Buying car insurance for the first time can be a daunting task, especially with the multitude of available options. However, it is an essential investment that ensures you are financially protected in case of accidents or other mishaps. In this article, we have compiled the best tips for first time car insurance buyers to help you navigate through the process and find the most suitable coverage for your needs.
20 Best Tips for First Time Car Insurance Buyers
There is a good chance that if you buy car insurance for the first time then it is also for your first car. However, if you have bought cars before but haven’t had them insured then to you we say made a mistake once fine but don’t repeat it. Let us begin our list.
1. Research Beforehand
To make sure you aren’t scammed, ideally, you should go in prepared. By prepared we mean you should have an idea about general insurance policies and the kind of clauses that you may come across when looking for one.
Compare policies, ask questions, check for the smallest of details, and use calculators if needed but do your research before you ask someone for their opinion or suggestion.
2. Know the Important Ratios
Three things to know like the back of your hand when signing up for insurance are claims settlement, claims repudiation, and claims pending.
Claims data is an important parameter, and it can help you pick between two similar sound schemes and so always check out for such ratios before you sign the dotted line.
3. Learn about Third Party Insurance
There might be some jargons that you don’t understand but they might be important. One such term is third-party insurance.
Such a scheme is beneficial for the party involved in the accident with you and not for you or the insurance company. So any loss that you suffer after signing this type of insurance won’t benefit you.
4. Understand What you are Buying
As a first time car insurance buyer you may not know what you are getting into. Therefore you need to be extra careful when going through the documents before signing them.
Understand who is the beneficiary, the coverage duration, the premium payable for the coverage, and other such details and only then proceed with it.
5. Learn about Comprehensive Coverage
A plain old scheme may not be the most ideal option to go with. There are umbrella packages where the insurance covers multiple factors related to the accident.
You can add on important stuff such as medical and health insurance expenses, zero depreciation cover clause, and other important things in it to get you a well-rounded policy.
6. Do Continuous Evaluation
The first time car insurance cost may come across as a surprise if you haven’t researched well. However, even if you have ended up signing a pricey contract you could still make some changes to lower the costs.
Make sure to evaluate the contract from time to time and makes necessary changes, this may also help you cut down costs.
7. Check your Credit Score
Your credit score is crucial in determining the premium rate you will be paying for the insurance. So keep your credit score in check. Things like gender, age, or other basic details won’t impact the insurance credit score.
8. Sign for Personal Cover
Make sure that you sign up for personal coverage and that it covers all kinds of mishaps that an accident can cause. Because if you end up signing a contract that doesn’t cover your losses then there is no use of such a contract.
9. Purchase Bundled Insurance for the Car
If you have more than one car, then make sure to sign up for bundled car insurance from a single company. These types of insurance get your car premium a discount.
10. Know about Compulsory Deductibles
There have been a couple of terms, ratios, and phrases that we have already mentioned above that you should be aware of. To that list add the compulsory deductible amount.
This is the minimum amount that a policyholder pays for each claim and it varies for different vehicles.
Cross-reference: You can save 20% on car insurance premium if you buy Pay As You Drive; who should opt for it?
11. Learn about Voluntary Deductibles
Just like compulsory deductibles you have voluntary deductibles, however, these are not compulsory. They can help reduce the amount of insurance premium payable so keep an eye out for them.
12. Find the IDV
Insured Declared Value or IDV is the maximum amount that you can claim for a car under a policy. You must know the value of your car so that you receive fair compensation for it.
A newer car receives better coverage than an older model, however, registration and insurance costs are not included in this value.
13. Be Aware of No-Claim Bonus
If you don’t use your insurance for the period extending over a year, then you get a bonus for the same. You should be aware of these things when signing the contract.
14. Understand Your Location and Your Cars’ CC
When you consider finding cheap car insurance for first time drivers you should understand that your location and your car’s cubic capacity matter. Premium costs are lower in tier 2 or 3 cities and vice versa.
15. Know the Effect of Customization on Insurance
Engine parts and certain mechanical parts may not be eligible for insurance once you go ahead and get them modified. Standard insurance plans don’t cover every modified part so find out beforehand what is covered and what isn’t before you go ahead with any sort of modification.
16. Check out Cashless Option
If a company offers to provide a cashless option, then it is worth considering their policy. However, it should not be the biggest factor in choosing a policy over the other.
17. Know the Proximity of Network Garages
It is advantageous if the company whose policy you take has more garages and is close to where you live. This can be a very important factor when considering whom to sign with.
18. Choose Speedy Coverage
Ideally, you go for a company who are quick in settling your claim. In today’s time, quick and better services are the USP for any company and so that should surely be taken into account.
19. Choose the Best Customer Service
As a first time car insurance buyer, if you may feel that customer service is not important, then you cannot be more wrong. Once you sign up a contract, these come into play and assist you with various things.
So go with a company that offers the best possible customer assistance because you will need their help down the line.
