Car insurance for young drivers and what parents should know

According to the Motor Vehicle Act of 1988, a vehicle owner must have vehicle insurance. Insurance policies offer coverage in case of accidents, thefts and more. Car insurance for young drivers is equally important, if not more. Insurer follow different plans for young drivers. In this article, we will cover everything that you should know as a parent or a young driver to avoid getting into trouble.

Why is car insurance for young drivers expensive?

First things first, if you are planning to give your child the privilege of driving a car. They should have a driver’s license. Now, let’s discuss car insurance.

Several factors make insurance policies for young drivers expensive. Here’s a list of factors that insurers asses before offering insurance-

1. Vehicle MMV (make, model and type)

2. Driver’s age

3. Driving record

4. Add ons

5. Coverage type

6. No claim bonus (if any).

Which insurance is good for young drivers?

As a parent of a young driver or a young driver under the age of 25, it is important to choose a car insurance for young drivers after evaluating all factors:

To begin with, car insurance policies can be categorically divided into two types-

• Third-party car insurance

• Comprehensive car insurance

Both are designed to offer coverage in case of unfortunate events. However, comprehensive car insurance is recommended for young drivers as it provides coverage in cases of accidents, damages, and theft, as opposed to coverage only for third-party damages, which is mandatory as per Motor Vehicle Act, 1988. Additionally, as a young driver, the chances of damage are typically higher. A comprehensive insurance plan will offer better coverage for such damages.

How to reduce car insurance premiums?

In addition to gaining driving experience, young drivers can use these tips to reduce car insurance premiums-

1. Compare quotes online to find premiums that suit your budget. Use the car insurance premiums calculator to help you evaluate.

2. Secure your vehicle with anti-theft devices as these are approved by the Automotive Research Association of India.

3. Ditch add-ons that do not add value to the coverage. Not all add-ons on an insurance plan will add value or serve your needs.

4. Avoid purchasing high-end luxury vehicles as these have a high premium rate. Prefer a safer vehicle for your young.

Wrapping up

A high premium for car insurance can become a problem for young drivers, but if you work on your driving skills, gain experience, and carefully evaluate plans from insurer, you can find affordable premiums.