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| March 29, 2024

Best Car Insurance for Young and New Drivers

As car sales in India are on a surge, it translates to an increased risk of being involved in accidents. The young generation is full of adrenalin and likes to zoom away in style. Road trips, long rides and just a quick ride nearby are the new normal in the country. However, this enthusiasm must be secured in some form. This is where car insurance comes into the picture.

Things to Consider Before Buying Insurance

Motor vehicle insurance is a compulsory document to possess to drive a vehicle legally on-road. Also, even though third party car insurance comes at a lower price, it is not enough to get your vehicle covered as the policy will only cover damage caused to the affected other party. A comprehensive car insurance policy is a must as it combines the advantages of both, third party and first party.

Here are some aspects to look for in the policy before buying car insurance.

  • Claim procedure
  • Know the basic plan
  • Add-on covers
  • No claim bonus
  • Personal accident cover
  • Insured declared value (IDV)
  • Policy terms
  • Network of garages

Third-party car insurance is a must and saves you from fines in case of an accident. A comprehensive insurance plan protects the vehicle owner from financial damage and liabilities; the comprehensive plan also protects the owner against theft and natural calamities.

Types of Car Insurance for Young Individuals

Before purchasing the best car insurance policy that suits you. You must know the different types of policies on offer. The policy also depends on the type of usage private or commercial use. There are two types of car insurance policies that you can purchase:-

Third-Party Car Insurance

This type of car insurance is mandated by the law. You can also buy this car insurance online. It is the most basic type of auto insurance that covers the damage caused to others in case of an accident. It serves as a minimum legal requirement for better vehicle protection. The insurance company predetermines the coverage limit which may vary based on the policy on the policy terms.

Key Features

  • Convenient purchase process It requires minimal documentation and you can buy third-party liability cover online.
  • Affordable premium rates third-party liability covers are the most basic type of vehicle insurance and this type of car insurance is always easy on the pocket.

Comprehensive Car Insurance

Comprehensive insurance is a shield, protecting your vehicle from uncertainties. It stands as a protective firewall against unforeseen scenarios caused by theft, fire, burglary etc. Comprehensive plans go beyond just covering your vehicle. It is among the best car insurance policies as it offers personal accident cover, providing financial support to you or your family in case of injury or death.

Key features

  • Damage It covers the majority of the financial damage to a third party or property caused by the insured car.
  • Customization Allows customization to meet individual needs, add-ons, and combo packages. etc.

Suggested Read: Difference Between Comprehensive & Third Party Insurance

Key Points to Note

  • It is advisable for new drivers to start with a policy covering the majority of the risk aspects related to the vehicle and other miscellaneous damages, even if it comes at a higher premium.
  • Always provide accurate information to the insurer. Any discrepancies or falsehoods can lead to complications, including policy cancellation or claim rejection.

Muthoot Finance is India's most trusted financial services brand* that provides a variety of financial services to young individuals. We have financial experts who recommend you the best car insurance policy per your requirements. Visit your nearest Muthoot Finance branch to know more.

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