Car Insurance Online

Car insurance serves as your financial safety net, helping to cover costs if your car is damaged, stolen, or involved in an accident. It’s designed to protect you from unexpected expenses and ensure you are legally protected.

With rising costs and unpredictable roads, having a good car insurance policy means you're prepared for whatever comes your way. It’s one less thing to stress about and one smart step toward safer driving.

Car insurance is a type of vehicle insurance that protects you from unexpected expenses due to accidents, theft, natural disasters, or third-party damages. It covers repair costs, replacements, and legal liabilities, helping reduce the financial burden on vehicle owners.

In India, it’s legally mandatory to have at least a third-party car insurance policy. This ensures that any injury or damage caused to another person or their property while driving is covered.

There are three main types of car insurance policies: Third-Party Insurance covers damage or injury to others, Own Damage (OD) Policy covers only the own vehicle, and Comprehensive Insurance includes both third-party and own damage coverage.

Unfortunately, when it comes to supposedly mundane things like a car insurance, people tend to ignore or forget about it unless there’s a repercussion of not having one. However, more often than not- these guidelines are made for the overall safety of people like you and me.

Let’s take for example; what if a Third-Party Car Insurance wasn’t mandatory by law. In this case, most people wouldn’t even have one and in case of an accident, both affected parties would drown in baseless arguments and of course, tons of expenses!

Therefore, while the primary objective of a car insurance is to protect an affected party during a mishap or accident, there is more than one reason why a car insurance has been made mandatory in India.

• Large Number of Road Accidents - Road accidents are extremely common in India and one of the main reasons the Motor Vehicle Act has made car insurances mandatory is due to the same. In 2017, there were more than 1200 injuries reported on a daily basis due to road accidents! A car insurance would ensure no one has to bear the financial brunt in such a situation.
• Protects the Third Party - Whether you bump into someone’s vehicle or a car hits your dear car, having at least a third-party car insurance in place will ensure that the affected third-party will be compensated for in cases of car damages or, personal damages.
• Make Legal Processes Easier - When an accident happens, more than the damages – it is the legal process that takes one’s time and energy. However, when you have a valid car insurance, legal processes too are taken care of.

Car insurance policies in India are designed to provide complete financial and legal protection to vehicle owners. The main features include:

• Mandatory Legal Requirement – As per the Motor Vehicles Act, every car owner must have at least a third-party car insurance policy. This ensures you are legally compliant while driving on Indian roads.
• Own Damage Coverage – Comprehensive car insurance covers damages to your own vehicle arising from accidents, theft, natural calamities (floods, cyclones), and fire.
• Third-Party Liability Cover – Protects you against financial and legal liabilities if your car causes damage to another person’s property, vehicle, or results in injury/death.
• Add-On Covers for Extra Protection – Policyholders can enhance coverage by opting for add-ons such as zero depreciation cover, engine protection, consumables cover, roadside assistance, or pay-as-you-drive cover.
• No Claim Bonus (NCB) – Safe drivers are rewarded with premium discounts of up to 50% for each consecutive claim-free year.
• Cashless Repairs at Network Garages – Most insurers, including Digit, offer access to thousands of partner garages across India where you can avail cashless repairs without upfront payments.
• Personal Accident Cover – Mandatory coverage for the owner-driver ensures compensation in case of accidental death or disability while driving.

These features collectively make car insurance not just a legal formality, but also an essential financial safeguard for every vehicle owner.

Digit Insurance offers coverage for a wide range of vehicles, tailored to suit various ownership types and usage patterns. Whether you drive a brand-new car, a second-hand vehicle, or even an electric car, Digit has policies tailored to meet your specific needs.

• Brand New Cars - Brand-new cars are typically insured with comprehensive policies that cover accidents, theft, fire, and natural disasters. Digit also allows you to enhance your coverage with useful add-ons, such as zero depreciation, engine protection, and roadside assistance, giving you complete peace of mind from day one.
• Electric Cars - Digit offers specialised plans for electric vehicles (EVs), which include coverage for batteries, charging equipment, and roadside assistance. You can also opt for add-ons such as battery replacement and charger damage coverage.
• Second-Hand Cars - Used or second-hand cars are just as insurable as new ones. Depending on the vehicle’s age and condition, you can opt for third-party or comprehensive coverage. Insurance for second-hand cars is usually more affordable and helps protect against unexpected repairs, liabilities, and legal complications.
• Old Cars - Older vehicles, especially those not used frequently, are often insured with basic third-party liability coverage. While comprehensive and own damage policies are still available, coverage may be limited due to depreciation. Still, having insurance ensures legal compliance and basic protection.
• Commercial Cars - Vehicles used for business purposes, such as taxis, delivery vans, or company cars, require commercial car insurance. These policies cover third-party liabilities and driver protection, which are essential for avoiding financial and legal issues in case of accidents during business operations.
• CNG Cars - Cars fitted with CNG (Compressed Natural Gas) kits are covered under Digit’s insurance plans, provided the CNG installation is declared during policy purchase or renewal. Coverage includes damage to the CNG kit and related components, and you can choose add-ons to enhance protection further.

