How to Choose the Best New Car Insurance Policy Before Delivery Day

Buying new car insurance before delivery day helps you avoid rushed decisions at the dealership. If you are buying your first car, the terms can feel unfamiliar when you are already handling paperwork, accessories, and timelines.

The goal is clear, i.e., your policy should be legally valid from the day you start driving, and it should suit a brand-new vehicle, so your repair experience stays predictable if something goes wrong.

Step 1: Start With Compulsory Insurance

In India, compulsory insurance means your car must have, at a minimum, third-party liability cover before it can be driven on public roads. This requirement exists to protect others on the road if your vehicle causes injury, death, or property damage.

Third party car insurance covers your legal liability towards others. It does not cover repairs to your own car. That distinction is the first make-or-break point for new owners, because many people assume any insurance will pay for their own damage.

If you only take third-party cover, you are meeting the legal requirement, but you are also agreeing to handle your own repair costs from your pocket.

Step 2: Decide the Cover Type Before You Compare Prices

Before you compare premiums, decide what you want your insurance to do for you in real life. New cars tend to have higher parts costs, and authorised workshop bills can add up quickly, even for minor incidents. Your choice usually comes down to two options.

Option A: Third-Party Cover

This is suitable when your focus is on legal compliance, and you are comfortable carrying the financial risk of your own car’s repair or loss.

Choose third-party cover if:

You drive the car very selectively and are comfortable self-funding repairs.

You primarily want a simple, minimum viable policy for compliance.

Be clear on the trade-off: if your own bumper, headlamp, or panels are damaged, third-party cover typically will not pay for those repairs.

Option B: Comprehensive Cover

A comprehensive plan generally combines third-party liability with protection for your own vehicle against a wider set of risks, as per policy terms. For a new car, this option is usually preferred because it supports everyday real-world situations like accidental damage and other covered losses.

Comprehensive cover is also the base that typically allows customisation through add-ons, which can improve claim outcomes and reduce out-of-pocket expenses during repairs.

Step 3: Pick Add-Ons Only If They Change Repair Payouts

For a new car, they are helpful only when they meaningfully reduce standard deductions or improve settlement experience during repairs. If you choose comprehensive cover, you can consider add-ons based on how you drive.

A frequently discussed feature for new cars is zero depreciation cover. It is designed to reduce depreciation-related deductions on eligible parts during claims, subject to plan rules.

When evaluating add-ons, keep it practical:

Do you want a smoother claim settlement for parts replacement?

Do you drive in dense traffic where minor damage is more likely?

Do you prefer repairs at authorised workshops?

If the add-on does not change your likely claim experience, skip it and keep your policy clean.

Step 4: Align Insurance With Vehicle Registration Timing

New buyers often delay insurance decisions because the car’s number plate is still in process. In reality, you can plan your cover before delivery, even if you are waiting for final vehicle registration details. The smart move is to finalise your cover choice and the add-ons you want, so you are not making a rushed decision at the last moment.

What helps is coordinating with the dealership on:

When will the car be delivered and first driven?

When will the registration information be available for policy issuance??

Whether any interim details are used in the buying journey?

The takeaway is to decide the policy structure early, then complete the final steps once the required details are ready.

Step 5: Check These Details Before You Accept the Policy

Before you pay, do a quick verification. Confirm the following on the policy schedule:

Your name is spelled correctly and matches your ID.

Your mobile number and email ID are correct.

The policy start date matches your delivery and first-drive plan.

The cover type is clearly stated.

If you selected add-ons, they are listed on the schedule.

Also, make sure you are not buying under pressure. Many buyers accept whatever is offered at delivery because it feels easier.

Final Thoughts

The best approach to new car insurance is to decide before delivery day, not at the delivery desk. Start with the legal minimum, choose between third-party and comprehensive based on how much risk you want to carry, and add only those features that genuinely improve repair outcomes.