Insurance

Buying a New Car? Compare Insurance Before You Accept the Dealer's Quote

Independently arranged car insurance can run 25% or more below a dealer's quotation. A real Tata AIG policy for a ₹20 lakh Kia Carens Clavis EV also shows why a 3+3 own-damage structure can beat the usual 1+3 policy for buyers keeping their car three years or more.

14 October 2026 · Ruchika Banka · RHB Wealth Pro, Salt Lake, Kolkata

When buying a new car, most people carefully negotiate the vehicle’s price but rarely question the insurance premium quoted by the dealership. This could be a costly mistake. At RHB Wealth Pro, we frequently find that independently arranged car insurance can be 25% or more cheaper than dealership quotations, often with comparable or better coverage.

Recently, we arranged a Tata AIG insurance policy for a brand-new Kia Carens Clavis EV, costing approximately ₹20 lakh. The customer secured three years of comprehensive insurance for just ₹1,05,823, including GST — under a 3+3 insurance structure that many new car buyers are unaware of.

Here is why both decisions — choosing an independent insurance agent, and considering a 3+3 policy — can make financial sense.

Why buy car insurance from an independent agent instead of your dealer?

First, remember that buying insurance from your car dealership is not compulsory. You can purchase insurance through any authorised insurer or insurance intermediary. There are four reasons to consider an independent insurance agent.

1. Save significantly on premiums

Dealerships offer convenient insurance packages, but their quotations are not necessarily the most competitive. We frequently arrange car insurance at premiums approximately 25% lower than initial dealer quotations — for example, a dealer quotation of ₹80,000 could potentially be reduced to ₹60,000, a saving of ₹20,000. Actual savings depend on the vehicle, insurer and coverage selected.

2. Better coverage at competitive prices

The cheapest insurance is not always the best. An experienced insurance agent can help you evaluate the Insured Declared Value (IDV), zero depreciation, return to invoice, tyre protection, consumables and roadside assistance. For electric vehicles, special attention should be given to battery, motor and electrical-surge protection.

3. Personal assistance during claims

The real test of an insurance policy comes when you make a claim. At RHB Wealth Pro, we assist customers with claim documentation, insurer coordination and follow-ups, giving them a dedicated point of contact when assistance is needed.

4. Access to cashless garages

A common misconception is that insurance purchased outside the dealership will create problems with cashless repairs. In reality, cashless repair eligibility depends on the insurer’s authorised garage network and policy conditions — not on whether the insurance was purchased from the dealer.

The takeaway: compare your insurance quotation before paying the dealer. You could save thousands of rupees without compromising on important coverage.

The hidden advantage of 3+3 insurance over 1+3

Most new car buyers purchase a policy offering one year of own-damage insurance and three years of third-party insurance. But did you know that some insurers offer three years of comprehensive coverage upfront?

Understanding 1+3 versus 3+3 insurance

The biggest advantage of 3+3 insurance is that you secure three years of own-damage protection upfront, avoiding annual renewals and uncertainty over future premiums.

Real example: a ₹20 lakh Kia Carens Clavis EV insured for ₹1.06 lakh

On 13 October 2026, RHB Wealth Pro arranged a comprehensive three-year Tata AIG insurance policy for a new Kia Carens Clavis EV HTX AT. Here are the actual policy details:

What makes this policy attractive?

Apart from three years of protection, the policy includes several valuable add-ons:

• Zero depreciation — depreciation reimbursement with six claims specified in the policy schedule.
• Return to invoice — additional protection in specified total-loss or theft situations.
• Electric surge secure — particularly relevant for an electric vehicle.
• Tyre secure — protection against specified tyre-related damage.
• Consumables cover — covers eligible consumable expenses during insured repairs.
• Roadside assistance — assistance during covered roadside emergencies.
• Key replacement — coverage up to specified policy limits.

The policy also covers the manufacturer’s standard battery, motor and charger against insured perils, provided their costs are included in the vehicle’s IDV. All benefits are subject to policy conditions and exclusions.

How does the cost compare with 1+3 insurance?

Before issuing the policy, we compared Tata AIG’s available insurance options.

The customer paid ₹47,294 more than the earlier 1+3 quotation, but secured two additional years of own-damage protection and selected add-ons. Under a 1+3 policy, the customer would have to purchase own-damage coverage again in Years 2 and 3; if those two renewals together cost more than ₹47,294, the 3+3 arrangement would prove cheaper in nominal terms, assuming comparable coverage. The final 3+3 policy has a slightly lower IDV than the initial quotations, so these figures are illustrative rather than an exact like-for-like comparison.

Is 3+3 insurance always better?

Not necessarily. A 1+3 policy requires less money upfront and lets you compare insurers every year; claim-free customers may also benefit from no-claim discounts on future renewals. However, for buyers planning to keep their cars for at least three years, a 3+3 policy deserves serious consideration because of its convenience, continuity of coverage and protection against future renewal-premium uncertainty.

Our recommendation: compare before you buy

When purchasing a new car, don’t treat insurance as an unavoidable dealership expense. Ask three questions:

• Can I get the same or better coverage at a lower premium?
• Does a 3+3 insurance policy make more sense than annual own-damage renewals?
• Who will assist me when I need to make a claim?

We believe good insurance advice should combine competitive pricing, appropriate protection and reliable customer service. Before accepting your dealer’s quotation, share it with us — we will help you compare available premiums, IDVs, add-ons and policy options so you can make an informed decision.

Questions this raises

Is it compulsory to buy car insurance from the car dealership?

No. Buying insurance from your car dealership is not compulsory. You can purchase insurance through any authorised insurer or insurance intermediary, and independently arranged policies are frequently 25% or more cheaper than dealer quotations for comparable cover.

What is 3+3 car insurance?

A policy that bundles three years of own-damage cover with three years of third-party cover upfront, instead of the usual 1+3 structure (one year own-damage, three years third-party). It fixes the own-damage premium for three years and removes the annual own-damage renewal, at a higher upfront cost.

Is 3+3 car insurance always cheaper than 1+3?

Not necessarily in upfront cost — the 3+3 premium is higher at purchase. It can work out cheaper in nominal terms over three years if the cost of two future own-damage renewals under a 1+3 policy would exceed the difference, and it also protects against renewal-premium uncertainty. A 1+3 policy needs less money upfront and lets you compare insurers, and claim-free customers may earn no-claim discounts, every year.

Does buying motor insurance outside the dealership affect cashless repair eligibility?

No. Cashless repair eligibility depends on the insurer's authorised garage network and policy conditions, not on whether the policy was purchased from the dealer or an independent agent.