In India, insurers offer three main types of car insurance policies. Choosing the right one depends on your car’s age, usage, and the level of protection you need:

• Third-Party Car Insurance - This is the most basic policy and is mandatory for all vehicles. It covers only damages or injuries caused to third parties. However, it does not cover damages to your own vehicle.
• Own Damage (OD) Car Insurance - This policy specifically covers damages to your own vehicle due to accidents, theft, fire, or natural disasters. It is suitable for those who already have a third-party policy but want added protection for their car.
• Comprehensive Car Insurance - The most popular and recommended policy, as it combines third-party liability and own damage cover. It also allows customization with add-ons, ensuring holistic protection for you and your vehicle.

Why Choose a Comprehensive Car Insurance Policy?

While third-party insurance satisfies the legal requirement, it leaves your own car unprotected. A comprehensive plan offers:

• Wider coverage for both you and third parties.
• Flexibility to add useful covers like zero depreciation, return-to-invoice, or roadside assistance.
• Greater financial security in case of major accidents, theft, or natural calamities.

This makes comprehensive car insurance the best choice for most car owners in India.

Digit Car Insurance for Electric Vehicles (EVs) offers comprehensive protection tailored for modern electric cars. It not only covers accidents, theft, and third-party liabilities like regular car insurance, but also safeguards high-value components such as the battery, charging equipment, and electrical systems (with EV Shield Cover addon). With options for add-on covers and access to Digit’s cashless garage network, it ensures EV owners enjoy worry-free driving while staying compliant with Indian insurance regulations.

Pay As You Drive (PAYD) is an innovative add-on that makes car insurance premiums more affordable for people who don’t use their car frequently.

• How It Works - Instead of paying a fixed premium irrespective of usage, you select a kilometer slab (for example, 10,000 km, or 15,000 km per year). Your premium is calculated based on your chosen limit.
• Top-Up Option - If you exceed your chosen kilometers, you can easily buy additional kilometers as a top-up without affecting your coverage.
• Ideal for Low-Mileage Users - This is especially useful for people who drive occasionally, own a second car, or use their car only for short city commutes.
• Benefits - Lower premium costs, flexibility, and fair pricing since you pay only for the distance you actually drive.

PAYD makes car insurance more personalized and budget-friendly, especially in urban areas where many people drive less due to work-from-home or reliance on public transport.

Choosing the right car insurance policy is essential for ensuring comprehensive protection, financial security, and a smooth ownership experience. Here are key considerations to help you make an informed decision:

• State Your IDV Accurately - The Insured Declared Value (IDV) represents the current market value of your car after accounting for depreciation. It directly influences both your insurance premium and the compensation you receive during claims. An inaccurately stated IDV can lead to either inflated premiums or inadequate claim settlements. Ensure your insurer allows you to customise your IDV transparently, as this reflects the true value of your vehicle.
• Compare Car Insurance Quotes Thoughtfully - One of the advantages of purchasing car insurance online is the ability to compare multiple car insurance quotes easily. While comparing, look beyond just the premium. Evaluate the accuracy of the IDV, availability of add-ons, service benefits, claim settlement ratios, and the overall reliability of the insurer. A well-rounded comparison ensures you select a policy that offers both value and protection. Review Service Benefits Offered: A robust car insurance policy is not limited to coverage and claims—it also includes the quality of service provided. Look for insurers that offer benefits such as roadside assistance, doorstep pickup and drop-off for repairs, and 24/7 customer support. These services enhance your experience and ensure support during both major incidents and minor inconveniences
• Understand What’s Covered - Before finalising your policy, carefully review the coverage details. A good car insurance policy should protect you against a wide range of risks including accidents, theft, natural disasters, and third-party liabilities. Ensure that the coverage aligns with your needs and that the premium you pay justifies the protection offered. This helps you avoid surprises during claims and ensures peace of mind.

