Car Insurance for Young Drivers-a Practical Guide

For most youngsters, owning and driving a car is no longer a distant dream. Whether it is for a status symbol, weekend getaway, or a midnight drive, youngsters are passionate about cars. And thanks to the financial assistance available in the form of easy loans, owning a car has become easier than ever.While young owners pay special attention to the features, appearance, make, etc. of their car, they often overlook its insurance. It is equally important if not more.

The Indian Motor Vehicle Act makes it compulsory for all car owners to have at least a valid third-party liability car insurance policy irrespective of their age.  Such a car insurance policy safeguards you against any damages caused to third-party by your car.Young drivers, in particular, are more prone to accidents due to immaturity and lack of driving experience. Thus apart from the mandatory third-party policy, young drivers are advised to opt for a comprehensive plan.

Quite often, people are wary of the cumbersome claim procedure and shy away from registering a claim. However, claiming insurance in case of an accident has never been easier. You can complete the entire claim procedure effortlessly by following the steps below:

1. Contact the insurance provider to intimate and register your claim. While doing so, you will have to furnish particulars like its registration number, insurance policy number, engine number, chassis number, etc.
2. Certain cases require the filing of FIR in the nearest police station. You can enquire about it with the insurance agent.
3. Before starting the repairing work, get the vehicle inspected by an insurance surveyor.
4. Once the surveyor completes his inspection report, you can get your car repaired.
5. Disbursement of claim settlementtakes place in two types depending on your insurance policy.

• Under the cashless settlement you can get your car repaired in any of the network garages of your insurance provider. After the completion of the repair work, you can collect your vehicle after paying your portion of the repair charges. This nominal portion usually involves processing fees and a part of labour and component charges. Your insurance provider pays the remaining amount directly to the garage.
• The next way is through reimbursement from the insurance company . If your policy or the garage does not support a cashless claim settlement, you have to pay the total repairing charges in full. Later on, you have to submit the original documents and invoices to your insurance company for reimbursement of your claim.

• Get a Practical Car: As a youngster, it might be tempting to buy a fancy, high-end car. However, consider practicality and affordability while buying a car. Since your car insurance premium depends on its value, the higher the cost of your car, the more will be its premium.
• Research well for an Informed Decision: Before selecting car insurance, go through the plans of the different insurance companies. With the internet at your fingertips, you can compare different policies and buy car insurance online .
• Select an Insurance Policy that provides Ample Coverage: You must understand the type of coverage supported by the insurance company. Apart from covering your car in case of an accident, ensure that your insurance policy safeguards against theft, natural calamities, vandalism, etc. Additionally, you can consider extra features like zero-depth, roadside assistance to help you during an emergency.

A little bit of awareness and some market survey goes a long way in selecting an insurance policy for your car. Hopefully, by noting the tips mentioned above, you will be able to buy the best car insurance policy for your requirements and enjoy the drive. Lastly, drive responsibly on the roads.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.