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5 Stages Of Buying Car Insurance Policy Online In India

Written by Sharad Bajaj
Updated On Oct 14, 20232 min read

Purchase of a car insurance policy is a simple 5-step process!

Today, purchasing a car insurance plan coverage has turned out to be less complicated with the availability of the internet. You can effortlessly get an insurance plan for your car from the comfort of your domestic by means of buying the layout online. These days, you can purchase your coverage with the use of a laptop or even a smartphone is simply a few clicks.

Online process for buying the car insurance online

Here are the 5 steps that you need to know while purchasing car insurance online:

Step 1: Assessment of Own Requirement

Before you make any decision on purchasing a car insurance policy you should know that there are three types of insurance policies available in the market. The first one is a third-party vehicle insurance plan which is the minimal obligatory requirement for all automobiles plying on roads in India. Third-celebration legal responsibility solely insurance plan coverage covers the damage/expenses of the third-party which includes property damage, bodily damage, and demise and is the minimal insurance plan insurance supplied by using insurance plan companies.

The second is a comprehensive car insurance policy. This type of policy offers total coverage of expenses on personal damage, theft, vandalism or natural calamities in addition to third party liabilities.

The third is a standalone own-damage insurance plan coverage that presents insurance towards personal damages incurred to an insured’s car. This coverage does no longer grants any third-party liabilities.

Thus, a car owner needs to first ascertain what kind of insurance plan he/she wants and then check which policy best suits their requirement.

Step 2: Comparison of Different Available Plans

The next step is to compare the different available plans on the basis of your requirements. You should compare the plans on the basis of coverage, premium, strength of cashless garages network among other factors. To compare different policies and their premiums you can visit our platform, the Insurance Dekhowebsite and a policy issued in just 5 minutes.

Step 3: Selecting Necessary Add-ons

Car insurance add-ons refer to additional covers which enhance the protection of a standard insurance policy. These add-on benefits are available only with comprehensive and standalone insurance policies. The following are the common add on benefits you should consider for better insurance coverage:

  • Zero-Depreciation cover
  • Engine Protection
  • Roadside Assistance Cover
  • Consumables Cover
  • Licence Loss Cover
  • EMI Cover
  • Personal Belongings Cover
  • Tyre Cover
  • Lifetime Road Tax Cover
  • Lock and Key Cover
  • Registration Certificate Cover

You can read about them in detail here.

Step 4: Ascertain Correct IDV of Your Car

Be sure to check the insured declared value (IDV) of your car and make sure the amount is comparable to the market value of your car. The IDV of your car will depend on the age of your car. A six-month-old car has an IDV depreciation rate of 5%, whereas a six-year-old car will have an IDV depreciation of 50% or more.

IDV plays an important role in calculating the Own Damage premium amount. The IDV is paid to the consumer as reimbursement if the insured’s car is beyond repairable damage or in cases of theft.

Step 5: Make the Purchase

This is the final stage of enrolling your car for a policy. The process of applying for car insurance online policy purchase is simple. You will be required to furnish your personal details like your name, address, age, occupation and the vehicle’s details like make, model, the engine’s no, chassis no, RTO, seating capacity and more. Once the vehicle is assessed through the online process you can then complete the payment and register a policy for your car.

Buying a car insurance plan online is in great demand and takes now not greater than a couple of minutes to get completed. The demand is obvious and a number of car insurance plan agencies supply appealing top-class quotes whilst supplying plans online.

The online car insurance purchase process is easy and quick for everyone. If someone has the basic knowledge and experience of the internet and computer, he or she can simply buy a car insurance policy without any hassle. On a similar note, the renewal of car insurance can also be done online in a super convenient and quick manner. The car insurance renewal is essential for every policyholder as driving a car without an active and valid car insurance policy is an offence in India, as per the Motor Vehicles Act, 1988. 

In this digital era, car insurance renewal is not a tedious process anymore and you can renew any insurance policy right through your phone or laptop conveniently. If you forget to renew your car insurance policy before its expiry date, it can make you lose your accrued No Claim Bonus and can compel you to buy another plan or renew the same policy at a high premium rate. Hence, you must not miss the renewal process.

For further reading:

How to Purchase Insurance Policy For New Car Vs Old Car

Disclaimer: This article is issued in general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.


This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
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Written by Sharad Bajaj
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 Sharad is an insurance industry veteran who has managed motor insurance products for over a decade. He helped set up and scale the motor insurance vertical for a leading insurance company in his previous stint. In his spare time, Sharad likes to read and be in tune with nature.

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