Know more about How to Calculate the Car Insurance Premium

Renewing a car insurance policy on time is crucial to avoid financial setbacks, legal trouble, and loss of valuable benefits. Here's why timely renewal matters.

• Bear the Financial Brunt - Without an active policy, you're personally liable for any damages, medical expenses, or third-party claims in case of an accident. This can lead to significant financial hardship, especially if the incident is severe.
• Legal Liability for Third-Party Claims - In the event of an accident involving third-party injury or property damage, you’ll be legally responsible for compensation if your insurance has expired. This can be financially devastating without coverage.
• You’ll Lose Out on Your No Claim Bonus (NCB) - Your NCB is a reward for not making any claims during your policy period. It can significantly reduce your premium, up to 50% in some cases. However, if you don’t renew your policy within 90 days of its expiry, you will lose both the bonus and the discount that comes with it.
• Higher Premiums on Renewal - A lapsed policy often results in higher premiums when you try to renew or buy a new one. The loss of continuous coverage and NCB benefits contributes to this increase.
• Higher Chances of Paying a Penalty - Driving without valid insurance is a legal offence under the Motor Vehicles Act, 1988. You could be fined up to ₹2,000 or even face imprisonment for up to 3 months. Repeated violations can lead to harsher penalties.

Your car insurance premium is determined by a combination of factors that reflect your coverage choices, vehicle details, and risk profile. So, here are a few crucial factors that can influence the cost of your car insurance premium.

• Type of Car Insurance Policy - The coverage and benefits provided by your car insurance policy influence your car insurance premium. So, if you choose a comprehensive policy over a third-party policy, your premium would be higher as it offers much greater coverage than the latter.   
• Your Car’s Insured Declared Value (IDV) - The Insured Declared Value (IDV) is your car’s current market value after deducting the depreciation charges. If your IDV increases, so will the insurance premium.
• Add-Ons Opted - A customised insurance policy with different car insurance add-on covers to fulfil your crucial insurance requirements and protect your car in all situations will fetch you a higher premium.
• Deductibles - Deductibles in car insurance mean the predetermined amount that the policyholder needs to pay from their pocket before the insurer pays the rest of the claim amount. So, you can opt for a higher voluntary deductible for a lower premium because the insurer will have to pay less during claim settlement. 
• No Claim Bonus (NCB) - If you do not raise any claim in a policy year, the insurer will reward you with a discount on your next policy renewal premium in the form of a No Claim Bonus.
• Make & Model of your Car - The car insurance premium is subject to change depending on the manufacturer and model of your car. Insuring a luxurious sedan will attract a higher premium than a standard hatchback. Further, the cubic capacity of the car’s engine and its fuel efficiency also directly impact the car insurance premium.
• Age of your Car - Since the value of your car reduces with each passing year due to normal wear and tear of its parts, the IDV also falls, and hence the policy premium also decreases. It implies that insurance premiums are higher for a brand-new car and less for an old car.

• Increase Voluntary Deductible - If you have had no claims for more than 4-5 years, or you think you can afford to pay more from your pocket during claims, you can look at increasing your Voluntary Deductible and decreasing your car insurance premium.
• Maintain a Good Driving Record - This is obvious, but important. Apart from being safe on the road, cautious driving in speed-limits, will avoid accidents and make sure you get a No Claim Bonus each year.
• Choose the Right Add-ons - Additional covers can be really beneficial, as long as you choose the right ones. Therefore, pick not all but selective add-ons you think are valuable for you and your car.

Know more about How to Calculate the Car Insurance Premium

Make sure your car insurance company is giving you the right information on the below.

• Check your IDV - A lot of cheap car insurance quotes will have a low IDV (Insured Declared Value), which is the market value of your car. If it is low, then at the time of claim, esp. during theft and total damage, you are in for a shock! So setting this at the Right Value is important. Digit gives you the option to set it while buying your car insurance policy online.
• Check the Service Benefits - Go for a company that gives you good after-sales services. Some of the services Digit offers are Doorstep Pickup, Repair & Drop with 6 months Warranty, 24*7 Customer Care Support, Cashless at 9000+ Garages, and many more.
• Speed of claims of the insurer - You buy insurance for claims, so this should be investigated before you switch for a company. 67% of Digit's car repair work approvals done within 12 Hours. This means our claims are fast and hassle-free. Plus we have a Zero Hardcopy policy i.e. we just ask for soft-copies, completely paperless claims!
• Best value - If you are satisfied with the service and the IDV is right, check the premium and the discount you are getting.