20. Check Online Policies
It is quicker and better to look for a policy online than going through all the physical paperwork and manual research.
Cross-reference: How Modifications To Your Car Impacts Insurance Policy: Report
Compulsory Insurance for New Car
You now know the tips and terms to keep in mind when getting car insurance but did you know about compulsory insurance for a new car? The Motor Vehicle Act of 1988 makes it compulsory to sign your vehicle up for an insurance policy before you can take it on the road.
And if you fail to comply with this rule then you are subject to heavy fines and other penalties. You could be fined 1,000 rupees or be jailed for 3 months if you violate this act.
An official certificate of insurance is issued by the insurance company. This provision makes rule number 141 of the Central Motor Vehicle Rules 1989.
All details about your car insurance policy are mentioned on this certificate and this certificate needs to be with the driver of the vehicle. The insurance company has to give the certificate to you without fail and you have to produce it to the police inspector during any inspection.
Cheap Car Insurance for First Time Drivers
When getting first time car insurance, the cost of the policy should be one of the main criteria that you look for. And to help you out we will mention some cheap car insurance for first time drivers. You can check out some of the best options available on the market and choose from them.
1. HDFC Ergo Car Insurance
The name HDFC shall do the trick, however, if it does not then you should know that they offer a range of cheap policies which takes care of various coverage requirements.
They aren’t just budget-friendly, they also offer unparalleled services as you can use their overnight repair services in 13 main cities of India. In addition, they also have 6,800 garages in total all over India.
2. ICICI Lombard Car Insurance
To comply with the rule of compulsory insurance for new cars you can sign up for one of ICICI Lombard’s pocket-friendly plans. They offer cheap plans for people who wish to get car insurance.
Their policies include benefits such as no claim bonus, towing facility, and more. Also, their customer service is considerable and so this option is a good one to consider getting.
3. Royal Sundaram Car Shield Plan
If you are a first time car insurance buyer looking for cheap insurance plans, then you can stop looking now. Royal Sundaram’s policy is not only affordable but also one of the best that you can get.
Their presence across India is great. They have over 4,500 garages where you can find help and they also offer cashless settlements which makes your life easier.
4. Bharti AXA Car Insurance
They have over 3,000 garages across India so you don’t have to ever worry about being stuck after an accident when you sign up with them.
Their policies offer add-ons such as co-passenger cover, no claim bonus, zero depreciation, and more. Apart from that they offer cheap plans with features such as 24/7 claim assistance, third-party car insurance coverage, and more.
5. Reliance Car Insurance
Reliance is a reliable company no matter what business of theirs you talk about and so undoubtedly their insurance offering had to be on this list.
With their policies, you can expect to get features such as personal accident cover, no-claim bonus, and more. They also offer huge discounts to their customers once they have installed anti-theft devices in their vehicle and when it is used at a specific location.
6. IFFCO Tokio Car Insurance
They are one of the most reputed insurance companies in India and so you can consider going with their policy. They provide various kinds of policies at pocket-friendly rates. And to make things better they also have a network of over 4,300 garages across India.
7. United Car India Insurance
As a first time car insurance buyer if you are looking for affordable policies then your search ends here. If you are looking for features such as third-party coverage, quick settlement, no claim bonus, or something similar then you have got to check out their range of policies.
Cross-reference: How coverage limits affect your motor insurance policy
First Time Car Insurance Cost
Below we have mentioned the first time car insurance cost of various companies. These options provide the cheapest options that any car insurance company can offer. From here you do your research and choose the best for yourself.
| Name | Premium | Garage Network | USP | Features |
| HDFC ERGO Car Insurance | Plans start at 2,094 rupees | 6,400+ | 100% claim settlement ratio | Overnight repairs, doorstep windshield repairs, and more |
| ICICI Lombard Car Insurance | Plans start at 2,094 rupees | 5,700+ | Cashless settlements | Instant motor claims, good customer support, and more |
| Royal Sundaram Car Shield Plan | Up to 2,500 rupees | 4,500+ | Compulsory personal accident cover | Covers loss or damage caused by natural as well as man-made calamity among other things |
| Bharti AXA Car Insurance | N/A | 3,000+ | Hydrostatic cover | Engine cover, gearbox cover and more |
| Reliance Car Insurance | N/A | 8,500+ | Cashless garage | Cover for third party property and injuries caused in accident among other things |
| IFFCO Tokio Car Insurance | Rupees 6 per day | 4,300+ | App based claim settlements in under 4 hours | 24/7 support and road assistance among other stuff |
| United India Car Insurance | N/A | N/A | Cashless garages | Cover claims under natural and manmade disasters among other things |
There you have all options of cheap car insurance for first time drivers. And with that, you also have some of the most important tips for first time car insurance buyers.
Once you have understood the terms and conditions as well as what insurance should cover, you can then easily choose one. We recommend that as an owner of a new car, you should make it a rule of thumb to have compulsory insurance for a new car, or else you may come to regret your decision later.
