Alert Car Buyers: Here Are 7 Must-Know FAQs to Save Up to 15% on Car Insurance!

As car prices rise, insurance costs have become a major expense for buyers. But many car owners don’t realise they’re paying more than necessary, especially when buying policies through dealerships. Here are seven essential FAQs that explain how you can cut costs, avoid hidden markups, and save up to 15% on your next car insurance policy. 

1. How much can buyers save by purchasing car insurance online? 

Car buyers often save several thousand rupees when they skip dealership-offered insurance. For example, a comprehensive plan quoted at ₹25,000 by a dealer may be available online for ₹18,500. These savings arise because online platforms remove dealer markups and provide transparent, competitive pricing. 

2. What percentage of savings can buyers expect when purchasing directly from insurers? 

On average, direct purchases help buyers save 10–15% on car insurance premiums. 
This reduction comes from the absence of intermediary commissions and bundled add-ons. It also allows buyers to compare multiple plans instantly and choose the most economical option. 

3. Do long-term insurance policies offer better value than yearly renewals? 

Yes, multi-year policies generally cost less over time and reduce the risk of policy lapses. 
A one-year plan costing ₹18,000 may total ₹54,000 over three renewals, whereas a 3-year policy may cost ₹48,000. This offers savings of around ₹6,000 while providing uninterrupted coverage and added convenience. 

4. Is third-party insurance a smart way to save money? 

Third-party insurance is cheaper, but it only meets legal requirements and offers limited protection. It does not cover repairs to the buyer’s own vehicle in case of accidents, theft, or natural disasters. As a result, buyers may end up paying large out-of-pocket repair bills despite saving on premiums initially. 

5. When is third-party-only insurance appropriate for car owners? 

Third-party-only policies work best for very old cars with low resale value. 
In such cases, the cost of comprehensive coverage may exceed the financial benefit it provides. For newer cars, however, the risk of expensive repairs makes comprehensive insurance the more sensible choice. 

6. What type of insurance is ideal for new car owners? 

New car owners benefit most from a comprehensive policy, which covers their own vehicle as well as third-party liabilities. It protects against accidental damage, theft, fire, floods, and other unforeseen events. This reduces the financial burden of costly repairs during the early years of ownership. 

7. How else can car owners reduce their insurance premiums? 

Premiums can be further reduced by installing approved anti-theft devices that lower the risk for insurers. Maintaining a clean driving record and renewing policies on time also help secure better rates. Additionally, buyers comfortable with higher deductibles can choose voluntary deductibles to bring down premium costs. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.  

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.