New Car Insurance Checklist: Coverage, Add-Ons and Smart Choices

For a new car, choose comprehensive car insurance over a third-party-only policy, then add zero depreciation, return-to-invoice, and engine protection. The right coverage and add-ons protect a new car when its value and repair costs are highest.

Which Coverage Does Your Car Insurance Checklist Need?

Your car insurance checklist needs both third-party cover and own-damage cover, which together make a comprehensive plan. Third-party cover is the legal minimum under the Motor Vehicles Act, 1988. It pays for injury or damage your car causes to other people, but nothing for your own car.

When you buy a new car, the policy is bundled: third-party cover for 3 years and own-damage cover for 1 year. Own-damage cover pays to repair your own car after an accident, fire or theft.

A comprehensive plan also fixes your IDV (the maximum your insurer will pay if the car is stolen or written off). Every owner-driver must also carry a personal accident cover of Rs 15 lakh.

Which Add-Ons Fit Your Car Insurance Checklist?

The add-ons on your car insurance checklist should fit how you drive. Each one adds to the premium. Pick the ones that protect a new car's high value.

• Zero depreciation: the insurer does not cut depreciation on replaced parts, so you get a larger payout. It suits cars that are five years old or less.

• Return to invoice: if the car is stolen or written off, you get the full invoice value, not the market value.

• Engine protection: covers engine damage from water or oil leaks, which a basic plan excludes.

• No-claim bonus protection: keeps your NCB (no-claim bonus) intact.

• Roadside assistance: sends help for towing or a flat tyre.

How Do You Make Smart Car Insurance Choices?

Smart car insurance choices come from matching the cover to how you drive, not from buying every add-on. A monsoon-prone city makes engine protection worth it. A financed or costly car makes return to invoice worth it. Long highway trips make roadside assistance worth it.

Compare premiums and add-on prices online before you decide. A voluntary deductible (the part of a claim you agree to pay yourself) lowers your premium, so weigh it against your savings. Buying online shows the cover and add-on prices side by side.

> You choose the insurer, not the dealer. A dealer cannot force you to buy their plan. You can compare and buy a policy online on your own, including with a fully digital insurer like ACKO.

What Details Complete Your Car Insurance Checklist?

A few final details complete your car insurance checklist and determine your payout. Run through them once before you pay. Each point takes a minute and can save money later.

• The IDV is correct for your car's value, not set too low to cut the premium.

• Your no-claim bonus from an old car is transferred within 90 days of the sale.

• The cashless garage network covers garages near your home and office.

• The policy clearly states what is not covered.

• The personal accident cover is included.

• Your documents and car details are correct on the policy.

Frequently Asked Questions

Which add-ons are a must for a new car?

For a new car, zero depreciation, return to invoice and engine protection are the most useful. They protect the high value of a new car in its first years. Add roadside assistance if you drive long distances.

Is third-party cover enough for a new car?

No. Third-party cover is the legal minimum and pays only for damage to others. A new car also needs own-damage cover, so a comprehensive plan is the safer choice against theft, fire and accidents.

What is zero depreciation in car insurance?

Zero depreciation means the insurer does not deduct depreciation on replaced parts when settling a claim. You get a higher payout. It is usually available for cars under five years old and costs a little extra.

Can you transfer the no-claim bonus to a new car?

Yes. The no-claim bonus you earned on an old car can move to your new car's policy, lowering the premium. You usually need to move it within 90 days of selling the old car.

Can you buy new car insurance online instead of from the dealer?

Yes. You are free to pick your own insurer and buy online, rather than taking the dealer plan. Comparing quotes online often shows the cover and add-on prices side by side, so you can decide before you buy.

Key Takeaways

• Comprehensive cover beats third-party-only for a new car. It pays to repair your own car, not only to avoid causing damage to others.

• Zero depreciation, return to invoice and engine protection are the core early-year add-ons. They protect the car's high replacement value while it is new.

• You choose the insurer, not the dealer. Compare quotes online before you accept the dealership's offer.

• The IDV, NCB transfer and garage network matter most before you pay. These determine your payout and how easily you can claim it.