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June 16, 2024
Business Finance

Tips to buy insurance for young and new drivers

For young and new drivers, driving can be an exciting experience. The thrill of zooming around the city in your own vehicle is certainly very pleasurable. Long drives and weekend getaways with friends and family are, no doubt, very alluring.

However, it is also imperative that you drive safely as the risks of reckless and inattentive driving far outweigh the pleasures of driving. So, at all times, you must obey traffic rules, wear your seat belt, drive with a valid driver’s license, and not drive under the influence of alcohol or any other prohibited substances.

Apart from these basic steps, you must also purchase a robust car insurance company to protect you and your car against any unanticipated risks.

In this article, we discuss some tips to help young and new drivers purchase an effective car insurance. 

Understand the different types of insurance and decide which one to purchase

Before purchasing a car insurance, it is important to understand the various types of insurance available, along with their benefits. Only then will you be able to make an informed decision about which one to purchase.

There are two types of motor insurance available: third-party liability motor insurance and comprehensive motor insurance. The former provides coverage to you against any liability caused to a third-party person or property when you are at fault. On the other hand, comprehensive motor insurance is, as the name suggests, more expansive. It provides coverage not only for third-parties but also for your car in the event of an accident, theft, natural calamity, or manmade disaster.

Now, as a new driver, it is important that you evaluate which of the two policies you would like to purchase. This will depend on many factors which include the value, model, and type of car you own as well as the frequency of your driving.

For instance, if your car is brand new and expensive, and you drive very often, it is only logical that you purchase a comprehensive car insurance policy. This is because you do not want to be left in a lurch if any damages occur to your new car. However, if your car is a used one, and if you drive occasionally, the likelihood of accidents are less. In such cases, a third-party liability insurance might suffice.

Reduce your insurance risk

The price of motor insurance increases on the basis of the risk that the insurer perceives you carry. You can reduce the risk that you might potentially be to an insurer by various means. For instance, you can install safety features such as gear lock and collision warning technology in your car, so that it becomes safer and less vulnerable to thefts and accidents. Also, the best manner of reducing your risk is by simple driving safely and following road safety regulations.

Analyze the offerings of various insurance providers

There is no dearth of insurance providers in the market. While some of them provide lucrative deals and have great offerings, others might make spurious claims to lure first-timers into buying their products. To avoid such a scenario, it is imperative that you evaluate the features of various insurance providers. A few clicks on the internet can help you compare and contrast the features of various insurance providers, helping you make an informed decision about which one to purchase.

Also, be sure to read the fine print of each insurance policy – there could be many hidden terms and conditions that you might overlook if you do not read the policy document in a meticulous manner.

Check up on the insurer 

Apart from evaluating the features of an insurance provider, it is essential that you browse through the internet to understand the customer experience provided by each insurer. Reading feedback of other customers is, perhaps, the most important factor in helping you make a decision about which insurer to select.

Check for other important features of the insurer such as its claims settlement ratio – the better the ratio, the more likely is the insurer to settle your claim – and claims settlement time – the quicker the time, the quicker your claim will get settled. 

Select the add-on features thoughtfully

Depending on your requirements, you can select a few add-on covers to your insurance policy to make it more robust. However, these add-ons increase the price of the insurance. So, you must select the add-on covers in a prudent manner by evaluating your needs carefully. 

Car insurance is not just mandatory but also beneficial, specially for first time drivers. Also, with most insurers providing insurance online, the process of purchasing a car insurance is no longer cumbersome and time-taking.

Armed with this information, we are certain that you will make a wise decision in purchasing a great motor insurance.

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