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.
Learning to drive is hard. Picking out the right insurance makes that even tougher. Here are our young driver-friendly picks for car insurance.
Teens and young drivers are among the most expensive to insure. These drivers tend to be more accident-prone, given their insufficient experience behind the wheel. As a result, their premiums tend to be sky-high, adding thousands of dollars to a parent’s car insurance cost.
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.
What to know about insuring teens and young drivers
Teen drivers are those in the 16 to 19 age range, while young adult drivers are between 20 and 25. The most expensive age group to insure are 16-year-olds. (Teen boys tend to be involved in more serious auto accidents than others, and are more costly to insure.) Premiums generally decrease each year a young driver gains experience behind the wheel.
If you’re a parent, once your child reaches 18, you’ll need to decide whether to purchase a separate car insurance policy for your teen or have them listed on your insurance.
“It is almost never less expensive to have teens listed under their own insurance,” said Michael Giusti, an analyst at InsuranceQuotes.com. “Almost every metric used to rate insurance policies will favor the parents — credit, age, driving history — so the base cost of insurance would be set, with the teen as an add-on.”
However, there are niche situations where it might be better for the teen to be on their own insurance plan — like if they have a bad driving history.
“Putting the teen on a separate policy wouldn’t be less expensive, but it would keep that history from dragging down the parents’ rate,” Giusti said.
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.