Car Insurance Checklist for First-time Buyers

Before we begin with this article, cheers to your first car! As we share your excitement, we will also share with you an important checklist to ensure that you buy the best motor car insurance policy.

Here is a list of things you need to do/be ready with while purchasing car insurance for the first time:

  • Car Details
  • Personal Details
  • Insurance and Add-ons
  • Insured Declared Value (IDV)
  • Deductibles
  • Comparison/Calculator
  • Insurance Company
  • Payment Details

Car Details

Car details are nothing but the registration number and engine capacity of your car. Engine capacity is also an important factor to calculate the amount of insurance premium.

Personal Details

Correct personal details like name, current residential address and details on your driver’s license, need to be on the policy document. Your address will be used to send the hard copy of your policy. Also, entering correct personal details will be helpful at the time of claims.

Insurance and Add-ons

Understand car insurance is fairly simple. You can buy either of the two types of car insurance policy, i.e. Third-party Liability or Comprehensive Policy. The difference in these two types of policies is the extent of coverage offered.

Buying a Comprehensive Car insurance Policy is recommended as it offers a wider coverage. It includes coverage for Own Damage, i.e injuries/damages to you and your car, along with a Third-party Liability cover. Plus, you can buy Add-ons for more coverage.

Insured Declared Value (IDV)

This is the current market value of your car. To know the approximate value, refer to the following table:

Up to 6 months 95% (of Ex-Showroom price)
6 months to 1 year 85%
1-2 years 80%
2-3 years 70%
3-4 years 60%
4-5 years 50%
5 years+ To be negotiated


You need to pay some part of the claim amount as a Compulsory Deductible. You can also opt to pay Voluntary Deductible, but this amount needs to be declared when you purchase the policy.


Thanks to technology, you can do car insurance comparison and calculate the premium amount before purchasing a policy. Use an online premium calculator to know your Car Insurance premium.

Insurance Company

Choose an insurance company which provides proper after-sales services. One way to know more about the services is to read user reviews online. Select your insurer once you are satisfied.

Payment Details

If you are buying the policy online, you will need your online payment details, including account number/customer id, password/ATM pin and One Time Password (OTP). Make a note of this and get your car insured.

There you go! Refer to this ready-made list while buying insurance and you will buy the policy like a pro even though it is your first time.

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About the Author: EnsideQuotes