Owning a car is a sense of accomplishment for many youngsters as it gives them a sense of freedom. Long midnight drives, weekend getaways and exhilarating road trips are all that can be done when you own a car. But when you want to check items off your bucket list, the importance of car insurance cannot be undermined. In addition to having a registration and a pollution certificate, the car insurance policy is a regulatory requirement by the Motor Vehicles Act.
Car insurance policy for new drivers
Other than being mandatory compliance, a car insurance policy offers various benefits to new drivers. While a car insurance policy is an agreement between the insurer and the insured, financial safeguard for the insured is its ultimate motive. For this, the policyholders pay the specified amount of premium to the insurance company.
When it comes to new drivers, there is a lack of experience making them more prone to mistakes that may be dangerous, in fact, sometimes fatal. While experienced drivers also prefer the safety net of an insurance plan, it becomes an essential safeguard for new drivers.* Standard T&C Apply
Comprehensive or Third-party plans: Which one to choose?
When you buy car insurance, online or offline, you have the option to choose from several policies. In this process, there are two broad categories of policies — a third-party policy and a comprehensive policy.
A third-party plan is a minimum required coverage as per the law. This policy safeguards the policyholder against legal liabilities that may arise due to accidents or collisions. However, that isn’t the only damage suffered in the event of an accident. It is your car which also gets damaged. Hence, a comprehensive plan must be selected. Comprehensive policies not only cover third-party liabilities, but also the damages to your car. This keeps you financially safeguarded in a 360-degree fashion. * Standard T&C Apply
How are the premiums determined for new drivers?
Whether it is a brand-new car or a pre-owned one, the premium of a policy can be a substantial cost which you may be required to bear at each renewal. Hence, it is beneficial to know which factors have an impact on the premiums of your car insurance policy.
- Model and make of the car.
- Location of registration.
- Type of car insurance policy.
- Add-ons opted for.
- Security features in your car
* Standard T&C Apply
The model and make of your car or the registration location cannot be tweaked or changed. It has an impact on your policy. But, the type of policy, the add-ons you opt for and the security features in your car are something within your control. When selecting the right set of add-ons, you can make use of a car insurance calculator. This nifty tool helps compare the available policies as well as the features in each of them.
Conclusion
Although third party car insurance is the minimum required coverage, opting for a comprehensive policy has substantial benefits, especially for new drivers. Comprehensive plans help protect you against liabilities, as well as provide a financial safeguard for the damages to your car.
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.