Car Insurance

Digit car insurance is a smart, efficient, and legally compliant way to protect yourself and your vehicle from accidents, theft, natural calamities, and third‑party liabilities. It offers a comprehensive protection experience through features such as 9000+ cashless garages, roadside assistance, no‑claim bonus, and a range of 13+ optional add‑ons including Zero Depreciation and Engine Protection.

With over ₹2900+ crore claims paid and 1. 2 crore+ policies sold, Digit ensures dependable support and shields you from unexpected repair expenses whether it’s a minor dent or major damage making every journey safer and more financially secure. The platform also offers transparent processes, quick online renewal, and customisable plans, making it easier for customers to select and maintain the coverage that best suits their needs.

In essence, car insurance when purchased or renewed with Digit, provides comprehensive financial protection, convenience, and peace of mind, ensuring safer and stress‑free driving in an unpredictable road environment.

Car insurance is a fundamental safety requirement designed to keep every road user financially and legally protected.

When an accident, theft, or natural calamity occurs, insurance ensures there’s a fair, structured, and stress‑free way to manage damages, medical liabilities, and repair costs.

Without mandatory third‑party car insurance, millions of drivers would avoid buying insurance, and even a minor mishap could lead to disputes, heavy financial losses, and legal complications.

Mandatory insurance prevents that chaos by guaranteeing that victims receive compensation, and both parties have a clear path to resolution.

1. Third-Party Insurance is Mandatory by Law

The Motor Vehicles Act, 1988 mandates that every vehicle on the road must have at least third‑party insurance, and there are consequences for non‑compliance.

Driving without a valid third-party insurance policy can lead to fines of up to ₹2,000 (first time), ₹4,000 (repeated) and license suspension, or even imprisonment for up to three months, depending on the severity of the violation1.

With the introduction of digital enforcement tools such as e‑challans and FASTag‑based verification, authorities can now detect uninsured vehicles more quickly than ever.

This strict enforcement ensures that all road users remain financially protected and reduces the burden on accident victims who might otherwise struggle to receive compensation.

2. 1,34,307 Road Accidents & 57,482 Fatalities Recorded in India

India’s road safety crisis continues to escalate, making insurance more essential than ever. In 2025, National Highways alone recorded 1,34,307 road accidents and 57,482 fatalities2.

These numbers mean that thousands of lives were lost on just 2.3% of India’s total road network, highlighting the severity of the issue. With such numbers, insurance is essential to safeguard citizens from the heavy financial consequences that follow road mishaps.

3. Climate Disasters Cost India over $12 billion in 2025

India’s extreme weather in 2025 took a heavy toll on vehicles across the country. A Swiss Re Group NatCat 2025 report revealed that climate disasters cost India over $12 billion, with 63% of these losses caused by floods, making flooding the most significant natural hazard for vehicle owners3.

For car owners, the implications are direct and financially stressful: flood‑related repair costs can start at ₹25,000 and climb beyond ₹2 lakh, while total‑loss cases easily reach ₹5–10 lakh, depending on the car. Such damages are not covered by third‑party insurance, meaning only a comprehensive policy preferably supported by add-ons like engine protection and roadside assistance can safeguard you from these losses.

4. Protection for Third Parties

Accidents often impact more than just the driver at fault, and this is where third‑party insurance plays a vital role. Whether it’s property damage or injury to another individual, a third‑party policy ensures that victims receive fair compensation without lengthy disputes or personal financial strain.

Standard policies also provide compensation for third‑party property damage, giving both drivers and victims legal and financial clarity during an emotionally difficult time. This prevents accidents from becoming prolonged legal battles and promotes responsible road behavior.

5. Rising Repair Costs of Modern Cars & EVs

Today’s vehicles are more technologically advanced than ever, but this also means repairs are significantly more expensive. Cars equipped with ADAS, complex electronics, and sensor-heavy systems require specialized technicians and costly replacement parts.

