The Best Car Insurance Policy for First-Time Drivers: What to Look For

Purchasing a new car always fills you with great excitement; however, it also comes with a host of responsibilities. One of the most important tasks is obtaining a car insurance policy, which is essential for protecting your vehicle against potential damages.

Amidst the pool of vehicle insurance companies and numerous options, you might feel overwhelmed while looking for the best plan. So read this blog till the end to find out how you can opt for the best car insurance plan.

What are the Basics of a Car Insurance Policy?

All first-time drivers must be aware of the fundamentals of a car insurance plan before diving into the specifics. Likewise, car insurance companies provide you with financial assistance in the event of theft or accident of your car.

Some of the coverage you can opt for includes:

a. Third-Party Liability Coverage

In the event of third-party damage, when another person's property, vehicle, etc., gets damaged due to the insured member while driving, the policyholder becomes liable to pay for the damages caused. Third-party liability coverage financially covers those expenses.

b. Comprehensive Car Insurance Coverage

Comprehensive car insurance provides the maximum coverage for your vehicle, ensuring utmost security. This type of plan is infused with several benefits and hence comes at a higher cost. However, it also offers an unmatched range of protection against all kinds of risk factors such as theft, damage by animals, electrical damage, etc.

c. Uninsured Motorist Protection

Whenever your vehicle faces any damage due to a third-party accident, but the third party does not have an insurance plan, your uninsured motorist protection can pay for the expenses. It is more effective than third-party liability coverage, which might not be enough for many cases. Besides, it covers both your vehicle repair expenses and medical bills caused by the accident.

d. Personal Accident Coverage

Personal accident protection provides financial coverage for the medical expenses of the driver and the passengers in a car that met with an accident. This plan pays for the medical expenses, irrespective of whether the accident was caused by a third party or the insured vehicle.

e. Own Damage Coverage

This type of coverage provides financial assistance for the damages of your insured car regardless of whether you or another party caused the damages.

Also known as the collision damage cover, it is ideal for people living in accident-prone areas.

What to Consider While Selecting the Best Car Insurance Policy for You?

You need to look at a few essential points before opting for a car insurance policy. It is especially crucial if you are a new or young driver. So go through the following points before selecting the best car insurance policy for you:

a. Coverage Options

You must explore the type of coverage offered by your shortlisted insurance companies. Based on the requirements, you can determine the coverage you need depending on your car’s model and your selected budget.

b. Affordability

It is quite common for first-time drivers to have a strict budget. Thus, you need to look for the premiums or cost of purchasing the insurance plan that lies within your budget. The policy should be affordable without compromising on the coverage you need.

c. Deductibles

A deductible is the amount that the policyholder pays from his own pocket to cover the expenses of the vehicle. As first-time drivers, you could aim for the ones that come with little or zero deductible policies to help save as much as possible.

d. Claim Settlement Ratio

The claim settlement ratio is the indicator of how reliable the car insurance company is in settling the claims of its customers. Hence, you must research the same and go for the one that comes with a higher claim settlement ratio, say over 90%.

e. Customer Assistance

Ensuring responsive customer support is one of the crucial things to consider. You must check that the insurance company you are going for offers a prompt and reliable customer support team that is available 24 hours to help resolve any issues faced.

f. No-Claim Bonus

Most car insurance providers offer bonuses and incentives every year with no claim. You need to ensure the company you are going for offers a decent no-claim bonus, adding to your convenience.
Additional Benefit

Riders, also known as add-ons, are the additional benefits you can include in your existing car insurance plan to further enhance the coverage you receive. It is essential to review the additional benefits and evaluate how they can help you in the long run.

The Bottom Line

To wrap it up, selecting the right car insurance policy for first-time drivers requires careful consideration of several important factors. Since it is a mandatory requirement for all vehicle owners, you must opt for a suitable plan by mindfully researching the cost, coverage, reliability, etc.

So make sure to evaluate your requirements, determine a realistic budget, and opt for the car insurance plan that perfectly aligns with your needs.

*Disclaimer: The stocks, companies, and policies discussed above aren't recommendations from Finology Insider but guest content and shall not be construed as a replacement for professional advice. Consult a professional or conduct the necessary research before making investment decisions.