Factors to consider before buying motor insurance for your first car

For first-time car owners, buying insurance can be confusing, and choosing the wrong policy can turn out to be expensive. Many new buyers focus only on low premiums and overlook important aspects like Insured Declared Value (IDV), essential add-ons, or the insurer’s claim support. This can leave them vulnerable to high repair bills, theft losses, or delays when filing claims after an accident. Without understanding how different policies work, first-time buyers often pay more while receiving less protection or end up underinsured when it matters most. Learning the basics of motor insurance, including the types of coverage, must-have add-ons, and how claims are processed, allows first-time buyers to make informed decisions, safeguard their investment, and enjoy peace of mind on the road.

Why understanding motor insurance matters for first-time buyers

Buying your first car is exciting, but understanding motor insurance is equally important. It protects you financially against unexpected events like accidents, theft, or natural disasters, and ensures you meet legal requirements, such as mandatory third-party liability coverage under the Motor Vehicles Act. Knowing the difference between third-party and comprehensive policies helps you choose coverage that fits your needs. Being aware of key features like Insured Declared Value (IDV), claim settlement ratio, and add-ons can help you get the most out of your policy without overpaying. A clear understanding of motor insurance also makes claim processes smoother and gives first-time car owners confidence that both their vehicle and liabilities are well covered.

Key factors to consider before buying car insurance

Before you buy your first car insurance policy, it’s important to assess a few critical aspects that affect both your coverage and long-term costs. These factors ensure that your car remains protected in every situation and that your policy delivers genuine value for money.

1.    Opt for a comprehensive motor insurance plan

As much as third-party coverage is important, having a comprehensive plan that insures against natural causes such as floods, earthquakes, fire, etc., is also important. Look for insurance policies that cover damages or losses caused by natural disasters.

2.    Inspect the insured declared value (IDV)

When buying an insurance policy, always note the insured declared value (IDV) of your vehicle, which is the amount your insurer has to pay when you claim your insurance in case of a stolen vehicle or damages caused by any factor. IDV varies from one policy to another, therefore, you should ensure that your IDV is close to the current market value of your car to enjoy the maximum benefits in case of any mishap.

3.    Check for add-ons

You should opt for add-ons as they enhance the coverage facilities. Opt for add-ons necessary for your vehicle type, such as Zero Depreciation, Consumable Expenses, Roadside Assistance, Mandatory Excess, etc.

4. Look beyond just the premium amount

Opting for a car insurance policy based on only the premium should be avoided. It is because there are several important factors/add-ons that you must consider to receive the best insurance coverage and cashless experience. In addition to availing of the best facilities, remember that the service and experience you will get after claiming the insurance amount are also important in choosing the policy.

5. Claim settlement ratio and process

The claim settlement ratio (CSR) is one of the most important indicators of an insurer’s reliability. It shows the percentage of claims settled out of the total claims received in a financial year, calculated as (Claims Settled ÷ Claims Received) × 100. A higher CSR reflects a stronger track record of claim approvals, giving policyholders greater confidence that their claims will be handled efficiently when needed.

It’s also worth reviewing how simple the insurer’s claim process is from filing to tracking and settlement. Many insurers today provide digital claim filing, real-time updates, and responsive customer support to make the experience smooth and transparent from start to finish.

6. Network garages & cashless repairs

Before choosing a car insurance policy, it’s essential to check the insurer’s list of cashless network garages. These garages let you get your car repaired without paying upfront, as the insurer settles the approved amount directly with the workshop according to the policy terms.

Zurich Kotak General Insurance has a wide network of over 4,600 cashless garages across India, offering reliable repairs with genuine parts and timely service. While the insurer ensures standardised quality, the actual workmanship can vary by garage. This extensive network not only adds convenience but also helps maintain your vehicle’s performance through trusted repair facilities covered by your policy.

Common mistakes first-time buyers should avoid

Many first-time car owners tend to make avoidable mistakes when purchasing insurance. One of the most common is selecting a policy purely based on the lowest premium, without assessing the coverage limits or add-ons included. While affordability matters, it’s equally important to ensure the policy provides adequate protection.

Another frequent error is overlooking the Insured Declared Value (IDV), which determines the amount you receive if your car is stolen or suffers total damage. Choosing a lower IDV might reduce your premium, but it also significantly lowers your payout during claims.

Finally, skipping essential add-ons such as Zero Depreciation Cover or Roadside Assistance can leave you with unexpected expenses later. Always take time to review the policy’s terms, inclusions, exclusions, and claim process before finalising your purchase to ensure well-rounded protection.

Tips to save on first car insurance without compromising coverage

You can reduce your car insurance expenses wisely without compromising on coverage. Start by comparing multiple policies online to review benefits, premiums, and available discounts side by side.

Consider opting for a higher voluntary deductible, where you agree to pay a small portion of claim costs. This often helps bring your premium down noticeably. Installing anti-theft devices certified by the Automotive Research Association of India (ARAI) can also earn you premium discounts, typically up to 2.5%, and in some cases, up to ₹500 off.

Make the most of your No Claim Bonus (NCB) by avoiding minor claims. Staying claim-free for consecutive years can earn you up to a 50% discount on your renewal premium.

With Zurich Kotak General Insurance, you can easily buy or renew your policy online, supported by a strong claim settlement record and access to over 4,600 cashless garages across India. You can also enjoy exclusive digital discounts and flexible plans designed to keep your premiums affordable while maintaining comprehensive protection.

Conclusion

Your first car deserves proper protection from the very start. The right car insurance not only keeps you compliant with the law but also provides financial support in case of accidents, theft, or other unforeseen events. Always compare policies, check the IDV, choose essential add-ons, and pick an insurer with a strong track record for claim settlements and nationwide support.

With Zurich Kotak General Insurance, first-time car owners can enjoy comprehensive coverage, flexible add-ons, transparent premiums, and reliable claims support—giving you confidence and peace of mind on every journey.

FAQs

1. What type of car insurance is best for first-time buyers?

A comprehensive car insurance policy is ideal, as it covers both third-party liabilities and own vehicle damage due to accidents, fire, theft, or natural calamities.

2. Which factors should be considered while selecting a motor insurance policy?

Check the policy’s coverage type, IDV, add-ons, claim settlement ratio, and garage network. These factors directly affect your protection and claim experience.

3. How do car insurance add-ons work, and are they worth it?

Yes. Add-ons like Zero Depreciation and Engine Protection extend your policy’s benefits by covering additional costs that standard policies exclude.

4. What factors affect my car insurance premium?

Your car’s make, model, age, location, and chosen IDV determine your premium. Add-ons and claim history also influence the final cost.

5. How is IDV calculated for a new car?

For new vehicles, IDV equals the ex-showroom price minus depreciation as per IRDAI’s standard depreciation chart.

6. Do I need add-on covers for my first car insurance?

Yes. Add-ons like Roadside Assistance or Return to Invoice ensure better coverage, especially for new or expensive cars.

7. Can I transfer my car insurance if I sell my car?

Absolutely. Car insurance can be transferred to the new owner, subject to proper documentation and insurer approval.