Car Insurance Do’s and Don’ts for College Drivers
This article is especially for our young, energetic and new age college drivers who are totally confused about how to buy a car insurance policy!
Every college goer dreams of getting behind the wheel and every parent has a nightmare of risking their child’s life in terms of reckless driving, drunk and drive etc. Statistics show that a teenager is four times more likely to die in a car. Accident than drivers aged 25 to 69. College goers are often seen flaunting their parents’ cars on Indian roads with no driving skills and knowledge. Over speeding, lack of use of seat belts increase the chances of accidents.
Thus, it is essential for them to understand the importance of driving rights and become responsible citizens for a better tomorrow.
Let us first start with the dos and don’ts of driving for college students.
Besides the essentials of keeping your eyes on the road, keeping a first-aid box handy and not using a cell phone while driving, there are other things that the new-age driver should keep in mind.
Things to keep in mind while driving
- Mandatory wearing of seat belt.
- Follow the speed limit.
- To keep tabs on your regular car maintenance.
- Planning a long car trip in advance and keeping your car stocked with essentials like road map, stepney tires and other related equipment.
- Keeping car related documents like car insurance copy, RC copy, driving license etc in hand.
Things to avoid while driving
- Don’t drink and drive.
- Do not involve yourself in other activities like eating, makeup etc.
- Don’t play your music system so loud that you can’t hear sirens or any other warnings.
Even if you have mastered your driving skills, there is no guarantee that you and your car are safe. Accidents can also occur due to traffic congestion, pollution, fog, mist etc. It is necessary to protect oneself from unexpected and unlikely events. Getting a car insurance policy is the only tool. However, what is better than buying car insurance online! Not just college drivers, but anyone can opt for online car insurance.
Types of car insurance policies available online
Knowing the type of car insurance policy is something you should not miss! There are two types of car insurance available in India ie third party (only) liability coverage and comprehensive policy cover.
Related: Best Car Insurance for College Drivers: Dos and Don’ts Guide 2022
About Third Party Liability Coverage (TP).
Only the third party or (liability cover) will cover the damage caused to the third party and their property. A quote for a TP policy will include components such as…
- The basic third party car insurance premium for the year 2018-2019 is mentioned below (depending on the capacity of your car):
Cubic capacity premium applicable
Not more than 1000cc
Rs.1,850
Above 1000cc but below 1500cc
Rs.2,863
More than 1500
Rs.7,890 - Premium for owner-driver accident cover
- Goods and Services Tax (GST) @ 18%
About comprehensive / package coverage
This is the most recommended car cover that you can opt for, as it covers damage to your car as well as to third parties. Apart from that it also covers losses caused by man-made (like theft, burglary etc.) and natural calamities (like flood, cyclone etc.). A quote for a comprehensive policy will include elements such as…
- Own loss premium (depends on factors like IDV, engine capacity and vehicle RTO)
- Third party premium
- Personal Accident Premium (Cover) for Owner Driver – Rs. 100
- Charges for add-ons (additional coverage)
- Goods and Services Tax @ 18%.
The takeaway
- A comprehensive policy will be beneficial as it covers both own damages and third party damages.
- As per the Indian Motor Act, 1988 it is mandatory to have a third party policy.
Buying car insurance online is as easy as a piece of cake. However, there are a few things to keep in mind before buying a car insurance policy.
Related: Best Car Insurance for Young and New Drivers 2022
What to do while buying a car insurance policy
1. Compare first and then buy online
Comparing the features, plans, benefits, premiums offered by various insurance companies is the key to analyze whether all are providing the same type of coverage. Comparing alone can help you narrow down the type of car insurance you need.
2. Evaluate your add-on cover
Additional covers increase your policy coverage. Which means it gives double protection to your policy. Covers like Road Side Assistance (RSA), Zero Depreciation and Engine Protector are must-haves, especially if it’s a brand new car.
Road side assistance cover
If you get stuck in the middle of the road due to a flat tire or engine failure, etc., it will allow you to call your insurance company and send the car to a mechanic.
Nil/Nil Depreciation Cover
Parts of your car like metal, fiber, plastic are waived, thus you are eligible to claim more amount. Example: In case of a policy without add-on cover like this, 50% of the cost of plastic, rubber, nylon parts will be borne. Whereas, these parts are covered 100% in a zero/zero depreciation policy.
Engine protection cover
This cover will provide protection against additional costs incurred against damage to the car’s engine.
3. Check authenticity and reliability of the Insurance Company
A background check is required to know if the Insurance Company you are relying on is financially capable of giving you the claim amount. Thus, relying on top and trusted brands will ease your tension towards any such possibilities.
4. Check for the claim settlement ratio & Customer service
The claim settlement ratio will mention the total claims received by the insurance company against the total number of claims actually paid to the customers. Knowing this will ensure that, if ever you require claiming, you and your family members don’t need to go through a hectic claims process.
5. Mention NCB, personal and vehicle details correctly
In case of renewal, it is vital to mention your NCB (no claim bonus) correctly. The NCB will provide you with a discount on claim free years. Vehicle details like manufacturing year, cubic capacity, and geographical location will further help you to get genuine quotes.
What not to do when buying car insurance
1. Avoid looking for low-cost coverage
The cheapest coverage doesn’t guarantee the protection you need. However, when shopping for your car insurance, one should look at the benefits and additional coverage offered by the insurance company.
2. Avoid making claims for small expenses
It doesn’t make sense to claim for a fender bender accident, where the amount of damage to your vehicle is minimal. You will lose on accumulated NCB. So, please think twice before claiming.
3. Avoid car insurance policy lapses
Renewing your car insurance policy on time will save you the trouble of losing out on NCB and ending up with no protection cover. In the case of a lapsed policy, your car insurance premium will be recalculated, which literally means policy cover with a higher premium.
So watch out new car learners! You are young but inexperienced. Try following the tips mentioned above to get tips for legal driving as well as buying car policy online.