Handy Car Insurance Guide for Young Drivers

Driving a stylish car is a dream, especially for the college goers. However, a very few actually know the subtle difference that can make your driving experience an easy victory. By saying that, the foremost thing to consider is how safely you drive or how do you protect your car at the best?

Even you excel the skills of a good driver, there is no guarantee that you or your vehicle is safe from an accident or there will be no collision on road. Moreover, the reckless driving or drinking while driving among the youngsters will always remain the root cause of keeping one’s life at risk. Even statistics say that the ratio of road crashes of teenagers is higher than those who are aged between 30 to 60 years. When you can’t do anything about an eventuality, the only thing that is in your hand is getting insured the vehicle. Not only the college goers, but any responsible driver must also buy car insurance in India. And without knowing how car insurance works, the worthiness cannot be realised.

Car Insurance: Decoding the Basics

Car insurance provides optimum protection to the insured vehicle if any eventuality strikes. It protects the owner financially against unexpected expenses that may arise out of an accident. In order to enjoy the benefits to the fullest, you should at least know the basics of car insurance. And knowing about the types is something you shouldn’t miss.

Usually, there are two types of car insurance in India; Third Party Insurance and Comprehensive Insurance. When Third Party car insurance is mandatory by the Motor Vehicles Act 1988, the Comprehensive insurance is optional.

1. Third Party Car Insurance 

It is a compulsory insurance cover in India that protects the vehicle owner against the liability arising out of an accident. Under this policy, the insurance company compensates for the damages caused to the third party. The liabilities may arise due to injury, proper damage or death of a third party.

The premium of this insurance policy is decided by the IRDA every year and no external factor is involved.  The basic premium decided for the financial year 2018-19 is :

CC (Cubic Capacity)of Car Applicable Premium
Below 1000cc Rs. 1,850
Exceeding 1000cc but below than 1500cc Rs. 2,863
Above 1500 Rs. 7,890

2. Comprehensive Insurance

This insurance cover is extensive in nature and that’s why is always recommended by the insurance experts. The policy the covers the insured vehicle for own damage as well as liability damages. The list of coverage also includes man-made damages such as theft, burglary, riot, strike etc. and damages due to natural disasters like flood, earthquake, cyclone etc.

No doubt, the policy comes at an expensive price, where the premium is decided based on certain factors like IDV of the vehicle, engine capacity, the zone of registration etc.

Apart from the above, there are add-on covers as well to increase the basic policy cover. These include- Zero Depreciation Cover, NCB Protector, Road-side Assistance Cover etc. The add-on covers are available at an extra premium and can be bought at the time of buying the basic policy. if not one can add at the time of renewal as well.

Car Insurance: Buying Process

Buying car insurance can be easy. You can go either offline or online. The offline process requires visiting the offices of the insurance companies, approaching the concerned officer, filing the form and pay the premium. On the other hand, online insurance is available in the most convenient way where you can search car insurance plans by visiting the official websites of the insurers. For instance, to buy Bajaj Allianz car insurance, you can go to the website, browse over the various plans offered by the company, check the premium and pay online. This way buying insurance is just a matter of a few clicks. However, one should not ignore comparing the plans online.

Well, we are coming to this point later…

Let’s consider some Do’s and Don’ts to be followed at the time of buying car insurance in India

The DO’s of Buying Car Insurance

By following some tips, you can ensure buying the right car insurance for your prized possession. These include:

Do Compare and Buy

Doing a thorough comparison of plans on the grounds like coverage, premium, claim settlement ratio is essential. This is the key step to analyse whether the plan is worth your money or not. It alone will help you to narrow down the type of car insurance you wish to buy.

Check the Authenticity of the Insurer

A background check is essential to ensure a genuine purchase. Make sure the insurance company that you have chosen is capable of releasing the payouts. You can check for the incurred claim ratio of the company. Higher the ICR, better it is for you. If the ICR is 100% or above, it indicates the company is in loss. So, a close analysis is required to make a firm decision. Likewise, claim settlement ratio is equally important that helps you judge a company. CSR means the total number of claims received annually against the total number of claims paid. It is essential to check the CSR ratio to avoid a hectic claim process.

Providing Correct Information

In order to get adequate car insurance, you should ensure the information provided is correct. If you are willing to port the plan, consider mentioning the NCB benefits earned with the insurer. More0ver, vehicle information such as cubic capacity, manufacturing year of the car, registration zone etc. will aid in getting the right car insurance quotes.

Do Analyse Your Requirement

Always buy only after analysing your actual requirement. It especially goes for while selecting an add-on cover. Though add-on covers additional protection, it comes with an extra cost. So, buy only if you actually need it. Because there is no use of buying extra coverage and paying a huge premium, when you don’t require.

Don’ts of Buying Car Insurance

A few don’ts will help you buy the right plan, even sticking to your budget. Here we go:

Don’t Consider the Premium Only

No doubt, premium is an important factor to be considered at the time of buying a plan, but it shouldn’t be your only concern. Plans that offer less premiums may not suffice your requirements. So, always buy a plan that offers enough coverage.

Lapsing Car Insurance: A Big No

To enjoy policy benefits uninterruptedly, you should renew the policy before it expires. On time renewal of insurance will help you keep the troubles like losing NCB at bay. Moreover, carrying a lapsed policy is illegal in India and is subjected to definite penalty as well. Moreover, when a policy lapses, the premium is calculated all over again at the time of renewal. That means, availing the same policy cover at a higher premium.

Don’t Claim for Small Damages

It is better to ignore the small dent or accident, which you can afford. By doing so, you can earn NCB bonus for not claiming your insurance policy. NCB is a bonus offered by the insurer in a form of increase in the sum insured or discount on the premium. So, think twice before claiming car insurance.

Handy Tips to New/Young Drivers

Keeping your eyes on the road, not using phones, don’t drink while drive and most importantly having car insurance etc. are just a few of the essentials that one must excel. However, there are some other things as well to be kept in mind while driving:

To Consider To Avoid
Wear seat belt Avoid drinking while driving
Keep an eye on car maintenance Avoid loud music on board
keep the spare parts, first aid box and other essentials handy Avoid using the phone for texting, web surfing etc.
Always carry important documents like car insurance, RC Book, Driving License etc. Avoid speed

Our Advice!

The first experience behind the wheel can be exciting only if you follow the rules. And without valid car insurance, you can’t even think of plying the vehicle on roads. Therefore, insure your car today and ensure a smooth drive for tomorrow!

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