It is difficult to keep a check on youngsters’ excitement once they receive their driving license. All they want to do is get behind the steering of a four-wheeler and zoom away in style. Long midnight drives, weekend road trips, quick ride with a loved one; they are waiting for these cherished dreams to come true.
However, in the enthusiasm to drive a vehicle, youngsters should not forget the importance of car insurance. And of course, following traffic and road safety rules is a necessity. If you are new to driving or if you are a parent who is concerned about your ward’s ‘first vehicle-riding experience’, read ahead to know more about car insurance for young and new drivers.
Car Insurance for Young Drivers:
Apart from being a mandatory requirement, car insurance offers a host of benefits for first-time drivers. A car insurance policy is a promise made by the insurer to the policyholder and it is governed by terms and conditions. It states that the insurance company will offer financial support in case of car-related mishaps.
Considering young drivers do not have much experience when it comes to driving in traffic, for a longer duration, or in tricky conditions such as winding roads or during torrential rainfall; the chances of raising an accident-related claim are on the higher side as compared to skilled drivers. Therefore, car insurance is a must.
Comprehensive or Third-party Liability – Which One is the best?
Car insurance is subjective. Thus, it is difficult to term one type of policy as the best one. However, what’s best for an individual can be assessed and subsequently the ideal policy can be purchased. When it comes to young drivers, the scales tilt in favor of the Comprehensive Plan because it offers Own Damage cover. Such a cover not only offers compulsory Third-party Liability coverage but also insures the vehicle against damage due to accident, fire, theft, and calamities.
Nowadays, the repair costs are extremely high. If you do not have adequate car insurance, you might have to shell out a huge amount of money from your pocket to repair the damages caused due to an accident, flooding, fire, etc. Therefore, new drivers and people buying new cars are advised to purchase a comprehensive plan as it offers a wide-ranging insurance cover.
Car Insurance Quotes for New Drivers:
Whether people own a new car or an old one, no one wants to pay a hefty amount to buy car insurance. This is where a little research and analysis will help you save big bucks by finding a suitable car insurance quote. You can find inexpensive/cheap car insurance for young drivers by understanding the factors that decide the quote.
Here’s a list of factors that have a direct bearing on first-time car insurance quotes for young drivers in case of a Comprehensive Plan.
- Make, Model and Variant of the vehicle
- Registration location
- Type of car insurance policy
- Add-on coverages if any
- Security features such as Anti-theft devices
There is not much that can be done about the first two points. But the next three points are in your control. You can choose to opt for a Comprehensive plan from a digital insurer as they usually offer low-priced quotes pertaining to car insurance for young drivers as well as experienced ones.
Be wise while choosing Add-ons. They offer enhanced coverage but they also increase the car insurance quote. Therefore, choose only those Add-ons that will add value to the cover without being a burden as far as premium is concerned.
For example, opting for Zero Depreciation and Roadside Assistance is an easy decision, however, you must assess your requirements before purchasing specific Add-ons such as Passenger Cover, Personal Belonging Cover, etc. There is no denying the fact that Add-ons are useful. The question is – are they useful to you?
Installing anti-theft devices in your vehicle can prove to be a smart decision. This is because insurance companies offer a discount on car insurance premium if your vehicle is safeguarded with an anti-theft device. Ensure to purchase only those devices that are certified by the Automotive Research Association of India (ARAI).
You can use a car insurance premium calculator to get quotes from different insurers. These quotes can be generated free of cost through aggregator websites as well as by visiting individual websites. Compare quotes and the coverage offered by different insurers and shortlist a few options. Check the credibility of these shortlisted insurers and then make your purchase decision.
Is There Any Eligibility Criteria for Purchasing Vehicle Insurance?
Driving a car without a valid driving license is considered to be illegal by the authorities. Similarly, driving without a car insurance policy is a punishable offence. If you are a first-time driver, you must avail a valid driving license and then ensure that the vehicle is insured. In a way, it can be mentioned that you should have a valid driving license to purchase car insurance so that you stay on the right side of the law while driving the vehicle.
Frequently Asked Questions by Young and New Drivers:
No, you cannot purchase a short-term Third-party Liability policy for a new car. There is no such option. You have to purchase a long-term (minimum three years) Third-party Liability policy in case of a new car.
No, you need not purchase a Personal Accident Cover with car insurance if you already have one. This is because the cover has been unbundled.
No, there is no compulsion to buy car insurance from a car dealer. People do so because they feel it is convenient. However, with the advent of digital-first insurers, purchasing a car insurance policy for a new vehicle has become super simple. You can save a substantial amount of money if you opt to purchase car insurance online as compared to offline modes such as through a car dealer, agents, or an insurance company’s branch office.
You can find the exact coverage, inclusions, exclusions, and the terms and conditions of a particular insurance plan in the respective Policy Wording document. This file is available for download from the insurer’s website. In case you have any doubts, feel free to reach out to the customer care executive of your preferred insurance company on call or through email.
Read informative Car Insurance Articles at Acko.
Read all our insurance & non insurance related articles here.