Best Car Insurance for Young Drivers
Purchasing a new car is always accompanied by a lot of excitement. But, in this flurry of activities associated with purchasing a new car, one must not forget to get car insurance and abide by the traffic and road safety rules.
Young and inexperienced drivers should definitely avoid driving a vehicle if it is not insured, for it is not just a violation of law but also a means by which one can derive a list of benefits, the primary one being financial security.
Car insurance for young drivers
Young drivers are prone to accidents due to lack of experience on the road and impatience. Therefore, it is important that one should have car insurance for it would provide them with the requisite financial support for a small price. Some of the things that young drivers have to keep in mind while purchasing car insurance is as follows –
- Compare the policies online before purchasing it
- Check for add-ons
- Check for available discounts
- Make sure that the claim settlement process is easy
- Do not settle for a low-cost insurance
- Do not file claims for small things
- Do not let the insurance lapse
- Do not file false claims
Which is better – Third-party or comprehensive car insurance?
Third-party motor insurance is mandatory as per the Motor Vehicles Act, 1988. It is liability insurance that provides the owner of the automobile protection against the claims of another party. Third-party insurance guarantees only a basic level of protection to the insured.
However, a comprehensive plan provides protection against eventualities such as theft, damage caused to or by third parties, riot damage, arson or vandalism, natural disasters, etc., and combines the best features of first-party and third-party insurance covers. There is scope for customisation in the form of add-ons such as Engine Protect, Zero Assistance, NCB Protect, etc.
The additional benefits that a comprehensive policy offers over and above a third party liability are –
- Covers both own damages and third-party liabilities.
- Also, the insured can claim a No Claim Bonus at the end of the term in case there have been no claims made against the policy.
- The insurance policy will also provide basic legal assistance (including basic investigations and verifications) to the insured.
Factors determining the price of the premium
- Make and model of the car: The type of car in question is important to determine the IDV and by extension the premium of the car. Relevant questions would be what is the car brand, a petrol or a diesel variant, what are the accessories to the car, etc.
- Location of the insured: If the geographical location of the car owner is in a risk-prone zone, then the car insurance premium will be high. If the car owner registers the car in Zone A, i.e. in one of the 8 cities of Zone A, namely, New Delhi, Mumbai, Kolkata, Chennai, Bangalore, Hyderabad, Pune, Ahmedabad, then the premium will be high as opposed to a car registered in Zone B i.e. rest of India. For example-Ajit registered his car in New Delhi hence has to pay a higher premium for his insurance policy. While on the other hand, Ankit has registered a car in Lucknow which is a Zone B city hence has to pay a lower premium for that.
- Type of car insurance policy: The coverage that the policy has to offer will decide the premium that has to be paid. As a thumb rule, one can say that the wider the coverage, the higher the premium amount that is to be paid. Therefore, a comprehensive car insurance cover with add-ons will demand a higher premium payment as opposed to a basic third-party cover.
- Add-ons chosen: With more add-ons to the insurance policy, the insurance premium tends to increase. Therefore, purchase only those add-ons that are necessary to protect the car from probable damages. For example, it is wise to purchase an engine protection cover in a flood-prone area as the engine has chances of getting damaged due to water ingress.
- Anti-theft devices: Install certified anti-theft and safety devices such as locks, advanced braking systems, airbags, anti-theft devices, and GPS tracking to reduce the premium amount. Most insurers offer a 2.5% deduction on the premium subject to the kind of safety device that is installed in the car.
What is the eligibility criterion to buy a car insurance policy?
- The person must be above 18 years of age.
- He or she must possess a valid driving license and a registration certificate of the car.
It is important to go through all the plans that are available before zeroing down on a single insurance policy. Check the features and benefits that each policy has to offer, compare and contrast it with other policies and then choose the one that maximises your benefit and minimises the cost.