Top Mistakes to Avoid While Buying Car Insurance Online in India – Ultimate Guide 2025

Buying car insurance online in India has never been easier. Digital platforms now offer instant quotes, easy comparison, and hassle-free payment options. But many car owners make critical mistakes that cost them time, money, and coverage when it matters most.

1. Ignoring Policy Coverage Details

• Comprehensive vs. Third-Party Insurance: Comprehensive covers your car and third-party liability; third-party covers only damage to others.
• Add-ons: Zero depreciation, engine protection, roadside assistance, and personal accident cover save money in the long run.

Tip: Read the IRDAI policy wordings carefully before purchase.

2. Failing to Compare Multiple Insurers

• Compare premiums using online platforms.
• Check Claim Settlement Ratio (CSR) for reliability.
• Read customer reviews for service quality and claim experience.

Tip: Use Policybazaar or Coverfox to compare multiple insurers.

3. Providing Incorrect Information

• Wrong car registration, engine capacity, fuel type.
• Incorrect No-Claim Bonus (NCB) or personal details.

Tip: Double-check all details before submitting online to avoid claim rejection.

4. Overlooking No-Claim Bonus (NCB)

• Many buyers forget to factor in NCB, losing discounts on renewal.
• Ensure NCB is properly transferred if switching insurers.

5. Choosing Based Only on Price

• Low-cost policies may exclude essential add-ons.
• Hidden deductibles or strict claim processes can increase costs later.

Tip: Balance premium vs coverage to maximize protection.

6. Ignoring Policy Renewal Dates

• Late renewal can result in loss of NCB, coverage gaps, or legal fines.
• Set reminders to renew your policy on time.

7. Not Checking for Hidden Exclusions

• Exclusions like wear and tear, natural calamities, intentional damage.
• Some accessories or modifications may not be covered.

8. Forgetting Claim Support and Customer Service Quality

• Check for 24/7 support, towing service, and instant claim settlement options.

9. Avoiding Digital Tools for Comparison

• Find cheapest premiums
• Compare features, add-ons, and claim settlement ratios
• Choose the best insurer without visiting multiple offices

10. Not Understanding Legal Requirements

• Third-party insurance is mandatory under Motor Vehicles Act, 1988.
• Comprehensive coverage is optional but recommended.
• Non-compliance can lead to fines or legal issues.

✅ Conclusion

Buying car insurance online is convenient, but mistakes can cost you money, claims, and peace of mind. Avoid these pitfalls by comparing insurers, understanding coverage, providing accurate information, maintaining your NCB, and choosing reliable customer support.

Call to Action

Ready to buy car insurance online in India? Compare top insurers, get instant quotes, and choose the best policy today to protect your car and wallet.