Introduction
Car insurance is a legal necessity and a smart financial decision for every vehicle owner in India. With the Motor Vehicles Act making third-party insurance mandatory, and the growing number of road accidents, it is crucial to have adequate coverage for your car.
In 2025, the process of buying or renewing car insurance has become fully digital. Now, you can compare multiple plans, customize coverage, and purchase the best car insurance policy in just a few clicks.
This guide covers:
- Why buying car insurance online is better in 2025
- Types of car insurance in India
- Step-by-step process to buy car insurance online
- Best companies and their features
- FAQs about online car insurance
Why Should You Buy Car Insurance Online in 2025?
Buying car insurance online has several advantages over offline methods:
- Instant Policy Issuance – No waiting time, no paperwork.
- Easy Comparison – Compare premiums, IDV, add-ons, and claim ratios across multiple insurers.
- Lower Premiums – Online plans often cost less because there are no agent commissions.
- Convenient Renewal – Renew from anywhere, anytime, even on your mobile.
- Transparency – Full details of coverage and exclusions are clearly mentioned.
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Types of Car Insurance Policies in India
Before you buy, understand the two main policy types:
✅ 1. Third-Party Car Insurance (Mandatory)
- Covers damage caused to third-party property or injury/death.
- Does NOT cover your own car damage.
- Legal requirement as per IRDAI.
✅ 2. Comprehensive Car Insurance
- Covers own damage + third-party liability.
- Includes natural disasters, theft, fire, and accidents.
- Allows you to add riders like:
- Zero Depreciation Cover
- Engine Protection
- Roadside Assistance
- Return-to-Invoice Benefit
Tip: Always choose comprehensive coverage for maximum protection.
Step-by-Step Guide to Buy Car Insurance Online
Here’s how you can buy or renew your car insurance in less than 10 minutes:
Step 1: Choose a Reliable Platform
- Go to official insurer websites (ICICI Lombard, HDFC ERGO, Bajaj Allianz)
OR - Use aggregator sites like Policybazaar, Coverfox, or Turtlemint for easy comparison.
Step 2: Enter Your Car Details
- Registration Number
- Make & Model (e.g., Hyundai i20)
- Fuel Type (Petrol/Diesel/CNG)
- Year of Manufacture
Step 3: Provide Personal Details
- Full Name, Mobile Number, Email
- Driving history for No Claim Bonus (NCB) eligibility.
Step 4: Select Coverage Type
- Third-party policy (mandatory)
- Comprehensive policy (recommended for complete protection)
Step 5: Compare Premiums & Features
Check:
- IDV (Insured Declared Value) – Higher IDV means better protection but higher premium.
- Add-ons – Zero Depreciation, Engine Protect, etc.
- Claim Settlement Ratio of the insurer.
Step 6: Apply Discounts
- No Claim Bonus (NCB) – Up to 50% discount if no claims in previous years.
- Online Discounts – Most companies offer up to 10% off for online purchases.
- Voluntary Deductible – Opting for higher deductibles lowers premium.
Step 7: Make Payment & Download Policy
- Pay online via UPI, Net Banking, or Cards.
- Download the e-policy PDF.
(As per law, a digital copy is accepted by traffic police.)
Documents Required for Online Car Insurance
- Vehicle RC (Registration Certificate)
- Previous Policy Copy (if renewing)
- Aadhaar & PAN (for KYC)
- Driving License (optional)
Top Car Insurance Companies in India (2025)
Here are the top insurers based on Claim Settlement Ratio (CSR) and features:
| Company | Claim Ratio | Key Features |
|---|---|---|
| ICICI Lombard | 96.8% | Zero Dep cover, 24×7 assistance |
| HDFC ERGO | 97.3% | Online renewal, quick claims |
| Bajaj Allianz | 98.0% | Wide cashless garage network |
| Tata AIG | 96.9% | Affordable add-on options |
| Reliance General | 95.5% | Competitive premiums |
Tips to Save Money on Car Insurance in 2025
- Renew Before Expiry – Avoid policy lapse and penalties.
- Install ARAI-approved Anti-theft Device – Get extra discount.
- Bundle Insurance Policies – Combine car + health insurance for discounts.
- Compare Online Every Year – Switch to better plans when premiums increase.
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FAQs – Car Insurance in India
Q1: Is online car insurance legal in India?
Yes, IRDAI-approved digital policies are legally valid.
Q2: Can I buy insurance without an agent?
Absolutely! Online purchase eliminates middlemen and reduces cost.
Q3: Which add-on is most important?
Zero Depreciation Cover is highly recommended for new cars.
Q4: Is digital copy of insurance accepted by RTO?
Yes. A soft copy on DigiLocker or mParivahan is valid.
Conclusion
Buying car insurance online in 2025 is not just convenient, but also cost-effective and transparent. By comparing plans and adding essential riders, you can protect your vehicle and finances effectively.
Pro Tip: Always check the Claim Settlement Ratio before choosing an insurer. It ensures hassle-free claims during emergencies.