Getting third-party car insurance online is quick and hassle-free. This type of insurance is the minimum legal requirement for driving in India. It protects you if your car causes injury or damage to someone else or their property.
With everything available at your fingertips today, it’s tempting to click “buy” and be done. But before you make that final payment, it’s worth knowing exactly what you’re signing up for. Here’s what to look out for when buying third-party car insurance online.
What is Third-Party Car Insurance?
Third party car insurance is the standard coverage required by law under the Motor Vehicles Act, 1988. It protects you from legal or financial trouble if your vehicle causes injury to someone or damages their vehicle or property.
For instance, if your car accidentally crashes into a scooter and injures the rider or damages a shop’s shutter, third-party insurance covers their medical bills or repair costs. But it won’t pay for your car’s damage in the accident.
Why Buy Third-Party Car Insurance Online?
Buying car insurance online has many benefits.
Saves Time
You don’t have to visit an insurance office or deal with long paperwork. Everything can be done from your phone or laptop in just a few minutes.
Easy to Compare
Online platforms let you view plans from multiple insurers in one place. This means you can compare prices, coverage, and benefits before making a choice.
Informed Decisions
You get to read policy details, check what’s covered and what’s not, and choose what fits your needs, all without pressure from any agent.
Don’t Skip These Checks
While the online process is quick, don’t rush into it. Before clicking that “Buy Now” button:
- Check if the policy meets legal requirements
- Read the coverage and exclusions carefully
- Ensure it includes personal accident cover
- Review payment options and policy duration
TATA AIG offers reliable car insurance solutions with easy online purchase, custom add-ons, a smooth claim process, and access to over 5,900+ car garages. You can buy or renew your Tata AIG car insurance in just three simple steps online. Simply enter your car details, select your coverage, receive an instant quote, and make a secure payment.
Things to Keep in Mind Before You Pay For Your Policy
Here is a list of things to check before you pay for your policy:
1. Check if the Policy Fulfils the Legal Requirement
The first reason to buy third-party insurance is to meet the legal obligation. Verify that the policy meets the current rules set by the Insurance Regulatory and Development Authority of India (IRDAI). As of 2025, here are the standard rates:
| Engine Capacity | Annual Premium (₹) |
| Up to 1000 cc | 2,094 |
| 1001 cc – 1500 cc | 3,416 |
| Above 1500 cc | 7,897 |
Note: The third-party insurance premium rates may soon rise by 10% in 2025.
2. Verify the Coverage Provided
While third-party car insurance has a fixed structure, you must still read the details. Ensure that the policy includes:
- Liability for injury or death to a third person
- Damage to third-party property (up to ₹7.5 lakh)
- Mandatory personal accident cover for owner-driver (up to ₹15 lakh)
Make sure you understand what is not covered as well:
- Your own car’s damage
- Theft or fire-related loss to your vehicle
- Injuries to you or passengers in your car
- Illegal use of car or damage due to drunk driving
Understanding the inclusions and exclusions will help avoid any surprises at the time of a claim.
3. Check the Policy Duration Options
You can now buy long-term third-party car insurance plans, especially if you’re insuring a new vehicle. These policies are typically valid for three years and help avoid the hassle of yearly renewals.
4. Look for Discounts (if Applicable)
When buying car insurance online, don’t forget to check for discounts. Insurers often offer special savings for certain vehicle types like eco-friendly cars or vintage models. You can review the policy details or ask the insurer directly about the available discounts before making the payment. A quick check could bring down your premium without compromising on coverage.
5. Compare Insurers and Read Reviews
Even though third-party coverage is standard across insurers, service quality may vary. Check for the following when choosing an insurer:
- Customer support availability
- Ease of buying the policy online
- Claim settlement timelines
- Online user reviews and testimonials
Opt for an insurer that offers a user-friendly website, 24/7 customer support, and clear policy wording.
6. Review the Personal Accident Cover
As per IRDAI rules, personal accident (PA) cover is compulsory. It covers the owner-driver in case of accidental death or permanent disability, up to ₹15 lakh. When purchasing your policy, ensure this is included, especially if you’re buying it for the first time. You don’t need to buy it again if you already have active PA cover with another policy.
7. Confirm Secure Payment Options
A secure payment gateway is important to protect your financial data. Trusted insurance portals offer:
- UPI
- Net banking
- Debit/Credit Cards
- Wallet options
Make sure you receive an immediate confirmation and a digital copy of the policy in your email.
8. Don’t Skip the Policy Document
Once the payment is complete, your third party car insurance policy document should be instantly generated. Download it and check for the following details:
- Your vehicle number and model
- Engine and chassis number
- Insurance start and end date
- Third party coverage details
- PA cover confirmation
- Premium amount paid (including taxes)
Keep this digital document safe, as it is needed during claims, renewals, and vehicle inspections.
9. Know the Claim Process
Even though this policy only covers third-party liabilities, it’s important to understand the claim process:
- File an FIR in case of an accident
- Inform your insurer immediately
- Collect photos, witness details, and all evidence
- Submit all documents, including the FIR, RC, driver’s licence, and claim form
- The Motor Accident Claims Tribunal (MACT) usually decides the compensation amount
The insurer will then pay the third party on your behalf, as per policy limits.
10. Plan Ahead for Timely Renewals
Before paying for your third-party insurance, check the renewal process. Most online platforms send reminders before the policy expires. Renewal is usually simple and only takes a few minutes if done before the expiry date. Late renewals may attract penalties or require a vehicle inspection.
You can avoid late payments by setting reminders. Platforms like TATA AIG offer multiple reminders through SMS, email, and app notifications, making it easier to stay protected without missing the due date.
Conclusion
Buying a third-party car insurance policy online is a sensible next step to take to stay legally covered when driving your car. The online purchase means cheaper prices, faster purchase times, and compliance with Indian laws regarding the driving of a motor vehicle. However, do not hit “Buy Now” until you have confirmed the coverage level, premium amount, included benefits,s and conditions.
Keep in mind that third-party insurance will not cover your own vehicle! If you would like more coverage, a comprehensive plan could be used for better assurance. Simply having a basic third-party policy does guarantee compliance with the law and provides protection for third party claims that may arise from operating a vehicle.
Be informed and covered and remember, part of safe driving is responsible insurance.
