First Party Car Insurance

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First Party Car Insurance

With the growing shift from public transport to personal cars for daily commutes around the country and the increased probability of unexpected accidents and events in regard to road safety, having the right car insurance for your vehicle is a top priority today.

For financial protection for you and your car during unforeseen circumstances, having first-party car insurance is crucial.

Let us discuss the role, benefits, purchase, and renewal processes of first-party insurance for your car below.

What Is First-Party Car Insurance?

Whether you are a new car owner or an experienced driver, understanding the first-party insurance meaning and benefits is necessary.

First-party car insurance is an insurance category that covers the losses and damages incurred by the insured car due to an accident, natural calamity, theft, etc. It provides you with a financial safety net by extending cover for the expenses incurred as a result of repairs and maintenance of your four-wheeler.

According to the Motor Vehicles Act 1988, having third-party four-wheeler insurance is mandatory to drive in India. However, this type of car insurance only provides cover for third-party liabilities caused by the insured vehicle.

Therefore, to protect your vehicle, you need a first-party car insurance policy. Let us look at first-party insurance benefits below.

First Party Insurance Benefits

Extensive Coverage - With first-party insurance, you benefit from extensive financial coverage for damages to the car and the owner-driver.

No Claim Bonus—Another advantage of first-party insurance is the option of receiving a no-claim bonus for every claim-free year.

Customisation Flexibility—With a first-party car insurance policy, you can increase coverage by combining a range of add-ons with the base policy.

Cover for Personal Accidents—You can avail of a personal accident cover of ₹15 lakhs in case of the driver or car owner's accidental death or disability.

First Party Insurance Inclusions

  • Any loss or damage incurred by the insured car due to an accident.

  • Any damage incurred due to natural calamities like earthquakes, floods, cyclones, etc.

  • Any damage incurred due to man-made disasters like riots, terrorist attacks, fires, explosions, etc.

  • Any uncontrollable incident damaging the car partially or completely beyond repair.

  • Any loss incurred due to theft or burglary.

  • Any damages incurred while the car is being transferred from one location to another using air, land, or sea.

First Party Insurance Exclusions

Damage or loss incurred by a third party or their property due to the insured car.

  • There is no cover for general wear and tear of the car over time.

  • There is no cover for damage or loss incurred due to negligent driving or voluntary participation in speed racing or rash driving.

  • There is no cover for damage or loss incurred after driving under the influence of alcohol or any other illegal substance.

  • There is no cover for accidents recorded outside the permitted geographical areas.

  • There is no cover for any damage or loss incurred while using a personal car for commercial work.

How is First Party Insurance Price for Car Determined?

The 1st party insurance price depends on a range of factors. You can use a car insurance calculator online to determine an accurate estimate.

For a better understanding, let us look at some of the factors that impact the premium below.

Vehicle model, make, and age—The premium value can vary depending on the car's model and make. The premium is higher for new and expensive cars than for older cars.

Combined add-ons—First-party car insurance offers a range of add-ons to increase base policy coverage, and the premium value will increase depending on the number of add-ons.

Voluntary Deductibles—A voluntary deductible is the percentage of the claim amount that you will pay before the insurer steps in. The higher the deductible percentage, the lower the premium.

Insured Declared Value - The IDV is the value you will receive from the insurer in case your car is stolen or damaged beyond repair. It is based on the market value and depreciation of the car. If the IDV is high, the premium is usually high.

Difference Between Third and 1st Party Insurance for Car

Factors Third-Party Insurance First-Party Insurance
Coverage Limited to third-party liability only. Extensive coverage for third- party liabilities and damage or loss to the insured car.
Legal Requirement Mandatory under the Motor Vehicles Act 1988. Not mandatory.
Customisation Flexibility No add-ons available. A range of add-ons is available.
Premium Lower premiums as limited coverage. Higher premiums as extensive coverage with customisation flexibility.
Personal Accident Cover Not included in this policy. A personal accident cover of ₹15 lakhs.

How To Buy/Renew First Party Car Insurance?

Process to Buy First Party Car Insurance Online

Go to our website.

Enter your car registration number.

Click on the “Get Price” option to proceed.

For the next step, select first-party car insurance and choose as many add-ons as required.

Now, review the final policy terms and conditions, evaluate the quote, and, upon satisfaction, make the payment to buy first-party car insurance online.

Process to Renew First Party Car Insurance Online

Visit our car insurance page on the website.

Enter your car registration number and click on “Renew”.

Review the terms and conditions of your existing policy, add or remove any riders, and click on “Continue”.

A revised quote will be displayed on the screen. Read it carefully, and upon satisfaction, make the necessary payment to renew your first-party insurance.

How To File a Claim Under First Party Car Insurance?

To file a claim with us, you need to choose between a reimbursement or a cashless claim.

For a reimbursement claim, you will need to make the payment first, and we will reimburse you the maximum amount based on policy terms.

For cashless claims, you need to take the car to one of our 7500+ network garages in India, and we will investigate and approve a repair amount to make the final payment once the repairs are completed.

The process to follow for both is as follows.

Notify Us - The first step is to notify us regarding the incident and file a claim. To do so, visit our claims page or call to inform us.

Take your Car to a Garage

For cashless claims - Once done, take your car to one of the network garages (for cashless claims) and complete the survey report.

For reimbursement claims - Take the car to the nearest garage and get the repair work started.

Get the Repairs

For cashless claims - After the survey report has been shared with us, we will evaluate and send a confirmation letter, which you need to submit to the garage to get the repairs started.

For reimbursement claims - Once the repairs are completed, you need to make the required payment to the garage and collect all the receipts and bills for the repair work.

Request Claim Settlement -

For cashless claims - Once the repair is completed, we will pay the garage directly based on the approved amount.

For reimbursement claims - For claim settlement, you need to submit the receipts of repair work to us and upon evaluation, we will reimburse you the amount applicable based on your policy terms.

Disclaimer / TnC

Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.

Related Articles

Is first-party car insurance mandatory?

Is first-party car insurance mandatory?


No, first-party car insurance is not mandatory as per law. However, to protect your car from unforeseen damage or loss, it is highly recommended.

What are the documents required to claim first-party car insurance?


A claim settlement form, driving licence, car insurance number and policy paper, vehicle registration certificate, FIR report (in case of accidents or theft), and repair receipts (for a reimbursement claim).

Which is the best insurance, first-party or third-party?


According to the law, third-party insurance is mandatory. It covers any damage to any third-party property or injury or death of a third party. However, it does not cover damage to the insured vehicle and owner-driver. Alternatively, first-party car insurance covers any damage or loss incurred by the insured car. It also offers a personal accident cover for the owner-driver. Thus, the decision is solely based on the kind of coverage you are looking for. If you want financial coverage for your car, first-party insurance is recommended.

How to reduce my first-party insurance price?


To reduce your first-party insurance price, you can opt for a higher deductible, plan your car model and choose a lower variant before insurance purchase, compare different plans, try to benefit from a no-claim bonus, and reduce the number of add-ons.