Electric vehicles, in particular, add another layer of expense: batteries in India cost ₹15,000–₹20,000 per kWh, so replacing a typical 30 kWh pack can cost ₹4.5–6 lakh, with some models reaching ₹7 lakh. EV insurance premiums tend to be 10–20% higher due to these high‑value components.

With EV adoption rising, 2.5× growth in new EV insurance purchases in 2025, the need for robust coverage has never been clearer. Insurance acts as a financial safety net, protecting vehicle owners from sudden, massively expensive repair bills.

Learn more about: Why is Car Insurance Mandatory in India?

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

1. Protection for Your Own Car - Comprehensive car insurance covers damages to your own vehicle arising from accidents, theft, natural calamities (floods, cyclones), and fire.
2. Coverage for Third‑Party Losses - Protects you against financial and legal liabilities if your car causes damage to another person’s property, vehicle, or results in injury/death.
3. Add-On Covers for Extra Safety - 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.
4. Earn No Claim Bonus (NCB) - Safe drivers are rewarded with premium discounts of up to 50% for each consecutive claim-free year.
5. 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 in case of claims.
6. Personal Accident Cover for Owner-Driver - Personal Accident Cover for the owner-driver ensures compensation in case of accidental death or disability while driving.
7. Roadside Assistance (RSA) Benefits - Offers on‑the‑spot help for breakdowns, including towing, flat tyre support, fuel delivery, battery jump start, and others as per your policy schedule.

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

Digit Insurance offers protection for a wide variety of cars—whether you’re driving a brand‑new vehicle, a pre‑owned model, an EV, or even a commercial car. The idea is simple: whatever you drive, Digit ensures your car stays protected with easy, customizable, and hassle‑free insurance options.

1. Brand New Cars

Digit provides strong coverage for brand‑new petrol or diesel cars right from day one. A comprehensive policy covers damages from accidents, theft, fire, and natural calamities.

To enhance protection, Digit also offers smart add-ons like Zero Depreciation Cover, Engine and Gearbox Protection Cover, and Roadside Assistance, ensuring your new car stays as financially protected as it is technologically advanced.

2. Second‑Hand Cars

Second‑hand or used cars deserve the same level of protection as new ones. Digit allows you to choose between a third‑party plan or a comprehensive policy depending on the age and condition of your car.

With affordable premiums and add‑on options, Digit helps safeguard you from unexpected repair costs, legal liabilities, and hassles that often come with owning a pre-owned vehicle.

3. Old Cars

Older cars, especially those driven occasionally, can still be insured under Digit’s policies. Many owners opt for basic Third‑Party Liability coverage to stay legally compliant; however, comprehensive and own-damage policies are also available.

Though coverage for older vehicles may be limited due to depreciation, Digit ensures that you still get essential protection and peace of mind.

4. Electric Cars (EVs)

Digit offers dedicated EV Car Insurance designed for the unique needs of electric vehicles. This includes coverage for crucial EV components like batteries, charging cables, and charging equipment.

You can further enhance your policy with an EV Shield Cover for Car, ideal for today’s fast‑growing EV segment.

5. CNG Cars

Vehicles fitted with CNG kits, whether company-fitted or retrofitted, are also covered under Digit’s CNG Car Insurance plans, make sure the installation is declared at the time of purchase or renewal.

The policy covers damages to the CNG kit and related components, and you can add extra protection through relevant add-ons for complete peace of mind.

6. Commercial Cars

If your vehicle is used for business, be it a taxi, delivery car, or fleet vehicle; Digit offers Commercial Car Insurance designed to cover third‑party liabilities, driver safety, and business‑related risks.

This ensures smooth operations and financial protection in case an accident occurs during commercial activity.

1. Comprehensive Car Insurance

A comprehensive car insurance policy is the most extensive form of coverage available for Indian car owners. It protects your vehicle against accidental damage, theft, fire, natural events like floods or storms, and human‑caused incidents such as vandalism or riots, while also covering third‑party liabilities.