Learn more about the Right Way to Compare Car Insurance Quotes.

Renewing your car insurance online has become the preferred choice for most vehicle owners in India because of its convenience and efficiency. Key benefits include:

• Quick Process - Complete the entire renewal in just 2–3 minutes without visiting an agent or office.
• No Paperwork - All details are digitally captured, making the process 100% paperless.
• Secure & Flexible Payment Options - Pay instantly via UPI, debit/credit card, or net banking.
• Instant Policy Issuance - Your renewed policy document is sent immediately to your email, SMS, and WhatsApp.
• Preserve Your NCB - By renewing on time, you retain your No Claim Bonus discounts, which can reduce your premium by up to 50%.
• 24×7 Availability - Unlike offline channels, online renewal can be done anytime, even on weekends or holidays.

Failing to renew your policy before expiry can lead to:

• Loss of NCB - Your accumulated No Claim Bonus lapses if renewal is delayed beyond 90 days.
• Higher Premiums - A lapsed policy may require inspection and often attracts a higher renewal cost.
• Legal & Financial Risks - Driving without valid insurance is punishable with fines up to ₹2,000 (first offence) and leaves you personally liable for damages in case of an accident.

Timely renewal not only keeps you compliant with the law but also ensures uninterrupted protection and lower costs in the long run.

Insure Declared Value is the maximum amount your insurer will pay if your car is stolen or totally damaged. It reflects the current market value of your car after depreciation. Your insurance premium is directly linked to your IDV. 

A higher IDV means a higher premium, and as your car ages, both IDV and premium decrease. While a low premium may seem attractive, it could mean a lower IDV—and lower compensation in case of total loss.

Whether you’ve just purchased a brand-new or second-hand car, a car insurance policy can be bought for any of them.

However, while purchasing your second-hand car check if the owner already has a valid car insurance and get the same transferred to your name, well within 14 days of purchase. Additionally, while insuring your second-hand car, you need to make sure:

• Both the car and insurance are transferred to your name successfully. You should ideally do this within 14 days of purchase.
• Make sure you are aware of the claim history of the car. You can simply do this by providing the policy number to the respective car insurance company.
• If you’ve had a car insurance earlier, make sure you transfer your No Claim Bonus to your new car insurance policy.
• In case the owner hasn’t had a car insurance, or it has expired, you can instantly insure your car on our website here.
• If you’ve successfully transferred your secondhand car’s insurance in your name already, check the expiry date and make sure you renew it before or on the date of its expiry.

Know more about Second hand Car Insurance

• You’ll Lose out on your NCB - Your NCB is your No Claim Bonus accumulated for the years you haven’t made any claims. The higher your NCB, the higher your discount during renewals. However, if you don’t renew your policy before it already expires, you lose out on your NCB and hence the discount too!
• Higher chances of paying a Penalty - If you don’t renew your car insurance policy on time, you may be liable to pay a penalty fine as your previous car insurance policy won’t hold true after its expiry date has passed.
• Bear the Financial Brunt - Apart from saving on traffic penalties and your NCB, not renewing your car insurance policy in time means you may end up losing out on money in case of an unfortunate accident or mishap. Therefore, it’s always better to be safe than sorry and get your car insurance policy renewed before the expiry date of your existing policy!

Know more about Expired Car Insurance Online.

Renewing car insurance for an old or second-hand vehicle is just as important as insuring a new one. Whether you’ve recently purchased a pre-owned car or are renewing coverage for your existing vehicle, here are a few key points to consider before buying a policy online:

• Choose the Right Type of Insurance Based on Usage - If your car is used regularly or you want full protection, a comprehensive policy is ideal. For cars that are rarely used or nearing the end of their life, a third-party policy may be sufficient as it meets legal requirements at a lower cost.
• Check and Customise the IDV - The Insured Declared Value (IDV) reflects your car’s current market value after depreciation. For older cars, this value is lower, which reduces both the premium and the claim amount. Ensure the IDV is accurately stated and customised as needed.
• Select Relevant Add-Ons - Add-ons like engine protection, tyre cover, and return-to-invoice enhance coverage under a comprehensive policy. However, not all add-ons apply to older cars. For example, Zero Depreciation Cover is usually unavailable for vehicles over five years old. Choose add-ons based on your car’s age and condition.