Car Insurance Do’s and Don’ts for College Drivers

By | August 12, 2018

Even the most experienced drivers don’t always know the subtle difference that can make your driving experience a child’s play! In case you’re a new driver, here’s how you can make driving safer, than being sorry.

This article is especially for our young, energetic and new age college drivers who are in complete perplexity on how to go about buying a Car Insurance policy!

It is every college goers dream to get behind the wheels and every parent’s nightmare to see their child’s life in jeopardy in terms of reckless driving, drunk and drive etc. Statistics state that it is four times likely for a teenager to die in a car crash than drivers aged between 25 to 69 years. College goers have been mostly seen flaunting their parent’s car on the Indian roads without any driving expertise and knowledge. Over speeding, lack of use of seat belts increases the probability of an accident.

Thus, it is vital for them to understand the importance of driving rights and be responsible citizens for a better tomorrow.

Let us first start with the Do’s and Don’ts of driving for college students.

Apart from the essentials like keeping your eyes on the road, keeping the first-aid box handy and not using a cell phone while driving, there are other things that a new age driver should keep in mind.

Like…

Things to keep in mind while driving

  • To compulsory wear seat belts.
  • To follow the speed limit.
  • To keep a tab on your regular car maintenance.
  • To plan in advance long car trips and keep your car stocked with essentials like a road map, Stepney tyre and other tools related to it.
  • To keep car related documents like car insurance copy, RC copy, driving licence etc. handy.

Things to avoid while driving

  • Don’t drink and drive.
  • Don’t engage yourself in other activities like eating, putting makeup etc.
  • Don’t play your music system so loudly that you are unable to hear sirens or any other alerts.

Even if you have mastered your driving skills, there is no guarantee that you and your car are safe. Accidents can also happen due to traffic congestion, pollution, fog, haze etc. Saving yourself from unexpected and unlikely events is necessary. The only means one can do this, is by getting a Car Insurance policy. However, what’s better than buying online car insurance! Not only college drivers, but anyone can opt for a car insurance online.

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 i.e. Third party (only) liability coverage and Comprehensive policy covers available.

About Third Party Lability Coverage (TP)

The third party only or (liability cover) will compensate for the damages caused to a third party and their property. The quote for a TP policy will include components like…

  • The basic third party car insurance premium for the year 2018-2019 is mentioned below (depending on the cubic capacity of your car):
CUBIC CAPACITY PREMIUM APPLICABLE
Not exceeding 1000cc
Rs.1,850
Above 1000cc but lower than 1500 cc
Rs.2,863
Exceeding 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 you can opt for, since it covers damages to your car as well as the third party. Apart from that it also covers loss through man-made (like theft, burglary, etc.) and natural calamities (like flood, cyclone, etc.). The quote for a comprehensive policy will include components like…

  • Own-damage premium (depends on factors like IDV, engine capacity, and vehicle RTO)
  • Third party premium
  • The Premium for personal Accident for Owner Driver (cover) – Rs. 100
  • Charges for add-ons (additional coverage)
  • Goods & Services Tax @ 18%.

Takeaway

  • A comprehensive policy will be beneficial as it covers both own damage and third party damage.
  • Having a third party policy is compulsory as per the Indian Motor Act, 1988.

Buying car insurance online is as simple as a piece of cake. However, one should keep few things in mind before buying a car insurance policy.

Do’s While Buying a Car Insurance Policy

1. First compare and then buy online

Drawing a comparison with regards to features, plans, benefits, premiums offered by different insurance companies is a key to analyse if all are providing the same kind of coverage. Comparing alone can help you to narrow down on the type of car insurance you want.

2. Evaluate your add-on covers

Additional covers enhance your policy coverage. Which means it gives your policy a double protection. Covers like Road Side Assistance (RSA), Zero Depreciation and Engine protectors are a must have, especially if it’s a brand new car.

  • Road Side Assistance CoverIf you are stuck in the middle of a road due to a flat tyre or engine failure etc., it will allow you to call your insurer and send car mechanic
  • Zero/Nil Deprecation CoverParts of your car like metal, fibre, plastic are waived off, thus making you eligible for a higher amount of claim. Example: In case of a policy with no add-on cover like this will have to bear 50% of the plastic cost, rubber, nylon parts. Whereas, in a Zero/Nil deprecation policy these parts are 100% covered.
  • Engine protection CoverThis cover will provide protection against additional expense incurred against car engine damage.

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.

Don’ts While Buying Car Insurance

1. Avoid looking for low-cost coverage

The cheapest coverage doesn’t ensure the protection you need. However, while shopping for your car insurance, one should look for the benefits and additional coverage offered by an insurance company.

2. Avoid making claims for small expenses

It does not make sense to claim for a fender bender accident, where the amount of damage to your vehicle is little. You will lose out on the accumulated NCB. So, please think twice before claiming.

3. Avoid lapsing of car insurance policy

Renewing your car insurance policy on time will keep you out of trouble like losing on the NCB and ending up with a no protection cover. The case with lapsed policy is that your car insurance premiumwill be calculated all over again, which literally means a policy cover with a high premium.

So attention new car learners! You are young but inexperienced. Try to follow the tips mentioned above to get an insight on legitimate driving as well as tips on buying a car policy online.

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