Comprehensive car insurance also includes own‑damage protection and third‑party coverage into a single policy, making it a complete safety net for your car.

With the added option to include useful add‑ons like zero depreciation, engine protection, and roadside assistance, it offers one of the most flexible and well‑rounded insurance solutions for those who want maximum protection.

2. Own Damage (OD) / Standalone OD Car Insurance

A standalone own‑damage car insurance policy focuses solely on covering damage to your own vehicle. It safeguards your car against accidents, theft, fires, natural calamities, and other unexpected events that may harm your vehicle.

However, it does not include any third‑party liability coverage, which must be purchased separately to comply with the law.

An own damage policy can be particularly helpful for car owners who already have a long‑term third‑party plan in place and want additional security for their vehicle. It ensures financial protection for your own car while giving you the flexibility to customise coverage based on your needs.

3. Third‑Party Car Insurance

Third‑party car insurance is the legally mandatory minimum coverage required for all vehicle owners in India. It provides financial protection if your car causes injury, death, or property damage to someone else.

Third-party car insurance does not offer any coverage for damage to your own vehicle or theft, and personal accident cover must be purchased separately if needed. It is ideal for meeting legal obligations at a lower cost, especially for older or rarely used vehicles where extensive protection may not be necessary.

1. Select the Right Type of Coverage

Choose between Third‑Party, Own Damage, or Comprehensive Insurance. Comprehensive is ideal for most drivers as it protects against accidents, theft, natural disasters, and more - all in one plan.

2. Factor in Your Car’s Age & Usage for Add-ons

Your car’s age and how often you drive determine the kind of protection you need. Newer cars benefit from stronger coverage, so add-ons like Zero Depreciation, Engine & Gear Protection, and Return to Invoice are more suitable. If you drive less frequently, mileage‑based options like Pay‑As‑You‑Drive help you keep premiums more cost‑effective.

3. Set the Right IDV (Insured Declared Value)

Choose an IDV that reflects your car’s true value. A correct IDV ensures fair payout in case of total loss or theft while avoiding unnecessarily high premiums.

4. Prioritise Claim Convenience

A good policy should offer easy digital claim filing and real‑time tracking via app, plus wide cashless garage access for quick repairs. This ensures fast resolution without paperwork or delays.

5. Review Exclusions & Deductibles Clearly

Always check what the policy doesn’t cover and understand deductibles. Clarity here prevents surprises during claims.

6. Balance Budget with Essential Protection

Cheapest isn’t always the best. Pick a plan that fits your budget but still includes essential protection, ensuring long‑term peace of mind.

Here is how you can choose the best policy type based that best fits your needs,

Here’s what you should look for to pick the right car insurance for your car:

1. Choose an Insurer with a Simple and Quick Buying Process

A good car insurance experience begins at the purchase stage. Look for an insurer that allows you to compare plans, customise coverage, upload details, and complete the entire buying process online within minutes. Digit’s digital-first model helps you buy a policy without paperwork, long queues, or delays, making the process effortless and fast

2. Customisable IDV & Transparent Pricing

Your IDV influences both your premium and payout during total loss or theft. Choose an insurer like Digit that offers IDV flexibility along with clear pricing so you know exactly what you’re paying for.

3. Check for Extra Service Benefits & Easy Modifications

Beyond basic coverage, look for conveniences like digital documents, instant endorsements, seamless KYC, quick address/mobile updates, and online profile changes. Strong self-service options put you in control without waiting for support.

4. Understand How Smooth the Claim Process Is

A hassle-free claim experience is critical during stressful situations like accidents or breakdowns. Choose an insurer that offers online claim filing, app-based self-inspection, quick approvals, and clear communication. Digit’s smartphone-enabled claim process reduces paperwork and speeds up assessment, ensuring claims are handled faster and more conveniently.

