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Buy New Car Insurance Policy Online for a Brand New Car
You’re probably really happy after buying that car you’ve been talking so much about! We wouldn’t want to kill the happy bug, but with a new car comes a new set of responsibilities!
Now, let’s imagine this scenario- you’ve just planned a weekend getaway with your friends in your new car. With all that music and chatter, you suddenly hear a loud sound, and you realise your tyre has just burst! Yikes. If you’ve been responsible, you probably won’t make a big deal out of it.
After all, if you have car insurance in place, with the right add-ons, then this little accident won’t only be solved soon but will also not eat away your weekend budget. Why are we telling you this hypothetical story, anyway? To help you make some responsible choices of course! So, let’s get started- shall we?
What is a New Car Insurance Policy?
Car insurance for new cars is an insurance policy for your new car that acts as a shield against unfortunate events. It helps cover your new car against thefts, financial losses caused by accidents and any subsequent liabilities you may come across unexpectedly.
So, when you purchase a new car, you need insurance coverage before you can legally drive it. This is when new car insurance comes into play and ensures that your new car is protected from the moment you drive it off the lot
There are essentially two types of new car insurance plans- you can either opt for a Third-party car insurance or a Comprehensive Car Insurance. To make things easier for you, we’ve put down a table together that’ll help you compare the two, after which you can make the choice that suits you better.
Why choose Digit for New Car Insurance?
Digit’s Motor Insurance Claim Settlement Ratio is 96% for FY’25
When it came to motor insurance specifically, Digit showcased a high-efficiency Claims Settlement Ratio (CSR), with 96% of motor claims settled seamlessly and we make this simple with:
Smartphone-enabled self-inspection process, with which you can file your claim in minutes!
Cashless Claims at over 9000 garages in India, so you can get your two-wheeler fixed without stress.
Everything digital and paperless. No need for hard copies—just upload everything on our app, and you're all set!
Digit Car Insurance in News!
Monsoon Car Woes: Protect Your Car With Comprehensive Motor Insurance And Add-Ons
- 19 Oct 2025
- Business Insider
As EV cover picks pace, battery coverage is the name of the game
- 18 Apr 2025
- Times of India
Go Digit posts 3x jump in Q2 net profit; gross premium collected at Rs 2,368 crore
- 24 Oct 2024
- The Economic Times
Drive less, pay less: Why 'Pay as You Drive' insurance may be right for you
- 21 Aug 2024
- Business Standard
Pay As You Drive (PAYD): Motor insurance ad-on that customises your premium as per driving distance
- 1 Mar 2024
- Zee Business
Dogs, coconuts and monkeys: Insure your vehicles from their mayhem right now!
- 20 June 2024
- Business Insider
Why Do You Need Car Insurance for New Cars?
In India, driving a car, new or old without a valid car insurance is illegal. As per the Motor Vehicles Act 1988, it is mandatory to have car insurance that at least covers third-party liabilities. However, having a new car policy is important for the following reasons:
Legal Requirement
In India, having at least a third-party car insurance for new cars is mandatory by law. Driving without it can result in a fine or penalty.
Financial Protection
Having a new car insurance policy can help you save significant expenses for any repair or replacement of car parts in case of an accident. Additionally, you can also protect yourself from hefty traffic fines!
Avoid Third-Party Liabilities
Anyone can become a victim of road accident, and in case your new car accidentally damages someone's property, vehicle, or cause injury, your car insurance will cover the costs, saving you from any disputes and financial loss.
Enhanced Coverage with Add-Ons
Opting for comprehensive car insurance allows you to enhance your coverage with add-ons like zero-depreciation cover, return to invoice cover, consumables cover, and breakdown assistance, providing even greater protection for your vehicle.
