Insurance is a fairly common tool of discount offered if one bargains well. So yes its cool in a way but wouldn't call it a steal. Please compare with dealerships for best prices to ascertain the good deal. I am not aware of how CSD works though, whether you have choice of dealers for those defence personnel discounts. Insurance price varies from company to company. Please check if you are getting an insurance that is cashless and the insurance co. has tie up with service center where you want you car serviced. Please insist on Extended Warranty from dealership. Even if you are getting it private insured, do not take delivery of vehicle without a proper cover note from day one. Surely any sound dealer will also suggest you the same.