5. Review the Insurer’s Claim Settlement Record & Turnaround Time

A reliable insurer should have a strong claim settlement ratio and a reputation for settling claims quickly and fairly. Checking reviews, customer experiences, and the insurer’s overall track record gives you confidence that your claims will be processed smoothly when you need to support the most.

6. Look for Strong and Responsive Customer Support

Customer support becomes essential during emergencies. Choose an insurer that offers 24x7 assistance through multiple channels like call, chat, or email. Digit provides accessible support so customers can quickly find help with claims, policy changes, documents, or urgent queries at any time.

7. Assess the Add‑Ons That Suit Your Driving Needs

The right add-ons enhance your policy based on how you use your car. Zero Depreciation, Engine and Gearbox Protection, Return to Invoice, Pay‑As‑You‑Drive, Consumables Cover, and Roadside Assistance are some options that can significantly strengthen your policy. Digit allows you to personalise your cover with relevant add-ons for your lifestyle.

8. Check the Network of Cashless Garages

A wide network of trusted garages ensures faster repairs and minimal hassle. It also enables cashless service so you don’t have to pay upfront. Digit has a large network of partner garages with over 9000+ garages, giving customers access to reliable service centres across the country.

9. Look for a Fully Digital, End‑to‑End Insurance Experience

From buying to managing claims, a fully digital process saves time and eliminates paperwork. Digit’s digital ecosystem allows customers to track claims, download documents, submit inspections, and manage policy activities online without any physical interaction.

A Comprehensive Car Insurance Policy gives your car 360° protection, but with Digit, you get far more than just broad coverage. Digit combines strong protection with smart technology, transparent pricing, and one of the simplest claim experiences in the industry, making it the most convenient and value‑packed choice for today’s drivers.

1. All‑Inclusive Coverage for Your Car

Digit’s comprehensive policy protects your car against accidents, theft, fire, natural disasters, and third‑party damage, but what sets it apart is how easily everything is managed.

From buying the policy to raising claims, the entire journey is digital-first, fast, and hassle‑free. You get extensive protection without the complications that often come with traditional insurers.

2. Covers Your Car, Third Parties, and You - All in One Policy

Digit goes beyond basic third‑party coverage by protecting your own car from damage, which is crucial for real Indian road conditions.

Whether it's a minor scratch or a major accident, your own vehicle is covered. And with Personal Accident Cover for the owner‑driver, you get essential financial protection for yourself as well.

3. Built for India’s Unpredictable Road and Weather Conditions

From potholes to bumper‑to‑bumper traffic to unexpected floods, Indian roads pose unique risks.

Digit’s comprehensive cover shields your car from damages caused by heavy rains, cyclones, waterlogging, falling objects, fires, or even vandalism ensuring you’re protected from the common (and uncommon) realities of Indian driving.

4. Customisable Protection with Digit’s Smart Add‑Ons

Digit offers some of the most practical and high‑value add-ons in the industry. Whether it’s Zero Depreciation for full bumper‑to‑bumper coverage, Engine & Gearbox Protection for flood-prone cities, EV Shield for electric cars, or Tyre Protect for urban driving; Digit lets you build a policy that fits your lifestyle, usage patterns, and city risks perfectly.

5. Helps Reduce High Repair Costs and Out‑of‑Pocket Expenses

Modern cars come with expensive parts and electronics, making repair bills unpredictable. Digit’s comprehensive policy, especially when combined with add-ons like Zero Depreciation or Engine Protection, ensures sudden repairs don’t lead to large out-of-pocket expenses. This makes the policy cost-effective and highly valuable during real incidents.

6. Cashless Repairs Make Comprehensive Coverage More Convenient

Since comprehensive cover includes own‑damage repairs, cashless service becomes a major advantage. Digit’s wide cashless garage network allows you to get repairs done without paying upfront, making the comprehensive protection easier, faster, and more stress‑free to use during real incidents.

A car insurance premium is calculated by combining several components like Own Damage Premium, Third‑Party Premium, Personal Accident Cover, Add‑Ons, and Taxes. Each of these depends on specific factors set by IRDAI and the insurer.

