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Learn How to Ensure Your First Vehicle - IIFL Insurance
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How to Ensure Your First Vehicle

Before you start looking for car insurance, there are a few things you should know. The first is that not every insurance company will provide vehicle coverage for everyone. It’s essential to shop around to find the best price, terms, and service for your specific needs. Car insurance online in India is critical before purchasing your first car because there are a lot of frauds in the market. One must make sure to compare three or four insurance companies before buying a car insurance policy.

Penalty for Not Getting Car Insurance

The most common penalties for not having auto insurance is paying more in traffic tickets, high rates for your car(s) in case of theft or total loss, or getting into legal trouble with the police. But you need to check if your state requires auto insurance. Even if you can get away without it, it’s always best to have it in case of an accident or theft.

What is the most critical issue with auto insurance is the validity of your policy. If your policy is canceled or expired, car insurance will be invalid, and you will not be eligible for any claims.

How Much Car Insurance Can I Pay?

Once you buy a new car, you must pay for its insurance. You may say that it doesn’t cost too much, but that’s only because people don’t spend time looking for the least expensive option.

The best car insurance in India is the one that costs the least amount of money. There are many companies selling insurance policies in India offering various features.

Car insurance in India can be costly, especially for new drivers, because they are considered high risk. It is not only the premium you pay but also other extra charges that make it unaffordable for most people. You can look for getting to cheap car insurance quotes in India without having to compromise on quality.

How do Car Insurance Companies Determine Your Premium?

  • The main factors that affect your premium rate are your age, driving record, type of car you drive, and where you live.

  • Age is the most important factor because younger drivers have to pay less for auto insurance.

  • Another thing that can affect your premium is your driving record. Unfortunately, if you or your care has met with an accident or two, expect to pay more for car insurance. So if you are a senior driver, it may be better to opt for a reduced premium.

  • If you are driving a new car, expect to pay more for its insurance. Even if the model of the vehicle is old, make sure it has no major accidents in its history. This way, your premium will be much lower than one with an accident-prone car history or one with critical damage to it.


Car insurance price also depends on the insurance company, the area you live and the type of car you drive. If you live in a metropolitan area, expect to pay more for your policy because of higher claims.

If you drive a sports car or a collectible vehicle, expect to pay more for your policy. This doesn’t imply that these cars are unsafe to go but more desirable targets for thieves.

There is no law on mandatory auto insurance in India, but most states require it by issuing a public notice or notification or via an amendment to existing statutes. In India, the Motor Vehicles Act of 1988 requires all vehicles on the road to have third-party liability insurance cover.

Check car insurance online in India, and you will find a lot of companies that provide this. Let us check out the most popular car insurance companies in India:

  • Royal Sundaram
  • Bajaj Allianz
  • Cholamandalam MS General Insurance Company Limited (CMGC) 
  • Saral Rozgar Insurance Company Limited 
  • Vanzo General Insurance Co Ltd

Can I Pay Car Insurance with a Credit Card?

Yes, you can pay for car insurance with a credit card. This is because credit card companies can offer you car insurance without any additional interest rate. If you get the best car insurance at a reasonable price, then you will not be able to pay it off in full on time and end up paying even more in higher interest.

Top-notch banks and mutual fund companies can pay auto insurance that comes with a credit card. But the cost of auto insurance remains the same for all credit cards and companies using them, and no fee or less than 1% is charged on your payment. If you want to compare car insurance online, then go to the company’s official website and check the terms, plan details, and pricing. When you find a car insurance plan that suits your needs, complete it online, and within a few minutes, you will get your car insurance policy details. You can then print out a copy or save it on your computer.

 If there is any discrepancy in terms and conditions, do not sign this policy as it’s not valid. Otherwise, proceed with making payments for this insurance plan. If you would like to buy cheap car insurance in India, then contact the companies and compare them with each other so that you can skip all these problems and settle for a more affordable quote. It is always better to compare several companies if you want the best deal. After doing this, choose the one that offers you the best price at a reasonable premium. The best thing about this is that if the company changes its rates after taking out an insurance policy, there is no problem as your policy will be valid until its expiry date.

How does Car Insurance work?

Insurance companies provide different types of coverage to their customers for different kinds of risks. There are three major types of car insurance policies in India:

  • Comprehensive Insurance
  • Collateral Third-Party Insurance
  • Third-Party Liability Insurance

What Is Comprehensive Car Insurance?

  • In most cases, there is a comprehensive compulsory policy that comes with most insurance policies in India. In this type of auto insurance, the insurance company takes care of all your vehicle’s major expenses such as repairs, damage and even makes payments towards its loss or theft.

  • However, an important point to note here is that although there is comprehensive coverage, the insurance company only covers your car up to a specific limit. So you need to pay for any expenses that fall outside that limit.

  • If you want to increase those limits and get better coverage, you will have to pay a higher premium, and there is also an additional rider charge on top of the standard premium. Some companies also offer increased coverage by paying for certain losses, such as tires or door locks.

  • If you drive a car that is older and has a low value, then the insurance company may not offer you comprehensive cover. In such cases, it’s better to check with an independent broker who can help you get good coverage at a reasonable price rather than going directly to the insurance company.

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