Car Insurance for Students

Colleges and universities nowadays are filled with students coming with cars. Due to the excitement of owning and driving a car, many students neglect the importance of car insurance. 

If you are also one of them, it’s high time you purchase a car insurance policy. It’s not only essential for your car’s security but also to safeguard you from any sort of legal trouble. 

For those who don’t know, according to the Motor Vehicles Act of 1988 (1), it’s mandatory to have third-party insurance to drive a vehicle on Indian roads. 

In this blog, we’ll discuss the importance of car insurance for students, factors affecting car insurance premiums, the best car insurers in 2024 and much more! 

Let’s begin! 

Why Should Students Buy Car Insurance?

If you are still confused as a student whether you should purchase car insurance or not, read on! Let us explore some of the key considerations for investing in car insurance.

• First and foremost, having car insurance as a student is important in times of unfortunate events such as an accident. It protects you financially if something unfortunate happens, helping you pay all the bills for your car damage or repair costs. 
• Secondly, having a car insurance policy is a significant requirement for complying with road traffic laws. It helps you complete all your legal responsibilities while driving a car, avoiding any legal trouble.
• Lastly, having car insurance also serves your moral duties as a responsible driver. It comes under safer driving habits. 

In a nutshell, by getting car insurance as a student, you not only have financial and legal security but also can drive with confidence.

Was this section convincing enough to make you buy car insurance as a student? If so, let us now move forward to the key considerations while purchasing a policy. 

What Should Students Consider Before Buying Car Insurance?

Needless to say, there are a number of car insurance plans available in the market for students. Choosing the right one among these can be overwhelming. However, with a  few key considerations, you can select the best one for you – 

Coverage Type

There are different types of coverage when it comes to car insurance. Here's a brief overview of the most common types:

• Third-party Liability: This coverage provides coverage against damages and injuries caused to others in an accident where the policyholder is at fault. It includes
• The cost of repair of the third-party vehicle
• Hospitalisation costs of third-party
• Liability due to death of third-party

• Comprehensive Coverage: It covers third-party liabilities and damage to one’s own vehicle due to accidents, theft, and even natural disasters. 
• Standalone Own Damage: This cover protects your own vehicle against damage caused by natural calamities such as earthquakes or storms as well as incidents such as thefts, riots, etc.

Add-Ons

Add-on benefits in car insurance are a great help in providing extra peace of mind. For instance, look for car insurance with zero depreciation add-on. This will allow you to get the full cost of repairs up to your car’s IDV. It’s a necessity if you drive an old car or tend to drive long routes. 

Cost and Discounts

It is essential to ask your insurer about all the available discounts. Also, do not forget to look for student discounts on the car insurance policy. 

Claim Process and Network

While comparing different car insurers, make sure you check their claim settlement ratio. This ratio shows how often they successfully settle the claim. 

Network Garages

Every car insurance company has a specific number of network garages where cashless vehicle repairs are done. Make sure that the insurer you prefer has a nearby network garage. This will be helpful when your car needs repairs! 

You can take it to one of those garages, and the insurance company will settle the bill directly with the service centre. 

Factors Affecting Car Insurance Rates for Students

There are several factors that can significantly affect the car insurance rates for students. Let us explore the major ones in-depth – 

Age and Driving Experience

Being a young driver always brings a higher risk of accidents along with a lack of experience. Therefore, higher insurance premiums are charged to young drivers with minimal experience. 

Type of Vehicle

The car you drive also significantly affects your car insurance rate. It goes without saying that luxury cars or sports cars have higher repair costs. Therefore, car insurance premiums are also higher. Also, if your car has safety features such as airbags and anti-lock brakes, you can avail of some discounts on your insurance rates.

Location

The area in which you are usually going to drive matters. If you usually drive in an area with high traffic, accident rates or theft, the insurance rate might be higher. 

Coverage and Deductibles

Your coverage option will also affect your premium. Higher coverage limits with add-on benefits generally have higher premiums. Moreover, if you opt for a higher deductible, it might help you with a lower premium but more out-of-pocket expenses during a claim.

What is deductible?

Well, it is the fixed amount of money that you must pay by yourself before your coverage kicks in. 

Now, let’s say your original deductible is ₹1,00,000. If you wish to increase the deductible by ₹2,00,000, your insurance policy premium will be reduced. 

Tips to Lower The Car Insurance Premium For Students

Affording hefty car insurance premiums as a student can be challenging. Worry not; here are some key tips that can help you lower your premiums —

Keep a Clean Driving Record: A clean driving record with no accidents and traffic tickets allows you to lower your premiums. Therefore, make sure you drive responsibly. Moreover, you can also take a defensive driving course that can help you earn a discount on your insurance premium. 

Opt for a Higher Deductible: As mentioned earlier, you can go for a higher deductible in your car insurance policy, which will lead to a lower premium. However, do not forget that it’ll lead to higher out-of-pocket costs if something happens.

Look for Student Discounts: Many car insurance providers offer great discounts for students. Properly consult with your insurer and check if there are any discounts just for being enrolled in college or university.

Compare Quotes: The important thing is to make sure you thoroughly compare all the leading car insurers. This will help you to choose the best one that offers great benefits along with lower premiums. 

Best Car Insurance for Students in 2024

Conclusion

We certainly hope that by now, you feel more ready to review different car insurance options and select the best one for yourself!

Remember, car insurance is not only a means of ensuring that you do not incur losses in case of an accident – it is also an important part of being a responsible driver.

All in all, take your time, compare your options, consult a car insurance professional and make sure that you get the right car insurance coverage. Have peace of mind while you focus on your studies, and enjoy your time behind the wheel! 

Frequently Asked Questions

Q1. I am a newbie driver with very minimal driving experience, how will it affect my car insurance premium?

Ans. Higher insurance premiums are charged to young drivers with minimal experience as they have a higher risk of accidents along with lack of experience.

 Q2. I own a sports car. Will I be charged the same premium as any regular car? 

Ans. Luxury cars or sports cars have higher repair costs, therefore, car insurance premiums for the same are also higher as compared to any regular car.

 Q3. What is the network garage range offered by HDFC Ergo General Insurance? 

Ans. HDFC Ergo General Insurance has a wide range of 8000+ network garages. 

 Q4. Do students get any discounts on car insurance premiums? 

Ans. Many car insurance providers offer great discounts for students. It is advised to consult with your insurer properly and check if there are any discounts just for being enrolled in college or university.

Q5. Which is the best car insurance plan for students? 

Ans. There are a lot of car insurance options from which students can choose  — 

• HDFC Ergo Car Insurance
• ICICI Lombard Car Insurance
• IFFCO Tokio Car Insurance
• The New India Assurance Private Car Insurance
• Tata AIG Car Insurance
• SBI General Private Car Insurance
• Digit Car Insurance
• The ultimate choice depends on the student’s financial needs and preferences.