Types of Car Insurance for New Cars
| Third-Party | Comprehensive | Own Damage |
Damages/Losses to own car due to an accident |
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Damages/Losses to own car in case of fire |
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Damages/Losses to own car in case of a natural calamity |
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Damages to Third-Party Vehicle |
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Damages to Third-Party Property |
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Personal Accident Cover |
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Injuries/Death of a Third-Party Person |
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Theft of your car |
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Customize your IDV |
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Extra protection with customized add-ons |
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| Get Quote | Get Quote | Get Quote |
Read more: Difference between Comprehensive and Third Party Car Insurance
We recommend Comprehensive Car Insurance to most customers over just a Third-Party Liability Policy, especially to new car owners. A Third-Party Insurance Policy works if you rarely drive your car or if it’s too old; in such cases a Third-Party Car Insurance is enough for maintaining basic protection and legal compliance.
Digit's Cashless Garages
List of 9000+ Network Garages >How is AI making Digit’s Motor Insurance Claim Process Faster & Smarter
At Digit, we believe filing a motor insurance claim should be simple, not stressful. That’s why we’ve built intelligent automation into every step of the process—so you can get back on the road, faster.
- AI That Sees What You See: When you upload a video of the damage through our app, our AI doesn’t just watch—it analyses. Using advanced image recognition, it assesses the extent of the damage, classifies it, and helps determine the next steps. This means quicker evaluations, fewer delays, and a smoother experience for you.
- Automated Document Processing: From inspection reports to claim forms, our AI systems automatically sort and process your documents. This reduces manual effort, minimises errors, and speeds up approvals. And with a human-in-the-loop approach, we ensure every claim is handled with both precision and empathy.
- Automation That Works Behind the Scenes: Our systems also fetch claim details directly from partner platforms, eliminating the need for repetitive data entry. Whether it’s Bulk Policy Issuance or real-time claim registration, automation helps us move faster—so you don’t have to wait.
67% Car Repair Work Approvals Done within 12 Hours
In H2 FY25, our average car repair approval time was 14 hours and 46 minutes, with 67% of approvals completed within 12 hours. Only a few cases experienced longer wait times, typically due to complex assessments or the need for additional documentation, highlighting our commitment to minimising delays and maximising efficiency.
Rest assured, we carefully monitor every step to ensure your car is back on the road as swiftly as possible!
Digit Settled 9.16 Lakh Claims with 99.9950% Accuracy in FY'25
The below data is for all the products as given in the table below.
Settled 9.16 Lakh Claims Settled
That’s how many times we showed up for our customers in FY 2024–25. Behind each of those numbers is a mishap, and we were right there, making sure things got sorted quickly.
Out of these, nearly ₹6.52 lakh were motor insurance claims alone—proof that we’re there when it matters most, whether it’s something trivial or serious.
₹4,622 Crore Paid in Claims
From minor hiccups to major emergencies, we made sure our customers didn’t have to carry the financial burden alone. Quick settlements, zero confusion, and real peace of mind.
Of this, ₹2,199 crore was paid out under motor insurance, covering everything from accidents to unexpected situations like rat damage.
99.9950% Claims Accuracy
Out of 9.16 lakh claims in FY 2024–25, only 256 were escalated to the Hon’ble Ombudsman^. Out of which only 46# were escalated and ruled in favour of the customer. This significantly proves the claim's accuracy rate of 99.9950%.
For Motor Claims, out of 256 escalated claims for Digit, just 124 were motor-related. By year-end, 104 motor claims were closed, with 28 resolved through mediation. Only 26 health claim decisions went in favour of customers.
Ombudsman Complaints for FY 2024-25
The below information is a summary of escalated claim cases reviewed by the Hon’ble Ombudsman in FY 2024–25.
Disclaimer: ^This data pertains to cases reported to various offices of the Hon’ble Insurance Ombudsman. Customers have the option to approach the Consumer forum as well; #Only includes complaints arising from claims. The company had a total of 11 complaints arising from non-claims, i.e., policy-related grievances (5 won, 2 settled, 1 lost, and 3 outstanding). One non-claim complaint where the decision went in favour of the complainant is not included in the numerator while calculating claims accuracy.
