up to 14 days with our “Price Lock” feature.

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How it works?

If price increases, you pay the locked price. If price decreases, pay the new lower price.

Pay a small fee to get the benefit of “Price Lock” feature.

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Premium care for your car

Experience Assured Delivery Program

Dedicated claim manager with you from claim start to settlement

Pick-up & drop from accident spot to repair workshop to home

On-ground workshop team for repair & on-time delivery

Dedicated claim manager with you from claim start to settlement

On-ground workshop team for repair & on-time delivery

Recommended Add-ons for Brand New Car Insurance

You can extend your brand new car insurance coverage with the help of add on covers for an additional premium. Here are some of the key add-ons you should consider opting for along with a comprehensive or own damage policy for your brand-new car:

Zero Depreciation Cover

A zero depreciation add on provides new car owners with a full claim pay-out without factoring in the depreciation cost of the vehicle or its parts. It is a highly recommended add on cover for a brand new car since because of its high market value.

Return to Invoice Cover

With the Return to Invoice add-on, the insurance company provides you with the original invoice price of your car, including the ex-showroom cost, RTO, and registration charges.

No Claim Bonus (NCB) Protection Cover

An NCB Protection cover helps save you retain your NCB benefits even if you raise a claim during a policy year. You can purchase this add-on along with a comprehensive insurance policy.

Roadside Assistance Cover

The RSA in car insurance offers assistance in case of a car breakdown, covering services like towing, fuel delivery, flat tyre repairs, and lockouts minor repairs. Insurers do not count RSA coverage as a claim, thus, it does not affect your NCB.

Engine Protection Cover

With an Engine Protection cover, the insurer covers damages to your brand new car's engine or its parts and gearbox due to oil leakage or water ingression.

Consumables Cover

It includes the replacement costs of parts, such as nuts & bolts, lubes, greases, AC gas, screws, filters, etc.

Key Protect Cover

A Key and Lock Protect add on offers coverage in case of loss or damage to your car keys.

Daily Allowance Cover

Covers your transportation expenses if your car is being repaired in the garage for more than 3 days after an accident.

Personal Accident Cover

With the Compulsory Personal Accident (CPA) cover, the insurer provides compensation if the owner-driver of the insured car suffers injuries, permanent/partial disability or death in an accident.

Tyre Protection Cover

A Tyre Protection cover covers expenses related to repairing or replacement of tyres or tubes in the event of an accident.

Driver and Passenger Cover

It offers financial coverage for medical expenses (up to Rs. 2 Lakh) if the owner-driver or passengers in the insured car suffer accidental injuries.

How to Buy Insurance for Your Brand New Car?

Follow this simple and quick process to secure a brand new car insurance policy for your four-wheeler:

Enter Vehicle Details

Visit the 'Brand New Car Insurance' page on Policybazaar.com and provide your car & contact details.
Pick a plan (3+3 or 1+3)

Select the type of new car policy- 3-Year OD + 3-Year TP or 1-Year OD & 3-Year TP.
Choose Add-on Covers

For a wider protection, opt for additional coverage options, such as zero dep, return to invoice, engine protection, etc.
Pay & Receive Instantly

Review & pay the policy premium securely via UPI, cards, or net banking and get your brand new car insurance instantly at your email.

New Car Insurance Claim Process in 3 Easy Steps

You can follow these easy steps to raise a claim against your brand new car insurance:

Notify Your Insurer

Immediately after the accident, inform your insurer and raise a claim request.

Damage Assessment & Documentation

Provide the necessary documents to the surveyor and get your vehicle assessed for damages.

Repairs & Claim Pay-out

Get your vehicle repaired either at a cashless garage or visit a non-network workshop and get the claim amount reimbursed later.

Brand New vs Old Car Insurance Comparison

Here's how a new car insurance policy differs from that of an old car:

Criteria

New Car

Old Car

Policy Tenure

Generally, 1-Year OD + 3-Year TP

1 Year

Premium

Higher, due to high IDV

Lower, due to depreciation

Coverage

Comprehensive with extensive add-ons

Often limited to third-party or basic plans

IDV Value

High, invoice-linked

Based on the market value

Depreciation Impact

Minimal, thanks to zero depreciation add on

Significant, affects claim payout

Claim Process

Quick, due to easier evaluation

Requires detailed vehicle inspection

Documents Required for Filing New Car Insurance Claim

To ensure a hassle-free claim processing and settlement for your new car insurance, you need to submit the following documents to your insurance company:

Completed Claim form

Your Brand-New Car Insurance Policy

Copies of your DL & RC

Police FIR (in case of theft)

Repair Bills & Payment Receipts (for reimbursement claims)

FAQs

Q1. Can I drive a new car without insurance?

Ans: No. You must secure your new car with at least third party insurance to legally drive on Indian roads. Without a valid car insurance policy, you might have to pay hefty traffic fines or even face imprisonment.
Q2. What type of insurance is best for a new car?

Ans: A comprehensive car insurance policy clubbed with add-on covers is the best option for a brand-new car. It ensures exhaustive financial and legal protection against own damages and third party liabilities.
Q3. What is the new car insurance cost?

Ans: New car insurance prices depend on various factors, such as the make & model of the brand new car, engine or battery capacity, and type of coverage, area of car registration, etc. You can use an online car insurance calculator to determine the estimated premium price you need to pay for your new car.
Q4. Why is new car insurance so expensive in India?

Ans: A new car has a significantly higher market value of a new car than a used or old model. Thus, with the higher value, the IDV is higher, which makes a brand new car insurance expensive.
Q5. What is the validity of new car insurance?

Ans: According to IRDAI, you must have a new car insurance policy covering TP liabilities for three years. You can choose a bundled plan of 3-year OD + 3-year TP or 1-year OD + 3-year TP.
Q6. Which insurance plan is compulsory for a new car?

Ans: Car owners must have a valid third-party insurance policy for a brand-new car to avoid any financial or legal consequences.
Q7. How can I reduce my new car insurance premium?

Ans: To reduce new car insurance premium amount, you can compare multiple car insurance quotes online, choose a higher voluntary deductible, install an ARAI-approved anti-theft device, and maintain a claim-free record.
Q8. Can I buy car insurance on EMI?

Ans: Yes. You can buy car insurance for your brand new four-wheeler online with easy EMIs on Policybazaar.com.
Q9. Should I buy new car insurance online or offline?

Ans: Whether you should purchase new car insurance online or offline depends on your choice. However, when you buy it online, you can compare car insurance from multiple insurers, get discounts on premium prices, and secure a policy instantly since it has no paperwork involved.
Q10. Is PA cover mandatory under new car insurance?

Ans: Yes. As per the motor laws of India, it is compulsory to have a Personal Accident (PA) cover when you buy new car insurance.