Buying vehicle insurance used to be a complicated, agent-driven process. Today, you can buy vehicle insurance online in India in just 10 minutes — with better comparison, instant policy download, and cashless claim access at garages near you.
Whether you’re renewing your car insurance or buying a two-wheeler policy for the first time, this complete guide walks you through every step. Today, you can buy vehicle insurance online in India in just 10 minutes — with better comparison, instant policy download, and cashless claim access at garages near you.
Contents
- 1 ✅ Why You Need Vehicle Insurance in India
- 2 🧾 Types of Vehicle Insurance in India
- 3 📋 Step-by-Step: How to Buy Vehicle Insurance Online in India
- 4 📊 Top 5 Vehicle Insurance Providers in India (2025)
- 5 📄 Documents Required
- 6 🧠 How to Choose the Right Plan
- 7 ❌ Common Mistakes to Avoid
- 8 💰 Is Vehicle Insurance Premium Tax Deductible?
- 9 📱 How to Store Your Policy Digitally
- 10 📚 Related Insurance Guides
- 11 🔗 Recommended External Links
- 12 ❓ FAQs – Buying Vehicle Insurance Online
- 13 ✅ Conclusion
✅ Why You Need Vehicle Insurance in India
As per the Motor Vehicles Act, 1988, all vehicles in India must have at least third-party insurance to legally drive on the road. Beyond legal compliance, vehicle insurance protects you from:
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🚘 Road accidents
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🔧 Damages to your own vehicle
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⚖️ Legal liabilities to third parties
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🏥 Hospital expenses (optional add-ons)
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🛠️ Fire, theft, and natural disasters
📌 Without insurance, you risk fines, jail time, and major financial loss.
🧾 Types of Vehicle Insurance in India
| Type | Coverage | Mandatory? |
|---|---|---|
| Third-Party Only | Covers injury/damage to third party only | ✅ Yes |
| Comprehensive | Covers own damage + third party | 🚫 No |
| Own-Damage Only | Covers only your vehicle (for new cars with valid TP) | 🚫 No |
| Add-ons | Enhances cover (zero depreciation, engine cover, etc.) | Optional |
📋 Step-by-Step: How to Buy Vehicle Insurance Online in India
🔹 Step 1: Choose Policy Type When You Buy Vehicle Insurance Online in India
You can buy directly from:
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Insurer websites (e.g., ICICI Lombard, Bajaj Allianz, SBI General)
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Aggregator platforms (e.g., Policybazaar, Coverfox)
Avoid unknown third-party links or WhatsApp forwards.
🔹 Step 2: Enter Vehicle Details
Required inputs:
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Vehicle number (e.g., MH12AB1234)
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RTO location
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Make & model (e.g., Maruti Baleno Zeta)
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Fuel type & variant
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Year of registration
💡 For new cars, use chassis number if registration is not yet done.
🔹 Step 3: Choose Policy Type
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✅ Comprehensive Plan (Recommended): Includes damage to your vehicle, third-party coverage, theft, and fire
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✅ Third-party Only (Legally mandatory): Covers third-party injury/death/property damage only
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✅ OD Only: For vehicles already having third-party coverage
🔹 Step 4: Customize Your Coverage
Select from common add-ons:
| Add-On | What It Does |
|---|---|
| Zero Depreciation | Full claim without part depreciation deductions |
| Engine Protect | Covers engine repairs due to water or oil leaks |
| Roadside Assistance | 24×7 support if your car breaks down |
| NCB Protect | Keeps your No Claim Bonus intact after a claim |
| Personal Accident | Covers driver injury/death |
🔹 Step 5: Compare Plans & Premiums
Compare:
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Insured Declared Value (IDV)
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Premium amount
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Claim Settlement Ratio (CSR)
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Cashless garages near you
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Add-on availability
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Customer reviews
🔹 Step 6: Make Payment & Download Policy
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Pay via UPI, card, net banking
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You’ll instantly receive:
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Soft copy of policy (PDF)