Interesting Claim Stories & Insights from Digit Customers
A Digit Car Insurance customer received a total loss claim of ₹48.70 Lakh in Mumbai
In a recent case from Mumbai, one of our policyholders experienced a total loss after their private car sustained severe damage. Fortunately, the vehicle was insured, and we processed a claim payout of ₹48.70 lakh. This case highlights the importance of having dependable insurance coverage to stay prepared for life’s unexpected turns.Digit Settled a third party claim worth ₹ 1.5 crores in Raipur, Chhattisgarh
In a recent case from Raipur, a private car was involved in an accident that tragically resulted in a fatality. While such incidents are deeply distressing, they also bring significant financial and legal responsibilities. Fortunately, the vehicle was covered under our third-party insurance policy, which enabled a compensation payout of ₹1.5 crore to the affected party.
This case highlights the critical importance of third-party liability coverage in motor insurance, offering essential financial protection during life’s most difficult moments.
Flood Damage Claims Cross ₹95 Crore, with ₹3 Crore Settled in Azitnagar
When we think of car insurance, we often imagine accidents or theft. But sometimes, the most significant threats come from nature itself. Azitnagar in the Krishna district, had 529 flood-related claims filed this year, with payouts exceeding ₹3 crore. Across the country, we paid out more than ₹95 crore in flood and inundation claims.Seven Accident Claims in One Year on One Car, All Approved
One customer in Patna had a year they won’t forget. Their brand-new Kia Carens was involved in not one, not two, but seven accidents. Six happened while driving, and one happened while the car was parked. It was an actual test of their insurance policy and it passed. Every claim was covered, proving that dependable coverage can make all the difference when things go wrong again and again.Premium Protection For Premium Vehicles
This year, we received some standout premium payments across different vehicle types. A Ferrari topped the list in the four-wheeler category with a premium of ₹8.04 lakh. In the two-wheeler segment, a Hayabusa was insured with a premium of ₹44,000. And in the commercial vehicle category, a Volvo L150 wheel loader was covered with a premium of ₹3.53 lakh. This highlights how our insurance scales to match the value and purpose of every vehicle, whether it’s built for speed or styleOver 670+ Vehicles Insured with ‘007’ Registration
This year, over 670 vehicles insured with us proudly carried the iconic Bond number “007”. Among them, one standout customer paid a premium of ₹5 lakh. This highlights how our insurance supports unique preferences while ensuring complete coverage.Things to consider when buying insurance for your New Car
There are several factors to keep in mind when buying car insurance for new cars. Paying attention to them will ensure that you fetch an ideal level of cover. Some of these factors include the following:
Tips to Save Money When Buying a New Car Policy Online?
Here are the tips to save premium when buying car insurance for new cars:
Compare and Customize: Search online for the best new car insurance quotes, compare them, and then go for the policy that suits your budget.
Limit Add-ons: Try to avoid opting for unnecessary add-ons and consider only usage-based car insurance add-ons such as Pay As You Drive, if you don't drive much.
Optimize Payment and Deductibles: Pay your car insurance premium on time to save on monthly premium payment. You can also consider increasing your deductibles to lower your premium.
Good Driving Habits: You can keep a good credit score by driving safely and staying accident-free to get better insurance rates and possibly more discounts.
How to Use NCB to Reduce New Car Insurance Price?
No Claim Bonus or NCB is a discount offered to policyholders who do not file any claim in a policy year, as a reward for safe and responsible driving. The best part about it is that NCB keeps on accumulating for each year you do not make a claim, up to a maximum of 50% of the car insurance premium.
Now, here are some things that you should know about the role of NCB in reducing your new car insurance premium:
Use Your NCB When Buying a New Car
When buying a new car, you can transfer the accumulated NCB from your old car insurance to the new policy, if applicable. Since NCB accumulates each year without a claim, you can get a discount of up to a maximum of 50% on the new car insurance policy. This can significantly reduce your new car insurance price.