Below are the key factors that influence the premium amount: 

1. Type of Policy 

Comprehensive policies have both Own Damage + Third-party + Addons → higher premium. Third-party-only policies → lowest premium. 

2. Car Make, Model & Variant 

Premium differs for each car based on brand, model, fuel type, Fuel type, engine capacity and variant. 

3. Car Age & Depreciation 

Older cars have lower IDV → Lower Own Damage Premium.  
New cars have higher IDV → Higher Own Damage Premium. 

IRDAI depreciation rates reduce IDV as the car ages. 

4. Location / Zone of Registration 

Premium varies by city because accident and theft risks differ. Metro cities (Mumbai, Delhi, Bengaluru) generally have higher premiums due to: 

• Higher traffic density 

• Higher repair cost 

• Greater theft risk 

• More accidents 

Tier2 and Tier3 cities usually have lower premiums. 

5. Add-ons Selected 

Addons increase the total premium because they increase coverage. Add-ons like Zero Depreciation, Engine Protection, Tyre Protect, Consumables, Return to Invoice, and RSA contribute significantly to the final premium. 

6. Insured Declared Value (IDV) 

IDV is the current market value of your car and acts as the maximum claim amount in case of total loss or theft.  
A higher IDV = higher premium,  
A lower IDV = lower premium but lower protection.  
Your Own Damage Premium is directly tied to the IDV. 

7. No Claim Bonus (NCB) 

NCB is a discount given on Own Damage Premium for claimfree years.  
0% → 5% → 10% → … up to 50%  
In your example, NCB at 25% reduced the Own Damage Premium significantly. 

NCB applies only to the Own Damage part, not Third-party Premium. 

8. Voluntary Deductible Choice 

If the customer agrees to pay some amount during a claim voluntarily, the premium decreases. Higher deductible → lower premium. 

9. Driver Details & Usage Pattern 

Though not always explicitly charged in India, insurers consider: 

• Usage type (private vs commercial) 

• Annual mileage 

• Historical claim behaviour 

• Higher usage = higher risk = higher premium. 

 10. Safety Features in the Car 

Cars with ABS, airbags, immobilizers, anti-theft devices may get small reductions in Own Damage Premium because they reduce theft/accident risk. 

Renewing or buying your car insurance digitally isn’t just about convenience, it protects your savings, keeps your coverage active, and ensures you enjoy all the benefits Digit offers. Missing your renewal or choosing offline methods can cost you money, time, and peace of mind. Here’s why renewing or buying online with Digit is the smartest choice.

1. Avoid Losing Your NCB

If you miss renewing within 90 days, your No Claim Bonus expires permanently, a discount that can go up to 50%. Renewing directly online with Digit ensures you never miss deadlines thanks to timely reminders, and your NCB stays safe year after year.

2. Skip Higher Premiums and Break‑In Inspections

A lapsed policy often means a fresh vehicle inspection and higher premium. Renewing online with Digit on time prevents this, you continue at the lowest possible rate and avoid unnecessary checks, delays, or extra steps.

3. Get Immediate Coverage for Accidents or Damage

If your policy expires, you must pay for all accident or damage costs out of pocket including repairs, third‑party claims, injury costs, and legal liabilities. Buying or renewing online with Digit provides instant policy issuance, so your protection never stops.

4. Continue Enjoying Cashless Repairs at Digit’s 9000+ Garages

A lapsed policy removes your access to Digit’s cashless network. Renewing on time keeps your coverage active and ensures you continue to enjoy easy, cashless repairs without upfront payments.

5. Simple, Fast & Paperless, Renew or Buy in Just Minutes

Digit’s online journey lets you buy or renew your car insurance in 2–3 minutes with absolutely no paperwork. No agents, no appointments, everything is digital, clean, and designed for speed.