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Payment invoice
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Policy number
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Carry soft/hard copy in vehicle or store on DigiLocker
📊 Top 5 Vehicle Insurance Providers in India (2025)
| Insurer | Claim Ratio | Avg. Premium (₹) | Cashless Garages | Notable Add-ons |
|---|---|---|---|---|
| ICICI Lombard | 98.4% | ₹5,500 | 7000+ | Zero Dep, NCB Protect |
| HDFC ERGO | 97.8% | ₹4,800 | 6000+ | Roadside Assist, Tyre Protect |
| SBI General | 96.1% | ₹4,200 | 5000+ | Engine Cover, Invoice Return |
| Tata AIG | 97.5% | ₹5,100 | 7500+ | Consumables, Key Replacement |
| Bajaj Allianz | 98.1% | ₹4,950 | 6500+ | 24×7 Assist, Lock & Key |
* For 2020 petrol hatchback, IDV ₹5L, NCR region
📄 Documents Required
| For Existing Vehicles | For New Vehicles |
|---|---|
| RC (Registration Certificate) | Invoice or chassis number |
| Previous policy copy | RTO details |
| PAN/Aadhaar | PAN/Aadhaar |
| Vehicle photo (sometimes) | Form 20 copy |
| Valid DL (optional) | Valid DL |
🧠 How to Choose the Right Plan
| Factor | Tip |
|---|---|
| Premium | Don’t always choose the cheapest – balance it with benefits |
| IDV | Opt for realistic IDV – not lowest or highest blindly |
| Claim Process | Check if app-based, surveyor-based, or 100% cashless |
| Garage Network | Look for coverage in your city and district |
| Service Speed | Look at TAT (turnaround time) for claims and renewals |
❌ Common Mistakes to Avoid
| Mistake | Risk |
|---|---|
| Choosing third-party when you need OD | No claim for your vehicle’s damages |
| Not reading add-on clauses | Add-ons may be conditional |
| Not renewing on time | Policy lapses, break-in inspection needed |
| Hiding accident history | May lead to claim rejection |
| Accepting lowest IDV | Lower claim payout in case of total loss/theft |
💰 Is Vehicle Insurance Premium Tax Deductible?
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❌ For personal vehicles → No tax benefit
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✅ For commercial vehicles → Can claim under business expense
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✅ Self-employed → May claim depreciation or premium as expense (consult CA)
📱 How to Store Your Policy Digitally
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Upload PDF to DigiLocker (Govt. app)
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Use insurer’s mobile app
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Store on Google Drive/iCloud with password
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Save policy number & expiry in calendar reminder
📚 Related Insurance Guides
- Insurance in India – Overview
- How to Choose Health Insurance Policy
- Check Insurance Policy Details Online
🔗 Recommended External Links
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IRDAI Portal: https://www.irdai.gov.in
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VAHAN Portal for RC/insurance lookup: https://vahan.parivahan.gov.in
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Policy Comparison Tool: https://www.policybazaar.com
❓ FAQs – Buying Vehicle Insurance Online
Q. Can I buy car insurance without inspection?
Yes, if your policy hasn’t expired or if it’s a new vehicle.
Q. Can I buy insurance before car registration?
Yes. Use chassis number and dealer invoice.
Q. What is IDV?
Insured Declared Value – maximum claim amount in case of total loss or theft.
Q. What is the difference between Comprehensive and OD?
Comprehensive = OD + Third-party. OD alone requires separate TP cover.
Q. What if I input wrong vehicle data online?
Your claim may get rejected. Always verify RC details before submitting.
Q: Can I buy car insurance without inspection?
Yes, especially if you choose to buy vehicle insurance online in India before the old policy expires.
✅ Conclusion
Buying vehicle insurance online in India is no longer a hassle. With digital platforms, transparent pricing, and instant policy downloads, you can stay legally compliant and financially protected — all from the comfort of your home. Whether you’re insuring a car or bike, knowing how to buy vehicle insurance online in India empowers you to make smarter decisions, save money, and drive with confidence.
Just make sure you:
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Choose a reliable provider
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Don’t compromise on IDV
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Use the right add-ons for your needs
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Renew before expiry
📌 A well-chosen insurance plan can save you lakhs during accidents or theft.