NCB Certificate
Know that your No Claim Bonus is transferable whether you buy a new car or switch to a new insurer and you can benefit from the NCB certificate to avail the discount.
However, to transfer the NCB, you need an NCB certificate. If you're buying your new car insurance policy offline or through an agent, you'll need to transfer your No Claim Bonus (NCB) by submitting your buyer-seller agreement (Forms 29 and 30) along with a letter requesting the NCB transfer from your current insurance company.
The insurer will then issue an NCB certificate, which you must submit to your new car insurance company.
However, if you're buying a new car insurance policy online, you don't need to go through this process. Simply declare the correct NCB, provide your old policy number and the name of the insurer, and your new insurance company will handle the rest.
Documents Required for NCB Transfer
Furnish the following documents along with the application:
Copy of delivery note that you’ve received for the sale of the old car
Copy of insurance policy of the old car
Copy of the booking form that you received for purchasing the car
Transfer application
Buyer-seller agreement (Forms 29 & 30)
Copy of transferring the old RC if you’re selling your old car
NCB certificate from the insurer
Is it a good idea to buy New Car Insurance from the Dealer?
The best of us prefer to escape all the time and energy that will go into looking for the right insurance company online or offline. No wonder, many people are tempted to opt for any car insurance offered by dealers. It saves time and of course, it is convenient. But is it the right thing to do? Let’s see what can go wrong if you plan to buy a policy from your dealer:
You will get limited options - Once you’ve purchased your car from the dealer, the second thing they’re likely to sell you a car insurance policy. While this may be convenient, it comes with the disadvantage of limited options, as compared to options online. Additionally, your car dealer will probably have tie-ups with specific insurance companies and will offer you insurance solutions provided by these companies only.
Best Add-ons - You won’t have the freedom to choose from a wide range of add-ons that can give your car better coverage. Buying a car insurance online gives you the benefit of customizing your plan with different add-ons to choose from.
Can’t compare rates - Comparing rates is very important but when you plan to buy insurance from a dealer you will not get this opportunity.
We recommend go online, do some research or better, directly buy your car insurance policy online. The process is fast, there’s no paperwork and the best part- you know exactly what to expect out of your car insurance since you’ll be the one choosing it!
FAQs about Online New Car Insurance
Which is the best car insurance for new cars?
The best car insurance for a new car depends on your specific needs and preferences. However, a comprehensive insurance plan is the most suitable as it covers both third-party liabilities and damage to your own car.
How much is the new car insurance price?
The cost of insuring a new car depends on various factors such as the new car's make and model, your location, driving history, its IDV, and the coverage options you choose.
Is car insurance policy compulsory for a new car?
Yes, as per Indian motor laws, having at least a third-party car insurance policy is compulsory for a new car. However, if you want enhanced coverage, you can also opt for a comprehensive policy.
What is the penalty for not having a valid car insurance in India?
In India, you will be fined ₹2,000 for a first offense and ₹4,000 for subsequent offenses. You may also get imprisoned for up to 3 months.
What is 3-year insurance for a new car?
A 3-year insurance policy for a new car provides coverage for three consecutive years. This long-term policy can save you from annual renewals and often comes with discounts and added benefits.
Where can I check my new car policy details?
You can check your new car policy details by reading your policy document or by visiting the Digit website or app.
Are passengers covered by the new car insurance policy?
Yes, the passengers covered by the new car insurance policy if you have opted for a passenger cover add-on that you can buy along with a comprehensive car insurance policy by paying a little extra premium.
How can I lower my new car insurance premium?
You can lower the new car insurance price by:
- Comparing new car insurance quotes online
- Avoid buying unnecessary add-ons
- Increasing your deductible
- Maintaining a clean driving record
- Equipping your car with safety and security features