6. Greater Transparency with All Details Clearly Shown Upfront

Buying or renewing online with Digit lets you see premiums, IDV, add-ons, and exclusions clearly before you pay. This ensures you make an informed choice without sales pressure or hidden conditions.

7. Compare Plans & Add‑Ons Easily Before You Decide

With Digit’s online platform, you can quickly compare Third‑Party vs Comprehensive plans, evaluate add-ons like Zero Depreciation or Engine Protection, and customise your cover based on your actual needs.

9. Safe, Secure & Flexible Digital Payments

Digit provides encrypted online payments with multiple options UPI, cards, net banking, and wallets making buying or renewing your policy safe and effortless.

10. Manage Everything Anytime, Anywhere - Policy, Documents, Add‑Ons & More

Online buying and renewal keeps your policy connected to Digit’s digital ecosystem. You can access your documents instantly, update IDV, modify add‑ons, switch to PAYD, check claim status, or file a claim, all directly through the Digit app, anytime you need.

Renewing your car insurance on time is crucial not just for legal compliance but also for your financial security and uninterrupted protection. With Digit’s seamless online renewal process, staying covered is easier than ever. Here’s why timely renewal truly matters: 

1. Stay Legally Compliant 

Driving without valid car insurance is against the law in India. A lapsed policy can lead to heavy fines, legal issues, and in some cases, even the seizure of your vehicle. Renewing on time keeps you protected and ensures you’re always on the right side of the law. 

2. Avoid Unexpected Financial Burden 

Accidents and damages can happen at any moment. If your policy has expired, every expense becomes your responsibility from repair costs and thirdparty liabilities to hospital bills. Even minor repairs can be expensive. Renewing on time makes sure you're financially safeguarded when it matters most. 

3. Preserve Your No Claim Bonus (NCB) 

Your No Claim Bonus can reduce your premium by up to 50%, but only if your policy is renewed before it lapses. Missing the deadline resets your NCB to zero. Timely renewal helps you keep this valuable discount year after year. 

4. Prevent Higher Premiums 

A break in your policy history can make insurers view you as a higherrisk customer. This may result in higher premiums, loss of loyalty benefits, or limited addon options during renewal. Renewing on time ensures you continue with better rates and full benefits. 

5. Maintain Uninterrupted Coverage 

If your policy lapses, your car remains uninsured until you renew, leaving you exposed during that gap. Any damage or accident that occurs during this period will not be covered. Renewing on time guarantees continuous protection and total peace of mind. 

6. Enjoy Digit’s Quick & Easy Renewal Experience 

With Digit, renewing your car insurance takes only 2–3 minutes, completely online and paperless. Your updated policy document is instantly sent via email, SMS, or WhatsApp and is always available on the Digit app. No paperwork, no waiting, no stress. 

Not renewing your car insurance on time can have serious consequences, financially, legally, and for your future premiums. A missed renewal isn’t just a small delay; it can impact longterm benefits and put you at risk on the road. Here’s what you stand to lose: 

1. Loss of Your No Claim Bonus (NCB) 

If you don’t renew your policy within 90 days of expiry, your No Claim Bonus expires permanently. This discount can go up to 50% and help you save significantly every year. Losing it means you pay a much higher premium at renewal. Digit preserves your NCB if you renew on time, so a delay can cost you the savings you’ve built over years of careful, claimfree driving. 

2. Higher Premiums Because of BreakIn Policies and Inspections 

Once your policy lapses, insurers treat it as a “breakin” policy. Your car may require a physical inspection, condition check, or additional documentation. This may lead to a higher premium and longer processing time. With Digit, timely online renewals ensure you skip inspections and continue your policy at the lowest possible rate. 

3. Risk of Heavy Legal Penalties for Driving Uninsured 

Driving without valid car insurance is illegal in India. If you’re caught with a lapsed policy, you may face fines of up to ₹2,000 for the first offence and ₹4,000 for repeat offences. Besides penalties, authorities can also seize your vehicle. Renewing with Digit online eliminates any risk of unintentionally driving without coverage. 

