Best Car Insurance for Young & New Drivers in India: Finding Affordable Coverage

When it comes to finding suitable car insurance, young drivers in India often find it difficult especially from a budget point of view. Insurance premium prices for new drivers are often higher than those for people who are in their late 20s and beyond since young drivers are often perceived to be risky drivers. However, young drivers and teens can make an informed decision and get affordable car insurance that also meets their needs. Read on to know how to find yourself the cheapest insurance for new drivers. 

Factors That Drive Higher Premium Price of Car Insurance For Young Drivers in India

There are several factors that impact the price of premium when a young driver is buying car insurance. 

• Higher Risk Perception: Since young drivers have less or limited driving experience, they are often viewed as being in a higher risk category by insurance companies.
• Vehicle Type: The type of four wheeler you have also impacts the premium of your car insurance. Usually, expensive cars have a higher premium.
• Geographical Location: Based on the city you buy your car, your insurance premium will vary. Premiums in metro cities tend to be higher than premiums in tier 2 and 3 cities.
• Your Driving History: Even though you are a new driver, your driving history if any - like drunk driving, driving without valid licence, driving with learner’s licence without any adult supervision are all reasons that make your insurance premium price high.

Key Factors to Consider When Choosing The Right Car Insurance for Yourself

• Coverage Options: As a new driver, it is important that you are covered completely. Choose comprehensive insurance coverage that will include both third party and stand alone own damage insurance benefits. This will provide protection to you against any legal or financial liabilities arising due to damaging a third party property or injuring them. This comprehensive insurance will also protect your car against accidents, theft, and man made or natural disasters. 
• Car Insurance Premium Costs: Make it a point to compare premium prices of different insurers. Often insurance companies provide discounts for young drivers like student discounts, discounts on completing safe driving courses etc.
• Add Ons and Benefits: Ensure to evaluate the add ons offered by the insurer and buy only the ones that are necessary as per your requirements like zero dep, roadside assistance, engine protect, consumables protect. These add ons can enhance your car insurance coverage but they also come with an added cost.
• Check for Insurer’s Claim Settlement Ratio (CSR): An insurer’s claim settlement ratio or CSR gives you an understanding of how dedicated the insurer is in solving the claims of their policyholders. A good claim settlement ratio can give you confidence that your claims if any will also have a chance for swift and prompt settlement.
• Check for Insurer’s No Claim Bonus (NCB) Offering: If you do not make any claim in a given policy year, you are eligible to get a no claim bonus which will help in getting you a discount on your next policy premium amount. Make sure you check for the max NCB that the insurer of your choice is ready to provide you. 

Tips for Finding Affordable Car Insurance for Young and New Drivers

1. Compare Quotes: Make sure you compare the quotes of different car insurance companies for young and new drivers. This will help you choose the best plan at the right price available in the market. You can visit https://www.insurancedekho.com/car-insurance  
2. Avail Discounts: Take advantage of discounts available for young drivers. For instance, maintaining a clean driving record or installing anti-theft devices may lower premiums.
3. Pay As You Drive Some insurers offer you the option to pay for the usage of your car. This means you only pay for how much you drive - this is also called telematics or usage-based insurance policy. This helps in lowering your insurance premium.

Top 3 Recommended Car Insurance Providers for Young and New Drivers 2024

1. ICICI Lombard Car Insurance: ICICI Car Insurance is one of India’s leading car insurance providers. With a claim settlement ratio of 93.4%, ICICI Lombard is customer centric and strived to support their customers when the policyholder is in need. ICICI Lombard Car Insurance offers tailor-made solutions to young adults and new drivers.
2. HDFC ERGO Car Insurance: HDFC Ergo Car Insurance has a claim settlement ratio of 100% and is one of the top most preferences of consumers choosing to buy car insurance. HDFC Ergo provides attractive discounts to young adults and new drivers within their comprehensive car insurance policy.
3. Bajaj Allianz Car Insurance: With a claim settlement ratio of 98%, Bajaj Allianz Car Insurance is in the top 3 choices of car insurance holders. They offer innovative and customer friendly add service, catering to young and new driver’s needs.

InsuranceDekho Recommendation on The Insurance to Buy Based on Your Vehicle’s Age

Conclusion

When you are buying car insurance for the first time, make sure you have all the information you need. Talk to an insurance advisor to help you make a wiser choice and one who is able to give you correct information on all plans and assist you in choosing the one that’s right for you.

Connect with an InsuranceDekho advisor whenever you are in need of assistance or buying a car insurance here on call +91-7551196989 or on email support@insurancedekho.com.