4. Full Financial Burden in Case of Accidents or Damage 

If an accident happens while your policy is expired, you must personally pay for repairs to your own car, thirdparty vehicle or property damage, injury or medical expenses, legal liabilities, compensation in case of death or disability. Digit’s comprehensive policy normally covers these expenses but a lapsed policy means you bear everything out of pocket. 

5. No Cashless Repairs at Garages Until Policy Is Restored 

Without a valid policy, you cannot avail cashless repairs at Digit’s 9000+ network garages. Even minor repairs can turn expensive when you must pay upfront. Renewing on time ensures you remain eligible for hassle-free cashless service everywhere. 

6. Disruption of Your Policy and Claim History 

A lapse breaks the continuity of your policy record. Systems treat your next purchase as a fresh policy, which may affect certain benefits like pricing consistency, renewal offers, and eligibility for some rewards (like Good Driver Benefit or PAYD options). Renewing on time helps you stay fully integrated with Digit’s digital-first ecosystem. 

7. Missed Renewal Offers and Discounts 

Sometimes insurers offer loyalty benefits, renewal offers, pricing advantages, or exclusive discounts for continuous policies. A lapse means you may lose these perks and pay more than expected. 

Letting your car insurance policy expire may seem like a small delay, but the consequences can be significant  financially, legally, and in terms of longterm savings. Renewing your policy on time helps you stay protected and avoid unnecessary trouble. Here’s why timely renewal is crucial: 

1. You Lose Your No Claim Bonus (NCB) 

Your NCB is a reward for driving safely and not making claims, offering up to 50% discount on your premium during renewals. But if your policy expires and isn’t renewed within the grace period, your NCB resets to zero and once lost, it cannot be regained. That means higher premiums and losing out on savings you built over years of careful driving. 

2. Higher Chances of Paying a Penalty 

Driving with an expired insurance policy is illegal in India. If you're caught on the road without valid insurance, you may face fines and penalties. Renewing on time ensures your coverage stays active and helps you avoid legal hassles. 

3. You May Face Heavy Financial Losses 

If an unfortunate accident occurs while your policy has lapsed, you will have to pay for everything out of pocket  from repairing your own car to covering thirdparty damages and legal liabilities. Even minor damages can add up to thousands, and major accidents can result in massive financial strain. Renewing on time protects you from bearing those costs yourself. 

4. Quick Renewal with Digit Makes It Easy 

Digit’s renewal process is fast, paperless, and takes just a few minutes. Your updated policy is instantly available on email, SMS, WhatsApp, and the Digit App, ensuring you’re covered without any stress or delay. You can also track your claim status easily through the Digit app whenever needed. 

Whether your car is brandnew or preowned, having a valid insurance policy is essential. But when it comes to secondhand cars, there are a few extra steps you need to follow to ensure your coverage stays legally valid and financially beneficial. 

1. Transfer the Existing Insurance Policy 

If the previous owner already had an active insurance policy, make sure you transfer it to your name within 14 days of purchasing the car. Until then, only thirdparty liability is covered, own damage is not. Transferring the policy ensures you’re fully protected from day one. 

2. Transfer Ownership & Insurance Together 

Update both the vehicle’s registration certificate (RC) and its insurance policy with your name. Completing both transfers promptly ensures your claims remain valid and you meet legal requirements. 

3. Check the Car’s Claim History 

Ask for the vehicle’s claim history before completing the insurance transfer. The insurer can share this using the policy number. This helps you understand if the car had major accidents or frequent claims, which may impact your future premiums or coverage. 

4. Transfer Your No Claim Bonus (NCB) 

If you have an NCB from a previous car, you can transfer it to your new policy even when buying a second-hand car. This can significantly reduce your premium. Just make sure the transfer happens within the insurer’s allowed timeframe. 

5. Buy a New Policy if No Active Insurance Exists 

If the old policy has expired or doesn’t exist, purchase a new insurance policy immediately. This ensures the vehicle is legally compliant and protected from the moment you start driving it. 

6. Keep Track of the Policy Expiry Date 

Once the policy is transferred to your name, note its renewal date and set reminders. Renewing on time helps prevent policy lapses and protects your NCB. 

Electric vehicles are becoming increasingly popular in India but insuring them requires a slightly different approach due to their unique components and structure. 

Premium Expectations 

EVs usually have a higher IDV because of their higher purchase cost, which may lead to a slightly higher premium. Batteries, the most expensive EV components often require specific coverage. However, since EVs have fewer mechanical parts, they are less prone to certain failures, which may balance the premium overall. 

Must Have AddOns for EVs 

EVs benefit from specialised add-ons tailored to electric drive trains: 

• Zero Depreciation Cover – Especially useful for new EVs to get full claim amounts. 

• EV Shield Cover – Protects chargers, charging cables, electrical panels, and other EVspecific components. 

• Roadside Assistance (RSA) – Ideal for battery issues, towing, or unexpected breakdowns. 

• Return to Invoice (RTI) – Helps recover the full invoice amount in case of total loss or theft. 

Check Charging Equipment Coverage 

If you have a home charging setup, ensure your policy covers the charger and installation. Fires, electrical faults, or accidental damage should ideally be included, as charging equipment is a significant investment. 

CNG vehicles are popular for their affordability and lower emissions but insuring them requires a few extra considerations. 

Declare the CNG Kit in Your Insurance Policy 

If your vehicle has an aftermarket CNG kit, inform your insurer and get it added (endorsed) in the policy. Not declaring it can lead to claim rejection, especially if the damage involves the CNG system. 

Account for the Premium Changes After CNG Installation 

Installing a CNG kit can slightly increase your premium because it changes the car’s risk profile. The kit’s value and fuel type are factored into the final premium. 

Opt for Comprehensive Coverage for Better Protection 

A comprehensive policy is strongly recommended for CNG vehicles. It covers both thirdparty liabilities and owndamage, including risks related to the CNG kit. 

Add Essential Add-on Covers Suitable for CNG Vehicles 

Consider additional protection such as: 

• Engine Protection Cover – Helpful in case of leaks or CNGrelated damage. 

• Zero Depreciation Cover – Ensures full claim value without depreciation cuts. 

• Consumables Cover – Covers small parts like nuts, bolts, and lubricants that may be damaged after an accident. 

Complete the Required Inspection for Aftermarket CNG Kits 

For aftermarket CNG kits, insurers may conduct a physical inspection before issuing or renewing your policy. This is simply to verify proper installation and overall safety. 

“96% of New Car Buyers Opted for Zero Depreciation Cover In 2025 Indian drivers today are making far more informed insurance choices than in the past. In 2025, nearly 96% of new car buyers opted for zerodepreciation coverage, reflecting a strong shift toward comprehensive protection. Similarly, PayAsYouDrive (PAYD) policies gained traction, with 20% of customers selecting them and saving 25–30% on premiums based on actual vehicle usage4. Add-ons like roadside assistance also saw high adoption rates, with 74% penetration, showing that drivers now value safety, convenience, and long-term financial protection. These trends highlight an evolving understanding that insurance is not simply a legal necessity, it’s a smart, proactive investment in personal and financial security.”

Managing your vehicle shouldn’t be a hassle and with the Digit App, it isn’t. Whether you want to check your challans, track fuel prices, or store important documents, Digit brings everything together in one smart, simple, and secure place. Here’s why every car owner should have the Digit App on their phone. 

• Access Your Vehicle Report 

• Check Your Pending Challans 

• View Vehicle Owner Information 

• Track Your PUC Status 

• See All Your Traffic Fines 

• Check Fuel Prices 

• Get Driving License Updates & Practice Tests 

• Fetch Documents from DigiLocker 

• Store Everything in a Secure Document Vault 

• Calculate EMIs Easily